[EconProf]

When a condo complex falls into the category of “unable to finance”, then the prices have to take a big dump, making them a serious cash flow vehicle for the investor with liquidity.
Gentlemen, start your engines.

[EconProf]

When a condo complex falls into the category of “unable to finance”, then the prices have to take a big dump, making them a serious cash flow vehicle for the investor with liquidity.
Gentlemen, start your engines.

[EconProf]

When a condo complex falls into the category of “unable to finance”, then the prices have to take a big dump, making them a serious cash flow vehicle for the investor with liquidity.
Gentlemen, start your engines.

[EconProf]

When a condo complex falls into the category of “unable to finance”, then the prices have to take a big dump, making them a serious cash flow vehicle for the investor with liquidity.
Gentlemen, start your engines.

[EconProf]

When a condo complex falls into the category of “unable to finance”, then the prices have to take a big dump, making them a serious cash flow vehicle for the investor with liquidity.
Gentlemen, start your engines.

[EconProf]

Recordsclerk, from what you have described, that condo complex seems to be in a death spiral. There seems to be no hope, as sales cannot occur if no lender will touch such a situation. With the downward momentum firmly in place as to prices of condos, what is the future of these places? A train wreck for sure for this, and possibly many more aging condo complexes.
I suspect that as more condo complexes enter this stage, two or more possible scenarios will play out. One is that an apartment developer will come along and offer a price for the whole complex that will cash flow for him, after rehab. The condominium model of individual owner-occupiers just is not viable with mostly absentee owners and many not paying HOA dues & deferred maint. scaring away buyers.
Another scenario is for the gov. to buy the whole bunch, perhaps with eminent domain, rehab. & then turn it into low rent public housing. The economic virtues of a single owner running the place, whether private or public, overpower the downside of a bunch of warring private absentee owners.
With either of the two above approaches, the last holdouts could be offered a sweet deal to cooperate, as they have some legal leverage here to risist the new single owner.

[EconProf]

Recordsclerk, from what you have described, that condo complex seems to be in a death spiral. There seems to be no hope, as sales cannot occur if no lender will touch such a situation. With the downward momentum firmly in place as to prices of condos, what is the future of these places? A train wreck for sure for this, and possibly many more aging condo complexes.
I suspect that as more condo complexes enter this stage, two or more possible scenarios will play out. One is that an apartment developer will come along and offer a price for the whole complex that will cash flow for him, after rehab. The condominium model of individual owner-occupiers just is not viable with mostly absentee owners and many not paying HOA dues & deferred maint. scaring away buyers.
Another scenario is for the gov. to buy the whole bunch, perhaps with eminent domain, rehab. & then turn it into low rent public housing. The economic virtues of a single owner running the place, whether private or public, overpower the downside of a bunch of warring private absentee owners.
With either of the two above approaches, the last holdouts could be offered a sweet deal to cooperate, as they have some legal leverage here to risist the new single owner.

[EconProf]

Recordsclerk, from what you have described, that condo complex seems to be in a death spiral. There seems to be no hope, as sales cannot occur if no lender will touch such a situation. With the downward momentum firmly in place as to prices of condos, what is the future of these places? A train wreck for sure for this, and possibly many more aging condo complexes.
I suspect that as more condo complexes enter this stage, two or more possible scenarios will play out. One is that an apartment developer will come along and offer a price for the whole complex that will cash flow for him, after rehab. The condominium model of individual owner-occupiers just is not viable with mostly absentee owners and many not paying HOA dues & deferred maint. scaring away buyers.
Another scenario is for the gov. to buy the whole bunch, perhaps with eminent domain, rehab. & then turn it into low rent public housing. The economic virtues of a single owner running the place, whether private or public, overpower the downside of a bunch of warring private absentee owners.
With either of the two above approaches, the last holdouts could be offered a sweet deal to cooperate, as they have some legal leverage here to risist the new single owner.

[EconProf]

Recordsclerk, from what you have described, that condo complex seems to be in a death spiral. There seems to be no hope, as sales cannot occur if no lender will touch such a situation. With the downward momentum firmly in place as to prices of condos, what is the future of these places? A train wreck for sure for this, and possibly many more aging condo complexes.
I suspect that as more condo complexes enter this stage, two or more possible scenarios will play out. One is that an apartment developer will come along and offer a price for the whole complex that will cash flow for him, after rehab. The condominium model of individual owner-occupiers just is not viable with mostly absentee owners and many not paying HOA dues & deferred maint. scaring away buyers.
Another scenario is for the gov. to buy the whole bunch, perhaps with eminent domain, rehab. & then turn it into low rent public housing. The economic virtues of a single owner running the place, whether private or public, overpower the downside of a bunch of warring private absentee owners.
With either of the two above approaches, the last holdouts could be offered a sweet deal to cooperate, as they have some legal leverage here to risist the new single owner.

