Vantage Pointe cuts buyers loose

[Anonymous]

[quote=EconProf]Hmmm…I wonder how much interest the developer earned over the years from these hundreds of deposits?[/quote]

For purposes of introduction, I’ve run the VP Yahoo Group for the past 5+ years. In response to your question, the buyers will receive their original deposits plus all accrued interest.

[PadreBrian]

[quote=PadreBrian]That should bring the prices down to 2001 prices. Nice.[/quote]
I have to take that back.

[quote]SAN DIEGO — Nearly 300 buyers in downtown San Diego’s largest high-rise condominium were notified by the developer Thursday that their deposits will be returned, and they will be offered incentives to later repurchase units in the 679-unit complex.

The move by Canadian developer Pointe of View comes on the eve of a construction deadline to have the Vantage Pointe development ready for occupancy for the first 72 buyers, who entered into sales contracts nearly four years ago.

Buyers so far have been unable to secure loans for their condos because of stiff lending rules requiring that 70 percent of the units in a development be presold. Some purchasers said they planned on demanding the return of their deposits if the East Village project was not completed on time.

Faced with hundreds of units to sell and too few committed buyers, the developer had little choice but to substantially revamp the marketing of its condos.

In an effort to ensure it can close escrows in the mammoth building, Pointe of View is working with the California Department of Real Estate to divide the project into five phases. That way, each phase can more easily secure the proportion of presales it needs before loans can be made, said Brian Stoddard, president and chief operating officer of Pointe of View.

The Department of Real Estate has given Pointe of View preliminary approval to move ahead with the phasing plan, he said.

“We hope to have everything done this month, and then we will re-launch and re-market the project this month to get people in a position so they can close in June and July,” Stoddard said. “The people who want to close in the building and who still want to live here will come back to the building.”

One of the biggest hurdles facing Pointe of View was a new requirement imposed by mortgage giant Fannie Mae that 70 percent of the units in condo projects be presold before the government-controlled entity will purchase loans issued by private lenders. Until March 1, the requirement was that 51 percent of a condo project’s units be under contract.

In a move to bring in revenue more immediately, Stoddard said Pointe of View will rent out units in the building’s middle tower, which consists of 250 condos. He does not know yet how many of those units will be rented.

Buyer Brad Willis, who launched an online message board for Vantage Pointe purchasers, said he will wait to hear what the developer proposes before making a decision on whether to buy a unit in the building.

“There’s a part of me that wants to live downtown in a place with a nice view, but there’s another part of me that’s nervous about the way the developers have handled the situation in the past,” said Willis, who purchased a one-bedroom condo on the 31st floor for $341,000.

“Now we start from scratch, and we see what they put on the table and see how they handle the situation.” [/quote]

Add in the fact there are currently 900 downtown units on the market right now, AND if they have to sell 475 units in a few months in order to even move 1 person in….

WE ARE LOOKING AT 90’S PRICES FOR DOWNTOWN CONDOS THIS FALL.

[PadreBrian]

[quote=PadreBrian]That should bring the prices down to 2001 prices. Nice.[/quote]
I have to take that back.

[quote]SAN DIEGO — Nearly 300 buyers in downtown San Diego’s largest high-rise condominium were notified by the developer Thursday that their deposits will be returned, and they will be offered incentives to later repurchase units in the 679-unit complex.

The move by Canadian developer Pointe of View comes on the eve of a construction deadline to have the Vantage Pointe development ready for occupancy for the first 72 buyers, who entered into sales contracts nearly four years ago.

Buyers so far have been unable to secure loans for their condos because of stiff lending rules requiring that 70 percent of the units in a development be presold. Some purchasers said they planned on demanding the return of their deposits if the East Village project was not completed on time.

Faced with hundreds of units to sell and too few committed buyers, the developer had little choice but to substantially revamp the marketing of its condos.

In an effort to ensure it can close escrows in the mammoth building, Pointe of View is working with the California Department of Real Estate to divide the project into five phases. That way, each phase can more easily secure the proportion of presales it needs before loans can be made, said Brian Stoddard, president and chief operating officer of Pointe of View.

The Department of Real Estate has given Pointe of View preliminary approval to move ahead with the phasing plan, he said.

“We hope to have everything done this month, and then we will re-launch and re-market the project this month to get people in a position so they can close in June and July,” Stoddard said. “The people who want to close in the building and who still want to live here will come back to the building.”

