Friday, February 22, 2008

Something's up at 360 South Bay - and it isn't overpriced lofts!

I just got this mysterious e-mail:

Dear Susan,

Thank you for your on-going interest in 360 Southbay. We want to let you know that 
Sales opportunities are temporarily unavailable, but we are looking forward to 
reopening this cutting-edge community soon. Interest in this cool place to live is 
very high, but as a member of the current 360 interest list, you'll be among the 
first to be updated when sales resume. We look forward to welcoming you at 360 
Southbay again soon. 

I went to the William Lyon Homes website and was unable to find anything on the 360 Southbay project. I went directly to the 360 website, and found this note:

Thank you for your interest in 360 Southbay. Sales opportunities are temporarily 
unavailable while we give the market time to improve. We're looking forward to 
reopening this cutting-edge community and welcoming you again soon. There continues 
to be a lot of interest in 360. Be sure you're on the interest list and we'll keep 
you up-to-date so you'll know when these homes are available again.

It may not be new. I honestly don't know how long that note's been up.

I suspect that a lot of that interest they have in their project is similar to the interest that vultures have in dying animals and rotting carcasses. Good luck waiting for that improving market!

8 Comments:

Blogger Laura said...

I must be on the bearmaster wavelength. I just got the same e-mail today, checked the website, and went directly here, only to find this post!

Anyways, good riddance to this project. Now I have to look at this muddy lot and its lone model until...when? I could have told William Lyon that their $600,000 condos weren't going to sell when there were SFR's selling for the same and (now) lesser across the street.

At this point if 360 can at least have as much occupancy as the Centex Fusion development, it should consider itself lucky. Fusion, BTW, is now starting from the $300,000s, according to the roadside banner it has put up. A far cry from the $600,000 heyday.

4:23 PM, February 22, 2008  
Blogger bearmaster said...

Hi Laura,

Have you checked the Centex website about Fusion? I find it curious that they have up all those "green" signs, and they have a URL to Cool New Condos, but that only redirects to Centex, and if you look at the Fusion project they oddly don't say anything about units from the $300,000's. Maybe they are discovering even that is asking too much.

I expect *some* rebound this spring but in no way has this been the bottom.

6:39 PM, February 22, 2008  
Blogger David Denton said...

My wife and I were browsing around on Sunday and decided to visit Fusion and 360. The sales office was closed at 360 so this email (I just got it too) isn't surprising.

However Fusion was having this big $20,000 Builder's Incentives weekend and I wanted to see if they really dropped the prices to the mid $300k.

Their sales office turned us away and said they sold the last units this week and there wasn't a single one left. The rep told us to check in over the next month because 36 units are currently in escrow.

Laura is right that $379k is a far cry from $515k but they did sell them out.

10:22 AM, February 23, 2008  
Blogger antonio said...

Are there even still units available at Fusion?

We went there about a month ago and the sales guy said there were only 2 units remaining for sale and those were models. They had not released them for sale yet but I think the range was going to be around 525-550k at the time.

11:48 AM, February 23, 2008  
Blogger as said...

I just stopped by there and confirmed with the very rude sales lady that they have indeed shut down operations for now. They will not be building again until things pick up. Those who have already bought will have their money returned (Can they do that?) She did mention that one of the options William Lyon is considering if finishing up a number of units and renting them out. Great - just what Hawthorne needs - more high density rentals!

4:39 PM, February 23, 2008  
Blogger bearmaster said...

Wow, thanks to all for contributing your info! It's nice to have a network of bubble blog readers that can check things out! :)

So Fusion finally sold out in the mid-high $300's. That's the way the market works. Maybe no demand at $500K, but lots of demand at $350K.

I think we will continue to see this in the coming years. When sales volume declines, inventory will build up gradually forcing a price erosion. Then when prices reach a certain level demand will reappear and some of the inventory at those price levels will get worked off.

People aren't as much into chasing bubbles anymore (they're probably more into catching falling knives), so the cycle will repeat.

5:11 PM, February 23, 2008  
Blogger as said...

A preview of what's to come?

Council members to monitor Meridian Hills development

In Moorpark, William Lyon is ditching out their lots to other developers. Will they try this with 360°? Or will the dead cat bounce of rental prices entice them to build ultra-plush high density apartments?

Is William Lyons feeling the financial squeeze and getting ready to pull the plug on their ongoing developments?

The next housing casualty?

11:59 AM, February 25, 2008  
Blogger SCRyanA said...

This comment has been removed by the author.

10:35 PM, March 07, 2008  

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