Investment Opportunity At The Grande North

Posted on March 3, 2014 | by Denny Oh

There’s a condo for sale at The Grande North right now, that I think is a pretty good deal.  This third floor condo is advertised a 1,550 sqft, 2br/2ba condo on the MLS, when in realty it’s a 1,684 sqft, 2br+den/2ba condo.  I have no idea why it’s being advertised this way, but I know this unit/floorplan well and can all but guarantee it’s 1,684 sqft.

I sold this condo years ago to a client and have sold others just like it.  It faces south over the building/garage entrance and is the larger of the two “A” floorplans (this is the A2, vs the 1,625 sqft A1 plan) – the extra square footage is in mostly in the closet.  The unit is HUD owned and can be purchased by anyone – owner occupied, investors, second homes, etc.  The property has been on the market since Nov 2013 and has been in and out of escrow four times.  From what I’ve learned, there’s nothing wrong with the property though and the price has dropped from about $743K to about $668K.

Screen Shot 2014-03-03 at 2.08.35 PMComparable units a few floors higher have recently sold in the low-mid $700K range and I think this unit is worth about $675-700K.  Yes, this condo is listed for $668K and hasn’t sold, but I think it’s mainly because it’s a huge pain to write an offer on a HUD owned property.  Agent’s have to be HUD registered, you have to fill out a bunch of extra forms and there are 11 PDF attachments on the listing, just telling you how to show the property, how to register with HUD, how to submit an offer and everything else that’s annoying to do (remember, us realtors are lazy).  Also, people who don’t know the building don’t realize that it’s actually 134 sqft larger than advertised – which at $431/sqft, would be nearly $58K more (or a list price of $725K).

This unit doesn’t have much of  view and isn’t anything glamorous, but it’s probably the best deal deal in downtown San Diego right now.  I’m not sure how low the seller will go, but I‘d try and get it for $600K and then flip it about $700K.  Worst case scenario, you could rent it for about $3300/mo.  The Grande North is still in litigation, which for a cash buyer, would be advantageous.

I think The Grande is a great building and a great investment as well.  For more information about The Grande or other San Diego real estate deals, please contact Denny Oh at 858-243-2092 or [email protected]

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