[quote=XBoxBoy]
This thread brings up one of the things that I think people overlook. We whine about how expensive housing in San Diego is, and get lots of talk from politicians about how they are going to create affordable housing. But expensive housing is how we discourage people from moving here (or to stay if they are here). Expensive housing is how we keep San Diego from being even more congested than it is.[/quote]
since this site was more or less started looking at RE, just wondering if other piggs noticed the genius business deal political leadership of this city pulled off (to help address the homeless issue)
[quote] San Diego pays top dollar and near-top dollar for hotels to house the homeless
…The city has borrowed almost half of the $106.5 million it paid for the two hotels
…Commercial real estate broker Adrian Glover has consulted on hotel transactions for decades, representing buyers and sellers. He said the city paid too much for the two Residence Inn properties.
“Hotels are worth probably 30 percent to 40 percent less than they were a year ago because of COVID-19,” he said. “This should have come out in the due-diligence period” of the escrow process.
“The city is short of money. Somebody should be watching the pennies,” Glover said. “This is a windfall for the seller, but it’s a major burden for the buyer.”
…The purchases also will eat into the city’s annual tax revenue as officials confront a $240 million budget deficit.
In addition to the loss of property taxes generated by the two Residence Inns when they were privately held, the city will no longer collect the transient occupancy tax assessed on every room rented.
Based on capitalization rates reflected in the CBRE appraisals — the measure of annual returns on investment — the city will lose about $866,000 a year in hotel taxes, plus $100,000 or more in annual income for the tourism marketing district.
