La Boheme North Park (DR Horton) Public Auction

[Ex-SD]

Did anyone attend the auction or know anyone who did?
If so, did they sell any units and for how much?

[Anonymous]

Here is the only info that I have found.

http://www.signonsandiego.com/news/metro/20070930-9999-1m30auction.html

Says that she bid $230 for an Ezpiranza unit and was outbid at $250K.

Also says that there were few great deals. With all the free publicity I thought it was an excellent way for Horton to get relatively decent prices. There is some pent up demand in the marketplace from people who missed before the “great artificial run up” of 04-06.

I’m anxious to find out more as info leaks. I have sources that will eventually find out all the detail, but it may take a few days. These guys have a substantial economic investment in other projects in San Diego and will find out everything to try to figure out where they are at with theirs.

[Anonymous]

Auction Results Posted:

http://www.sdlookup.com/tabid/57/forumid/617/view/topic/postid/3552/afsort/DESC/Default.aspx

[Ex-SD]

Well, it’s certainly interesting to see that there are still a bunch of naive, falling-knife catchers that attended the auction. I added the numbers and divided it by the number of units sold and came up with 30.5% as the average discount. One totally ignorant fool bought for a 14% reduction. If you want a condo in San Diego at the present time, there are plenty of deals that equal or surpass what this auction had to offer.

[Bugs]

They made a comment about whether the developer would “accept” those prices. I am not auction-savvy, and I wasn’t aware that an auctioneer could say “sold” on a property without it meaning exactly that. Does anyone here have any insight on that?

If these units are actually being sold at these prices – depending on financing, of course – then the prior buyers just took an elevator ride on their “amazing” equity positions. A 30% whack at one time has gotta hurt.

[HereWeGo]

Who are the people in your neighborhood?

Loud music? Hookers? Muggers? Vagrants? I don’t know about you folks, but that sure spells $300/sq ft condo to me … especially if you have a view of Tijuana.

Those auction bidders were sharks, I tell ya.

[patientlywaiting]

newbie, 2 big differences between Uptown and La Boheme.

Uptown has location and started selling in 1991 after the peak when prices already declined substantially. Buying at Uptown after opening was like buying at La Bohome at auction.

Sorry, you bought at the very peak.

[sd gal]

don’t forget 5% service charge, buyer is responsible to pay to the auction company.

is is actualy more like average 25% off retail price after that.

Went to see the units once again as my friends wanted to attend auction. then we found out that $5000 cash or cashier’s check were required to get in to the auction site. Just needed to show check at the entrance to prove you are a serious buyer. So we gave up.

I was told from REDC sales guy that bunch more auctions are coming up in SD and dates are not set yet. if you register, they will send info via email.

[Anonymous]

hah ha actually I and a lot of other people bought pre-construction. I was very curious how our pre-construction deals would measure up to the auction prices. According to sdlookup, the units that sold at auction with most similar floor plans to mine (but not as nice because they are not corner units with unobstructed views) were:

UNIT VALUE SOLD % DROP
530 550 365 -34%
504 547 375 -3

Let’s see. I bought mine pre-construction for $369,900.

So I guess the auction winners ended up getting deals similar to those of us who bought pre-construction. We’re breathing a little easier now. Not a bad day at all for us.

[PadreBrian]

Okay found the sold prices!
http://www.sdlookup.com/Forums/General/tabid/57/forumid/617/tpage/4/view/topic/postid/3552/Default.aspx#5323

Unit Valued* Sold*
504 547 375
530 550 365
524 400 285
2 355 240
235 520 385
506 400 260
17 332 215
335 450 310
405 440 300
14 315 220
420 400 258
313 540 365
302 425 212
508 390 300
28 290 248
206 320 213
329 450 313
29 290 213
511 393 275
327 430 313
15 315 230
312 420 315
236 350 250
19 290 210
513 390 270
310 440 320
6 310 215
328 450 313
11 315 215
426 310 220
12 315 210
413 330 225
18 300 210
322 420 275
9 310 215
229 440 310
16 305 213
227 420 313
20 310 213
532 400 255
21 310 213
201 410 295
24 290 215
519 400 255
26 300 215
521 400 280
7 300 215
314 444 305
1 340 210
420 450 320
23 300 215

[Raybyrnes]

If I am generous with rent and figure you can get $1800 a month on a two bedroom 2 bath. Figure 100% financed at 6%. Calcualte HOA at 250 a month. Break even on this with tax deductions is not much more 300K. To really make this worth an investors time the 2 by 2 would ahve to be down around 250K.

[PadreBrian]

Yeah, the prices, were only 25-45% off. Not bad for either the buyer or the builder.

It’s an urban condo, that’s what you buy, that’s what you get. It’s too city for me. I’m a ‘burbs guy.

[Anonymous]

When I got home today there was a big sign at my corner saying the stretch of Ohio St. in front of La Boheme will be closed for a special event the weekend of October 13-14. Hmm, what could that be I thought so I searched online and here it is:

http://www.bacchushouse.com/

A good old-fashioned block party sponsored by Bachus House with entertainment by Ru Paul and others. Maybe not everyone’s cup of tea, but I’m gonna have a blast there, as will many La Bohemians. So you folks who just won at auction, welcome to a cool neighborhood with fun things going on!

[farbet]

When D.R. Horton Inc., the second- biggest U.S. homebuilder, couldn’t sell the one-bedroom condominium in San Diego it listed for $349,800, the property was auctioned as a last resort for 37 percent less.

D.R. Horton, with annual revenue of about $11 billion, and Hovnanian Enterprises Inc. now face the worst choice in the worst residential real estate slump since the 1930s. They’re selling homes at any price they can get.

“It’s desperation time and some companies may not make it,” said Alex Barron, an industry analyst at Agency Trading Group Inc. in Wayzata, Minnesota. “At this point in the housing cycle, if you have too much debt, it’s hard to get out from under it.”

D.R. Horton of Fort Worth, Texas, overcame qualms about its image with the Sept. 29 auction of 56 unsold San Diego condominiums. The 200 bidders who filed into a tent on the grounds of the Doubletree Hotel in Mission Valley, California, needed a $5,000 cashier’s check to prove they were serious, said Steven Moran, an agent with Century 21 Award in San Diego, who attended with 11 clients.

“I ran the numbers and the condos sold for between 68 cents and 74 cents on the dollar based on the original asking prices,” Moran said.

A condo with an enclosed balcony and an indoor parking spot was originally listed at $349,800 and sold for $220,000, Moran said. D.R. Horton also threw in a washer-dryer and $2,500 toward closing costs, Moran said.

“Adding a credit toward closing costs still allows them to show the highest selling price they can,” Moran said.

D.R. Horton spokeswoman Jessica Hansen did not return calls seeking comment. The company did not allow members of the media into the auction and has not released sales information.
Homebuilders Liquidate Assets in Desperation Sales (Update2)
http://www.bloomberg.com/apps/news?pid=20601206&sid=adFsGVxspArw&refer=realestate

[nostradamus]

Old news, farbet!

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