One of the biggest hurdles facing Pointe of View was a new requirement imposed by mortgage giant Fannie Mae that 70 percent of the units in condo projects be presold before the government-controlled entity will purchase loans issued by private lenders. Until March 1, the requirement was that 51 percent of a condo project’s units be under contract.

In a move to bring in revenue more immediately, Stoddard said Pointe of View will rent out units in the building’s middle tower, which consists of 250 condos. He does not know yet how many of those units will be rented.

Buyer Brad Willis, who launched an online message board for Vantage Pointe purchasers, said he will wait to hear what the developer proposes before making a decision on whether to buy a unit in the building.

“There’s a part of me that wants to live downtown in a place with a nice view, but there’s another part of me that’s nervous about the way the developers have handled the situation in the past,” said Willis, who purchased a one-bedroom condo on the 31st floor for $341,000.

“Now we start from scratch, and we see what they put on the table and see how they handle the situation.” [/quote]

Add in the fact there are currently 900 downtown units on the market right now, AND if they have to sell 475 units in a few months in order to even move 1 person in….

WE ARE LOOKING AT 90’S PRICES FOR DOWNTOWN CONDOS THIS FALL.

[PadreBrian]

[quote=PadreBrian]That should bring the prices down to 2001 prices. Nice.[/quote]
I have to take that back.

[quote]SAN DIEGO — Nearly 300 buyers in downtown San Diego’s largest high-rise condominium were notified by the developer Thursday that their deposits will be returned, and they will be offered incentives to later repurchase units in the 679-unit complex.

The move by Canadian developer Pointe of View comes on the eve of a construction deadline to have the Vantage Pointe development ready for occupancy for the first 72 buyers, who entered into sales contracts nearly four years ago.

Buyers so far have been unable to secure loans for their condos because of stiff lending rules requiring that 70 percent of the units in a development be presold. Some purchasers said they planned on demanding the return of their deposits if the East Village project was not completed on time.

Faced with hundreds of units to sell and too few committed buyers, the developer had little choice but to substantially revamp the marketing of its condos.

In an effort to ensure it can close escrows in the mammoth building, Pointe of View is working with the California Department of Real Estate to divide the project into five phases. That way, each phase can more easily secure the proportion of presales it needs before loans can be made, said Brian Stoddard, president and chief operating officer of Pointe of View.

The Department of Real Estate has given Pointe of View preliminary approval to move ahead with the phasing plan, he said.

“We hope to have everything done this month, and then we will re-launch and re-market the project this month to get people in a position so they can close in June and July,” Stoddard said. “The people who want to close in the building and who still want to live here will come back to the building.”

One of the biggest hurdles facing Pointe of View was a new requirement imposed by mortgage giant Fannie Mae that 70 percent of the units in condo projects be presold before the government-controlled entity will purchase loans issued by private lenders. Until March 1, the requirement was that 51 percent of a condo project’s units be under contract.

In a move to bring in revenue more immediately, Stoddard said Pointe of View will rent out units in the building’s middle tower, which consists of 250 condos. He does not know yet how many of those units will be rented.

Buyer Brad Willis, who launched an online message board for Vantage Pointe purchasers, said he will wait to hear what the developer proposes before making a decision on whether to buy a unit in the building.

“There’s a part of me that wants to live downtown in a place with a nice view, but there’s another part of me that’s nervous about the way the developers have handled the situation in the past,” said Willis, who purchased a one-bedroom condo on the 31st floor for $341,000.

“Now we start from scratch, and we see what they put on the table and see how they handle the situation.” [/quote]

Add in the fact there are currently 900 downtown units on the market right now, AND if they have to sell 475 units in a few months in order to even move 1 person in….

WE ARE LOOKING AT 90’S PRICES FOR DOWNTOWN CONDOS THIS FALL.

[PadreBrian]

[quote=PadreBrian]That should bring the prices down to 2001 prices. Nice.[/quote]
I have to take that back.

[quote]SAN DIEGO — Nearly 300 buyers in downtown San Diego’s largest high-rise condominium were notified by the developer Thursday that their deposits will be returned, and they will be offered incentives to later repurchase units in the 679-unit complex.

