Sweet Orange

2220 Scholarship (IBC)

Today is a continuation of our survey of DataQuick’s housing numbers for Irvine broken down by ZIP. Up today is the 92612 ZIP, which includes IBC (Airport Area), Rancho San Joaquin, University Park and University Town Center. The DataQuick numbers are for single-family residences, condos, and new homes.

Median Selling Price

• April 2010: $445,000 (up 6.0%  y-o-y)
• March 2010: $430,000 (down 1.83% y-o-y)

Number of Sales

• April 2010: 33 (up 73.7% y-o-y)
• March 2010: 34 (up 100.00% y-o-y)

The photo is of 2220 Scholarship, a mid-rise condo in Irvine’s urban village area that is called the IBC (also called the Airport Area on most real estate listings). At $450,000. this home, which is part of the Avenue One development, is priced near the overall median selling price of homes in the 92612 ZIP. However, the IBC’s overall selling price is somewhat lower than is the median selling price for homes in the various 92612 neighborhoods combined. This is one of the problems that exist when homes in Irvine are grouped by ZIP instead of by neighborhood.

Up next: the 92618 ZIP, which includes Portola Springs, Oak Creek, Orange Tree, and Woodbury East

Yesterday, I listed mostly the points in favor of the mixed-use, urban development in the Irvine Business Complex (IBC). Now here is my criticism of the IBC development. The trade off for a more densely built development has often been lower home prices. However, in the boom years of our recent past, the developers could make more money building these high-end high-rises, and understandably this is what they choose to build.

However, even then that wasn’t the primary type of high-density housing that Orange County needed. And today, even with our reduced housing prices, affordability is still a problem in Orange County. Building housing that is more in harmony with the median Orange County income is what is needed. The trade off for higher density should be lower home prices.

I think it would be interesting to take the IBC’s Astoria design tour put on by the American Society of Interior Designers (ASID), and, in the process, support the Orange County Performing Arts Center. But I suggest that future development objectives be tweaked to provide more affordability. And while I am at it, I will put in a word for keeping residential development on a more human scale, which would be four stories or less.

For a look at urban-living in the IBC from a design point of view, see Cindy McNatt’s “Loft-style living,” or watch this YouTube video.

Also, for more information on the current status of the IBC development and some various opinions on the development, see “Mothballed Condo Project in Irvine, CA,”  the City of Irvine’s IBC home page, “Irvine planners approve design of large-scale office retail project,” and “Irvine considers 6,000 residential units in urban core.”

GRAPHIC COURTESY THE CITY OF IRVINE

I have written about the evolving development of high- and mid-rise living in the Irvine Business Complex (IBC) and have been meaning to write more about this type of development. A recent post by Erica Chavez at the O.C. Register’s Irvine Homes blog has given me the nudge to get around to writing this post. So, before I go any further, thanks to Erica for her interesting post—and the nudge.

The post gives the details and some interesting links for the ongoing design tours that are occurring at the Astoria at Central Park West, one of the new IBC high-rise developments. As Erica points out the tours will continue through May 22, and the proceeds will benefit the Orange County Performing Arts Center. If you are interested in urban living and/or design, check out Erica’s post (Design tour offers sneak preview at Irvine’s newest high-rise).

Now here is where the nudge comes in. Some who left comments on the post had some harsh words about this development. My take is that Orange County is currently urban as well as suburban; however, some have trouble accepting that all development in Orange County is not going to be of the traditional suburban vintage. However, circumstances have changed since our suburban heyday, and our development criteria needs to progress with these changes. Our population has grown, so we don’t have the wide-open spaces of the past for housing developments. In addition, today we have more empty nesters and young professionals who want the advantages of urban living.

However, let me make it clear, I don’t think that suburban homes should be done away with. They should stay a big part of the mix. I just think that circumstances have changed and a need for a more diverse housing mix currently exists.

Tomorrow: my criticism of the IBC development

For more information on the IBC, see “The Housing Numbers for the Irvine Business Complex: Irvine’s Evolving, Mixed-Use Urban Center.”

GRAPHIC COURTESY ASTORIA

Following is a list of some of the most affordable housing in the Irvine Business Complex, based on the price per square foot. The median price per square foot that homes in the IBC are selling for is currently $219. Looks like these IBC condos will need to have the price lowered even more. As always, keep the HOA fees in mind. Note: See last week’s posts for more information on the IBC.

1134 Scholarship (Avenue One) is a two bedroom, 1037 square foot condo, built in 2006 with an asking price of $299,000 ($288/SF). The HOA fee is $390 monthly.

1262 Scholarship (Avenue One) is a two bedroom, 1037 square foot condo, built in 2006 with an asking price of $319,900 ($308/SF). The HOA fee is $390 monthly.

2330 Watermarke Place (Watermarke) is a two bedroom, 1123 square foot condo, built in 2003 with an asking price of $355,000 ($316/SF). The HOA fee is $316 monthly.

2233 Martin #311 (Metropolitan) is a one bedroom, 934 square foot condo, built in 1992 with an asking price of $299,000 ($320/SF). The HOA fee is $392 monthly.

3131 Michelson  #802 (The Marquee Park Place) is a two bedroom, 1367 square foot condo, built in 2006 with an asking price of $430,000 ($315/SF). The HOA fee is $1,200 monthly.

3131 Michelson  #606 (The Marquee Park Place) is a two bedroom, 1367 square foot condo, built in 2006 with an asking price of $399,000 ($292/SF). The HOA fee is $1,124 monthly.

