Where are the Downtown Condo Short Sales?

Any guesses?  You’d have to be a real insider to Downtown San Diego Condos to get this one right.

The answer is The Hard Rock Hotel, which has 16 current short sales and foreclosed condos.  Considering that there are a total of 74 total Downtown San Diego condo listings that either foreclosures or short sales, it’s huge having almost 25% in one place. 

Hard Rock is a brilliant brand, and the hotel remains a hip destination, but the 2007 pre-financial crisis pricing doomed the condo/hotel buyers.

Downtown San Diego Luxury Condo opportunities

A couple of points to address before continuing with the surprising short sale opportunities in San Diego Condos. 

First, not all of the lowest prices are short sales or foreclosures.  There are some very motivated sellers of properties with equity accepting great prices right now (See recent blog about Harbor Club Bubble Units). 

Second, the hassles and uncertainty of a short sale can really detract from the experience of buying a home.

But, if you’re willing to put up with short sale hasssles…

Here’s where the real surprise is.  The next highest total is The Grande!  Of the 16 listings at The Grande, 5 are short sales.  Among these are some of the best floorplans among Downtown San Diego Condos.  See all Grande Floorplans.  Among current listings at The Grande, 1,944 sf on the 7th floor is an amazing buy–and over 1,600 sf on the 28th floor have to be seen.

Two of the recent Bosa Development residences also account for a significant share of San Diego Luxury condo short sales.  The Legend located inside Petco Park currently shows 4 short sale listings.  Electra, one of the most luxurious and well placed of Downtown San Diego Condos currently has 3 available.  It should be noted that all of these residences were sold in 2007-2008 at the peak of the Downtown real estate market.

There is also a very high profile listing at Pinnacle Marina Towers being short sold.  This 1,600 square foot, 28th floor condo will be the highest floor to sell under $1,000,000.

Other Downtown Condo Short Sale surprises

It had become an expectation that the bulk of listings in Acqua Vista and the El Cortez would be distressed properties–either short sales or foreclosures.  There are currently only one in each building.  This is some of the best news for homeowners in these buildings that we’ve had in years. 

Does it seem possible after all of the instability of ownership in these buildings that they, and Cityfront Terrace and Renaissance would each have one short sale.

The Bottom Line

The failed business model of the Hardrock Hotel should be revisited with condos being sold at half price (or less).

If you’re a buyer, there is a brand new opportunity at the top of the Downtown San Diego Luxury Condo market.  Some of the best buildings, those that opened in 2006-2008, are where some of the best opportunities are now found…if you’re willing to put up with the “nickel and diming” that goes along with a short sale.

If you’re a property owner at a place like Acqua Vista or El Cortez and think it’s time to sell, you’re no longer competing with a plethora of short sales and foreclosures.

If you’d like to start a conversation about Downtown San Diego Real Estate, give me a call.  I’m at 858-432-3203.  I’d look forward to speaking with you.