Sunday, March 22, 2009

A Pounding on the Promenade

I'm not sure how many of you are familiar with the Promenade in downtown Long Beach, but these places are pretty nice.

Unfortunately, the units were incredibly overpriced during the bubble and as a consequence have been getting absolutely annihilated during the ensuing housing crash. UPDATE: Here's a picture of the "real" building and not some artist's utopian rendering:

To wit: A 2-story, 2-bedroom (plus loft), 2.5-bath unit is asking $419,000.

Not bad, right?

Too bad the 2007 sales price was $850,000.

That's right, friends, in just 24 months this condo's value has dropped an astounding 51%. Brutal! I'd rather shit hot knives than be the bagholder on this one.

And that's assuming this place sells at the current asking price. With a 10.5% unemployment rate, I think we all know the odds of that happening. About as good as Steven Adler becoming Obama's Drug Czar.

Some say walkaways are a minor aspect of this housing crash, that those who can afford their payments won't hand back the keys simply because they're upside down--it's only those who have no other choice who are moonwalking away from their financial mistakes.


You're telling me a majority of people will continue happily shelling out $5,000+ a month knowing full well the new neighbors are paying HALF that for the exact same unit? They would have to be complete idiots, and you'd have to be a complete idiot to think they wouldn't exercise their ruthless put option.

And speaking of complete idiots, the listing agent for this "OWN OF A KIND" unit claims the Promenade is "SOLD OUT."

Hm. That's funny because I see at least seven units for sale.

And considering how severely underwater every loanowner in the building is, the number of units for sale is guaranteed to increase exponentially.


  1. omg. Look at the listing for unit 305, it's the same guy, Own of a kind! Sold out!

    Then I took a look at some other units listed, there are six listed by this one group in this building, the Magno Realty Group. Sold out my a$$!

  2. GM,

    I just updated the post with a picture of the actual building--construction and empty storefronts galore. It's no coincidence that the only "real" picture of the building is from a different realtor.

  3. hey, one is in escrow at $500k!

    and has an accompanying $560 hoa charge

    how much is that per month for your declining asset?


  4. By the way, this is some of the funniest shit I've ever written. Don't know who you are, but I want you as a business partner.

    Informative, well written and bitingly humorous. Love it. Keep up the great work!

  5. Loving this blog, thanks for the truth with a side of cynicism. Would love for you to do a blog on the BLU community on 4th and LB Blvd. It was for sale with several in escrow, then suddenly gave everyone's money back and the building is closed/not sell/not answering their phones/not showing units. Rumor was they wanted to sell 50% at once before they would give anyone their keys. Now the same builder is auctioning off their Two Ocean West property. Will Blu be next? hmmm. What's the REAL story?
    -MG in the LBC

  6. GM, You are a moron, just because units are for sale doesn't mean it is not Sold out!!! People live in those units!!