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.
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).