Straight to auction: condos in Studio City

Worth noting: More straight-to-auction action, this time it's a bunch of new condos in Studio City (pictured).  The auctioneer, Real Estate Disposition Corp. (REDC), is billing these as "brand new luxury condominiums."

Details: "Previously valued up to $765,000, starting bids will begin as low as $279,000. In addition, FHA financing with as low as 3% down will be available."  Various floor plans available, up to 2,000 square feet, 3 bedrooms and 2 1/2 baths.

More: Twenty-five condos will be offered at auction on Sunday, Aug. 24, at the Sheraton Universal Hotel.  The condos are on Acama Street in Studio City.

-- Peter Viles
Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo: REDC

Comments

[Todd in WeHo]

First it was new condos being put up for rent and now it's straight-to-auction, which tells me developers are getting even more desparate.

[Rational Renter]

There are so many places around town (especially in the Studio City/Sherman Oaks area) that offer to pay your mortgage for 3 months if you buy a condo. They do this (and other incentives) in lieu of lowering their asking price, because once you lower your price, you can't go back. But I guess those incentives weren't working (surprise, surprise).

The floor is very, very far down.

[Nick]

Note (since it wasn't posted in the original post):

This is one of those "fraud" auctions, with hidden reserve prices, shill bidding, and other underhanded practices. On the upside, though, their Terms and Conditions are available online (unlike some other auction companies), so you can know this before you get to the auction.

Note for Peter: Would be nice to have this information included in auction posting which quote prices, so the reader will know the prices quoted are completely bogus. Just a suggestion. :)

[LA]

FHA financing? I thought I read somewhere that condos were ineligible for FHA loans.

[E]

What was the outcome of the "towers of stupidity" auction in Long Beach? Will we get an update on that?

I for one am glad that they have overbuilt condos as maybe it will help solve the homelessness problem that plagues our country. In fact, I'd rather they be given to the homeless than sold to me for cheap.

[E]

Those certainly are some ticky tacky McCondos IMHO.

[Patrick Duffy, HousingChronicles.com]

Think the builder did a demand study to figure out from where those hoped-for buyers would come? Most likely not, instead relying on a friendly lender who only used their own in-house 'appraiser.'

[Uncle Billy Goes Condo]

Per this, condo has to be on fha approved list:

http://www.fhainfo.com/condos.htm

http://www.fhainfo.com/kiddiecondos.htm

[Scott McIntosh]

E,

Additionally, if your on the east side of the building, you get a great view of the 101/ 170 freeway. I don't think thats mentioned in the description.

[Helix]

I live pretty much live across this condo complex on Acama St.

The developer bought the lot back in 2004 for I think about $2.5m or so.
They began construction sometime in 2006 and started selling the condos in early February 2008 with prices ranging from $550k - 755k. \
A couple of months ago they cut the pricing by about 100k before they decided to go to auction.

Big problem is the same developer also has another 22-unit complex just around the corner on Aqua Vista which seems to be nearing completion.
I wonder if those will also be auctioned off. Probably.

http://www.westmillennium.com/featured_projects/
future_projects.php

I toured the Acama condos a couple of times, I don't like them at all, very weird floor plans, very cramped, no amenities in the complex whatsoever, small 1.5 car tandem spaces and a lot of freeway noise in the back.

[firesale]

Watch out for SHILLS if the bidding gets above
$279K.

[harry]

have they managed to sell any of the condos for the full price before they decided to auction them off?

[Steve]

Auctions are over rated and the reality there will be no deals, the builder will insure that. First, typically a condo is a loser and the HOA will double the first year. A better investment is a house and better yet outside of the hell hole of LA. If you want one of these over priced dives, wait about six months for the 3% down crowd to hit the wall and buy $.70 on the dollar.

[Helix]

I think they were able to sell 3 units after they went on sale.

[Rainman]

Beware of anything affiliated with Real Estate Disposition Corp. or its affiliate, National Recreational Properties Inc. Those are the folks behind the ads featuring Erik Estrada for vacation properties in the middle of nowhere. For more information on these bottom feeders, check out this link: http://www.casperstartribune.net/articles/2005/01/03/news/
regional/99c7e0dc702ec88487256f7d00025707.txt

[sfvrealestate]

Re the FHA question, even if a project/building qualifies, there usually has to be at least 50% of units already sold before a new sale can go FHA.

[Cal]

So SFVRE where is your defense of Ayres column? You were so quick to call people out saying we were scared to comment, yet here you are avoiding the thread and not providing any commentary of your own. Clearly you thought it was a good article, where is your feedback?

[Loo]

The condos are very nice. I think the bids will advance, but they will sell for way below their value. It may be wise to attend if you're buying in the area any time soon.

[MR]

So did anyone go to the acution...what happened, what sold and for how much...or was it a waste of time?