As you have read in previous blogs on our site, there is a proposal for a deck to be built and house convention center space, as well as a new stadium for the San Diego Chargers. It will also be a stadium that could hold a World Cup event, Olympic events and a great venue for concerts.

Concerns: Building something of this magnitude when we still need to get a library built. It will take away from Port production and increase the threat of an attack on our city. All viable concerns. But our city is already a target. It’s San Diego. We house the Nuclear sub program. Everyone wants to be here. Why not make the developers kick in to the Library fund as a stipulation as well. Also, it will be built as a deck over existing working waterfront space.

Benefits: It will add more space and fill a need for the expansion of convention center space. It will incorporate space for the Port to still act as a working waterfront as well. It is a huge deck! We’ve all seen what a stadium does for the growth of a neighborhood and what it attracts. Is it all bad to add a multiplex stadium/hotel/convention center/Venue for World games while still keeping the existing working waterfront?

Opinions come from both sides. I like the idea of having sports venues close to home. As far as football is concerned, it is only 8 times a year with the possibility of maybe two or three extra Sunday’s if we are in the playoffs. Not to mention it would definitely be a Superbowl candidate as San Diego is every decade. It would allow for the International Rugby League Events, World Cup style Soccer events and even could be, with some forsight, a world stage for Tennis as well. It is a multifunctional Stadium.

It is right on the line for the Coaster and the trolley. It is South of Harbor Dr., so it is “in the neighborhood without being in the neighborhood”. You can’t compare this with the neigborhood around RFK in Washington, D.C. either. Completely different plan altogether. The pedestrian bridge will already be in as well, making it easy to access for the locals.

So, I really had one thought from the “opposition” side and about a million thoughts from the “pros side”. Oh well. It would be great to have, and would enhance the appearance of Downtown San Diego even more. Imagine coming into Harbor on a cruise ship, and your view is the numerous high rise towers like Harbor Club,  The Pinnacle Museum Tower, along with the Manchester Grand Hyatt, and the San Diego Convention Center. It is then you will see Petco Park not too far from the new Chargers Stadium.

As a Specialist in the Downtown San Diego Neighborhoods, we often get asked by authors of various news resources to comment and provide information for their articles.  As long as we don’t get misquoted, this is one of the fun parts of the job.  Some say it is promotion, but I hope you know that taking part in these kinds of articles comes from a genuine love of the City and Neighborhoods that we live and work in.  For that reason, when Irene Lechowitzky approached me for help…it was a “NO brainer”!   The following article San Diego’s own Soho was published in the Real Estate Section of the LA Times this weekend, and features some of my information and quotes as a representative of 92101 Urban Living, and a Resident of the East Village Neighborhood.  We often do articles on our neighborhoods like this one as well.  For a good example, check out our past blog entitled : The New Face of The East Village

If you looked from your balcony at the Grande at Santa Fe Place you may have thought you were suddenly transported back in time to a Carribean port of call. That the rum runners had come into town to spend a few nights of partying before setting sail to another adventure on the high seas.

 Feel safe, those aren’t pirates on the horizon but the Festival of Sails. A time when all the tall masted ships of yore set sail through the bay. It is quite majestic to see these old gals of the sea cruise across the water with their beautiful, full sails displayed in all their glory. To stand and watch is to be able to transport yourself back to that Carribean port. To see Captain Morgan pull into dock. The thoughts of brightly colored, squawking parrots and raucous parties going well into the night could be conjoured up with enough imagination.  Here is an article from the Port of San Diego website that details the ships displayed at this years’ event:  Tall Ships Arrive for Festival of Sail 2008

 This is just another event that makes Downtown San Diego a great place to live. From the East Village you can walk to see this within 20 minutes. That’s a leisurely stroll at that pace as well. Take the Matin Luther King, Jr. Promenade down to Market and Harbor. Walk by the old Kansas City BBQ, Seaport Village, Old Police Headquarters Bldg and the U.S.S. Midway Museum and you will be visually struck by the tall ships.

 Have fun along the waterfront. Get out and walk. Decrease your carbon footprint. Most of all, enjoy the city we call home.

Strolling along the North Embarcadero Water Front is one of the most relaxing and enjoyable things to do while in Downtown San Diego.  This stretch of walking path extends all the way up to Harbor and Shelter Islands.  On the half mile stretch of Harbor Blvd. between The Cruise Ship Terminal and Hawthorne Blvd., you may have noticed very unique art projects in the form of “Urban Trees”.  This exhibit is actually 31 uniquely designed sculptural projects awarded to some of the best local artists that San Diego has to offer.  Here is a quote taken directly from The Port of San Diego website: “Artists were invited to apply their creative energies to the design of artistic trees to add color, form, interest and fun to the waterfront.”  This project actually represents “Urban Tree Exhibit 5”, and is part of the Port of San Diego’s commitment to their Public Art Program along the San Diego waterfront.  This project allows both tourists and locals alike to have unique “experiences” through art as you enjoy the Bay and Waterfront all at the same time.  A couple of weeks ago we did a blog about this project in general.  Please use the link to review The Port of San Diego Public Art Video and the really interesting video that accompanies it. 
The following link showcases information about this current exhibit of URBAN TREES.  It has beautiful representations of the trees themselves, and information about the artists who created them. 
The following two links are of articles from The Port of San Diego website that give more detailed information about the project, and the unveiling ceremony that took place a couple of weeks ago:  New Season of Urban Trees Coming Soon to the North Embarcadero, and Urban Trees 5 Unveiled.   This is such a unique experience to living and/or visiting Downtown San Diego.  I encourage everyone to have their own wonderful experience.  Should you take me up on my advice, we would love to hear about it with comments.  What was your favorite Tree?  I know mine. 

