Condo Conversions

[AK]

Parents invested in a condo conversion at the tail end of the ’70s boom. After brief appreciation the market tanked, and comps fell by 40% or so (for those units that actually sold). The seller failed to disclose that the complex was in the middle of a flood zone, which everyone found out the hard way a few years later. By then the lender (a well-known S&L of the era) was the only party left to sue. HOA fees doubled within a few years due to vacant units.

They were able to sell at a break-even price in 1989. Since then the complex has gone through a major boom-bust cycle and comps aren’t that far above 1979 levels.

[bubble_contagion]

You could try asking people in the UTC area where there are about 5 large apts complexes that went condo. I rent next to one of those, The Venetian. In 2004, at the peak of the bubble, the 2-bed, 2-bath conversions were being offered for $480K by the company that did the conversion. I still have the brochures. Today you can find listings in the MLS asking $280K. They might sell for less. The place has gone to the dogs, “Investors” that bought those condos rent them out to people that wouldn’t be able to qualify to rent in the area. I have seen families with teenagers living in the tiny condos. Apparently you can have dogs in condos but not in apartments so now the neighborhood is full of dogs that poop all over the place. Crime rate has also gone up and I see more minorities (not Asian). In my opinion conversions have brought UTC down.

[bubble_contagion]

You could try asking people in the UTC area where there are about 5 large apts complexes that went condo. I rent next to one of those, The Venetian. In 2004, at the peak of the bubble, the 2-bed, 2-bath conversions were being offered for $480K by the company that did the conversion. I still have the brochures. Today you can find listings in the MLS asking $280K. They might sell for less. The place has gone to the dogs, “Investors” that bought those condos rent them out to people that wouldn’t be able to qualify to rent in the area. I have seen families with teenagers living in the tiny condos. Apparently you can have dogs in condos but not in apartments so now the neighborhood is full of dogs that poop all over the place. Crime rate has also gone up and I see more minorities (not Asian). In my opinion conversions have brought UTC down.

[bubble_contagion]

You could try asking people in the UTC area where there are about 5 large apts complexes that went condo. I rent next to one of those, The Venetian. In 2004, at the peak of the bubble, the 2-bed, 2-bath conversions were being offered for $480K by the company that did the conversion. I still have the brochures. Today you can find listings in the MLS asking $280K. They might sell for less. The place has gone to the dogs, “Investors” that bought those condos rent them out to people that wouldn’t be able to qualify to rent in the area. I have seen families with teenagers living in the tiny condos. Apparently you can have dogs in condos but not in apartments so now the neighborhood is full of dogs that poop all over the place. Crime rate has also gone up and I see more minorities (not Asian). In my opinion conversions have brought UTC down.

[bubble_contagion]

You could try asking people in the UTC area where there are about 5 large apts complexes that went condo. I rent next to one of those, The Venetian. In 2004, at the peak of the bubble, the 2-bed, 2-bath conversions were being offered for $480K by the company that did the conversion. I still have the brochures. Today you can find listings in the MLS asking $280K. They might sell for less. The place has gone to the dogs, “Investors” that bought those condos rent them out to people that wouldn’t be able to qualify to rent in the area. I have seen families with teenagers living in the tiny condos. Apparently you can have dogs in condos but not in apartments so now the neighborhood is full of dogs that poop all over the place. Crime rate has also gone up and I see more minorities (not Asian). In my opinion conversions have brought UTC down.

[bubble_contagion]

You could try asking people in the UTC area where there are about 5 large apts complexes that went condo. I rent next to one of those, The Venetian. In 2004, at the peak of the bubble, the 2-bed, 2-bath conversions were being offered for $480K by the company that did the conversion. I still have the brochures. Today you can find listings in the MLS asking $280K. They might sell for less. The place has gone to the dogs, “Investors” that bought those condos rent them out to people that wouldn’t be able to qualify to rent in the area. I have seen families with teenagers living in the tiny condos. Apparently you can have dogs in condos but not in apartments so now the neighborhood is full of dogs that poop all over the place. Crime rate has also gone up and I see more minorities (not Asian). In my opinion conversions have brought UTC down.

[Jenelle]

Hi everybody,

Thanks for your responses! In case you are curious, I am writing a law review article about how the law has failed to keep up with the proliferation of conversions in the last several years. I’m nearing the end of writing I was just hoping for some personal anecdotal stories to round it out so I appreciate your help 🙂

When I began researching this last Fall I had no idea what a can of worms conversions were. They really can be valuable for the community, when done correctly, but there were so many people in it for a quick buck it’s amazing.