The move by Canadian developer Pointe of View comes on the eve of a construction deadline to have the Vantage Pointe development ready for occupancy for the first 72 buyers, who entered into sales contracts nearly four years ago.

Buyers so far have been unable to secure loans for their condos because of stiff lending rules requiring that 70 percent of the units in a development be presold. Some purchasers said they planned on demanding the return of their deposits if the East Village project was not completed on time.

Faced with hundreds of units to sell and too few committed buyers, the developer had little choice but to substantially revamp the marketing of its condos.

In an effort to ensure it can close escrows in the mammoth building, Pointe of View is working with the California Department of Real Estate to divide the project into five phases. That way, each phase can more easily secure the proportion of presales it needs before loans can be made, said Brian Stoddard, president and chief operating officer of Pointe of View.

The Department of Real Estate has given Pointe of View preliminary approval to move ahead with the phasing plan, he said.

“We hope to have everything done this month, and then we will re-launch and re-market the project this month to get people in a position so they can close in June and July,” Stoddard said. “The people who want to close in the building and who still want to live here will come back to the building.”

One of the biggest hurdles facing Pointe of View was a new requirement imposed by mortgage giant Fannie Mae that 70 percent of the units in condo projects be presold before the government-controlled entity will purchase loans issued by private lenders. Until March 1, the requirement was that 51 percent of a condo project’s units be under contract.

In a move to bring in revenue more immediately, Stoddard said Pointe of View will rent out units in the building’s middle tower, which consists of 250 condos. He does not know yet how many of those units will be rented.

Buyer Brad Willis, who launched an online message board for Vantage Pointe purchasers, said he will wait to hear what the developer proposes before making a decision on whether to buy a unit in the building.

“There’s a part of me that wants to live downtown in a place with a nice view, but there’s another part of me that’s nervous about the way the developers have handled the situation in the past,” said Willis, who purchased a one-bedroom condo on the 31st floor for $341,000.

“Now we start from scratch, and we see what they put on the table and see how they handle the situation.” [/quote]

Add in the fact there are currently 900 downtown units on the market right now, AND if they have to sell 475 units in a few months in order to even move 1 person in….

WE ARE LOOKING AT 90’S PRICES FOR DOWNTOWN CONDOS THIS FALL.

[PadreBrian]

[quote=PadreBrian]That should bring the prices down to 2001 prices. Nice.[/quote]
I have to take that back.

[quote]SAN DIEGO — Nearly 300 buyers in downtown San Diego’s largest high-rise condominium were notified by the developer Thursday that their deposits will be returned, and they will be offered incentives to later repurchase units in the 679-unit complex.

The move by Canadian developer Pointe of View comes on the eve of a construction deadline to have the Vantage Pointe development ready for occupancy for the first 72 buyers, who entered into sales contracts nearly four years ago.

Buyers so far have been unable to secure loans for their condos because of stiff lending rules requiring that 70 percent of the units in a development be presold. Some purchasers said they planned on demanding the return of their deposits if the East Village project was not completed on time.

Faced with hundreds of units to sell and too few committed buyers, the developer had little choice but to substantially revamp the marketing of its condos.

In an effort to ensure it can close escrows in the mammoth building, Pointe of View is working with the California Department of Real Estate to divide the project into five phases. That way, each phase can more easily secure the proportion of presales it needs before loans can be made, said Brian Stoddard, president and chief operating officer of Pointe of View.

The Department of Real Estate has given Pointe of View preliminary approval to move ahead with the phasing plan, he said.

“We hope to have everything done this month, and then we will re-launch and re-market the project this month to get people in a position so they can close in June and July,” Stoddard said. “The people who want to close in the building and who still want to live here will come back to the building.”

One of the biggest hurdles facing Pointe of View was a new requirement imposed by mortgage giant Fannie Mae that 70 percent of the units in condo projects be presold before the government-controlled entity will purchase loans issued by private lenders. Until March 1, the requirement was that 51 percent of a condo project’s units be under contract.

In a move to bring in revenue more immediately, Stoddard said Pointe of View will rent out units in the building’s middle tower, which consists of 250 condos. He does not know yet how many of those units will be rented.

Buyer Brad Willis, who launched an online message board for Vantage Pointe purchasers, said he will wait to hear what the developer proposes before making a decision on whether to buy a unit in the building.

