What do you guys think of Skyline at Macarthur Place?

Shooby_IHB

Shooby_IHB

New member
We stopped by the sales gallery this week, prices are due to come out later this month. Range from 400K (I'm guessing 1 bedroom or smaller 2 bedrooms on the lower floors) to 1.5 million for the penthouses.



Considering as an investment property in the future, perhaps start a family there and then rent out in 8-10 years. Since they are having trouble selling them, they have lowered HOA's to $500 for the first 4 years (includes water, gas, sewer, trash, cable/internet)



Considering a smaller 2 bedroom, on a lower floor. Things that deter me so far are:



1. I currently live in Columbus Square, so obviously "santa ana" will deter many buyers/renters.

2. Location, no where near a supermarket, however it is walking distance to daphnae's and Togo's :) Bright side is it's smack middle of 405/55, south coast, irvine, airport, etc.

3. How much I can actually rent out a place like this in 8 years. Esp after the HOA's go back up to $1,000 a month.



The layout is great and they are including choice of wood floors, upgraded cabinets/countertops, upgraded floors for the bed/bath, and appliances.



Considered central park west, but am leaning towards skyline.
 
[quote author="Shooby" date=1213745125]We stopped by the sales gallery this week, prices are due to come out later this month. Range from 400K (I'm guessing 1 bedroom or smaller 2 bedrooms on the lower floors) to 1.5 million for the penthouses.



Considering as an investment property in the future, perhaps start a family there and then rent out in 8-10 years. Since they are having trouble selling them, they have lowered HOA's to $500 for the first 4 years (includes water, gas, sewer, trash, cable/internet)



Considering a smaller 2 bedroom, on a lower floor. Things that deter me so far are:



1. I currently live in Columbus Square, so obviously "santa ana" will deter many buyers/renters.

2. Location, no where near a supermarket, however it is walking distance to daphnae's and Togo's :) Bright side is it's smack middle of 405/55, south coast, irvine, airport, etc.

3. How much I can actually rent out a place like this in 8 years. Esp after the HOA's go back up to $1,000 a month.



The layout is great and they are including choice of wood floors, upgraded cabinets/countertops, upgraded floors for the bed/bath, and appliances.



Considered central park west, but am leaning towards skyline.</blockquote>
I was wondering how that project was doing. Last I heard, they only had like 60 pre-sales as of the end of last year. If I remember correctly, their pricing was $600k to $2MM at that time. If the condos drop to the $300k range, I may consider it if I sell my Quail Hill condo.
 
From what I heard, a majority of the pre sales that had been made backed out, and they are now readjusting the price. 400K starting for a 1 bedder, to 1.5 mill is supposed to be the adjusted price. To compensate for the high HOA's, they are cutting it to $500/month for the first 4 years. I don't see it falling beneath 400K, unless there are 0 sales and the builder is desperate. They're already including flooring and other upgrades.
 
<blockquote>2. Location, no where near a supermarket,</blockquote>


There's one at the far corner of Macarthur and Bristol. I can't remember which brand right now, but it's one of the major chains. My friend lives down Macarthur a bit, and we walk to the grocery store from there. There is also a Trader Joe's in the vicinity.
 
<a href="http://www.irvinehousingblog.com/forums/viewthread/834/">Previous thread.</a>



I had heard that they were going to put the skin on the building(s) and cease construction for a couple of years until the market turned around. Based on what's said here, perhaps that is incorrect. I did see a unit listed on Redfin.
 
I work in the "Bright Now Dental" office building right next to Skyline. When they first opened the sales floor last year the 1 bedroom's were starting in the 700's- my co-workers and I couldn't imagine who would pay 700k+ to live in Santa Ana, next to a freeway and the flight path. Glad to hear the prices are coming down but I think they need to drop lower than 400K for the 1 bedrooms.



The Daphne's across the street closed down and a "healthy" burger joint is going in. There is a TJ's down MacArthur towards Bristol and a grocery store near the MacArthur/Bristol intersection as well.
 
[quote author="Shooby" date=1213745125]

Considering a smaller 2 bedroom, on a lower floor. Things that deter me so far are:



1. I currently live in Columbus Square, so obviously "santa ana" will deter many buyers/renters.

2. Location, no where near a supermarket, however it is walking distance to daphnae's and Togo's :) Bright side is it's smack middle of 405/55, south coast, irvine, airport, etc.

3. How much I can actually rent out a place like this in 8 years. Esp after the HOA's go back up to $1,000 a month.



The layout is great and they are including choice of wood floors, upgraded cabinets/countertops, upgraded floors for the bed/bath, and appliances.



Considered central park west, but am leaning towards skyline.</blockquote>


Shooby--another thing to consider is the financial quality of your neighbors. If several residents foreclose in your complex then the rest of you will be stuck with the bill. If your HOA is short you can kiss those great amenities goodbye or they will seriously raise your dues to makeup the shortfall. Banks generally don't pay HOA fees on foreclosed properties.



Check out these articles on the subject:



<a href="http://www.nytimes.com/2008/05/15/business/15condo.html">NYTimes: Collateral Foreclosure Damage for Condo Owners</a>

<a href="http://www.usatoday.com/money/economy/housing/2008-05-26-condo-fee_N.htm">USAToday: Skipped dues crunch home associations</a>



Good luck.
 