I recall moving into my apartment a couple years ago and signing a disclosure that they might convert at any time. I just can’t even fathom that. If the market were still up they probably would try- kicking out several good long-term tenants- because we’re near the beach where people always want to live. But the building is 40 years old and falling apart around us! It’s fine as a rental because I can call the maintenance guy, which I do, quite often, but I would be irate if I was paying $350,000 for a pile of problems like this.

Anyway, I’ve been lurking on this site for awhile and I really enjoy all your comments. I was living in the central valley at the height of the bubble and recall looking around at the vast plains of identical new houses being built and wondering who the heck is going to live in those?? Where are the jobs to support the people living in those?? The jobs were all in the construction, real estate, etc. And now that area is one of the foreclosure capitals.. I don’t know how no one else could see that coming.

Anyway, thanks again for your help guys!
-Jen

[Jenelle]

Hi everybody,

Thanks for your responses! In case you are curious, I am writing a law review article about how the law has failed to keep up with the proliferation of conversions in the last several years. I’m nearing the end of writing I was just hoping for some personal anecdotal stories to round it out so I appreciate your help 🙂

When I began researching this last Fall I had no idea what a can of worms conversions were. They really can be valuable for the community, when done correctly, but there were so many people in it for a quick buck it’s amazing.

I recall moving into my apartment a couple years ago and signing a disclosure that they might convert at any time. I just can’t even fathom that. If the market were still up they probably would try- kicking out several good long-term tenants- because we’re near the beach where people always want to live. But the building is 40 years old and falling apart around us! It’s fine as a rental because I can call the maintenance guy, which I do, quite often, but I would be irate if I was paying $350,000 for a pile of problems like this.

Anyway, I’ve been lurking on this site for awhile and I really enjoy all your comments. I was living in the central valley at the height of the bubble and recall looking around at the vast plains of identical new houses being built and wondering who the heck is going to live in those?? Where are the jobs to support the people living in those?? The jobs were all in the construction, real estate, etc. And now that area is one of the foreclosure capitals.. I don’t know how no one else could see that coming.

Anyway, thanks again for your help guys!
-Jen

[Jenelle]

Hi everybody,

Thanks for your responses! In case you are curious, I am writing a law review article about how the law has failed to keep up with the proliferation of conversions in the last several years. I’m nearing the end of writing I was just hoping for some personal anecdotal stories to round it out so I appreciate your help 🙂

When I began researching this last Fall I had no idea what a can of worms conversions were. They really can be valuable for the community, when done correctly, but there were so many people in it for a quick buck it’s amazing.

I recall moving into my apartment a couple years ago and signing a disclosure that they might convert at any time. I just can’t even fathom that. If the market were still up they probably would try- kicking out several good long-term tenants- because we’re near the beach where people always want to live. But the building is 40 years old and falling apart around us! It’s fine as a rental because I can call the maintenance guy, which I do, quite often, but I would be irate if I was paying $350,000 for a pile of problems like this.

Anyway, I’ve been lurking on this site for awhile and I really enjoy all your comments. I was living in the central valley at the height of the bubble and recall looking around at the vast plains of identical new houses being built and wondering who the heck is going to live in those?? Where are the jobs to support the people living in those?? The jobs were all in the construction, real estate, etc. And now that area is one of the foreclosure capitals.. I don’t know how no one else could see that coming.

Anyway, thanks again for your help guys!
-Jen

[Jenelle]

Hi everybody,

Thanks for your responses! In case you are curious, I am writing a law review article about how the law has failed to keep up with the proliferation of conversions in the last several years. I’m nearing the end of writing I was just hoping for some personal anecdotal stories to round it out so I appreciate your help 🙂

When I began researching this last Fall I had no idea what a can of worms conversions were. They really can be valuable for the community, when done correctly, but there were so many people in it for a quick buck it’s amazing.

I recall moving into my apartment a couple years ago and signing a disclosure that they might convert at any time. I just can’t even fathom that. If the market were still up they probably would try- kicking out several good long-term tenants- because we’re near the beach where people always want to live. But the building is 40 years old and falling apart around us! It’s fine as a rental because I can call the maintenance guy, which I do, quite often, but I would be irate if I was paying $350,000 for a pile of problems like this.