3131 Michelson  #303 (The Marquee Park Place) is a two bedroom, 1293 square foot condo, built in 2006 with an asking price of $348,888 ($270/SF). The HOA fee is $1,069 monthly.

PHOTO OF THE IBC’S SAN JOAQUIN MARSH COURESTY FORGET ME KNOTT PHOTOGRAPHY

Many of Orange County foreclosures fit into one of two categories. One are those homes at the low end of the housing market, such as much of Santa Ana; the other are newly built homes that have a relatively high price tag. Apparently, many investors thought that the newly built, higher-priced homes would make a good flip. Well, we all know what happened with that.

An example that fits in this second category is the Irvine neighborhood that I have been writing about this week, the Irvine Business Complex (IBC).  As I wrote in those posts,the IBC is Irvine’s evolving, mixed-use, urban-living neighborhood.

A look at the public notices always shows a large number of IBC homes set to go on the trustee’s auction block (Note: See one of next week post for a flowchart that shows the difference between a trustee sale and a bank or REO sale.). As yesterday’s post showed, the selling price per square foot in the IBC has taken a sharp drop. The high number of investors taking a loss and the numerous foreclosures are the most likely reasons for the large price drop. The median selling price is currently $219 per square foot.

The following IBC homes are not necessarily in default, but are examples of homes currently on the market in the IBC. Note that a comparison between the current selling price per square foot and the list price per square foot of the homes shown below are not a good match up. These sellers will most likely have to drop their price, if they want to sell.

At 3267 Watermarke Place (Astor Court), a one bedroom, 635 square foot condo, built in 2005 with an asking price of $225,000 ($354/SF). HOA fee is $286 per month.

At 2330 Watermarke Place (Watermarke), a two bedroom, 1123 square foot condo, built in 2003 with an asking price of $355,000 ($316/SF). HOA fee is is not listed, but my guess is that it is similar to the HOA fee listed for 3267 Watermarke Place (see above).

At 5045 Scholarship (The Plaza), a one bedroom, 1175 square foot condo, built in 2007 with an asking price of $573,580 ($488/SF).  HOA fee is not listed. I’m looking for this one to have a sharp price drop before it sells.

At 8115 Scholarship #903 (The Plaza), a two bedroom, 1675 square foot condo, built in 2007 with an asking price of $849,000 ($507/SF).  HOA fee is $1,093. I’m looking for this one also to have a sharp price drop before it sells.

That’s it for this week’s posts.

Next week: a look at the most affordable housing in the IBC, a flowchart of the foreclosure process, and maybe a few other things

Irvine Business Complex (IBC) Median Price per SF

Following are recent numbers for the live-work-play district, the Irvine Business Complex (IBC). All the homes on the market in this urban, mixed-use area are condos, which have a wide range of prices. For example, one of the most affordable IBC homes that is currently on the market is a one bedroom at 1331 Scholarship with an asking price of $234,900. The most expensive IBC home on the market is a three-bedroom penthouse at 5150 Scholarship #1204 with an asking price of $3,499,500. When shopping for a home in this area, it is wise to keep in mind the homeowners fees, which in these examples are $308 and $1,850 monthly.

Note the recent sharp decline in the median price per square foot (as shown by the black line in the top graph, the blue line is the list price) and the increase in the number of homes on the market (as shown by the blue line in the bottom graph). To see what other homes are currently available in the IBC, see the Irvine Business Complex map.

March 28, 2009

• Median List Price: $500K/$429 per square foot
• Median Sold Price*: $280K/$219 per square foot
• Median Days on Market: 112
• Number of Homes on the Market: 133 (5 foreclosures)

• Median List Price: $550K/$429 per square foot
• Median Sold Price*: $435K/$435 per square foot
• Median Days on Market: 132
• Number of Homes on the Market: 131 (10 foreclosures)

• Median List Price: $624K/$446 per square foot
• Median Sold Price*: $435K/$387 per square foot
• Median Days on Market: NA
• Number of Homes on the Market: 117

• Median List Price: $699K/$495 per square foot
• Median Sold Price*: $450K/$340 per square foot
• Median Days on Market: NA
• Number of Homes on the Market: 103

*Based on homes sold or taken off market in the previous 90 days.

Irvine Busines Complex (IBC) Number of Homes on the Market

Source: Redfin

The Irvine Business Complex (IBC) is often called the airport area on real estate maps. This area was originally the light-industrial area in Irvine, but has been evolving into a mixed-use area for some time now. The IBC is envisioned as a location that allows residents to live, work, and play without the necessity of a car. Young professionals and empty nesters are particularly attracted to living in the IBC.

The name for this area comes from its industrial past, but the city council is contemplating a name change that would be more in line with its current use. Expect the change in the not to distant future.

In addition to being close to the John Wayne Airport, the IBC is near UCI, the San Joaquin Marsh, Newport Beach, and Costa Mesa’s theatre and arts district. This area is served by the iShuttle. Also, all the homes on the market in the urban IBC are condos. (Note that almost 50% of all Orange County homes are multi-dwellings.)

For more information on the IBC, see yesterday’s post about the San Joaquin Marsh Reserve and the following posts:

Tomorrow: A look at the Irvine Business Complex housing numbers

Photo of IBC and the San Joaquin Marsh Courtesy R.L. Kenyon and Sea and Sage Audubon Society