Great Condo Deals in Downtown San Diego

February 8th, 2008 categories: Deals

So you’re looking for a good deal on a condo Downtown…so is everyone else. The good news is, I’m going to share with you, several “deals” that I think are great investment opportunities. And no, the majority these are not my listings – they’re just well priced condos that need to be sold.

If you’re looking to cash flow a property, you’ll need about 30% down to make the numbers work.

Take a $400K place, put down $120K and you’re payments are going to be between $1900 and $2400 (taxes and HOAs included), depending on what type of loan you get. Coincidently, the rent on these properties are just that – anywhere from $2000–$2500! Look how well that works out…you spend around $2000 a month and your tenant pays you about $2000 a month – crazy!

Are there any condos that are for sale that will yield you these rents? Well I’m glad you asked.

Deal #1 – 350 W Ash #809 – FORECLOSURE - Loft with 1.5 BA and 840 square feet – $334,900*(was $389,000, then 384,900, then $379,900, then $369,900, then $361,000)
This loft is an 8^th floor unit in Little Italy. What’s great about this unit is that it comes with 2 parking spaces, is a corner unit, new paint, hardwood floors…etc, but the best part is that this is corporate owned(*as of 3/4/08 I just learned this is a foreclosure)! What does this tell me? This means that they don’t care as much about what they get for it. There is no sad seller saying, “But I painted the walls and installed hardwood floors! Why won’t they pay me more for my beautiful home?”

No – corporate owned(FORECLOSURE) with over 100 days on the market means they want to get rid of it. The exact same unit, one floor down, was recently rented for $2,250/mo. Comparable sales in the building indicate that the price should be closer to the mid-low $300Ks. At this price, you don’t even need the 30% down I originally mentioned.

Deal #2 – 877 Island Ave #903 Parkloft – Loft with 1.5 BA and 1,375 square feet – $445,000(LOWEST priced unit in the building as of 3/26/08)

SHORT SALE – Yes, the oh so familiar phrase that has gotten everyone to believe the world is ending(at least in the housing market). This loft is in the Parkloft building – one of my favorite Downtown buildings, period. Parkloft is one of a kind and simply put, is awesome. Now I realize lofts are not for everyone, but if you don’t have kids, have a creative side (or can hire someone who does), this is a perfect place to invest in.

Unit 903 is priced extremely well at $445,000. Recent sales on the 3^rd and 4^th floors indicate that this 9^th floor unit is a steal. This condo was purchased by the owner back in January of 2004 for $620,500! This is almost a 30% price reduction! Other units in the building on lower floors are also similarly priced, leading me to believe that unit 903 will not last very long (it was listed today, Feb. 8th – yes, I try to stay on top of new inventory). And yes, rents here are very good.

Deal #3 – 700 West Harbor Drive #905 – 2BR/2BA 1,353 square feet – $799,000 *SOLD FOR $755,000

SHORT SALE – yes, another one. Unit 905 has a split floor plan, with the kitchen opening up to the living room and bedrooms on either side. The home also has two balconies that provide courtyard and limited bay views. For those of you who are not familiar with Park Place, this is a luxury high rise. Park Place is a BOSA development and arguably it’s best.

There is less turnover at Park Place compared to The Grande, or Discovery, or other buildings Downtown. I think this is due to the classic feel Park Place exudes and it’s one of a kind layout.

This unit is priced well and was recently rented for over $3,000 a month. Whether you want to rent this out, or call it your own, Park Place unit 905 is a deal.

Deal #4 – 700 West E Street #1906 – 2BR/2Ba 1,548 square feet – $1,175,000–$1,225,000

Electraconservatory-small With Electra just coming onto the market, you’ll begin to see dozens of units for sale. These condos were purchased by speculators, people who thought they wanted to move Downtown, or as second homes…either way, there’s a lot on the market and that’s good news for buyers.

In my mind, the best floor plan by far, is the F plan(units ending on 06). These units face South East and have the best layout and views. Typically this unit comes with den, but the best move is to get it removed. This opens up your views and functional space – trust me.

Unit 1906 is not on the MLS, but is priced to sell. Purchased for about what it’s on the market for, unit 1906 is priced well below it’s competition. Unit 1806, the same exact layout but a floor below, is priced at $1,349,000 and the developer has 2506 at $1,490,000. It doesn’t take a genius to figure out that this is a deal.

Rent on a unit like 1906 is in the range of $4500–5000 a month. This unit would require a little more than 30% down to make it cash flow, but not too much more.

Deal #5 – 1199 Pacific Hwy #2805 – 2BR + Den/2BA 1,625 square feet – $1,099,000

SHORT SALE – this last deal is incredible. Now I’m not the fast talking car salesman who won’t think twice about stealing candy from a baby, but this is too good of a deal to be passed up. Priced at $1,179,000, this 28^th floor unit is only $24,000 higher than its 15^th floor counterpart. If you’re not familiar with The Grande, or high rise living, going from th 15^th to the 28^th floor is a HUGE difference. The premium you pay per floor is typically $10–15K on these levels, but at the listed prices, you’d only be paying $1,800 per extra floor!

The recent sale of unit 2905(same layout, but one floor higher) at $1,225,000, translates to a floor premium of $46,000! Unit 1805 just sold for $1,100,000! Please, someone buy unit 2805!

Now I realize that out of the 5 deals I’ve shown you, 3 are short sales. And yes, I also realize that many of my posts talk about how the market isn’t tanking and short sales and foreclosures are not as common as Starbucks are on street corners. But that’s my point - these are the few true “deals” that I’ve come across. Yes there has been an influx in distressed sales and rising mortgage rates. Yes there are deals to be had. Yes prices are lower today than they were in the past few years. But when you read the paper and hear about these falling prices, make sure you read everything.

Are they talking about San Diego specifically? Or is this the entire country? And if they are talking about San Diego, what areas are they referring to? Temecula? Chula Vista? 4S Ranch? I can guarantee you they aren’t talking about the mass amounts of distressed sales in La Jolla, or Del Mar, or Downtown.

Click here to search the San Diego MLS.

Click here to search all California foreclosures, short sales and auctions.

In any case, the properties I’ve listed above are available today and are priced well. If you’d like to see any of these homes, or other deal in the area, please contact Denny Oh at 858.243.2092. You can also email me at dennyoh@prusd.com.

Other Must Reads:

2006 vs 2007 Downtown San Diego Condo Sales Statistics
What Can SanDiegOh Do For You?
Home…What’s In a Name?

Downtown Buildings

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Great Condo Deals in Downtown San Diego

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