Greetings!
In the boom days not so long ago East West Partners came to Truckee with a vision to develop golf course communities that would be joined together through the Tahoe Mountain Club and the Northstar Ski Resort. The Village at Northstar went through a major redevelopment and the first Tahoe area 5 Star hotel, the Ritz Carlton, was placed mid mountain within the Ski Resort. Homesites at Old Greenwood with the Jack Nicklaus Signature designed golf course went like hotcakes. Grays Crossing with its private Peter Jacobsen course came at the tail end of the boom not long before trouble starting brewing. East West was not alone, many other developments in the area found themselves in trouble too; Intra West at Squaw Valley, Cal-Neva Casino at Incline Village and the Lake Tahoe Development Company In South Lake Tahoe to name a few.
Because we listed one of the Grays Crossing properties as a "Best Buy" we felt the need to try and understand the situation better, because really if it is all going to come tumbling down, how could it really be a best buy?
On February 16, 2010 East West Partners filed for Chapter 11 bankruptcy protection while implementing a $10 million re-organization effort that would last 6 months. British banking and investment company, Barclay's, infused the needed $10,000,000 to enable Grays Crossing and Old Greenwood along with their respective Golf Courses to continue to conduct business during the re-organization process. (BTW: the Northstar Resort & Ritz Carlton are not a part of the Chapter 11 re-organization.) Gray's Crossing LLC was just one of the entities within the re-organization which no longer exists and its debt has been paid off. Grays consists of 5 neighborhoods; The Bluffs, The Ridge, The Woods,The Meadows & Sierra Cove. The LLC holdings consisted of 81 unsold developer lots in addition to an un-developed area at the base of the Bluffs slated for 89 small cottages, however resolution for these unsold properties could take years. Homeowner dues run approximately $65.00 per month and include road maintenance and landscaping of the common areas. We understand that the association is currently debt free. Last but not least, the private golf course became public under the re-organization. One last thing to note; not a part of the Chapter 11 but certainly a cost to consider is the mello roos assessment when purchasing a property at Grays Crossing; this will run approximately $3,000-$4,300 annually with a 2% annual escalator until it is paid off in 30 years.
Grays Crossing is a beautiful 700 acre development with 400 acres of designated open space & trails and a recently finished Club house including fitness-swim center & dining terrace. In 2005 & 2006 residential lots were selling up to $430,000 and the first homes to sell went for up $1,700,000. This year of the 23 lots that sold all but one were distress sales ranging from $32,000 to the highest priced of $112,000. Of the 10 home sales this year the sale price ranges from $730,500 to $1,175,000. It appears that Grays Crossing has stabilized and now would be an advantageous time to consider ownership in an upscale development.
|
| Market Update - August 2010 |
We are happy to report the downward trend of distressed sales however small it may seem. The total number of sales for the month of August was 87 with 22 of those being distressed properties, which translates to 25% (last month reported 26% distressed sales). The Timbers condominium complex in Truckee represents a large number of August's distressed properties. This entire development was foreclosed upon during the construction phase, so to see these properties being sold is a good thing. The list to sale median is down from 98% in July to 89% in August, however the median sale price was up from $420,000 to $434,000 - translation... Sellers are coming further off of their asking price, but the median sale price has gone up. What all of this really means has us scratching our heads!
Statistics from the Tahoe MLS: the solds from August 1 - 31, 2010:
Tahoe Donner: 23 homes (2 REO) (1 SS), 2 condos
Northstar: 0 homes , 4 condos
Glenshire, Cambridge, Juniper Hill, Juniper Creek, The Meadows: 3 homes (1 REO)
Olympic Heights: 0 residential properties
Prosser Lake Area: 3 homes (1 REO)
Sierra Meadows: 0 residential properties
Martiswoods, Ponderosa Ranchos: 0 residential properties
Ponderosa Fairway: 1 home
Winter Creek: 1 home (1 SS)
The Timbers: 5 condos (5 REO)
Lahontan: 3 homes
Timlick: 0 residential properties
Old Greenwood: 1 home (1 SS)
Gray's Crossing: 1 home
Martis Camp: 0 residential properties
Truckee Proper: 2 homes (1 SS)
Donner Crest: 0 residential properties
Donner Lake: 0 homes, 1 condo
Donner Summit: 3 homes, 1 condo
West shore Lake Tahoe: 6 homes (3 REO), 1 condo (1 SS)
Tahoe City: 4 homes, 2 condos (2 REO)
North shore Lake Tahoe: 4 homes, 1 Condos
Kings Beach & Tahoe Vista: 6 homes (2 REO), 1 condo
Alpine & Squaw Valley: 3 homes (1 REO), 4 condos (1 REO)
Shared Ownerships - entire region: 2 Old Greenwood, 2 North Shore, Lake Tahoe
Mobile Homes - entire region: 0 sales
Sierra & Plumas Counties: 3 homes (2 REO), 1 condo (1 REO)
Condos and Homes sold over $1M in Truckee and North Lake Tahoe: 12 homes, 2 condos
Highest priced home or condo sold: This special Carnelian Bay Lakefront Estate never actually hit the market but was sold behind the scene for $10,000,000. The 5,200 sq. ft. home + 1,300 sq. ft. guest house sits upon 1.4 acres with tennis court, private double deck deep water pier with hoists and bouy.
