Eighteen months after the Stadium Lofts condos were completed, more than half of the project’s 390 units remain unsold.
So developer Windstar Communities LLC decided to hold a sale at the Anaheim complex, cutting prices on 58 of the remaining 200 units by 24% to 29%. Price reductions for the July 26 event range from $80,000 to $132,000.
The units start with a 535-square-foot loft priced at $243,000 and go up to a 1,082-square-foot two-bedroom unit priced at $402,000. The original loft price was $341,400, and the top two-bedroom unit originally listed for $533,600.
Eric Heffner, Windstar senior vice president, said the one-day sale is in response to what’s happening in the marketplace. For example, condo sales in Orange County have dropped by more than 50% in the past year, figures from Hanley Wood Market Intelligence show.
Stadium Lofts became the first housing development to open in the Platinum Triangle, the area near Angel Stadium and the Honda Center that the city is trying to transform into a downtown-like destination.
Sales began at the start of 2007, and by the end of the year, 140 units sold, Heffner said. Then the market started to drag in response to the credit crunch. Just 50 units have sold this year, he said.
To promote sales, the project raffled off a loft decorated by Ducks player Jean-Sebastien Giguere in January. This latest sale – focusing on the 58 units that have gotten the least interest from buyers – seeks to spur more momentum.
“We decided to make an aggressive (effort) to move those units out of our project,” Heffner said. “They’re not our premium units. We felt these units may have been mispriced, and people were not looking at them.”
A press release says the promotion includes a 10-year price guarantee offer, but Heffner said the offer no longer is part of the sale.
The sales prices are significantly below those paid by owners Cynthia Acaba and Danny Dakak, who bought Stadium Loft condos last year. But since neither is planning to sell anytime soon, they’re not worried about price cuts.
Acaba, 37, a speech therapist for Fullerton schools, paid $346,500 in February 2007 for a one-bedroom floor plan that’s going for as little as $268,000, or almost $80,000 less than what she paid.
“It’s a big chunk of money,” Ralph Acaba, 70, her father and financial advisor, said of the price drop. But, he added, “we went into it with our eyes wide open. … Four or five years from now, it’ll probably be worth something.”
Same with Danny Dakak, 25, an engineer who was attracted to Platinum Triangle’s urban setting.
Dakak paid $534,500 a year ago for a two-bedroom unit overlooking State College Boulevard. Similar-sized units are going for $347,000 in the sale, or almost $188,000 below what he paid.
But Dakak used a 30-year loan with fixed monthly payments and plans to stay a long time in his new home. “I wasn’t trying to flip the house by any means,” he said. “Others were. If you were trying to do that, you’d be in big trouble.”
For more on the sale, click HERE!
Other pricing trends …
Terrible news for the suckers that already purchased. Wonder when the first law suit will be filed?
still amazing at what they are trying to charge for places that are smaller than most apartments. Besides there is a lot of not so nice areas that surrounds the triangle. I think the consept is cool but way overpriced.
“For example, condo sales in Orange County have dropped by more than 50% in the past year, figures from Hanley Wood Market Intelligence show.
I wonder what the Steve Thomas Market Intelligence shows?
““It’s a big chunk of money,” Ralph Acaba, 70, her father and financial advisor, said of the price drop. But, he added, “we went into it with our eyes wide open. … Four or five years from now, it’ll probably be worth something.”
Yeah, it will be worth something: about half of what it is worth now. Mr. Acaba is a financial advisor. Hmm-m-m-m.
Does anybody know why this area is named the Platinum Triangle? Isn’t platinum a valuable asset?
awgee:
How about the “Aluminum Triangle”?
584 sq ft. LMMFAO dude prison cells are bigger
than that llooll @ribsplitter theyre only dropping them
24% LMMFAO 18 months and half still arent sold
OMG didnt the previous post say that prices are gonig
up— my ass they are
1998 thats where this will end up mark my words
for the idiots that bought there its the
frigging BERMUDA TRIANGLE
Never underestimate the resiliancy, acceptance and optimism of the participants in the market. Many people feel as these people do. Shockingly many. Sort of the opposite of downers like bubble.
I would not be surprised if the trend happening in other parts of the country (Las Vegas, Phoenix) of condo turning apartment comes to OC with these units.
