Originally posted October 18, 2006
Avenue One is a condo development built in 2006 by K. Hovnanian Homes located off Jamboree and DuPont. It is/will be surrounded by the Toscana apartments, the Watermarke condos, The Plaza, and 3000 The Plaza. The location is very convenient if you’re single and have a job nearby. But it’ll definitely be a while before Jamboree can be compared to the Wilshire corridor.
In MLS, there are currently 5 Avenue One homes listed for sale by flippers:
- 2119 Scholarship – Plan 1B – 1/1 – 602 sq ft – 57 DOM – $429,999
- 2310 Scholarship – Plan 1A – 1/1 – 725 sq ft – 54 DOM (+180) – $437,000
- 2406 Scholarship – Plan 1CL – 1/1 – 923 sq ft – 13 DOM – $615,000
- 2302 Scholarship – Plan 2A – 2/2 – 1037 sq ft – 30 DOM – $568,000
- 2402 Scholarship – Plan 2AL – 2/2 – 1213 sq ft – 118 DOM – $654,900
The Plans that end in ‘L’ have a loft and are on the 4th floor. Unfortunately, I haven’t been able to find the purchase prices for any of these condos. But I’m sure some of these flippers will lose money. Click on the address to see the actual MLS listing. You’ll be suprised at what some of the original asking prices were. You know the flippers were thinking ‘I’ll buy in the first phase and then make a ton of money as the builder raises prices in subsequent phases’. Well the builder isn’t on their side and has actually listed several properties on MLS (yup, the builder is offering agents 3% to bring in a buyer):
- 1231 Scholarship – Plan 1B – 1/1 – 602 sq ft – 119 DOM – $389,990
- 1150 Scholarship – Plan 1A – 1/1 – 725 sq ft – 51 DOM – $396,990
- 1334 Scholarship (pend) – Plan 2A – 2/2 – 1037 sq ft – 40DOM – $545,990
- 1418 Scholarship – Plan 3AL – 3/2 – 1538 sq ft – 23 DOM – $740,990
Why would anyone buy from the flippers if they can get a BRAND NEW home from the builder for LESS??? If you look at the actual MLS listings for the builder listed homes, you’ll see that the builder has been reducing their asking prices as well. They need to sell these homes and will lower the prices until they are all sold. What’s a flipper to do? 
UPDATE #1 – November 16, 2006
It’s been about a month since the original post and I thought it would be interesting to see how the pricing at Avenue One has changed. Here’s a look at what’s currently available for sale by flippers:
- 2119 Scholarship – Plan 1B – 1/1 – 602 sq ft – 86 DOM – $429,999
- 2310 Scholarship – Plan 1A – 1/1 – 725 sq ft – 83 DOM (+180) – $437,000
- 2406 Scholarship – Plan 1CL – 1/1 – 923 sq ft – 42 DOM – $615,000
- 2302 Scholarship – Plan 2A – 2/2 – 1037 sq ft – 15 DOM (+43) – $568,000
- 2402 Scholarship – Plan 2AL – 2/2 – 1213 sq ft – 147 DOM – $654,900
- 2172 Scholarship – Plan 2? – 2/2 – 1100 sq ft – 0 DOM – $569,000
- 2418 Scholarship – Plan 2AL – 2/2 – 1213 sq ft – 2 DOM – $714,900
You’ll notice that NONE of the flippers lowered their prices from a month ago. Also, there is more competition as another 2 properties were just listed by flippers in the last couple days. Now let’s take a look at the properties available directly from the builder:
- 1231 Scholarship – Plan 1B – 1/1 – 602 sq ft – 148 DOM – $369,990
- 1150 Scholarship – Plan 1A – 1/1 – 725 sq ft – 80 DOM – $376,990
- 1418 Scholarship – Plan 3AL – 3/2 – 1538 sq ft – 52 DOM – $725,990
- 1334 Scholarship (SOLD on 10/23 for $545,990)
The builder lowered prices on ALL their properties: the 1 bedroom models were lowered by $20,000 and the 3 bedroom model was reduced by $15,000. Not much right? But think about what that’s doing to the flippers who are trying to sell. Wouldn’t you rather buy a Brand New home from the builder and save $60k-$70k versus buying the same plan from a flipper?
