Originally posted January 1, 2007
Address: 3141 Michelson Dr. #405, Irvine, CA 92612 (Park Place)
Plan: Plan B – 1293 sq ft – 2/2.5
MLS: S465221 DOM: 56
Sale History: 02/16/2006: $623,012
Current Price: $650,000
Our first post on the Marquee Park Place continues to get a lot of interest, so I decided to do another one. It seems like this unit is in the same building and on the same floor as the unit we first blogged about (3141 Michelson Dr. #402).
From the tax records, we see that this unit was purchased on 2/16/2006 for about $623,012. On the same day, it was put up for sale on MLS (#U6600114) at a price of $850,000! Easy money? I don’t think so.. 177 days later the listing expired even though the price was reduced to $785,000. The flippers waited a couple months before listing again – It was relisted (MLS #S465221) on 11/06/06 at the current price of $650,000. On 12/07/2006, it was also listed as a rental at $2800/month (MLS #S468478).
From what I can gather, it’s been vacant the entire time. Those holding costs must be huge (it’s been almost a WHOLE year)! Renting it out at $2800/month isn’t going to come even close to covering the mortgage on this. Remember, HOA dues themselves are over $1000/month. If you or someone you know is interested in having their luxury high rise lifestyle subsized by someone else, this is a good opportunity to try it out for only $2800/month! 🙂
At the current asking price of $650,000, this flipper stands to lose about $12,000 (assuming 6% in selling costs). The true loss will be considerably more when taking into account the holding costs.
UPDATE #1 – January 5, 2007
What? An update already?! Well thanks to a astute comment by Dog on this post, I’ve found out that the price on this property was reduced by $20,000 on January 4th. The new asking price is $630,000. If sold at this price (assuming 6% in selling costs), this flipper is facing a loss of over $30,000.
$630,000 seems like a lot at first but I’d rather live here than one of the apartment/condo units at Watermarke or Avenue One that are going for the same price:
- 3233 Watermarke Place – 2bd/2ba – 1250 sq ft – MLS #: S469343 – $630,000
- 3335 Watermarke Place – 2bd/2ba – 1137 sq ft – MLS #: S468091 – $635,000
- 3221 Watermarke Place – 2bd/2ba – 1250 sq ft – MLS #: S464778 – $659,000
- 3334 Watermarke Place – 2bd/2ba – 1250 sq ft – MLS #: U6602684 – $699,000
- 2406 Scholarship – 1bd/1ba – 923 sq ft – MLS #: P541743 – $615,000
- 2402 Scholarship – 2bd/2ba – 1213 sq ft – MLS #: S446440 – $654,900
According to “MARQUEE CLARITY” in a post dated 11-25 on the previous thread, “One thing Marquee Park Place does not have is “Mello-Roos”, that expensive add on that provides no direct benefit to the buyer. comments herein have referrenced a $2,000 per month dues and tax component at Marquee…”
I assume this post came from a salesperson at this place, so I will treat the $2,000 number as reliable. If the flipper rents this place out for $2,800 a month, they will have $800 a month cashflow left over for a payment. That is $9,600 a year. If we apply a 12X multiplier (or 8% cap rate), this unit is worth $115,200 to an investor on its cashflow basis. How much premium do you think they can get for the “my $hit doe$n’t $tink” factor over there? $550,000 to get this flipper out near breakeven?
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As happy as the residents seem to be over there, it would be a great place to rent, assuming of course the FB doesn’t have to sell the place out from under you.
I drive by those every night on my way home from work. It is amazing to me that most of the units are unlit. How many units do each on of the buildings hold? Even looking at the pic there are very few units that appear to be occupied.
Are there more of these units up for sale?
the recent favorable comments on the other thread seem to be artificially happy comments by salespeople, not real living people.
