Ive been known to be critical of new buildings and I may be too opinionated for some peoplebut I cant help it. Look at downtown San Diegos largest condominium building “ Vantage Pointe. This new 92101 development has almost 700 condos and is HUGE! Most downtown San Diego highrises condo buildings have about 150“250 condos “ about a third of Vantage Pointe. As the developer, Pointe of View, tries to sell off its inventory, I cant help but think one thing “ foreclosure.
With one and two bedroom condos, Vantage Pointe seems to be targeting the first time home buyer, the investor who has a few hundred thousand sitting around and probably some second home investors. What I dont get, is how they ever intended to sell off so many condos. At this point, Vantage Pointe is renting out some of its condos and try and sell the rest. Im not sure how they plan on doing this, but I dont think I could ever advise a client of mine to purchase here. In fact, Ive talked people out of buying at Vantage Pointe!
Heres what I dont like
1. Competition “ with almost 700 condos in one building, how can you expect to sell anything when youre neighbor and 100 others are trying to sell the same condo? Okso its not the same exact condo, but theyre not going to be very different.
2. Amenities “ again we are faced with a ton of people(assuming people buy/rent) who are all sharing the same common area amenities. The pool area, lounge, gym and media room are all great, but what if more than 20 people want to use it? Considering the fact that, from what I saw, nothing at Vantage Pointe was much different in size compared to buildings with 200 or so condos, how do they expect 3.5 times as many people to use the same amount of space? I will say, however, that the lobby at Vantage Pointe is very impressivebut thats about it.
3. Litigation “ with so many condos that were built(which were not phased), I cant help but imagine there were some cut corners during the construction of Vantage Pointe. Im not saying anything illegal was done, nor do I think that, but as all developers have been hit, I doubt Pointe of View was any different. When I toured the property, I saw things like un even rails, less than perfect 90 degree corners, etc. I would be surprised if Vantage Pointe did not go into litigation at some point for building defects. Like I told my friend, I dont think its going to fall down on you, but you might have problems with your plumbing and everything else.
4. Desperation “ as a realtor, I see how developers try and market towards us. Some developers only come to us when times are tough and nothing is selling and others value our services and always want our help. With Vantage Pointe and Pointe of View, realtors are being offered a 5% commission and I cant tell you how many emails I get about new events with food and drinks. Typically Id say this is great, but in this case, I think it smells of fear and desperation.
Just take a look at the ad below.
All of their marketing is talking about bottom line pricing and negotiating an UNBELIEVABLE price.without even trying. Last time I checked, that wasnt the best way to sell something and make money on it. All thats missing are the dotted lines where you cut out the coupon! Granted, theyre probably just trying to sell off some inventory so they can increase their occupancy rates and get financing on the remaining condos, but even with this aggressive approach, I doubt theyll sell much.
One of their ads shows a price reduction on a 1br from $249K to $216K “ a 13% decrease. Another unit went from $381K to $341K “ also a 13% price reduction. Typically, youll see this when a developer is closing out their inventory, or when theres something wrong with a particular condo(i.e., it has no view at all, or its next to the rail road track, etc.), but not when its a brand new building.
I know people will say Im wrong and that this is a great building, but I dont think that theres anything one could say or show me to convince me otherwise. I would never buy here, nor would I want to represent someone who does. If you want a downtown San Diego realtor who will advise you and not just look for a paycheck, give me a call.
Denny Oh 858“243“2092 [email protected]