I love the chump who paid almost $500/sq. ft.
It will be selling for $100/sq.ft. in a few years, at best.
Welcome to deflation.
rants:
LOL. I like it. The Bermuda Triangle (where your money and self-respect disappear?!) Cheers.
resiliency (they have to work to jobs), acceptance (other wise they’d jump off a cliff) and optimism (there’s always the possibility the condo will burn down).
to = two, sorry
Rants/Nostradamus and the rest have nothing but bitter, negative comments and insults to hurl at all buyers. Where does all this anger come from? It’s funny because many of the bitter renters here once owned a home and now rent by choice after selling. This blog is left with nothing but ultra-speculators hoping for 80% off in good neighborhoods.
Provider:
Your definition of a downer: The opposite of someone that is complacent with losing more than their annual income in net worth in a single year.
Hmmmm.. That is the first time I ever heard someone insinuate that. I take it you never spoke with someone that can be considered a successful investor - since you are definitely not one I figured you may have actually spoken with one before. Now I see not.
Let’s be real here. There are things people will tell themselves (and others) so they don’t become overly depressed about a situation they put themselves in and have no recourse to get out of. In essence: they are stuck.
As for the bailout - a true bailout would be one that gave tax credits to people to purchase those homes - not those in trouble after making stupid decisions. The cost to the taxpayer would be much less overall and the ultimate goal of enhancing homeownership in America would be maintained - as opposed to keeping homes empty in an effort to artificially prop up property values.
This bailout will not fly amongst taxpayers - its just too ridiculous and very costly.
Hardly, what we want is fundamentals…what you and the other bullheads can’t accept is that fundamentals are returning. I didn’t take the offer for the negam loan in 06 and I am better for it today. Propping what is clearly a dysfunctional RE system is no way to stable society or economy. Let the chips fall where they may.
24% OFF? I HAVE EVIDENCE TO THE CONTRARY.
I just happen to have visited Stadium Lofts in January, at which time I was handed a flyer showing reduced prices for at least 20 units.
One of them is #3009, which in January showed a “Was” price of $388,300 and a “Now” price of $330,055. The now column says nothing to indicate that the reduced price was temporary in any way.
Now I look at the e-mail I received from stadiumlofts.com regarding “The Event” and peruse the samplings of condos at these great New discounts and - lo-and-behold :
Unit #3009 showing “The Event” price of $293,010, AND showing ‘Pre EVENT’ price of $388,300!
HOW CAN THIS BE?
If the price on this unit was reduced way back in January (or earlier) to $330,055, then wouldn’t that be the “Pre EVENT” PRICE? If so, the price reduction is only $37K, not $95k - or MUCH LESS OF A DISCOUNT - ONLY ABOUT 11%.
Wrigley Loft Unit #3009
January June 24 “Pre EVENT” “EVENT” “DISCOUNT”
$330,055 $388,300 ??? $293,010 ? ? ?
Other models seem to be similarly misleading in pricing.
I am not saying that these people are outright liars trying to fool people into thinking they are getting a great ‘One Day’ deal, but the evidence does seem suggestive, doesn’t it?
It’s still $400 a square foot for what is $50 a s.f. construction in a less than desireable area. Two bedroom condos should be $200,000 and even that is a rip-off.
Sometimes, bear markets just take a while. Don’t hold your breath on this one. By the way, 3000 s.f. homes on an acre of land (like you can grow stuff if you want) can be had in cities across America (cities that are growing not shirinking), for less than these jokes of apartments.
The final capitulation in the “Platinum ” Triangle is just beginning. Look at all the apartments (Ex-Condos) now coming on line near the stadium, it is somewhere near another 1,500 units that will drive the price down ever further.
It must have been a good drunk when all the developers and marketing people talked themselves into the notion that $500,000 for a glorified aprtment was worth it in the middle of an industrial area. Look at all the holes in the ground that will be years off before you see another shovel turned. No amenties within walking distance unless you need a lap dance (Fritz) or lots of granite tile.
According to the Anaheim city website, it is indeed just over 1,500 additional “luxury” housing units coming online in the Triangle this summer and fall. Most are apartments that began construction as condos, but were turned into apartments after construction started a year ago. There are still about 350 units of the 1,500 that are still condominiums that will be going “on sale” shortly.