[quote author="caycifish" date=1213755996]<blockquote>2. Location, no where near a supermarket,</blockquote>


There's one at the far corner of Macarthur and Bristol. I can't remember which brand right now, but it's one of the major chains. My friend lives down Macarthur a bit, and we walk to the grocery store from there. There is also a Trader Joe's in the vicinity.</blockquote>


Southwest corner of MacArthur and Bristol is a Vons. The NW corner has a TJs. Also an In n Out there.



The place is going to god aweful for traffic. They said no traffic impacts while adding 350+ units. The cheapest ones are 1100 sq feet, 1 bedroom plus den.
 
You said start a family. Santa Ana schools stink unless you go to Mater Dei or High School of the arts. It is a very nice location for a retired couple. Close to the performing arts, South Coast Metro, eateries, airport, etc... For families, maybe not.
 
There are actually some good schools very near the location. I really can't imagine children living there happily though. There are other problems that are much worse. I think the HOA situation is bad and I would hesitate to buy one of these until you have some assurance that the place will be occupied. The traffic is probably the biggest consideration. I work in the area and I have completely abandoned traveling on the freeway because the on ramps are so crowded, at time it can take over 10 minutes to get on the freeway when you are right at the entrance. This isn't a matter of the traffic getting bad, it's already really bad in both directions on MacArthur. The whole concept of urban living is in the process of being abandoned, I would want to catch that knife.
 
Are the homes assigned to the Santa Ana school district? If so, I have some links for you.



Don't let anyone tell you that SA has a good school system because of a couple of schools. There are years of documented problems that should be known as a "buyer beware" reading.
 
Thanks for the tips. Traffic is definitely a consideration, it is a nightmare going on MacArthur during rush hour. takes about 20 min just to get past the 55 onramp.



As for change in lifestyle, I see this place as more of a rental unit in the future, with my goal of moving out of there before my kid reaches an age of starting school. I've always been curious of urban living being a New yorker, granted it's definitely not the same in downtown santa ana.



So if the units don't completely sell, or there are foreclosed properties one or two years from now, the HOA has a right to raise the dues from its promised $500 month to over 1K? That would be bad bad news.



I would only consider this if 2 bedrooms were in the 450K range. Even that sounds a bit high considering the location, traffic, HOA's, etc.
 
$450k? are you on crack?



Did you read IrvineRenter's primer on rental equivalance? 120xGRM is where you need to be as a landlord. *after HOA*!!!



$450k-120x$500(HOA) = $390k/120 = 3250/month



Is there a big market for 2bds there for $3750/mo in that building?
 
<blockquote> What do you guys think of Skyline at Macarthur Place? </blockquote>


<img src="http://www.urban75.org/photos/brighton/images/br107.jpg" alt="" />
 
Just got a price estimate for a 1,265 sq ft 2bed/2bath on the 3rd floor. Pricing is about $420,000, with HOA's around $500 for 5 years.



Price is still steep at $330/sq ft but it does look very nice inside with upgrades on virtually everything including wood floors, viking appliances, washer/dryer, porcelain tile and upgraded countertops/cabinets. It's still Santa Ana though, and its still a bit much for a condo...tempting though b/c it looks pretty darn nice inside, that is..if you're into the urban style of living..
 
This needs, I think to come down another 10% in price.



The HOA situation is a nuther story altogether. Who is subsidizing this

$500 a month? Is the money in escrow with an atty or title company?



There is a certain minimum amount that is needed to run a high rise

tower. You at least need electricity coverage and insurance, even if

you put no reserves aside for maintenance and close down all the

amenities. And whatever else is not covered by normal taxes/fees.



Who pays for water, sewage if it's separate there, garbage collection?



This situation has hit the critical point in a number of the towers

in Miami-Dade.



If the actual money is not in escrow somewhere, and that means for

everybody else they've made this promise to also, and it's just a

develper's guarantee, it isn't worth warm spit. If the developer goes

bankrupt, where do you think the costs are coming from? You, baby,

you. Right away, not 5 years from now. So you also need to make sure

that the money, if it's actually set aside, which I doubt, is someplace

where the developer's other creditors can't get at it. How you ascertain

that, I haven't the faintest idea.



There are various small condos where the assn as gone belly up, where

it actually did not work out so badly. Everybody bought their own separate

insurance. When the building needed painting etc, they resuscitated the

assn, but never did buy building wide insurance. This was a 2 story condo

with 6 units. People at the top of the tower gonna walk up 30 stories

every day? I don't think so.



You need to look at the tower budget with a critical eye and see how

much money is being held and who has control of it.
 
I suspect the future is vulture funds. I see them buying a couple units for pennies on the dollar, getting themselves on the HOA board, excersizing the HOA's foreclosure option on excessive past due HOAs and then taking the condo complex private and turning it into an apartment.



Unfortunate owners will have the choice of jingle mail, selling at a major discount to the vulture fund, or simply getting driven into the ground in their private apartment building and the majority voting block on the HOA board nickle, diming and special assessing them to death.
 
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