Lowest priced home or condo sold: This studio condo at the Donner Lake Village sold for $66,000. A super location on the shore of Donner Lake, perfect for the vacation get away. Don't plan on staying too long because these condos do not allow full time residency.
The list to sell ratio on the median was 89%. In other words, the homes sold within 89% of the list price. The median list price for this period was $489,500 and the median sale price was $434,000. Using the median price tends to take the extreme highs and lows out of the picture as it is based on the sale of the house in the middle of the pack.
|
| Screaming Hot Deals |
In this particular spot, we feature the 3 properties in the multiple listing service that we feel are well priced. These are the properties that we wish we had buyers for because we know they are of such value that they will not last long, even in this market. So, for this month, come and get 'em before they are gone. . . .( by the way if when you click on the link you get nothing -- they have already gone under contract) 1) Want to live in a luxury home, surrounded by other beautiful homes for $288 a square foot? Check out this deal located at 11258 China Camp Road in Gray's Crossing. We toured it last week and all of us were impressed with the finish work, the size 3082 sqft, and the price $889,000. This is a home that 3 years ago would have sold for more than 1M. We aren't sure but we think that the fact that it is in a subdivision that was recently associated with East West Partners may have had something to do with it being priced so well. See related story here. 2) 10358 Donner Trail. It is not often that you find 4.57 acres of usable, quiet land within the Town of Truckee limits for sale. This one is available at the incredible price of $250,000. Located very close to the elementary school and with all underground utilities, no homeowners' association -- when you compare it to other pieces of land that are only .3 acres and are priced almost as much. This is undoubtedly a screaming hot deal. On top of all that, it advertises itself as having possible owner financing. Get it now before the next land rush!! 3) So, do you like Alpine Meadows? We can't believe that this home located in Bear Creek at 2010 Big John Road is still on the market. 4 bedrooms, 3 baths and 2268 square feet for $519,000. The location is magical. You feel like there is no one around you. The style of the house is rather Frank Lloyd Wrightish but you cannot appreciate it until you get inside. Curb appeal it doesn't have but the house is impeccably maintained and just has a wonderful soulful feel to it.
Be sure to contact us if you would like to take a look at any of these properties! |
| Worst Deals on the Market | |
These are the properties for sale that we feel are the worst priced homes on the market in our multiple listing service. Every month we will choose 2 or 3 properties which, for one reason or another (usually price) are something we would not be inclined to show our buyer clients. So for this month, here they are:
1. 3675 Lacrosse Drive in Cedar Flat has been fishing for a long time -- 1024 days on the market and apparently it is shop worn. It was new when it was listed (2008) and has all the bells and whistles including 5 beds, 4 baths and a 2 car garage. Here is another piece of evidence showing why sellers need to price their homes aggressively right from the get go. This is a classic case of following the market down . . . Originally priced at $1,750,00 and now can't sell it at $1,099,000. The best piece of advice that we can give them now is the fire sale price it -- a DRAMATIC drop in price is in order if this is to be sold, now or ever. 2) Not sure which category this home falls under. After 498 days on the market 1130 West Lake Blvd. on Tahoe's Westshore now shows a price of $2,850,000 which is $3,100,000 lower than its original listing price. I'd say that this seller is finally motivated. The offering appears to consist of 2 homes, the main home at water's edge and a smaller guest cottage that was built in the 1920's. All of this on a 1.1 acre lakefront parcel. Take a look at it here and decide for yourself. Not sure what the agent is selling however as it is advertised as a no garage property but the virtual tour photos clearly show a 4 car garage. Be sure to let us know what you think that any of these properties will sell for by contacting us here and when it does, the entry closest to the actual sale price will win a gift certificate. |
| Morris & Emily Husted |  Morris and Emily are Father and Daughter. They have been our clients and friends for a long time. We first met Emily when she and her son Ben purchased a home along with her Dad Morris on Laurelwood in Prosser Lakeview. Since that time they have purchased 3 other homes with our help. This month they closed on the sale of the first of these homes. Emily is now married to Tim Sharp and the whole family has moved to the Reno area where life is a little more convenient for them (not much snow). Emily has been both a client, friend and co-worker with us and we wish her and her family the absolute best. Em is currently working on a Master's Degree in Special Education. Besides studying and teaching, she and her Dad love to renovate homes, including putting down hardwood floors and installing cabinets. sWe couldn't get Morris to pose for the camera but as you can see, Ben, hi grandson was more than happy to smile with Mom.
