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Vantage Pointe Condos
October 20th, 2009 categories: Real Estate News
I’ve been known to be critical of new buildings and I may be too opinionated for some people…but I can’t help it. Look at downtown San Diego’s 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 can’t 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 don’t 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. I’m not sure how they plan on doing this, but I don’t think I could ever advise a client of mine to purchase here. In fact, I’ve talked people out of buying at Vantage Pointe!
Here’s what I don’t like…
1. Competition – with almost 700 condos in one building, how can you expect to sell anything when you’re neighbor and 100 others are trying to sell the same condo? Ok…so it’s not the same exact condo, but they’re 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 impressive…but that’s about it.
3. Litigation – with so many condos that were built(which were not phased), I can’t help but imagine there were some cut corners during the construction of Vantage Pointe. I’m 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 don’t think it’s 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 can’t tell you how many emails I get about new events with food and drinks. Typically I’d 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 wasn’t the best way to sell something and make money on it. All that’s missing are the dotted lines where you cut out the coupon! Granted, they’re 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 they’ll 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, you’ll see this when a developer is closing out their inventory, or when there’s something wrong with a particular condo(i.e., it has no view at all, or it’s next to the rail road track, etc.), but not when it’s a brand new building.
I know people will say I’m wrong and that this is a great building, but I don’t think that there’s 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 denny@sandiegoh.com
With the number of leasing units the developer is retaining it looks to me like they will also control the HOA for a long time to come.
Eric,
I’m not sure how they’ll set up the HOA, but it will be interesting to see how the sales gear up. I’d rent there, but that’s about it. Discovery is a MUCH better option for that location…actually, it’s probably the best address in Cortez Hill.
With so much inventory and poorly designed floor plans its going to be hard to make this product appealing to any consumer. The layout and room sizes are similar to dorm rooms, I can’t imagine my king size bed fitting in ANY of the bedrooms. I wish the developer luck!
Zack,
I’ve been through a number of their units/floorplans and had the same thought. Clearly they weren’t going for the large, spacious condos, but small can still be functional. It’ll be interesting to see what happens.
This building has very poor property management, I know-I rent here. They lied about fees before we signed the lease (trash, sewer, water fees) they also said free wifi would be available to residents in the lounge. After we moved in they said this would be for homeowners only. There are also a lot of issues with the current construction conditions. Only one elevator bay works, the garage floors are covered in construction dust and I constantly see screws and nails on the garage floor as well. It’s only a matter of time before someone gets a flat tire in the building. Rent may be cheaper for downtown living-but you get what you pay for.
J – thanks for the info. Sorry you have to deal with that, but at least you didn’t buy there! Hopefully they’ll get their act together soon and avoid getting into any more trouble than they may have already caused.