“There’s a part of me that wants to live downtown in a place with a nice view, but there’s another part of me that’s nervous about the way the developers have handled the situation in the past,” said Willis, who purchased a one-bedroom condo on the 31st floor for $341,000.

“Now we start from scratch, and we see what they put on the table and see how they handle the situation.” [/quote]

Add in the fact there are currently 900 downtown units on the market right now, AND if they have to sell 475 units in a few months in order to even move 1 person in….

WE ARE LOOKING AT 90’S PRICES FOR DOWNTOWN CONDOS THIS FALL.

[PadreBrian]

Inflation adjusted, but still.

[PadreBrian]

Inflation adjusted, but still.

[PadreBrian]

Inflation adjusted, but still.

[PadreBrian]

Inflation adjusted, but still.

[PadreBrian]

Inflation adjusted, but still.

[davelj]

If these folks have half a brain (ok, that’s a leap considering they built this thing when they did – but I digress), they will lower the list prices by 30%-ish to get sales up to the Fannie/Freddie threshold. They’ll earmark the upper floors (or certain blocks of floors) for buyers and then they’ll hold onto the remaining units (on the other floors) as rentals. There’s no hope of this project turning a profit at this point, so they have to accept that and focus on the goal of mere non-complete-debacle. My bet is they can get their lender to write down 10%-20% of the loan’s principal balance, sell units to pay down a big chunk of that principal, and refinance the rental units as a group into a huge multi-family mini-perm loan at 5.5% over 10 years (courtesy of agency financing). So, yeah, everybody loses… but they lose a hell of a lot less than if they pretend that they can actually sell all of those units at anything even resembling a list price. If they’re not already going down this road then they shouldn’t be in the development business.

[davelj]

If these folks have half a brain (ok, that’s a leap considering they built this thing when they did – but I digress), they will lower the list prices by 30%-ish to get sales up to the Fannie/Freddie threshold. They’ll earmark the upper floors (or certain blocks of floors) for buyers and then they’ll hold onto the remaining units (on the other floors) as rentals. There’s no hope of this project turning a profit at this point, so they have to accept that and focus on the goal of mere non-complete-debacle. My bet is they can get their lender to write down 10%-20% of the loan’s principal balance, sell units to pay down a big chunk of that principal, and refinance the rental units as a group into a huge multi-family mini-perm loan at 5.5% over 10 years (courtesy of agency financing). So, yeah, everybody loses… but they lose a hell of a lot less than if they pretend that they can actually sell all of those units at anything even resembling a list price. If they’re not already going down this road then they shouldn’t be in the development business.

[davelj]

If these folks have half a brain (ok, that’s a leap considering they built this thing when they did – but I digress), they will lower the list prices by 30%-ish to get sales up to the Fannie/Freddie threshold. They’ll earmark the upper floors (or certain blocks of floors) for buyers and then they’ll hold onto the remaining units (on the other floors) as rentals. There’s no hope of this project turning a profit at this point, so they have to accept that and focus on the goal of mere non-complete-debacle. My bet is they can get their lender to write down 10%-20% of the loan’s principal balance, sell units to pay down a big chunk of that principal, and refinance the rental units as a group into a huge multi-family mini-perm loan at 5.5% over 10 years (courtesy of agency financing). So, yeah, everybody loses… but they lose a hell of a lot less than if they pretend that they can actually sell all of those units at anything even resembling a list price. If they’re not already going down this road then they shouldn’t be in the development business.

[davelj]

If these folks have half a brain (ok, that’s a leap considering they built this thing when they did – but I digress), they will lower the list prices by 30%-ish to get sales up to the Fannie/Freddie threshold. They’ll earmark the upper floors (or certain blocks of floors) for buyers and then they’ll hold onto the remaining units (on the other floors) as rentals. There’s no hope of this project turning a profit at this point, so they have to accept that and focus on the goal of mere non-complete-debacle. My bet is they can get their lender to write down 10%-20% of the loan’s principal balance, sell units to pay down a big chunk of that principal, and refinance the rental units as a group into a huge multi-family mini-perm loan at 5.5% over 10 years (courtesy of agency financing). So, yeah, everybody loses… but they lose a hell of a lot less than if they pretend that they can actually sell all of those units at anything even resembling a list price. If they’re not already going down this road then they shouldn’t be in the development business.

[Author]

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