La Boheme North Park (DR Horton) Public Auction

[HereWeGo]

I drove around the La Boheme neighborhood today. There is a great deal of convenience to the area, no doubt. I counted at least three pawn shops within half a block of La Boheme, and seemingly a half dozen laundromats. Check cashing also seems to be a thriving business in the locale.

Half of the local stores sported stylish bars in the windows and on the doors. Within one mile of the condos, one could easily find the kind of building dilapidation that speaks to the liely future real estate values of the area.

The transformation that occurs at the Park St underpass is truly astounding. Hillcrest is very well maintained, very clean, I could see owning a place in that area. The difference between the east and west side of that bridge is truly remarkable.

[sd gal]

The thing is… poor people need place to live, just like you.
You need those people live in central area, so they can clean after you.
And North Park is one of few area for low income family to live near their work in Downtown.
I know City of SD was trying to make NP into next Hillcrest, but it just won’t happen…
I just wish La Boheme was built in nicer part of area, west of Park blvd as HereWeGo suggested. Because the building is one of the best I have seen for the budget, it is extreemly unique and fit my taste.

[Anonymous]

Talk to any of my friends in Hillcrest, or drive around there some day, and you will see as many if not more homeless people and panhandlers. ‘Hillcrest is going downhill’ is the most common phrase I hear many use about that neighborhood. They priced out all the fags with taste that knew how to upgrade the place, so a lot of that talent is now heading east to North Park. The same thing happened in New York City when Greenwich Village gays fled to the East Village, and in West Hollyood when those gays headed east to Silver Lake and Echo Park, or San Francsicans priced out of the Castro moving to new neighborhoods, making them the next ‘hot spots.’ In North park’s case, witness: Ray at Night, the pretty New Orleans style building going up on 30th Street near University, the Linkery moving to the heart of North Park from South Park, rennovation of the old Woolworth Building into a restaurant and performance space, undergrounding of some power lines, a new park going in behind the theater, lines around the block for Sunday Brunch at the Mission, and I could go on.

[vferraro]

Hi Folks – checked out La Boheme myself today and I have two comments

1) The auction company they use is owned by LandAuction.com. They are very good at getting amateurs to part with the their money. However, at the right price, these units would be a good deal

2) The auction prices they list (and is a basis for the 50% starting bid is somewhat inaccurate, in my opinion).

The use the words “previously valued to” to set the illusion of market price. These values are not based on today’s market conditions. Yours truly has access to a price list dated 7/31/07, when DR Horton was still selling the units.

For example (from the auction catalog)

http://www.redchomeauction.com/auction_details.php?auctionID=D-003

Lot # 1106 in auction has a value of $319,990 but DR Horton last tried to sell this unit at $279,990

Lot #1213 in auction has a value of $539,900 but DR Horton tried to sell the unit a $432,990

Lot #2214 is listed as valued as $385,990 but DR Horton tried to sell the unit at $385,990

Get the point here. The market value prices/comparable values are wrong. Buyer beware …….

V

[HereWeGo]

Oops, I forgot to mention that a San Diego County Probation office is directly across Ohio St.

[recordsclerk]

I finally got around to looking at both La Bohme and Esparanza today. The aution company states “that there is an undisclosed reserve price”. I cold not get any estimates on “reserve price” for either La Boheme or Esparanza. La Boheme was very busy with potential buyers. They took us on group tours. We walked by a lot of current residents, and most of them were not very friendly. I guess losing equity makes for bad neighbors. I can see DR Horton getting close to asking prices for most of these units, and the ones that don’t sell will just go back to the MLS. I guess I might still go and bid couple of thousand above startinng bid just for laughs.
The HOA is 330 to 430 a month(La Boheme). You get one parking space for 1 bed and 2 spaces for 2 bed. There is a spa and fitness club. There is no swimming pool.

[Anonymous]

Regarding: “We walked by a lot of current residents, and most of them were not very friendly. I guess losing equity makes for bad neighbors.”

I’m a homeowner at La Boheme and, like may other homeowners I know here, we bought pre-construction and scored some pretty amazing deals, less than the “previous sale prices” listed on the auction site and, I predict, not too far off from what the bidders in the auction will end up paying. I know a few neighbors who have refinanced all or part of their original loans and had their places appraised in the last couple months for several thousand more than they paid for them. So not a lot of remorse about “losing equity” among those I know here. Might be a different story among those who bought at the peak, but I don’t know too many who did that. I can also tell you that a lot of us are actually looking forward to the winning bidders and new homeowners or renters coming in, because that will mean more HOA fees coming in and better upkeep and facility improvements for all of us. If some of us residents seemed a little grumpy, it was more likely because of the spectacle of 20-30 people tramping through our halls at once. How would you feel? But such intense interest in the place only reinforces our own reasons for buying here when the getting was good. For those of you bidding, good luck, and we look forward to welcoming our new neighbors soon.

