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February 11, 2007 at 8:11 PM #8369February 12, 2007 at 8:19 AM #45136
(former)FormerSanDiegan
ParticipantSunset Cove is in a decent area shouldering Bay Park/Clairemont. I think they knocked down a bowling alley to build these units. My guess is that whomever sold the property to the builder is doing pretty well.
But I have to agree. Their main problem is that single family homes in the area are already priced in the 600s range (towards the south/west) and in the 500s range to the north/east. The SFRs don’t have HOA fees so it might be roughly equivalent to buy an older SFR in Bay Park than these units. For me, that’s not a tough sell. It’s an impossible sale.February 12, 2007 at 9:36 AM #45147sdrebear
ParticipantJust a little background on the sale.
I am actually very close with the family who owned Sunset Bowl (used to be Clairemont Bowl). I worked for the owner for several years while finishing college and beyond as part of their property development team and know pretty intimately the details of the sale to William Lyon.
William Lyon is in the hole for well over $15 million on this project just for the property. Yes, $15 mil! I’d say the old owner did very well. He now has other investment projects in LaJolla, Hawaii, and Birdrock. He had a large vacation rental property (about 13 units) called Ecco Sands down in Mission Beach that he flipped in a year for quite a bit of money as well.
Anyway, Sunset Cove is priced probably more out of necessity than anything else, as William Lyon bought right when everything was ramping up in the RE world and in my opinion, WAY overpaid for the property.
This purchase actually began way back in 2002-2003. There were a lot of contingencies going on regarding “if” the city counsel would allow the sale in the first place as it was being converted from a business to a residential area. Also, William Lyon had to cover some financial obligations of the Bowl for possible damage to business from the announcement of a sale. Bowling Alleys rely heavily on leagues for income and when a bowl announces that it will be selling (and closing), then all of these leagues have to find somewhere else to bowl. If the sale did not/could not happen for any reason, Sunset Bowl’s business would have been severely damaged.
As for the neighborhood, it is a strange mix of nice and not so nice. The large rental complex just north of Sunset Cove just went through a major revamping, but it’s still basically low-rent housing. The complex to the south is also all rentals. They tried a condo conversion, but bailed out when the market turned last year. Probably hurt too as they had pretty much cleared out all of their renters by that time. Oops! I have a really hard time seeing high $500’s for these places given their location and the high density of the complex in general. I think they have plans for over 70 units on that lot. All of them 3bd with garages.
All in all (and no offence intended) it’s still Clairemont and $500k+ for a townhouse is just ridiculous.
February 12, 2007 at 10:23 AM #45157PerryChase
ParticipantI visited Sunset Cove. I concur with all the comments about pricing and Clairemont. The townhouses are pretty nice but not for the price they want.
Some units (yet to be constructed) will have nice Bay views. What’s why you should get familiar with neighborboods now, and snatch a good buy (or several) on the resale market half a decade from now.
February 12, 2007 at 12:31 PM #451694plexowner
ParticipantSingle family houses in Clairemont are now being priced in the $430K range
$430K for house and $70K on a remodel
Result: nice 3/2 SFR on its own lot for same price or less than these condos are being sold for – no HOA fees and no HOA rules – no shared walls
Which one would you buy?
February 12, 2007 at 1:22 PM #45176Participant4-plex. That might be a little low, but I agree with your point. 3 of 79 listings for SFR in 92117 are for less than 430K. But, if you go up to ~500K you can get into nicer areas and decent SFRs.
February 12, 2007 at 1:40 PM #45180ParticipantCurrently on the market:
3/1, 1014 SQFT, Mount street in 92111 zip, $433K, backs onto canyon, fresh carpet and paint
This is your basic shit-box in Clairemont but it is on a decent street
Spend the bucks to add a 2nd bathroom and some square-footage, then do the landscaping and this house becomes a MUCH nicer place to live than any condo on Clairemont Drive
~
Of course, this assumes that it makes sense to buy anything right now or that $500K for entry-level housing somehow makes sense …
February 12, 2007 at 1:48 PM #45182ParticipantI once owned a Mt Street house in 92111 on the edge of a canyon, 3/1 1018 sq feet, so I had to look this up. Not the same house, mine was west of Genesee.
4-plex … a great example of the competition that will hinder Sunset Cove. Especially when more properties in this range come on the market.
February 12, 2007 at 2:29 PM #45191ParticipantI think that the newnest of Sunset Cove will appeal to many buyers.
I agree with the buy low and rehab strategy (I’m planning to do just that in Point Loma in the future).
Few buyers see the potential of a house. If they did, the small contractors and flippers would be in the poor house.
The one thing that a new development has going for it is design and presentation. Most people have ugly houses and bad taste. They wouldn’t know how to rehab a house; and when they do, the project is not down right. Builders are able to give buyers a completed product they can enjoy right away. Remember, we live in an instant-satisfaction society.
February 12, 2007 at 3:17 PM #45197CardiffBaseball
ParticipantIf your kids are public school age is there something to be said for the west side of clairemont (Clairemont HS) vs. the Eastern Edge which feeds Madison HS?
Scores are a little better at CHS. Demographics a slight edge to CHS if you are caucasian, MHS, if you are african-american. Otherwise I hear good things about the Mount street area, but of course that’s from my guy in Linda Vista.
January 27, 2008 at 1:42 AM #143343Anonymous
GuestBUMPING this year old thread.
My parents recently called me because they were considering buying a property at Sunset Cove. Apparently, only half of the planned 70+ units were built. They are now offering one of their floorplans for $449,990 with a $20,000 lender incentive which can go towards the purchase price.
Opinions on this? Definitely a better deal now than the mid $500k asking price of a year ago, right? How about relative to the area?
Opinions will be appreciated!
January 27, 2008 at 1:42 AM #143584GuestBUMPING this year old thread.
My parents recently called me because they were considering buying a property at Sunset Cove. Apparently, only half of the planned 70+ units were built. They are now offering one of their floorplans for $449,990 with a $20,000 lender incentive which can go towards the purchase price.
Opinions on this? Definitely a better deal now than the mid $500k asking price of a year ago, right? How about relative to the area?
Opinions will be appreciated!
January 27, 2008 at 1:42 AM #143592GuestBUMPING this year old thread.
My parents recently called me because they were considering buying a property at Sunset Cove. Apparently, only half of the planned 70+ units were built. They are now offering one of their floorplans for $449,990 with a $20,000 lender incentive which can go towards the purchase price.
Opinions on this? Definitely a better deal now than the mid $500k asking price of a year ago, right? How about relative to the area?
Opinions will be appreciated!
January 27, 2008 at 1:42 AM #143618GuestBUMPING this year old thread.
My parents recently called me because they were considering buying a property at Sunset Cove. Apparently, only half of the planned 70+ units were built. They are now offering one of their floorplans for $449,990 with a $20,000 lender incentive which can go towards the purchase price.
Opinions on this? Definitely a better deal now than the mid $500k asking price of a year ago, right? How about relative to the area?
Opinions will be appreciated!
January 27, 2008 at 1:42 AM #143687GuestBUMPING this year old thread.
My parents recently called me because they were considering buying a property at Sunset Cove. Apparently, only half of the planned 70+ units were built. They are now offering one of their floorplans for $449,990 with a $20,000 lender incentive which can go towards the purchase price.
Opinions on this? Definitely a better deal now than the mid $500k asking price of a year ago, right? How about relative to the area?
Opinions will be appreciated!
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