Condo Project Haulted
November 1st, 2007 by AptBldgTraderThe Ventura County Star reports a large condo project in Simi Valley has stopped in mid-development, “Citing slumping market conditions, a developer has abruptly halted construction of a 66-unit condominium development near what is known as Happy Face Hill in Simi Valley, city officials said Tuesday.”
More: “After several months of grading work, Encino-based Larwin Co. told City Manager Mike Sedell in an e-mail that construction of the housing development on 10 acres near Kuehner Drive would be stopped for at least six months.” - Los Angeles Times (Full Article).
November 5th, 2007 at 10:00 am
I recently purchased a Condo in Ventura County earlier this year, in a Master Community called Riverpark. From what I had read, the completion date of the project was supposed to be 2008. However, we are two months away from that date and there is no way the project will be completed by next year. It now looks like they are a few years from completion, I hear that some builders are holding off with construction, while one Builder is going throught with its plans and continues to build.
The main reason i bought in the area was because of the shopping plaza that is suppose to house such tenants as Whole Foods, Banana Republic, Claim Jumpers, P.F. Changs (to name a few) and a Movie Theater. Unfortunately, they have not broken ground yet and the latest news I’ve heard is that construction should start next year and be completed by 2010.
It amazing how prices in the community have fell. Prices continue to be slashed, along with the interest rate. It’s truly amazing.
Another thing that is truly amazing is the sales tactics that are being used to generate business. Every so often, they have some type of event to draw people to the area. Last month, the builders put on a type of Harvest Festival where they had free food and drinks, and entertainment. Some builders are offering free appliances (microwaves, refidgerators), free window coverings (blinds), or free HOA payments for the first year. It’s almost as if Home Builders have taken on the same tactics as Car Dealers!
November 5th, 2007 at 6:55 pm
HandyManny makes a good observation on the current condition of the Residential Market. When the real estate market takes a downward slump, condo units are the first to be affected.
I have also noticed the activity that has been going on in the Riverpark Development. Riverpark is a Master Planned Community consisting of single-family homes, condo, multi-family and retail properties all within walking distance of each other. Riverpark is a collaboration of 4 different builders. Prices on Condos in the area have gone from the Upper/Mid $500K price range to the Mid $300K range.
Lennar (Builder) has two Condo Developments in Valencia that are priced in the upper $200 and $300K price range. Their Madison Development starts at $290K, while their other development called Esperto starts at $368K.
In the San Fernando Valley we are witnessing the same kind of activity, especially within the Condo market. With the numerous amount of Condo conversions and new construction condo developments, availibility is high and builders must be competitive with prices!
Smaller developers of new consturction condos and investors who recently completed condo conversions are stuggling to sell off condo units. Several developers have had these units sit on the market with little to no interest, all-the-while incurring the cost of HOA fees, insurance and advertisement fees.
These individuals are now forced to weigh out the option of selling the property as a luxury apartment building or holding onto the property and renting out the units. We receive calls from individuals, looking for assistance in determining the value of their property. These scenarios are becoming ever so common.
The single-family developments are experiencing similar reductions. A Shea Development in Oxnard called the cottages, which consists of 52 tri-level, single-family homes, has seen dramatic decreases. When these homes were first introduced to the market prior to construction (end of 2005), the homes were priced in the $600K range. A few months later, they lowered prices to high $500K. A few months ago, the Builder yet again changed direction and lowered prices to the high $400K.