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Vantage Pointe- Downtown San Diego

May 18th, 2009 categories: Real Estate Finance, Real Estate News

The 679 unit condo complex located at 664 Sixth Ave is going through some difficult times, to say the least. According to the Daily Transcript, the Canadian developer, Pointe of View, had to give back the first 71 buyers of Vantage Pointe their deposits. The building failed to get their certificate of occupancy last week, due to financing issues. Fannie Mae now requires new developments to have at least 70% of new construction buildings to be sold before they’ll lend on it, opposed to the old 51% requirement.

With less than 300 sold, Vantage Pointe wasn’t even close to making it. As a result, the developer is working with the Department of Real Estate to sell the development in phases, allowing them to reach the higher occupancy restrictions. Vantage Pointe is also going to be renting about 250 of its condos, lessening the amount of inventory it has to sell.

According to Russ Valone of MarketPointe Realty Advisors, there’s an 11% vacancy rate in San Diego rentals. Valone feels that Vantage Pointe rentals will give prospective downtown buyers a good feel for what true condo living feels like, opposed to less quality, apartment buildings. My problem with this, is that Vantage Pointe’s location isn’t that great and a huge part of downtown living is the convenience factor, which renters won’t get there.

Regardless of what happens, I’m sure that there are 71 very happy people out there who just got out of, what I think, is probably a terrible investment. Buyer’s need to remember that location, views, price and uniqueness are key factors in a good investment – none of which I think Vantage Point offers. I guess we’ll have to wait and see….

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This entry was posted on Monday, May 18th, 2009 at 2:19 pm and is filed under Real Estate Finance, Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

VP Ex Buyer May 24th, 2009 at 3:19 pm
Your facts are incorrect. All deposits were refunded.
Denny Oh May 25th, 2009 at 8:07 pm
Thanks for the correction. I must have misread the article. Are you still looking to invest downtown?
Martina Engel September 25th, 2009 at 8:09 pm
Hi,

are you renting out a studio at the Vantage Point Building for 3 months from October on?
You can contact me under: 702 355 8371.
Thanks,
Martina
Denny Oh September 29th, 2009 at 1:28 pm
Hi Martina – are you looking to find a rental? Or do you own a condo and want to rent it out?