Anyway, I’ve been lurking on this site for awhile and I really enjoy all your comments. I was living in the central valley at the height of the bubble and recall looking around at the vast plains of identical new houses being built and wondering who the heck is going to live in those?? Where are the jobs to support the people living in those?? The jobs were all in the construction, real estate, etc. And now that area is one of the foreclosure capitals.. I don’t know how no one else could see that coming.

Anyway, thanks again for your help guys!
-Jen

[Jenelle]

Hi everybody,

Thanks for your responses! In case you are curious, I am writing a law review article about how the law has failed to keep up with the proliferation of conversions in the last several years. I’m nearing the end of writing I was just hoping for some personal anecdotal stories to round it out so I appreciate your help 🙂

When I began researching this last Fall I had no idea what a can of worms conversions were. They really can be valuable for the community, when done correctly, but there were so many people in it for a quick buck it’s amazing.

I recall moving into my apartment a couple years ago and signing a disclosure that they might convert at any time. I just can’t even fathom that. If the market were still up they probably would try- kicking out several good long-term tenants- because we’re near the beach where people always want to live. But the building is 40 years old and falling apart around us! It’s fine as a rental because I can call the maintenance guy, which I do, quite often, but I would be irate if I was paying $350,000 for a pile of problems like this.

Anyway, I’ve been lurking on this site for awhile and I really enjoy all your comments. I was living in the central valley at the height of the bubble and recall looking around at the vast plains of identical new houses being built and wondering who the heck is going to live in those?? Where are the jobs to support the people living in those?? The jobs were all in the construction, real estate, etc. And now that area is one of the foreclosure capitals.. I don’t know how no one else could see that coming.

Anyway, thanks again for your help guys!
-Jen

[DWCAP]

[quote=Jenelle]Hi everybody,

Thanks for your responses! In case you are curious, I am writing a law review article about how the law has failed to keep up with the proliferation of conversions in the last several years. I’m nearing the end of writing I was just hoping for some personal anecdotal stories to round it out so I appreciate your help 🙂

When I began researching this last Fall I had no idea what a can of worms conversions were. They really can be valuable for the community, when done correctly, but there were so many people in it for a quick buck it’s amazing.

I recall moving into my apartment a couple years ago and signing a disclosure that they might convert at any time. I just can’t even fathom that. If the market were still up they probably would try- kicking out several good long-term tenants- because we’re near the beach where people always want to live. But the building is 40 years old and falling apart around us! It’s fine as a rental because I can call the maintenance guy, which I do, quite often, but I would be irate if I was paying $350,000 for a pile of problems like this.

Anyway, I’ve been lurking on this site for awhile and I really enjoy all your comments. I was living in the central valley at the height of the bubble and recall looking around at the vast plains of identical new houses being built and wondering who the heck is going to live in those?? Where are the jobs to support the people living in those?? The jobs were all in the construction, real estate, etc. And now that area is one of the foreclosure capitals.. I don’t know how no one else could see that coming.

Anyway, thanks again for your help guys!
-Jen [/quote]

The locals saw it. I have alot of buddies from the central valley, and they all wondered out loud, VERY loud, who the hell is buying these things? It was all people from the bay area who were so use to the idea that land is the real value that they paid through the nose to get it. “re never goes down, ill buy now and sell in 3 years when it doubled, blah blah blah….) Well there isnt a land shortage in the central valley and the people who got on that train and stayed on got creamed. Turns out people dont want to drive 2-3 hours each way just to have a big house in an area few actually want to live in, and your house wont double, can fall in value, and isnt an ‘up and coming area’.

[DWCAP]

[quote=Jenelle]Hi everybody,

Thanks for your responses! In case you are curious, I am writing a law review article about how the law has failed to keep up with the proliferation of conversions in the last several years. I’m nearing the end of writing I was just hoping for some personal anecdotal stories to round it out so I appreciate your help 🙂

When I began researching this last Fall I had no idea what a can of worms conversions were. They really can be valuable for the community, when done correctly, but there were so many people in it for a quick buck it’s amazing.

I recall moving into my apartment a couple years ago and signing a disclosure that they might convert at any time. I just can’t even fathom that. If the market were still up they probably would try- kicking out several good long-term tenants- because we’re near the beach where people always want to live. But the building is 40 years old and falling apart around us! It’s fine as a rental because I can call the maintenance guy, which I do, quite often, but I would be irate if I was paying $350,000 for a pile of problems like this.

Anyway, I’ve been lurking on this site for awhile and I really enjoy all your comments. I was living in the central valley at the height of the bubble and recall looking around at the vast plains of identical new houses being built and wondering who the heck is going to live in those?? Where are the jobs to support the people living in those?? The jobs were all in the construction, real estate, etc. And now that area is one of the foreclosure capitals.. I don’t know how no one else could see that coming.

