Eugene Oregon Real Estate Blog by Craig Tomlinson

Condo Farm: Yet to take off

craigtomlinson — Sun, 21 Feb 2010 16:18:13 +0000

This 30 unit condo complex in Eugene never really took off. The Farm on Cal Young, was built in 2008, but no units were sold. The units were originally marketed as high as 420K, or some $300/s.f., which was expensive. Asking prices were lowered, but to no effect–still nothing sold.

The project was most recently up for sale for 4.2 Mm dollars. The debt on the project was said to be at least 6.1 Mm, or 203K per unit; this would have been a short sale, meaning the bank would have receive less than it was owed.

So, what’s the project worth? As condos, it depends on what price and at what rate you think the market will absorb the units; that is, what folks will pay for them, which is bound to be less than they were previously marketed for, and how quickly they’ll sell. Neither is apparent to me.

As apartments, you can make some assumptions, and come up with a price. If you assume an average monthly rent of 1.2K, which may be on the low side, operating expense of 50%, and a cap rate of 7.25 %, that gets you a price of about 3 Mm., or 100K/unit. Will it sell that low? That decision is probably up to the lender and/or its regulators. To justify a price of 4.2 Mm, average monthly rents of 1,700. are probably needed.

I looked at the project when it was just bare-dirt for sale, but never saw how I could make it work. I tend to be conservative, though, and a lot of stuff gets built that surprises me. The project will eventually be successful–it’s just a question of price and time.

There are many good condos in Eugene

Condo Financing Harder Now

craigtomlinson — Tue, 12 Jan 2010 03:51:26 +0000

The FHA, along with Freddie Mac and Fannie Mae have made loans for condominiums harder to get. The FHA rules kicked in 7 December, and the Fannie and Freddie changes occurred earlier in the year. The rules change frequently enough, that it’s frankly hard to keep up with them. Still, condos are selling and people do get loans on them. The solution: work with a loan officer and realtor that understand condos.

In Eugene Springfield, plan on spending between 100K and 150K for a condo. There are units for more or less, but those are good budgetary numbers. Make sure to look at the HOA dues–some complexes are pretty high. If you’re interested in condos, give me a call at 517-6543.

A condominium project in Eugene.

Springfield Apartments for Sale

craigtomlinson — Sun, 03 Jan 2010 16:23:19 +0000

Bob Nelson, a friend of mine, represents the seller on this nice apartment complex. They’re well priced and would make a great deal if you’re looking for beds. Apartments don’t change hands that often in Eugene Springfield, but we’ve seen several deals this year. At a cap rate of over 7%, they’re not a bad deal. For 72 units, the asking price is 3.34 Mm. If you’d like more information, give me a call 517-6543.

72 Units for sale in Springfield

Eugene Lot for Trucks

craigtomlinson — Sat, 02 Jan 2010 16:32:50 +0000

If you need a place to park heavy trucks, this .8 acre lot would work well. It’s in West Eugene, and close to major arterials. We will also consider building to suit, if you need new warehouse space. Priced at 1K/mo., it’s a good deal.

Leasable lot in West Eugene.

Shop in Eugene For Sale

craigtomlinson — Wed, 30 Dec 2009 16:43:24 +0000

If you’re looking for a shop in Eugene, this spot is perfect. It’s about 1,800 square feet, has lots of power, 2 overhead doors, is plumbed for air with a compressor, and has an office and locker room. It has a fenced yard, and is about 1/4 acre. It’s also convenient to major arterials. Asking price is 225K, and some debt may be assumable. If you’d like more information or would like to see it, give me a call at 517-6543.

Perfect for owner occupied.

Nice warehouse for lease in Eugene

craigtomlinson — Tue, 29 Dec 2009 03:29:38 +0000

If you’re looking to lease light industrial space, this building is a good deal. Located in West Eugene, this 12,000 s.f. building is divided approximately in two. The front half is at 36 cents per square foot, and the back is at 34 cents. The space is clean, newer and nice. It’s also very close to major arterials. If you’d like to see it or need more information, give me a call at 517-6543.

Nice warehouse for lease in West Eugene.

Foreclosures in Crescent Village

craigtomlinson — Sat, 26 Dec 2009 23:28:43 +0000

Crescent Village is a nice project in Eugene, to the north of Costco. Tens of millions have been spent on it, and it’s a visionary new urban development; a mini-village with about everything you’d want.

Some of the townhouses on Lord Byron are an especially good deal these days. Originally listed in the 500’s, 4 of them are now bank-owned, as a result of the housing crisis, and are now in the 300’s. That’s a savings of about 150K!

I’ve shown them before, and they’re not for everyone. The fit, finish and materials are superb, but it’s up-and-down living, which puts some people off. But, if you want something hip and cool, where the action is, I’d give them a look. Give me a call at 517-6543 if you’d like to see them.

Foreclosures in Crescent Village are a good deal for buyers.

Eugene: 2009 Summary, 2010 Forecast

craigtomlinson — Sat, 26 Dec 2009 04:44:27 +0000

Not much of a picture, but the best I could do under the circumstances (fog and on Christmas.) This is somewhat analogous to Eugene in 2009–not much of a year, but we did the best we could. We started the year with a terrible real estate market, with inventories close to 2 years. Fear and gloom were palpable with record unemployment and the greatest recession in many of our lifetimes.

While not spectacular, 2009 ended up better. Housing inventory shrank drastically, to around 6 months, and we even had a bit of a seller’s market in some areas. Distressed sales, namely foreclosures and short sales, were prevalent. Record low interest and the first time buyer’s tax credit helped pull us out of the slump.

My forecast for Eugene in 2010:
1) Housing prices will trend up slightly. Median price in Eugene will hover around 200K.
2) Interest will remain low for the first half of 2010, and be in the sixes by year’s end.
3) Unemployment will decrease to 8-9 %.
4) Distressed property sales will continue to play a major role in our housing market, with probably 1 in 10 sales in this category.

2009 Christmas was Foggy in Eugene Springfield.

Tax Credit Extension

craigtomlinson — Sun, 20 Dec 2009 18:24:25 +0000

The WSJ recently ran an article that had more specifics about the home buyers tax credit, which can be used on homes up to $800,000 and has a maximum income limit of $245,000. The credit does have to be used for the purchase of your principal residence, but you no longer have to be a first time home buyer!

I recently sold this move-up house in South Eugene for 342K, on short-sale, down from the original listing price of 539K. There are plenty of good deals to use the tax credit on.

Short sales are some of the best bargains in Eugene.

Learn about Eugene Real Estate

craigtomlinson — Mon, 14 Dec 2009 15:09:32 +0000

If you’re interested in learning more about real estate investing, you’re welcome to join Kim Crieger Goodwin and me for our monthly Eugene Real Estate Investor Forum. It’s held monthly on the second Mondays at the Countryside Restaurant in Eugene.