The Urban Experiment in Orange County: The future or the next flop?

Neil: Hey Edwin, it was nice hanging out with you at 944 Magazine’s Party at the new Astoria towers in Irvine. What were your initial impressions of the property and the atmosphere?

Edwin: I have to admit that I was really blown away. It was almost like I was living one of the scenes of HBO’s “Entourage” show. From the minute I drove up to the massive towers, my senses became overloaded with the sight of Bentleys parked outside, the Orange County crowd with their nightlife attire and 6-foot women, and the valet greeting me in the main driveway.

Neil: Yeah, the party was pretty good. Beyond all of the eye candy, what are your thoughts about the property from a Real Estate Agent’s perspective?

Edwin: I have mixed feelings about how this type of property in general will be embraced by homebuyers. Don’t get me wrong – the Astoria towers are awesome. They have a wine tasting room and private storage (for an additional fee, of course) on the main floor, pool, spa, luxurious common areas, and full gym on the second floor, and countless other common amenities of “Central Park West’s” master homeowners association.

Neil: What are you skeptical about?

Edwin: Again, this is a generalization about mid and high-rise condo living in very-suburban Orange County. I don’t think the value is really there compared to what else you can get at the same monthly payment. While the advertisements read, “Starting at $400,000,” many are disappointed when they find out there are two homeowner’s association dues that total over $800 per month along with Melo Roos tax.

Neil: Don’t you think the amenities are worth the extra money? I mean – you won’t have to have a gym membership anymore!

Edwin: A gym or even country club membership doesn’t cost $1,000. The buyer will realize that when comparison shopping.

Neil: Good point. But there are people that are buying. Obviously, they see some type of value, right?

Edwin: In my opinion, the Astoria towers will not appeal to most buyers. You can eliminate most couples who plan on having kids, empty nesters who want to avoid long walks to their cars, and people who just want their own yard.

Neil: Who’s left?

Edwin: For the Astoria property, I think it’s great for an executive who travels frequently to the west coast. I think a luxury condo with a view as a 2nd home should be on everyone’s “trophy list” if they became wealthy.

For the more inexpensive properties such as Stadium Lofts in Anaheim, it would be ideal for a young, active professional who doesn’t plan on spending much time in their condo.

For now, I just don’t see buyers going after one of these as their primary residence. It’s very rare a buyer will call me and tell me they want a mid-rise condo.

Neil: Why are the expensive mid-rise and high-rise condos in New York and other big cities and doing so well over there while they don’t seem to do so well in Southern California?

Edwin: It comes down to options. In New York, living in the city means you can go downstairs and catch the subway or cab. Public transportation is well developed. Nightlife is in the city.

In contrast, living in a property like Astoria is a contradiction. You’ll have to take an elevator and walk a long distance to your car. There’s no practical public transportation nearby. While some downtowns are becoming alive like San Diego’s Gaslamp and Downtown Long Beach, most downtowns are lifeless.

In the end, I just can’t imagine myself lugging groceries to the 10th floor and having to put on my shoes every time I forget something in my car.

Properties like the Stadium Lofts in Anaheim and Chapman Commons had to cut prices almost in half before finally finding their true value. Two bedroom units were unloaded for $250,000.

Neil: What advise do you have for our young readers who are interested in the type of lifestyle?

Edwin: You can watch for short sales of anything that was bought prior to 2008. While it definitely takes time to wait for a short sale approval from the lender, it sometimes is worth the wait.

Neil: Thanks for the great information, Edwin. If you guys want to reach Edwin Baloloy, you can visit his website at www.OCgoldmine.com or call him at (714)501-2732.

Astoria – Owned by Lennar

Stadium Lofts – Owned by Windstar Communities, LLC.  Windstar Communities, LLC is an operating division of Nexus Properties, Inc., of San Diego, a developer/owner of innovative office, R&D properties and flex-tech buildings in California, Washington and other markets.

Stadium Lofts