Oh and guess what? The builder is now offering **5%** (that’s an increase from the 3% they offered only a month ago) to agents to bring in a buyer. So if anyone reading this is interested in buying a unit from the builder, make sure you negotiate AT LEAST 5% off their asking price. (For those that don’t want to do the calc.. that means, right now, you can get 1231 Scholarship for $351,490, 1150 Scholarship for $358,140, and 1418 Scholarship for $689,690.)
UPDATE #2 – May 11, 2007
It’s been almost 7 months since this was originally posted. Here’s an update in the tract:
Out of the 7 properties listed by flippers in the November update, none have yet sold. 4 are no longer on the market:
- 2119 Scholarship – Plan 1B – 1/1 – 602 sq ft – $429,999, $399,900
- 2310 Scholarship – Plan 1A – 1/1 – 725 sq ft – $437,000, $434,500
- 2406 Scholarship – Plan 1CL – 1/1 – 923 sq ft – $615,000
- 2418 Scholarship – Plan 2AL – 2/2 – 1213 sq ft – $714,900
3 are still on the market (2 with reduced prices):
- 2302 Scholarship – Plan 2A – 2/2 – 1037 sq ft – 187 DOM (+43) – $568,000, $554,000
- 2402 Scholarship – Plan 2AL – 2/2 – 1213 sq ft – 319 DOM – $654,900
- 2172 Scholarship – Plan 2? – 2/2 – 1100 sq ft – 172 DOM – $569,000, $539,000
Joining them are 4 more units put up by flippers:
- 1276 Scholarship – Plan 1B – 1/1 – 602 sq ft – 28 DOM – $365,000
- 2382 Scholarship – Plan 1A – 1/1 – 725 sq ft – 69 DOM – $414,900
- 2118 Scholarship – Plan 2A – 2/2 – 1037 sq ft – 125 DOM – $549,000
- 2168 Scholarship – Plan 2A – 2/2 – 1037 sq ft – 49 DOM – $559,000
Now, let’s see what happened with the 3 units that the builder had available as of the November update:
- 1231 Scholarship – Plan 1B – 1/1 – 602 sq ft – 223 DOM – Sold for $369,990 on 2/26/2007
- 1150 Scholarship – Plan 1A – 1/1 – 725 sq ft – 138 DOM – Sold for $376,990 on 1/29/2007
- 1418 Scholarship – Plan 3AL – 3/2 – 1538 sq ft – 181 DOM – Sold for $695,000 on 4/19/2007
All 3 of the builder’s units eventually sold. There is one more available from the builder currently:
- 1428 Scholarship – Plan 2AL – 2/2 – 1213 sq ft – 113 DOM – $594,990
In total, there are 8 units currently on the market (7 by flippers, 1 by the builder). Any guesses on which sells first?
although ugly, at least this construction was wooden and only a few floors so the costs are somewhat low. but right next door are the “plaza” steel/concrete high rises that are clones of the park place disaster. no flippers to buy that shiznit and the developers can only cut prices so much because of the high cost of construction for such towers. i see darkness in their future. speaking of park place, you ought to put a picture of their towers taken around 8PM in the evening. Lights out, totally. nothing but flippers.
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It’s nice to see no mello-roos, but $351/mo for HOAs? You have to be kidding. At Hovnanian’s loft development on the Lake corridor in Pasadena, the HOAs were around $800/mo. They weren’t selling, so Hovnanian supplemented each unit’s HOAs by $400/mo for 10 years. Wonder if they will do that here.
10 years? Wow! That’s pretty nice 🙂 The most I’d heard was 2 years for these condos in Ladera Ranch.
$400 minus $800…is still $400 a month for HOAs…that still is a joke….The $351 HOAs for a apartment turned condo is a joke. Avenue One is a crappy apartment type condo with no garage…..This condos should hit below $200k in 2-3 years time..
Great work. You say that the developer’s drops in asking prices of $15k or $20k aren’t much, but remember that they are happening over a very short period of time, right?
How can a seller possibly justify a buyer paying $60K or so MORE for a one bedroom unit than the developer is asking.
Also, are you including “developer freebies” like paid HOA dues for the first year or two? That is what Hovnanian has been offering on other slow-moving condo projects.
