With apologies to "Lost", you know we at WeHoHo love a good MLS description. Thanks to "Full Disclosure" for alerting us to this new listing.
1011 N. Crescent Heights (90046)
[picture coming]
$895,000 - SHORT SALE
2BR / 1BA
1,398 sq ft
Lot Size: 6,650 sq ft
Description: 3BD/2BA home in West Hollywood. Subject to short sale acceptance by EMC. Hostile tenant. Offers subject to interior inspection. Complete file submitted on 8/23/09.
Sold: 11/02 - $500,000
Sold: 1/07 - $1,065,000
Sold (bank buyback): 7/20/09 - $944,126
An Anon had already suggested that we'd see this property come on the market, when we profiled its neighbor in our "So It Begins" post in early August:
Where to begin, but to say that following upon the Harland Street Trifecta (now a doubleheader) is the new Trifecta of 1015, current listing 1011, and 1005 N. Crescent Heights. All sold in development-crazed WEHO during the boomdiada days about 2 years ago.
Appears that 1011 (last sale $1,065K in 1/07) and 1015 (last sale $1.070K in 2/07) were a package development deal now gone horribly sour. Zoning would have allowed 10 or 11 units total on both parcels after demolition of the SFRs. 1005 CH went for $1,000K in 3/08 to another purchaser.
My research shows that indeed, this property and our previously-profiled 1015 N. Crescent Heights have the same owner. Good information, thanks for the heads-up.
So, what's the progression here? Buy with the intent of developing, and while you're getting permitting/capital/etc together, figure you'll rent the place in the meantime to get some cash flow to cover part of your holding costs? Now the world has gone pear-shaped, your tenant has "gone native", Jacob's dead, as is the real John Locke, and Juliet's down the well (sorry).
Banks as the savior - maybe I'll pitch that to JJ Abrams and crew for the season finale next year ...
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4 comments:
Let me take a moment to shed some light on the "dark shadows" being discussed on Crescent Heights. I sold 1005,1011, and 1015 to a group of investors who are now looking for an exit in lieu of the mortgage meltdown. They got past schematics and city hearings, but failed to take the next step to entitle the three lots for 21 Units, 3 of which were to be "affordable" units. The architect is Lorcan O'Herlihy.
You can visit my blog to see the renderings. Both 1011 and 1015 are in the process of being sold short. The issue with 1011 reverting to the bank was a funny one at best. They were $2.50 short on a payment before an upcoming auction date, which allowed the bank to repossess the property. The bank has rescinded the foreclosure because their attorney filed suit.
Both properties have accepted offers at $750,000 subject to bank approval and we are looking for back up offers.
take a look at www.developweho.com for more developments in the area.
Shawn, thanks for your comments and insight. Although, in general, we believe that the bubble (a time of "funny money", fraud, and just general rampant speculation) will be a long time in deflating, it's refreshing to see professionals in the industry with a sense of realism.
We have made some harsh critiques of realtors and sellers (and will continue to do so), as the only way that a market "clears" is for people to get realistic about what the market will bear - the old supply and demand equation.
That said, we can appreciate the psychological difficulties in dealing with sellers who are underwater and can't believe that their loss is about to be "real".
You seem to have a good perspective on things. Thanks again for the data.
Thank you for the kudos. I would like to point out that the absurdness of the "new" market goes beyond the actual seller who has effectively written the property off, but the bank that is handling the asset in a short sale or foreclosure. For instance, Litton Loans services the debt for 1015 N Crescent Heights Blvd. Based on their opinion of value, the property is worth no less than $840,000. Can you believe that?! The place is a dump! The bank hires pinhead real estate agents from Orange County to value assets in Los Angeles County. The BPO agent had to call me for help in finding which MLS board the listing was posted on! I offered to send him the comps and he told me that he is a professional. LOL!
I think most sellers that are underwater have come to terms with their reality. Now you have to evaluate the banks absolute ignorance in assessing the value of their assets.
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