100 Griswold #B APN 003-862-08 just listed today for $145,000. It is an 1176 SF 3 bedroom 1.5 bath townhouse unit at Talus Point originally built in 1974 as a rental. It is an H Unit on the rental website, and rents for about $925 minus any incentives.
The 153 Unit Talus Point project (not to be confused with the newer but equally disastrous Edge at Talus Point project) was purchased for $11,100,000 in December 2004 with a $10,800,000 construction loan and quickly repositioned to go condo. The original loan was retired and replaced by a $15,600,000 construction loan in June 2006. Another $4,000,000 construction loan was added in November 2006, and a $1,437,000 hard money 3rd in February 2007. The big construction loan is worth reviewing, as it lists the unit types, projected sales price, the construction price, and the projected financials for the project. Well, we know how that turned out.
28 or so units were actually sold (friends and family?) before the NOD was filed in June 2008 on a missed April 2008 payment. The bank tried to undo their partial reconveyance of the sold units, but I’m not sure how that turned out for them. The project went REO on 6 April 2009 for $8,300,000 on $12,497,250 owing, and resold to investors for $4,225,000 on 8 September 2011 ($33,800 average for the 125 units included).
100 Griswold #B was originally proforma’d to sell for $198,000 with a construction loan value of $115,394. The new owners paid less than $35,000 for the unit, and have it listed at $145,000. The median condo sale price is in the $56K range in Washoe right now, and this one is about as median as you can get. The asking price is obviously just nuts and an attempt to scope out the market – a similar but newer unit at Silver Creek on Sharlands fetches $75K these days. But I wonder how many crapola units like this one will be hitting the market to fill the well hyped “void” in low-end home inventory due to AB 284?