[recordsclerk]

Newbie,
I glad to see that at least some residents will be more welcoming then the few that I seen this weekend. It was just an observation 4 residents, no smiles, no welcome wagon. It was circus and I don’t blame people for being grumpy. This has been going on for about a month and I too would be tired of it by now. Another observation that I have noticed during my many model home tours are very friendly potential neighbors waving, smiling and occasionally asking if you’re planing to join the community (especially back in 2005). If I happen to be one of those lucky bidders and get the 2 bed 2 bath unit for $210K, I’ll make sure to put in a good tennant. I’d have to admit that if I was single with no children, the place would be very appealing. I also purchased a home in early 2004, but I don’t think I have any equity other then the down payment and multiple extra principle payments. I’m pretty sure that I can get an appraisal for more then the purchase price, but I don’t need to live in denial. I can also keep telling myself that it’s a long term investment and as long as my tennants continue to make my payments I’m not losing any real money. You also must think that I’m living in denial thinking that I’m going to get a 2 bed unit for $210K, but the reality is that’s all I’m willing to bid and I’m sure I’m not going to be a lucky winner any time soon.
I know one thing that I’ve learned here @ Piggington, I don’t know much, but I do know that timing is everything. I’ve also learned that as long as your house is your home, paper loses are just paper loses until you have to sell.
So to my potential future neighbor, no harm meant. I’m sure that you are a very nice person and you would make a wonderful neighbor.

[Anonymous]

OK call me biased since I live and love it here, but I was glancing at the latest edition of the North Park News and came across these on the front page:

“Eveoke Is Latest Company To Step Into North Park Dance Scene: From Ballet to Hip Hop, after 13 years Downtown, dance theater hoofs into former bicycle shop on University Ave.”

“Planning Begins On Park Behind Theater: Planning has begun on the estimated $1.25 million park for the parking lot behind the refurbished North park Theater…which also could entail a pedestrian promenade among other streetscape improvements…”

Yeah, I guess this is a pretty sucky neighborhood with no upward momentum or exciting development going on, like several posters here have insinuated. lol

[Arty]

Still a 2br condo in NP should only be worth about 250k max…

[JerseyGrl]

Newbie

Are most of the residents at La Boheme owners, or renters? Is it relatively quiet at night? I don’t remember there being any bars in the immediate vicinity.

[SD Realtor]

Newbie –

Don’t stress out on the bias that you hear on the blogs. I have heard people bang on Santee, Temecula, Mira Mesa, Pacific Beach, 4S, North Park, South Park, Downtown, Eastlake… etc… It is just what it is. It is one thing to point out the pp/sf difference in a neighborhood but it seems some people like to crack on those neighborhoods rather then simply say it is not where they would want to live. It is sad but I guess it passes the time for them…

SD Realtor

[drunkle]

scolari’s is right across the street from boheme on 30th. buster daly’s is around the corner on university. shooters is down a block on 30th.

scolari’s has bands, or at least they used to. but the general noise of ghetto birds, emergency vehicles, crack heads and tweekers, “bumping” car stereo’s, gun shots…

[Bugs]

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.

[Bugs]

I know a few neighbors who have refinanced all or part of their original loans and had their places appraised in the last couple months for several thousand more than they paid for them. So not a lot of remorse about “losing equity” among those I know here. Might be a different story among those who bought at the peak, but I don’t know too many who did that.

I knew when I read this that it didn’t scan so I looked into it.

As far as I can tell from the public records, these units first started closing in 08/2006. Maybe there were earlier sales but if so they don’t show up that way in my public records databases. The MLS lists several sales in 2007. Being the curious person I am, I decided to compare the sales from 2006 to the more recent ones in 2007 to see what price movement, if any has occurred in these few short months.

So as to avoid having to listen to any whining about how some units have better locations than others, I used the same or extremely similar models located on the same floor that sold during the different time periods. Here’s what I found:

Unit size date price
224 795 07/07 $274k
208 795 05/07 $280k
222 795 04/07 $274k
221 744 09/06 $310k
219 809 09/06 $345k
213 801 09/06 $300k
216 795 09/06 $300k

To me, I’m seeing a $20k loss in ~6 months there.

Unit size date price
314 1097 05/07 $360k
309 1090 09/06 $378k
311 1108 09/06 $386k

Again, about a $20k loss in ~6 months.

I saw other examples that show the same trends, but that would have involved mixing floors so I wanted to filter out that noise up front.

There’s no doubt that an “amazing deal” is in the eye of the beholder, but the only way a recent appraisal could come in higher than an original 2006 sale price is if the appraisal is twisted. As for thinking the grand opening buyers landed a gold mine…LOL.

[Author]

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