Unusual MLS Listing by JWA

Here is the first clue:

1) Listed by CHINGTO WONG.

2) China markets is imploding both real estate and equity.

3) Lastly, when funding run dries, no matter where the stage of the project, there is no more liquidity to infuse. The acceptance and painful withdrawal to follows.

This resembled the Japanese over invested in the 80's.

As for residential real estate for OC, there is certainly a change of pace, how much and how deep will unfold in the future. My guess, is that homeowners that bought for a place to live will be just fine. The over leverage and over invested will have a wild ride.
 
I am very confused it is not listed on the commercial RE website, but on MLS.  Do you think Wong or Skubacz did not know loopnet or Tenex?
 
@Irvinehomeowner I get that reference....! ;)

Perhaps this agent wanted the widest possible audience and put it on the MLS thinking it would do the trick. I found it on LoopNet but also on Realtor.com today.

The property was purchased with financing by Cathay Bank and also Preferred Bank. It's owned by 17422 Derian Ave, LLC. Some of the partners in this LLC are Ta Partners LLC and Sophie Holdings LLC. One of the partners appears to be a Yaojun Liu. Perhaps there was a tap on the shoulder about risk exposure by those back on the Mainland..... Just a guess at this point.

At $42m for 4x acres that's quite a bit. Plans and approvals add value, but still. So assuming 371 units at $350k per unit to build, that's $129m + $42m or $171m to invest. 371 units divided by said same $171m is $461k per unit cost. Assuming a $2,250 average unit rent on 371 units, that's a gross inflow of $10m per year. That's not enough to debt service in any realistic manner. If these apartments were converted to  condos, similar units in the area are selling well above that $461k cost to build. It seems to only makes some sense if made into condos, and if you've got deep enough pockets to build out.

My .02c
 
Maybe these in-build apartment complexes have reached a saturation point for that area.

If you've driven around this IBC area, there are tons of these complexes. Even existing ones have demolished nearby buildings to expand but at what point is there too many?

From the looks of it, there seems to be another one going up on the corner of Von Karman and Alton... crazy.
 
IBC is ground zero for Irvine's plan for affordable housing. They don't want to fall into the cross hairs of the governor for failing to fulfill their housing obligations.
 
Next door is the B Braun Medical complex.  Is anyone familiar with the small park like lot with a lake in the corner on McGaw Ave?  It seems to be fenced in.

 
Speaking of Braun, what's that white smoke up in the air all the time from near Diamond Jamboree? Is that even legal to run restaurants near that kind of factory?
 
momopi said:
Next door is the B Braun Medical complex.  Is anyone familiar with the small park like lot with a lake in the corner on McGaw Ave?  It seems to be fenced in.
Click to expand...

owned by b braun
 
Mety said:
Speaking of Braun, what's that white smoke up in the air all the time from near Diamond Jamboree? Is that even legal to run restaurants near that kind of factory?
Click to expand...

cooling towers from the solar turbines on site.  lot of approvals go into operating a plant like that (esp in ca), so yes it's legal
 
Maybe the listing agent doesn't have a subscription to CoStar (the very expensive version of MLS on the commercial side).
 
USCTrojanCPA said:
Maybe the listing agent doesn't have a subscription to CoStar (the very expensive version of MLS on the commercial side).
Click to expand...

Why the heck would a development group not use a commercial firm that handles big transactions like this everyday?
 
rkp said:
USCTrojanCPA said:
Maybe the listing agent doesn't have a subscription to CoStar (the very expensive version of MLS on the commercial side).
Click to expand...

Why the heck would a development group not use a commercial firm that handles big transactions like this everyday?
Click to expand...

I can only think of 2 reasons....they are cheap and/or they are total newbs.  I mean, listing a property like that on MLS is so amateur.  Like you said, hire a commercial brokerage and properly market it.
 
You must log in or register to reply here.
Back
Top