Anyway, thanks again for your help guys!
-Jen [/quote]

The locals saw it. I have alot of buddies from the central valley, and they all wondered out loud, VERY loud, who the hell is buying these things? It was all people from the bay area who were so use to the idea that land is the real value that they paid through the nose to get it. “re never goes down, ill buy now and sell in 3 years when it doubled, blah blah blah….) Well there isnt a land shortage in the central valley and the people who got on that train and stayed on got creamed. Turns out people dont want to drive 2-3 hours each way just to have a big house in an area few actually want to live in, and your house wont double, can fall in value, and isnt an ‘up and coming area’.

[DWCAP]

[quote=Jenelle]Hi everybody,

Thanks for your responses! In case you are curious, I am writing a law review article about how the law has failed to keep up with the proliferation of conversions in the last several years. I’m nearing the end of writing I was just hoping for some personal anecdotal stories to round it out so I appreciate your help 🙂

When I began researching this last Fall I had no idea what a can of worms conversions were. They really can be valuable for the community, when done correctly, but there were so many people in it for a quick buck it’s amazing.

I recall moving into my apartment a couple years ago and signing a disclosure that they might convert at any time. I just can’t even fathom that. If the market were still up they probably would try- kicking out several good long-term tenants- because we’re near the beach where people always want to live. But the building is 40 years old and falling apart around us! It’s fine as a rental because I can call the maintenance guy, which I do, quite often, but I would be irate if I was paying $350,000 for a pile of problems like this.

Anyway, I’ve been lurking on this site for awhile and I really enjoy all your comments. I was living in the central valley at the height of the bubble and recall looking around at the vast plains of identical new houses being built and wondering who the heck is going to live in those?? Where are the jobs to support the people living in those?? The jobs were all in the construction, real estate, etc. And now that area is one of the foreclosure capitals.. I don’t know how no one else could see that coming.

Anyway, thanks again for your help guys!
-Jen [/quote]

The locals saw it. I have alot of buddies from the central valley, and they all wondered out loud, VERY loud, who the hell is buying these things? It was all people from the bay area who were so use to the idea that land is the real value that they paid through the nose to get it. “re never goes down, ill buy now and sell in 3 years when it doubled, blah blah blah….) Well there isnt a land shortage in the central valley and the people who got on that train and stayed on got creamed. Turns out people dont want to drive 2-3 hours each way just to have a big house in an area few actually want to live in, and your house wont double, can fall in value, and isnt an ‘up and coming area’.

[DWCAP]

[quote=Jenelle]Hi everybody,

Thanks for your responses! In case you are curious, I am writing a law review article about how the law has failed to keep up with the proliferation of conversions in the last several years. I’m nearing the end of writing I was just hoping for some personal anecdotal stories to round it out so I appreciate your help 🙂

When I began researching this last Fall I had no idea what a can of worms conversions were. They really can be valuable for the community, when done correctly, but there were so many people in it for a quick buck it’s amazing.

I recall moving into my apartment a couple years ago and signing a disclosure that they might convert at any time. I just can’t even fathom that. If the market were still up they probably would try- kicking out several good long-term tenants- because we’re near the beach where people always want to live. But the building is 40 years old and falling apart around us! It’s fine as a rental because I can call the maintenance guy, which I do, quite often, but I would be irate if I was paying $350,000 for a pile of problems like this.

Anyway, I’ve been lurking on this site for awhile and I really enjoy all your comments. I was living in the central valley at the height of the bubble and recall looking around at the vast plains of identical new houses being built and wondering who the heck is going to live in those?? Where are the jobs to support the people living in those?? The jobs were all in the construction, real estate, etc. And now that area is one of the foreclosure capitals.. I don’t know how no one else could see that coming.

Anyway, thanks again for your help guys!
-Jen [/quote]

The locals saw it. I have alot of buddies from the central valley, and they all wondered out loud, VERY loud, who the hell is buying these things? It was all people from the bay area who were so use to the idea that land is the real value that they paid through the nose to get it. “re never goes down, ill buy now and sell in 3 years when it doubled, blah blah blah….) Well there isnt a land shortage in the central valley and the people who got on that train and stayed on got creamed. Turns out people dont want to drive 2-3 hours each way just to have a big house in an area few actually want to live in, and your house wont double, can fall in value, and isnt an ‘up and coming area’.

[Author]

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