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Still More Proof that DC Real Estate is... "teh awesum"

Recs

6

October 09, 2007 – Comments (8)

Here you go, another desperate developer trying an auction to get rid of stuff that won't sell. "Parkside Alexandria." Prices look like they're about 65% of the original ask.

The developer should, as you'll see, be beaten down severely for that whopper of a name. "Roadside" is much more accurate.

Here's the ad:

SP32-20071009-121114

Almost looks nice eh? Well...

Note the premium location (along one of the busiest commuter highways in the area).

I mean, it's truly awful. Here's a sat view, and then an aerial that they posted on their own site that shows just how close these are to the traffic.

SP32-20071009-123514

SP32-20071009-123106

And don't forget, you get the pleasure of a $240 month condo fee, too! 

8 Comments – Post Your Own

#1) On October 09, 2007 at 4:41 PM, ByrneShill (77.55) wrote:

Hey Seth, ever thought about going to auctions and offering 1$/condo? If you can rent it for about 500$/month after that you're in the money...

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#2) On October 09, 2007 at 6:32 PM, TMFBent (99.82) wrote:

lol. A few of us are thinking of going to these and lowballing the crap out of them. I might pay $130 k for one of these. But they're holding a reserve of $225 k. Um, i've lived along a busy road in a small place before (chicago, smaller place, worth about $130K when we sold), and no way would I pay their current reserve, especially when you can rent with equivalent money -- in a place where you don't have to listed to the drone of traffic all day and night. RE is just nuts around here. I know too many people who are just ready to quit this place because prices still aren't sane, and wages aren't rising to match.

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#3) On October 10, 2007 at 10:29 AM, ivyruby (< 20) wrote:

You all are nuts, have you seen these places. They are all brick townhomes totally renovated and super nice. They are within 10 minutes of DC and you can't buy anything like this for this price anywhere around there. Would you rather be in a condo with no patio and smelly hallways. They already sold over 300 of these and there are a ton of young really nice people living at this community. Think again and know that a lot of people think that this is now a steal.

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#4) On October 10, 2007 at 12:13 PM, TMFBent (99.82) wrote:

LOL. Good one. Care to share the math on comparable rent? Care to bring a mic to the location and let us in on the traffic noise? Care to discuss the known ill health effects from living close to roads this big? Care to ponder the loss in "equity" this fire sale brings to the poor suckers who bought at full price?

"Less crazy than the rest of the insanity" is no reason to buy one of these. The condo market is in a bigger free fall than the rest of the DC market, and more (and nicer) units are being built all the time.

 

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#5) On October 10, 2007 at 12:14 PM, TMFBent (99.82) wrote:

Hey, ivyruby. I notice you joined us just yesterday and it seems your first official act was to come to this blog, of all places, and defend this condo fire sale. Care to tell us if you've got any relationship with this place?

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#6) On October 10, 2007 at 12:43 PM, TMFBent (99.82) wrote:

By the way, let's all note that these are converted '70s rentals.

Here's the verbiage from when the conversion was first announced, and the big units were drawing $400 K.

Let's have another reality check, shall we? For the larger units, you pay another $300-plus in condo fees on top of your mortgage, insurance, and utilities. Sweeeeet.

I rent a place that's nearly EXACTLY this floorplan, exactly the same age, but a bit bigger, for $1700 per month (covers all utilities except elecriticy and cable). They do all the maintenance, inside and out. Bigger pool(s). Exercise room, courts... Free shuttle to the Metro (or a mile walk). And we're not located on the highway.

We are within walking distance of a Whole Foods, Trader Joes, Starbucks, as well as several good small restaurants including Thai, Chinese, Italian, Mexican, and French/North African.

Someone explain to me once again why anyone would consider paying more to be locked into renting a quickly depreciating asset from a bank, for a lot more money than one can rent it from a regular landlord, from whom one can sever the financial relationship at any time with a month's notice, and no 5-figure payout in fees?

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#7) On October 10, 2007 at 3:26 PM, newbie26 (81.56) wrote:

Hi Seth,

I make it a point to read your blog regularly & rec it usually, but I never comment. But ivyruby just cracked me up! Of course buying a house is NEVER bad, rent is ALWAYS throwing away money & the sky is ALWAYS blue! :)  You will get these crazies at all the housing crash blogs but it is funny to see them at the Fool

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#8) On October 15, 2007 at 9:50 AM, FranklyRealty (< 20) wrote:

Actually the 2 bedroom townhouses started at $325,000 and then skyrocketed to $425,000 over the following 9 months. There were some 3 bedrooms going for more, but those are not part of the auction.

Here is the first blog about Parkside At Alexandria. And remember that the $225,000 is the minimum starting price. You might think it is worth $100,000, but their attempt will be to get people all crazed about the auction and get them ALL bid up from here.

If this is successful, if they are able to get 90% of list ($325,000) you will see at least one of these a month in the DC area for the next year. 

Written by Frank Borges LL0SA- Broker FranklyRealty.com

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