Myth regarding high density is affordability.

Attached product, particularly townhomes, have been the favored affordable housing product nationally. Here in California, this kind of construction has huge liability issues that makes building these for sale very costly due the very high insurance rates. In fact, many developers, the Irvine Company included, will build attached product communities and keep them as rentals for 10 years. After 10 years, the original builder/developer cannot be sued for construction defects, so they are converted for sale at that time.





Would it surprise any of you to learn there are services which notify attorneys which communities are nearly 10 years old so they can approach the HOA about suing the original builder? This is a cottage industry in California.


One of the many reasons we have a problem with affordable housing.
 
<em>>>Would it surprise any of you to learn there are services which notify attorneys which communities are nearly 10 years old so they can approach the HOA about suing the original builder?</em>





I am also aware that at least one major HOA management company in OC keeps track of the same deadlines for purposes of notifying the boards they advise.
 
Most new apartment complexes are designed with conversion in mind. Watermark was supposed to be apartments for 10 years, but the market was so hot, they decided to buy the expensive insurance and sell the units at completion.





Perhaps the Irvine Company has other plans. They do own a large number of apartment complexes. Perhaps they are keeping some of these for ongoing cashflow and tax depreciation?
 
<p>The Donut wrap products are great for conversion since the parking structure occupies a fixed area of land completely independent from the residential and to add another 80 apaces only meant adding another level of parking deck without impacting the land what so ever. </p>

<p>This is why Watermarke could convert while most other apartment projects could not. The construction cost for Watermarke is way too high for IAC to ever consider it. Their product budget is $115-135/sf while Watermarke with the parking structure was over $200/sf.</p>

<p>All IAC products are slab on grade with surface parkings. The products at the Spectrum are podium type which is hard to add extra stalls because the parking structure is integrated with the residential above it. Adding another level would change the dynamic of the structural bay and column spacings.</p>
 
<p>"Would it surprise any of you to learn there are services which notify attorneys which communities are nearly 10 years old so they can approach the HOA about suing the original builder?"</p>

<p>No it would not.</p>

<p>Old Bill was right, "Let's kill all the lawyers!"</p>
 
bk, what is your take on the proposed costa mesa high rise residential towers? it seems they are in a more walkable area (close to south coast plaza and symphony halls and nice higher end eateries) than the irvine/santa ana highrises?
 
The high rise towers that I am awared are the one on McArthur betweem 55 and Main Street. It is too far to walk to the cultural amenities. Successful highrise living should be in the midst of cheap and expensive eateries. With all the expensive restaurants near by there will be no money left to pay HOA dues. Cheap but good mom and pop eateries and soup nazi are needed to create successful urban living.
 
<p>The high rise on MacArthur between 55 and Main is Skyline in Santa Ana. The Costa Mesa highrises that are proposed are near Bristol and the 405 and are right across the street from the South Coast Plaza (see <a href="http://www.ocregister.com/ocregister/homepage/abox/article_1256393.php">http://www.ocregister.com/ocregister/homepage/abox/article_1256393.php</a> )</p>

<p>The specific locations are shown in a map on the above link and I've driven by the locations and they seem to be in a much more walkable area than Skyline or Plaza Irvine. You can walk to South Coast Plaza and there are high end eateries close by and the cultural amenities like the Symphony Hall are a block away. </p>
 
<p>The Costa Mesa highrises are proposed and no construction activities have started, but to me they seem to be more ideally located, would be nice to hear your thoughts on it.</p>
 
Also walking on Bristol north of Sunflower you have In N Out and many cheap eateries, not all of them chains but some mom and pops too. Further north you get the cheap but good Mexican eateries.
 
<p>Thanks,</p>

<p>Of all the locations I have seen and heard of. This location will make the most sense. Corporate ownership could be a strong buyer segment. Many companies could potentially relocate their traveling executives there for a period of several months instead of an expensive hotel suite with living and dining. Cost will be a huge factor.</p>
 
<p>Here are a couple of links to the projects:</p>

<p><a href="http://www.ocregister.com/ocregister/homepage/abox/article_1545353.php">http://www.ocregister.com/ocregister/homepage/abox/article_1545353.php</a> </p>

<p><a href="http://www.dailypilot.com/articles/2007/01/17/politics/dpt-highrise17.txt">http://www.dailypilot.com/articles/2007/01/17/politics/dpt-highrise17.txt</a> </p>
 
<p>That's all we need. More traffic to South Coast Plaza. Imagine Christmas shopping.....ugh!</p>

<p>With such a good locale. I can imagine the prices for these units. </p>
 
<p>bk,</p>

<p>What's your take on One Broadway Plaza by Michael Harrah? By the way, is Original Mike's on the corner of Main/First Street his?</p>
 
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