And yet the city of Anaheim has done absolutely none of the urban renewal in the area when it comes to landscaping, street furniture, repaving, and upgrading the sidewalks and public amenities. These 1,500 new housing units are going on to the market in the middle of the cracked concrete and treeless streets of what used to be a huge industrial area between the 5 and 57 freeways.
None of the “urban setting” has showed up that Mr. Dakak says lured him to buy a $530,000 condo at Stadium Lofts. There’s just decaying streets and vacant lots put in mothballs by Lennar around Stadium Lofts. There is a Denny’s, a McDonalds and an Arco. And “nightlife” can be had a few blocks past the vacant Lennar property at Fritz’s Too strip club.
There’s a ton more housing, both expensive rentals converted from condos and condominiums for sale, coming to the Triangle in the next 3 to 9 months. Good luck with it.
And after 18 months of sales, a 350 unit complex like Stadium Lofts still has “more than half the units unsold”?!?! That little fact speaks volumes about the condition this area is in. Volumes!
And its in a nice ghetto.
1000 SQ FT for 400k?
What a bad idea. To build 390 “apartments” all crammed together. In Anaheim. Then try to sell them. Very bad idea.
Funny thing is these started off as apartments, but they took the advice of the likes of shockg, providerofthoughtlessness, and Gilligan. I bet this builder is regretting that advice every single weekend of discounts that result in zero sales.
I am so surprised that not one single realtor came onto this blog to state what they AWLAYS STATE!!!
LOCATION, LOCATION , LOCATION
This is clearly not a location we will be seeing much value in.
squatters right: You forgot that their is no law that forces these people to tell the truth. Just isn’t. They can walk around their words until they run out of scams - but its always the same - just a scam.
This is an old “time share” tactic. Hell - its just an old tactic period.
By the way any comments on the houses in Olive grove in Ornage by Lennar.
May be we will se the same trend there also. Looks like all the construction at this place is on hold
Why the hell would you spend $400K for a 2/2 when you can get a SFR in 92868 for the same price?
Go to Zillow and look for yourself.
Provider is correct, but not in the way she intended. The world is full of stupid people. Look at all those dummies who bought in the Villiages of Columbus. It’s just too bad family debts aren’t passed from generation to generation anymore, and the debtors prisions are gone.
Condos like these would have sold for about $150k if not for the funny money lenders dumped on the market in the last few years. The reality is that these places are completely overpriced — and out of line with lending fundamentals — that they’ll never appreciate in our lives.
I have a friend who lives there. The construction is very cheap and apartment-like. He already regrets buying his unit. Watch how fast the “amenities” get dumpy.
I wonder if anyone ever won the condo that they were raffling off. I recall if you came in and took a look, and listen to their nonsense, you would be entered in the raffle to win a condo.
maybe they should raffle off some more to get rid of that inventory.
I toured this place in spring 2007. The botoxed sales hostess stuck to her script, and I still remember the gushing joy she exclaimed as we looked out a high end unit with a view of a 1970’s Bank of America, tangled power poles, and a huge empty dirt lot owned by Lennar (that is still huge and empty). On a clear day you can see all the way to Fritz’s strip club across the train tracks.
I had high hopes for Platinum Triangle back in 2006. But it missed the mark big time, and Anaheim isn’t helping by not doing one thing in regards to street refurbishment and upkeep. Katella and Stage College, the two main intersecting streets through this “neighborhood” are still a crumbling sea of ugly streets with speeding cars, power lines, and cracked treeless sidewalks.
The figures mentioned above on what it would take monthly to “own” one of these shoebox condos on Katella pretty much seals the deal. Stadium Lofts will likely be apartments with declining rents by Christmas, 2009.
what complete idiots for people to buy these garages for so much money. do you really believe some fool will pay 2x the amount 5 years from now??? and the financial advisor buying one of these garages then saying they have their eyes wipe open??? are you people that nuts to buy these garages for so much and think all will double????? the days of the new millenium type of home prices are gone forever.
I always wondered why Anahiem allowed such dense apartment housing. That was back in the 1970s after the Disneyland area went to hell.
They never learn, do they?