Address: 718 N. Croft Ave, 90069Description: Only 5 Left! To experience Croft Villas @ Melrose Place is to experience the ultimate in urban L.A. lifestyle. 15 brand new luxury condos, high-end designer finishes, 3bd & 2ba, wd flrs, custom cabinets, Subzero & Bertazzoni appliances, washer/dryer hkps, FP, patios & views! Utilizing sophisticated style, elegance & quality at an exception & coveted location. Croft Villas is a collection of luxurious residences for people who appreciate convenience & demand the very best!
Here's something we're seeing a lot of recently - a building finished near or just after the top of the cycle, with two conflicting dynamics:
1) a number of owners who bought in early, and
2) a developer who is slashing prices
These look like large (1700-1800 sq ft), nicely-appointed condos in a good area of the 90069 - just off Melrose Place.
As the description states, there are 5 units remaining ... which have been on the market over a year at this point.
I couldn't find sale records on all 10 of the other units, so we may have a case here of "shadow" inventory as my counterparts over at Santa Monica Distress Monitor have correctly termed it, with developers holding back some units so as not to flood the market.
It looks like a few of these units sold in early to mid 2008, with prices ranging from approx $900k up to $1.4mm, or $650-750/sq ft.
Now the developer is (finally) cutting prices, in some cases up to $300k off the original price, bringing the price/sq ft to $550-650, depending on the unit.
Back to our conflicting market forces: Buyers who were in early are at least out their downpayment, if not more, at this point. It will be interesting to see if there is "foreclosure creep" in the building in the near future. As for the developers? They seem to be getting the message, but are they still behind the curve on price cuts?
Remember, here at WeHo-Ho, we like to ask two questions:
1) what would these units rent for?
and
2) who (meaning what income level) should live here?
With some reasonable assumptions for interest rates, tax deductions, and home owners' fees, the monthly nut for a $1mm place (average price of the remaining units) is around $4500/mo. Draw your own conclusions as to what these would rent for (I say $3500-4000) and what kind of income level supports that payment (probably around $250k/yr).
The larger issue in these newer buildings is - will the earlier units foreclose, and what does that mean to the homeowners reserves and therefore, the building upkeep?
