Wednesday, February 6, 2008

The preserves are starting to rot



The preserve in Chino is an attempt to turn former dairy farms into a master planned community.

The Preserve at Chino will become a master planned community encompassing over 1,000 acres as the plan unfolds throughout the next decade. Guided by thoughtful design ideas and proven planning strategies, the community will mature graciously, with tree-lined streets and parks close to home, walkable neighborhoods, and outstanding public and private amenities.

So far only a few tracts have been built. Most of the roads into the area are small or under construction. There are only a couple of main streets out of the area, and when built out the traffic could very well become a nightmare. On the few occasions I've been over there it's already bad. Most of that though is due to the road construction.

The few tracts that have been built were on the spendy side, $700k and up when I last checked. That was probably almost a year ago. The REO's and shorts are already hitting the market and they should begin to drag those prices down.
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The current leader per sq/ft (that I could find) is this property at 7906 Garden Park St.
This home is a monster, 4146 sq/ft with 5 bedrooms and 4.5 baths. The lot is a little small at just under 7000 sq/ft. It was purchased in Feb 06 for $741k. It's currently listed for $525k or $127 sq/ft. That's a loss of $216k, plus fees, plus 2 years of holding costs. OUCH!



Just down the block is 8093 Garden Park. This is a smaller home "only" 2569 sq/ft with 3 bedrooms and 2.5 baths (what did they do with the rest of the space?). You sure as heck don't need 2600 sq/ft for 3 beds and 2 baths. This home was purchased new in June 05 for $530k, now it's listed for $449k. The loss is not that impressive but at the peak (late 06) this home would have gone for nearly $700k. The actual loss is only $80k plus fees and 2.5 years of holding costs



7922 Spring Hill St is another big home. 3790 sq/ft with 6 bedrooms and 4 baths. From the pics this house looks like it's 12 feet wide. The lot is TINY at just 5000 sq/ft. Your neighbor can wipe your butt after you take a dump they are so close. This sardine can was purchased in Jan 06 for $769k. Think about that, over 3/4 of a million for a tract home on a postage stamp built on a former dairy farm in a hot, smoggy, hard to get to valley. WTF?? Now this thing has gone back to the bank and they have it listed for $543.5k. That is a loss of $225.5k in 2 years (plus fees and holding costs).


14 comments:

nmoerbeek said...

Im hoping it will continue to put downward pressure on the tract homes closure to the 60 freeway.

We are down to 320 for what appears to be decent track homes. Im hoping for 230.

HappyHouseHunting said...

I cannot wait to see these homes in the $200,000 range, I only wish it would hurry up and happen in Temecula.

CodeViolation said...

The good thing about these homes is that on a warm day after a rain, you can still smell the dairy. It warms my heart to know that there is a master planned step-up community right next door to Eastvale. Just think, you could invest in lovely cow pastures in Eastvale, flip it, then invest in the Preserve! lmao

golfer_X said...

There are plenty of homes in the 200s in Temecula. The last time I checked there were over 200 under $300k. There's not much under $250k but there are some. I'm not convinced you will see anything nice in the 3000 sq/ft range down that low but you should be able to pick up a nice smaller home in that range soon enough. You can always start lowballing the banks. Many of those REO's have been on the market for months. Offer $200k on a house that's listed up near $300k. You might snag one, who knows.

cynical eastvaler said...

The best thing about this place is the fences they put up to block what they don't want you to see. To the North are the lovely rusty airport hangars from Chino Airport and when leaving on the main road out of the Preturds, the piles of manure they try to hide. Yummy!

I looked at these places when it was first on the map, and was amazed how they were able to have roof lines that overlapped the property next door!

This is what College Park has to look forward to in the future. You know, the place where if little Johnny's ball goes over the fence in the backyard, it ends up in the "yard" CYA or CIM.

Eastvale in my rear view mirror will be the best day of my life.

Golfer...can you write up Vellano in CH?

Keep up the great blog!

Briar said...

What's with those places that are literally right next to that electrical place (i don't know what those are called) south of Riverside Drive and west of Hamner/Milligen? it's like Ontario New Colony or something. All those high wires overhead too. I would be willing to rent something in there for a nice discount but no way in hell I'd buy something there. Who would want that to be the view out their back door in perpetuity?

Anonymous said...

'You are basically saying the Real Estate market will never go up again...I do not agree with you on that point'

Yet many people dont have a problem with this? Amazing. I can see it now. Having your kids party in your back yard, perfect setting, bouncer, Wiggles music playing then you hear 'Mother fucker! Put the shank down and get on the ground you bitch!! Shots fired. Alarm screaming.

BUZZKILL.

Snob from Morgan Hill said...

Anon 3:33, I lost you there...?? Who said what? RE never goes up again then? Are you saying this place is close to CHINO Prison? Please reiterate....

golfer_X said...

This timely article showed up today.

http://www.dailybulletin.com/business/ci_8189993

bite hard..no harder said...

I have access to an appraisal database, and some of these homes are down $200K in less than a year. Several I checked closed sale between Dec '06 and March '07 in the price range of $700K - $890K. Now the builder is closing new ones for mid $500 - mid $600. Another thing the state prison for ladies is only about 1 1\2 miles southwest of this development, and a Altadena dairy around the corner.

I agree with the horrific traffic getting in and out of this place during rush hour. When it is fully developed in 10 years, talk about a nightmare.

Briar said...

Please tell me this is a typo:

a THREE bedroom condo conversion in 949 sq. feet. Three bedrooms? In 949 sq. feet? And no garage. For 199k?
Please.

http://www.redfin.com/stingray/do/printable-listing?listing-id=1466552

golfer_X said...

I doubt it's a typo since it sold in 2005 for $302k. In addition to your monthly nut there is another $210 a month for the HOA. I have no idea why people buy condos. It just boggles my mind that anyone would buy a condo when they could just rent the same damn thing for 1/2 the price. It might make sense if the cost was the same as renting and you just hated to maintain a property but otherwise why deal with the problems of condo life (HOA's parking issues, hauling groceries up and trash down etc).

I'm Not POTUS said...

If you look up the zoning history of this area, it is funny how it was always supposed to be part of a large agricultural preserve area.
No-one pre boom thought anyone would be stupid enough to live next an airport, prison and dairy farm.
Boom starts going crazy, new people get elected and poof dairy owners who were looking at great profits selling to commercial developers got to enjoy outrageous profits selling to residential developers.
Some farmers got $1 mil an acre!!!!

I really enjoyed watching the old warbirds circle overhead as I put in the sewers here. I guess the noise of those planes is not a problem when your underwater in your home.

golfer_X said...

More than a few of those "old warbirds" have belly landed out in the dairy farms. That's going to prove problematic once all those homes are built. The inhabitants will have a conniption when the next crashing P-51 takes out a few homes.