[EconProf]

Recordsclerk, from what you have described, that condo complex seems to be in a death spiral. There seems to be no hope, as sales cannot occur if no lender will touch such a situation. With the downward momentum firmly in place as to prices of condos, what is the future of these places? A train wreck for sure for this, and possibly many more aging condo complexes.
I suspect that as more condo complexes enter this stage, two or more possible scenarios will play out. One is that an apartment developer will come along and offer a price for the whole complex that will cash flow for him, after rehab. The condominium model of individual owner-occupiers just is not viable with mostly absentee owners and many not paying HOA dues & deferred maint. scaring away buyers.
Another scenario is for the gov. to buy the whole bunch, perhaps with eminent domain, rehab. & then turn it into low rent public housing. The economic virtues of a single owner running the place, whether private or public, overpower the downside of a bunch of warring private absentee owners.
With either of the two above approaches, the last holdouts could be offered a sweet deal to cooperate, as they have some legal leverage here to risist the new single owner.

[EconProf]

Fresh & Easy is a new chain, from Britain, that is opening up many new stores in the U.S. It has an interesting model and approach.
They basically saw the popularity and growth of Whole Foods and their high prices,and is going after that market, but with some differences.
Their stores are smaller and offerings and variety are much more limited. Prices are better. In a lot of ways, the stores save on labor. No counters to order specialty foods from clerks, and automated checkout. Gourmet foods, yes, but all packaged up & wrapped.
I think they fill a gap & are far more interesting than the usual Von’s, Albertson’s, etc. But they are not as elaborate or expensive as the Whole Foods and Bristol Farms.
Mira Mesa desparately needs a Trader Joes, Henry’s, or Barrons…amazing that that big a population center doesn’t have one of these. Fresh & Easy will be better than the old-line supermarkets there.

[EconProf]

Fresh & Easy is a new chain, from Britain, that is opening up many new stores in the U.S. It has an interesting model and approach.
They basically saw the popularity and growth of Whole Foods and their high prices,and is going after that market, but with some differences.
Their stores are smaller and offerings and variety are much more limited. Prices are better. In a lot of ways, the stores save on labor. No counters to order specialty foods from clerks, and automated checkout. Gourmet foods, yes, but all packaged up & wrapped.
I think they fill a gap & are far more interesting than the usual Von’s, Albertson’s, etc. But they are not as elaborate or expensive as the Whole Foods and Bristol Farms.
Mira Mesa desparately needs a Trader Joes, Henry’s, or Barrons…amazing that that big a population center doesn’t have one of these. Fresh & Easy will be better than the old-line supermarkets there.

[EconProf]

Fresh & Easy is a new chain, from Britain, that is opening up many new stores in the U.S. It has an interesting model and approach.
They basically saw the popularity and growth of Whole Foods and their high prices,and is going after that market, but with some differences.
Their stores are smaller and offerings and variety are much more limited. Prices are better. In a lot of ways, the stores save on labor. No counters to order specialty foods from clerks, and automated checkout. Gourmet foods, yes, but all packaged up & wrapped.
I think they fill a gap & are far more interesting than the usual Von’s, Albertson’s, etc. But they are not as elaborate or expensive as the Whole Foods and Bristol Farms.
Mira Mesa desparately needs a Trader Joes, Henry’s, or Barrons…amazing that that big a population center doesn’t have one of these. Fresh & Easy will be better than the old-line supermarkets there.

[EconProf]

Fresh & Easy is a new chain, from Britain, that is opening up many new stores in the U.S. It has an interesting model and approach.
They basically saw the popularity and growth of Whole Foods and their high prices,and is going after that market, but with some differences.
Their stores are smaller and offerings and variety are much more limited. Prices are better. In a lot of ways, the stores save on labor. No counters to order specialty foods from clerks, and automated checkout. Gourmet foods, yes, but all packaged up & wrapped.
I think they fill a gap & are far more interesting than the usual Von’s, Albertson’s, etc. But they are not as elaborate or expensive as the Whole Foods and Bristol Farms.
Mira Mesa desparately needs a Trader Joes, Henry’s, or Barrons…amazing that that big a population center doesn’t have one of these. Fresh & Easy will be better than the old-line supermarkets there.

[EconProf]

Fresh & Easy is a new chain, from Britain, that is opening up many new stores in the U.S. It has an interesting model and approach.
They basically saw the popularity and growth of Whole Foods and their high prices,and is going after that market, but with some differences.
Their stores are smaller and offerings and variety are much more limited. Prices are better. In a lot of ways, the stores save on labor. No counters to order specialty foods from clerks, and automated checkout. Gourmet foods, yes, but all packaged up & wrapped.
I think they fill a gap & are far more interesting than the usual Von’s, Albertson’s, etc. But they are not as elaborate or expensive as the Whole Foods and Bristol Farms.
Mira Mesa desparately needs a Trader Joes, Henry’s, or Barrons…amazing that that big a population center doesn’t have one of these. Fresh & Easy will be better than the old-line supermarkets there.

[Author]

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