|
|
Kappy and Jennifer have a combined 40 years in the Real Estate Profession. We are committed to giving our clients the most up to date Real Estate information and Stellar Service because, We Love Our Work and So Will You! Call us or e-mail us for information about the Tahoe Truckee Real Estate Market. By the way, if you think any of this information might be of interest to anyone you know, feel free to forward this newsletter. We would really appreciate it!
Sincerely,
Kappy Mann & Jennifer Boehm
Keller Williams Real Estate |
|
|
 |
1031 Exchanges out of California
|  | Just before press time we received a bit of good news for real estate investors in California. Earlier this year the Senate Appropriations Committee had approved SB 1316 a bill which was going to provide tax credits for investors in low income properties in California. The plan was to offset the tax loss by eliminating the deferral of state capital gains for taxpayers who are doing exchanges into properties out of this state. The passage of this bill would NOT be good news for the Real Estate Industry or for those citizens who would like to have the freedom to chose another state to exchange their investment property with the IRC section 1031 vehicle.
Fortunately, as the result of some very aggressive lobbying, the bill has been moved to inactive status. So for now it is a non-issue. If you would like to know more about the IRC 1031 tax deferred exchange for investment properties, please be sure to check out the website here
or if you are one of those people who doesn't like to visit websites, give us a call and we will hook you up with an experienced professional in the field.
|
| West End Driveway Sealing |  | |
Brian Olson, owner operator of West End Driveway Sealing has been a resident of Truckee for 41 years. I guess he qualifies as a local! We contracted Brian to seal coat our driveway this summer and will attest to his great service and excellent pricing. His superior product dries faster, offers more protection and will stay black longer. For the past 14 years West End Driveway Sealing has bee doing business all around the Truckee area from the Donner Summit to Glenshire and all points in between. Brian's "All Season Asphalt Maintenance" will convert to snow clearing during the winter months, however only Donner Lake will benefit from his service of West End Slow Clearing. Give Brian at West End a call for an individual quote at (530) 587-5941 and tell him that Kappy & Jennifer sent you! |
Martis Camp Home Tour-Excellence In Education
|  | A Successful Home Tour
August 7, 2010
JK Real Estate, along with many other members of our local Board of Realtors participated by volunteering their time and expertise at a fundraiser for the Tahoe Truckee Unified School District. This was a real fun event which involved touring 6 beautiful homes located in Martis Valley's premier subdivision known as Martis Camp. The homes were as different as night and day. They ranged from a cozy mountain cabin to a 8000 square foot modern edifice. On hand at some of the homes were the designers & architects who were able to answer questions and truly showcase their work.
The event was deemed a huge success and raised more than $26,000 net for the Excellence In Education Foundation. Next year's event will probably be held in the same subdivision but will showcase different homes. Thanks to all of you who supported us in this endeavor also. Apparently more than 500 tickets were sold!!
Thanks so much. The success of the event makes all of the work worthwhile!!
|
Labor Day - Monday September 6, 2010
|  |
The first Labor Day seems to have been a "grass roots" movement by labor unions as a "working man's" holiday. It began in New York City on September 5, 1882 and quickly spread to other industrialized cities and areas in the United States. It was not formally recognized as a national holiday until 1894 when, in the aftermath of a U.S. Military altercation with labor union protesters during the Pullman Strike of 1894, President Grover Cleveland signed a bill establishing it as a federal holiday. The holiday has been established as the first Monday in September. While its original intent was to honor the workers in this country -- the day has come to also herald the end of summer. I for one have always been taught -- no wearing white glove, shoes or hats after Labor Day!! Hope you had a good day off!!
|
|
|
