On the market since 2009, and with only half of its 87 condos having sold and one in contract, according to a plugged-in tipster, 555YVR (Ygnacio Valley Road) over in Walnut Creek will be going the rental route with its unsold inventory starting June first.
In the words of our tipster: “After going through [two] sales teams and fighting an uphill battle amidst all the foreclosure activity in CoCo County, the developers will rent the homes for now and attempt to resale them in the future.”
Currently asking from $349,000 to $449,000 for one-bedrooms which range from 763 to 1,080 square feet, and $499,000 to $675,000 for two-bedrooms ranging from 1,147 to 1,308 square feet, according to our tipster they’re going to be targeting rents from $2,000 a month for the one-bedrooms up to $2,800 for the twos.
If people are doing their math, there’s no way anyone’s going to pay $2800/month rent for a place they wouldn’t purchase for $675k.
Personally, I can’t imagine paying any amount of money to live in a small condo in the outer burbs — especially Walnut Creek, which (in my very limited experience) strikes me as far less charming than Lafayette or Orinda (which, relatedly, probably don’t have new condo buildings). I’m not surprised there’s little market for these.
I’ve always thought buying a condo in the burbs is a bad idea.
“which (in my very limited experience) strikes me as far less charming than Lafayette or Orinda”
And also Lamorinda is an awesome school system. Both the rental and purchase prices sound sort of high, but it is close to BART.
Maybe they’re trying to get the spirit of Vancouver by using YVR. 🙂
Not to sound brash, but good luck with those rental prices. You can get a one bedroom in a good area in the city for two-grand, and don’t even get me started on what you can get for almost three! I’m sure they’re nice units, and the complex looks nice from the outside, but for that price who is going to want to rent there? Maybe pre-bubble they could have gotten those rents, but right now I seriously doubt they’ll get anything close to that!
“If people are doing their math, there’s no way anyone’s going to pay $2800/month rent for a place they wouldn’t purchase for $675k.”
Actually, I get a monthly cost of ownership of just under $3,200 for a purchase at $675K. The $2,800/month figure corresponds to a purchase price of just under $600,000.
Still seems expensive to me though.
Just from a quick look on Craigslist, it seems like you could rent a 3-4 BR house in Walnut Creek for $2800 easily. $2000 seems to get you a 2BR condo rental.
I have actually been inside these units. They are generally about 10 – 15% bigger than comparable units in SF.
Interestingly the front of this building is contemporary and reasonably attractive. However the backside and common space area is very much Courtyard by Marriot. Build quality is reasonable but I couldn’t quite reconcile the difference in design approach.
It’s walking distance to BART so that will be attractive to potential renters. While I think the rents are a little high I don’t think they will have to reduce it by more than 5-10% or perahps offer one month free move in special. For better or worse not everyone wants to live in San Francisco.
is this is “real SF”?
There is such a lack of decent rental stock walking distance from downtown Walnut Creek that I think these will do really well as rentals. Looking at prices on Craigslist is a little deceiving — so much of what is on there is crappy, 30+ year old condo product.
The two bedrooms may need to come down a little in price, but the 1 bedrooms at $2,000 are probably about right. I’m in a rental about a 1/4 mile from this project and work in downtown Walnut Creek (moved here from SoMa 2 yrs ago). I pay just over $1,500 for 650 sf +/- 1 bedroom in a 15+ year old builing. I will def check these units out when my lease comes up in 6 months.
You can be magically transported to Ess Eff in 35 minutes. And just maybe (if you truly appreciate a (faux?) river rock fireplace) you’ll buy this 2/1.5 condo by BART for $200k and use the savings for a night on the town.
Also…I don’t understand why the development team just don’t cut their losses and discount the remaining units until they reach a saleable price. The market is not going to get better for at least another 2-5 years. Surely the rental route is not going to be very profitable.
All this bally hoo for build build build
when it doesn’t make dollars and sense.
If no one is buying, why are they building?
“If no one is buying, why are they building?”
If the price is too high, they should lower it. Presumably, the developer misjudged things because of the boom.
Just from a quick look on Craigslist, it seems like you could rent a 3-4 BR house in Walnut Creek for $2800 easily. $2000 seems to get you a 2BR condo rental.
You can also buy a 1 BR condo in SF for $500K, or a 3-4 BR house in SF for $500K. The difference is, do you want to live in a new-ish luxury building close to public transport, or an old, rundown single family home way out in Bayview or the Sunset?
🙂
@Willow: if they sold now at a deeply discounted price they’d book a loss that reflects poorly on the dude in charge at the development company. By renting, the same guy will not have this black spot on his resume, will probably move on to another job and pass the old maid to the next manager.
“You can be magically transported to Ess Eff in 35 minutes”
uh huh. you mean from the moment you step on the train to the moment you step off? what about door to door?
geez, can’t imagine why no one is buying them – don’t you want a family home when you live in the burbs?
They probably cannot sell at a deep discount due to sales contract with those who already bought. Usually in new condo developments there is a contract provision that is meant to secure the initial buyers’ investment.