The hardest thing to know in a declining market is the EFFECTIVE selling price when all the concessions are factored in. Of course, these are not disclosed on a grant deed or trust deed.
Hi guys,
I met a guy who told me about how a couple of these condos are used as whore houses. Kid you not!
He said that they’re high class girls who are servicing the stop over crowd from John Wayne.
That’s one way to make the payment! LOL
I’d get the addresses to post, but I wouldn’t post unless I was sure. Sense I’d never pay for that stuff, I don’t know how I could prove it.
oh nice, i’d be interested in that! how to find them?
I’m amused at the growing inventory sans price reductions.
REOs for everyone!
Neil
I work close to this place. Keep up the good work, this is great.
These will be in the mid 150’s in 3 years.
1231 Scholarship – Plan 1B – 1/1 – 602 sq ft – 223 DOM – Sold for $369,990 on 2/26/2007
1150 Scholarship – Plan 1A – 1/1 – 725 sq ft – 138 DOM – Sold for $376,990 on 1/29/2007
1418 Scholarship – Plan 3AL – 3/2 – 1538 sq ft – 181 DOM – Sold for $695,000 on 4/19/2007
Who in their right mind would pay this kind of dough for condos??? Insane!
Is the builder still offering a 5% kickback to an agent?
The 2/2 with loft priced at $594K is going to hurt when it sells.
Is the Redfin information correct? It says the school district is Santa Ana Unified. Holy bat-**** batman, you’re paying a half million for a condo in Irvine and your kids get to go to Santa Ana Unified anyway!
“Straw” buyers. I went to the this complex this past weekend. I am not ready to buy at this point. I just wanted to check things out. I did not have a chance to go inside as there was no parking. There was valet parking, however. I thought it was a hassle so just left. From the outside, it looks pretty bad. There was already streaks of dirt on the exterior of some units. There was nothing architural stunning about this place. At least, for the Watermarke, there is a “look” to it. And the prices are still outrageous.
Does anyone know how many of these units got sold?
I have a friend that sold his place in Tustin and bought a 2 bedroom condo for 545k 16 months ago. I thought he was retarded then. And prices are even higher now. His condo is right by the basketball court so he gets to hear all the whiteys and asians pretending to be michael jordan.
They are small and have no garage. They are essentially apartment condos. You can get essentially the same amenities at Villa Siena for less than 2k a month and NO mortgage. Personally I think teh amenities at Villa Siena are better
The school district is the real kicker. I moved from Villa Siena — in a rush — because I found out my kids would have to go to Santa Ana Schools. It never even occurred to me it was possible for this Irvine location to be in the Santa Ana school district.
I wonder how many young couples are starting out by trapping themselves in these condos? How would you like to be them when they want a family or if they need to send their kids to school, and they find out where they would go? Trapped in a tiny condo in the Santa Ana school system. The joys of home ownership.
The problem with wood is that noise resonates – mostly to the unit below, but with some noise to the side and possibly above. You can mitigate mightily, but the noise transfer is almost impossible to completely abate. The higher cost of concrete is worth it if you live in stacked housing.
Compared to prior experience with 3 similar style buildings in the Bay area, that is a low HOA. How many elevators and underground parking gates and ventilation systems are in this building? They must be maintained. Plus, many utilities may be common, i.e., no separate metering for gas fireplaces in all electric units, and the water most probably is common, plus trash generally is included. These items all contribute to the HOA and in my experience, the board (comprised of homeowners) does not want to increase dues unless absolutely necessary. My experience is that the builder sets the budget too low initially.
Good to know you understand the budgeting process required by the DRE to ensure there is enough money to maintain the building you buy into!
So if you’re not confident enough of your sources, why are you bloggin this?
This is city living being sold in the “Burbs”. I was in Santa Ana/ Irvine this week for the first time in months and noticed the faux “shopping village concept” being mass marketed to the young professional crowd.
The sales disclosure given by the developers clearly state the local schools, so don’t fret. The purchasers know darn well what the local schools are. The renters are the ones who don’t receive disclosures.
Pianist, I’m sure the builders list it appropriately, my point, much like IrvineRenter, that it wouldn’t cross my mind that I live in Irvine and go to Santa Ana Unified. I’m not a real school snob and would pretty much treat one Irvine elementary school like another. Obviously, I’ll have to pay much better attention to that factor.