North Park might turn the corner during the next economic cycle, but the problem for the recent buyers is that it has to suffer through the massive losses of the current cycle first. Between now and then I’m pretty confident that the losses in NP are going to be more than Hllcrest and Banker’s Hill but less than City Heights. North Park is what it is.

Gentrification only works when there’s a shortage of units in the more desireable (central) areas, sufficient to justify the “risks” of moving to the fringes. There is no such shortage of available and desirable condo units in the Marina, Little Italy, Banker’s Hill or Hillcrest areas right now. This is why NP isn’t climbing the status ladder. It basically can’t do a whole lot better until those more centralized areas max out, and that’s years away at this point. University Heights will undoubtably outperform North Park between now and then.

The proof that there is insufficient demand for these units is the fact that the developer is compelled to resort to a sleazy psuedo-auction in an attempt to generate an aura of excitement for them.

BTW, I’ve reviewed appraisals generated for Chase and whoever made the comment that they’d like to see those appraisals is right to be skeptical. I know I am.