Look at this rental, http://rentals.realtor.com/FindHome/HomeListing.asp?snum=43&stype=rent&zp=92612&frm=byzip&ss_aywr=&st=&mls=xmls&mnbed=0&js=on&mnsqft=0&fid=so&vtsort=&typ=7&mxprice=99999999&exft=0&exft=0&exft=0&Image1.x=6&poe=realtor&mnprice=0&ct=&Image1.y=9&mnbath=0&sid=07D780A54D7AC&pgnum=5&snumxlid=1058858499&lnksrc=00001
You can rent a nice looking Marquee for $3,300. This same unit is also listed for $1,250,000. An IO mortgage for $1.25M would cost $6,800/month, plus 2K in HOA and PT means ownership costs $8,800/month. So buying costs $5,500/month or $66,000/year more than renting. Of course there are some tax advantages to the mortgage…but overall, why would someone choose to buy instead of rent at the Marquee?
Price drop! According to MLS the price was dropped yesterday (1/4) from $650,000 to $630,000. Insert your own snarky comment here, sure to be followed by an even snarkier reply about how wonderfully amazing it it to live here.
Watermarke is the next ghetto of Irvine (after Park West). The place is built like garbage!
Just shotup the Phoenix Report, new OC historical data and changed the entire thebubblebuster.com website.
Additionally, the NEW thebubblebuster.com contains new historical data for another 20+ cities. Check it out…
Hey Guys, I’m thinking to buy a 1br in Watermarke, really garbage? Why you say so?
Hey Jasmine,
I don’t usually post, but wanted to give you some insight. I recently relocated from San Fran and stayed at WaterMarke for 2 months in corp housing. Its mediocre at best. And, pricey. My corp condo rate was $3k furnished. My neighbors had a number of complaints. Its pretty noisy and plain. Pools are not well kept and all the units are kinda dark. Its also way to easy to hear your neighbors…hate that!
I recently got into a short term lease at the Marquee. Its way nicer, but as some posters noted, its a ghost town here. I feel like I’m the only one living here. Got it for a steal at $2500 furnished with very high end furniture. No dobt the lady I am renting from is taking a bath on the mortage and HOA.
I’m suprised there has not been talk about how cold, industrial and unfriendly these tower interiors are. As I enter and walk, I feel like I am in a brand new ‘Department of Motor Vehicles’ administration building. These buildings have no soul, let alone the art, sculpture and plant material that is clearly needed.
Also, attendant to a successful high-rise is a village at it’s feet. That trick was missed in Irvine. Downtown Los Angeles knows this problem all to well. Living in a high-rise and driving 15-20 minutes for quality groceries (or a movie) without inspired green-space at it’s base, makes little sense to me.
It will take several years and a pile of sad stories before these buildings get traction in my view.
To add to POV’s comment, have people seen the big hulking gargantuan office building that’s being built next to the Marquee that totally towers over the twin Marquee towers? I can’t believe how big the office building is, and it’s just a huge boxy office building with no style. The office building totally brings an overbearing industrial feeling to the already industrial feeling of the Marquee towers (although I have to admit the Marquee towers themselves look much nicer than the nearby office towers).
To A POV, I guess u haven’t been inside in a long time. Granted the old interiors were really cold. Bosa tried to carry over the Vancouver interiors to OC, but the residents complained and now they spent $800,000 on a new lobby and other interior improvements. For the $1000+ a month HOA, might as well get more bang for your buck. You guys check out the garage? It’s like walking into a Newport Beach Auto/Toy store. Lamborghinis, Ferraris, SLR’s, Rolls Royces, even a Saleen S7, etc. But of course, not everyone in the building has these cars. I guess people that live at Marquee march to a different drum beat and live differently than the rest of the average population.
I am SO glad I bought and sold my little 2nd floor condo. I didn’t make much off of it. Like many mentioned here, I bought before they had figured out the association fee and other things. Once mine came in at a whopping 1000+ fees+tax etc., it was outta here! So how is it living there? Ok? bad? good?
-bix
I like living at the Marquee. But only for $2500 a month rent. I can’t believe people bought these places for $1.2MM. Thats crazy!! Here is a funny one for you. I live in the “A” plan. Its pretty cool. But the second bathroom is almost bigger than the second bedroom. The living area is around 1,500 sq ft, but most of it is in the great room. The hallways, bedrooms and bathrooms are very oddly designed.
I can’t even come close to thinking how much it must suck to pay a mortage of around $6000 a month for one of these places. Owners got hosed on the Marquee…..