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Left To Rot In The Unforgiving Beach Air

A report from the Los Angeles Times in California. “The Rancho Santa Fe compound of Wendy Walker, the veteran CNN producer who inspired the ABC drama ‘Notorious,’ will go to the highest bidder at auction next month.”

“Walker, who bought the property the year it was built in 1999, has had the estate on and off the market for the last two years. The home first hit the market in 2016 for $9.2 million, but saw its price cut by $1 million three months later, according to the Multiple Listing Service. It is now set to be sold through Concierge Auctions with no reserve on Nov. 20.”

From Eastsider LA. “Prices on about five dozen condos, apartments and other Eastside properties dropped during the past week. Here are some examples, followed by a breakdown by neighborhood: Silver Lake: $76,000 reduction on a 2-bedroom California bungalow. $899,000.”

“Boyle Heights: Price drops $30,000 for three units on a lot – 2-bedroom/1-bath apiece. $599,900. El Sereno: $6,000 cut on a 4-bedroom/3.5 bathroom home with upgraded kitchen and baths. $659,000.”

“More price cuts by neighborhood: Atwater Village, Boyle Heights, Eagle Rock, East Los Angeles, Echo Park, El Sereno, Highland Park, Lincoln Heights/Montecito Heights, Monterey Hills/ North El Sereno, Mount Washington, Silver Lake.”

From SocketSite. “As we reported last year: Purchased as an un-entitled Tenderloin parcel for $1.6 million three years ago, plans for an eight-story, market-rate building with 23 sub-500-square-foot residential units to rise on the 430 Eddy Street site were approved by the City [in 2016].”

“Two months later, the now ‘Fully Entitled!’ site returned to the market listed for $5 million, a price of roughly $220K per entitled unit. The asking price for the parcel was subsequently reduced to $4.8 million, as we also first reported at the time. And today, the asking price for the 430 Eddy Street parcel is down to $3.5 million or roughly $152,000 per entitled unit.”

“And with the aforementioned building permit having since been approved, the list price for the 430 Eddy Street parcel and plans has just been reduced to $2.998 million or roughly $130,000 per entitled studio unit.”

The San Diego Reader. “A long-derided construction project at 2269 Ebers Street in Ocean Beach, spearheaded by Curtis Nelson of Nelco Properties, officially suffered its death blow this spring; after failing to attract a buyer at a foreclosure auction, ownership of the property reverted to Center Street Lending, an Irvine-based hard money lender that specializes in providing financing to ‘property flippers’ seeking to buy low, complete a quick remodel, and resell properties at a significant profit.”

“Nelco had managed to turn a $645,000 purchase price into somewhere between $1.3 and $1.4 million in outstanding loan debt, without having apparently committed any of the company’s own capital to the project. Not bad, considering construction had been halted on the project for nearly a year, the framework and strand board sheeting of the three-story ‘addition’ having been left to rot in the unforgiving beach air.”

“A week before the latest $360,000 was poured into the project, Nelco’s Curtis Nelson had his contractor’s license suspended for failure to comply with the terms of an arbitration award related to another property. By June, Nelson’s license had been revoked by the state.”

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This Post Has 28 Comments

  1. “Silver Lake: $76,000 reduction on a 2-bedroom California bungalow. $899,000”

    Woo-boy. That’s a huuuuuuge reduction for what counts as the low-end in Silver Lake. Guess the ebola has reached the bottom tier, where some people still claim there is a shortage and a buying frenzy. Doesn’t sound like it.

    I wonder if the people who bought a near-identical house 8 houses down on the same street in June for $1.175m are getting worried?

    https://www.redfin.com/CA/Los-Angeles/1204-Sanborn-Ave-90029/home/7060375

    https://www.redfin.com/CA/Los-Angeles/1130-Sanborn-Ave-90029/home/7060395

  4. Speaking of unforgiving, more Hong Kong “investors” who overpaid became instant FBs courtesy of developer price cuts.

    https://www.scmp.com/business/article/2168841/hong-kong-developer-chinachem-prices-new-apartments-new-territories-12-cent

    Hong Kong developer Chinachem Group on Tuesday priced a first batch of units at its Sol City project in the New Territories at up to 12 per cent lower than lived-in homes in the area. The 144 apartments start at HK$13,389 (US$1,708) per square foot.

    1. Lumber supply is increasing. Every lumber mill around is in full gear operations. Multiple shifts to manufacture product.

    1. Slowing economy, capital flight, people flight due to more restrictions on freedom and a large debt that now cannot be grown out of due to the slowing, I think China probably regrets stating a trade war.

  8. “Walker, who bought the property the year it was built in 1999, has had the estate on and off the market for the last two years. The home first hit the market in 2016 for $9.2 million, but saw its price cut by $1 million three months later, according to the Multiple Listing Service. It is now set to be sold through Concierge Auctions with no reserve on Nov. 20.”

    Should be informative!

    And for those who don’t know, Rancho Santa Fe is high end San Diego housing.

    1. Rising interest rates are like tsunami where the water recedes from the shoreline… the wise head for high-ground while the uninformed scout the fresh sand for seashells.

  13. And I think it’s gonna be a long, long time
    ‘Til this Blog brings me ’round again to find
    It’s not the dog I think it is at all
    It’s the Housing Dog

    Housing Dog! Are you climbing up that steep cliff alone
    And I think it’s gonna be a long, long time
    Til this Blog brings me ’round again to find
    It’s not the dog I think it is at all
    It’s the Housing Dog

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