The last I heard, Blackhorse is a leasehold from UCSD I believe. La Jolla is a great story. There were countless sales in the ’90s for around $300k – $500k. Since then, these properties have inflated into the $ millions. I think it’s important to look at RE from a fundamental value perspective and ignore the hype and speculation. Here’s an example, in 1997 “a home” in La Jolla Farms overlooking the ocean sold for around $1.5MM. Today it’s for sale around $9MM. Does that make sense? Or is this pure hot air? I think the later of the two. Just remember every asset class is cyclical and the RE market is due for a huge return to the mean or an overcorrection. I am confident that La Jolla, Del Mar, RSF and other high end markets will not be immune to the downturn. Cielo in RSF for instance, it’s so far out there. I question that area being a true RSF address I think it’s more Escondido. Any way, there are a lot of homes for sale up there and have been sitting for a very long time with price reductions.
I think it gets worse from here. Be smart with your money, be creative. There are certain investments that stand to do well in an economic downturn. Do your homework but I would say gold could be one. If you have the money for the required minimums, certain hedge funds strategies are going to flourish.