NFL, NBA, NHL, even the Olympics in Downtown San Diego?  Well, that is the proposal, and it is a big one at roughly a proposed $2 billion.  Check out the Article entitled “Developers: Terminal deck could solve woes”  The site is the 10th Ave. Marine Terminal just south east of the San Diego Convention Center…some of the most valuable property in all of Downtown San Diego.  The proposal is this:  “Developing a 96-acre deck over the 10th Avenue Marine Terminal could allow for a new sports arena or stadium, allow for expansion of the convention center and bring new tax revenue in from the waterfront.”  The possibilities for use of the site could include a football stadium for the San Diego Chargers, sports arena for NBA and NHL, the expansion of the San Diego Convention Center, and hotel development– or a combination of some or all of the above!   This land is currently occupied by a working port terminal.  Traditionally, the Port represents one of the most formidable opponents to pro-development of these very valuable areas.  They argue the jobs taken away from Port workers would be replaced by lesser paying jobs.  I can see that, but could you imagine the impact a development like this could have on the value of Downtown, and San Diego in general.  This would solidify our position as major U.S. national city, and if done correctly put us on the map internationally.  The project is scheduled to go before a vote November 14 of this year.  I look forward to hearing more about this idea, even though I think it is going to be a long shot at best.  Check out the Project Renderings provided by The Union Tribune Documents.

In September of 2004 the East Villages’ own Fahrenheit was featured on the cover of a CNN Money article online. It wrote about the gentrification of downtown areas across the country and how it is a good thing. Something you rarely hear in the news today. Gentrification is often associated with a negative tone and that is not the case. Taking a blighted area and turning it into a family neighborhood is a great thing.

When the article was written, the spot where Fahrenheit now sits and thrives was only dirt. It has become one of the more popular buildings for loft living in the East Village of Downtown San Diego and is also an Orchid winner, an award given by the public. It has been seen on the CW’s Fashion House, a telenovella style night time soap starring Bo Derek and Morgan Fairchild. It has also been featured in numerous car commercials as the backdrop for the cool urban vibe in the ad. The shopkeeper loft units along 10th avenue now feature the hip urban botique salon, Flirt, 1st degree tanning salon and Mondo Gelato. Mondo Gelato is also home to live music every thursday night for all ages that showcases local musicians.

As of this posting there have been 5 babies born with one on the way in less than a month. The families are growing and thriving and the playground at Petco Park’s “park at the park” is getting a lot of use!  So from the time of the CNN Money article until now, I would say that Fahrenehit has defintiely lived up to its billing of being a “hot ‘hood”.

Financing continues to be a challenge in today’s Real Estate Market.  We see that the conditions and documentation that underwriters have been asking for is getting more and more rigid.  As real estate brokers, we try to get investors to consider equally the two sides of the “deal”.  Most of the time, we can’t do what we do until the financing side of the loan is taken care of.  Also, we challenge those investors who are trying to “time the market” to consider the affect that higher interest rates have on their monthly cash flow.  Often times, if real estate values drop slightly but interest rates increase, it may actually cost an investor more each month for even a lower priced property. 
All the analysts and investors have been keeping a sharp eye on the state of the financing market these days.  In fact, there has been a lot of talk of the mortgage industry in the recent weeks…more than normal.  With the recent issues surrounding Indy Mac (failed financing bank), it is good to know that Wells Fargo Bank, N.A. is still the only bank in the U.S., and one of the two banks worldwide, to have the highest possible AAA credit rating from both Moody’s Investors Service, and Standard & Poor’s.  How many more banks are going to have trouble and eventually fail?  It is hard to tell at this point.  As Downtown San Diego Realtors, we have found the Wells product to be very competitive in pricing for high-rise complexes.  Often times, Well Fargo does not need a full condo certification for funding…they just require a limited review of the HOA.  In non-real estate terms, this just means there are decreased contingencies that could potentially hinder funding of a loan.  Usually, these funding issues happen in the 11th hour of the deal.  This makes everyone nervous. 
When looking at interest rates that deal with residential housing financing, the bond market is generally the most important.  This month’s bond market opened well into the negative as investors continue to shy away from the inflation-threatened securities.  The stock markets reflect mixed results, as increased trading put the bond market’s down, and pushed mortgage rates higher.  There are a couple of reports scheduled for release in the coming weeks that can affect mortgage related bonds and rates.  None however, are considered extremely important to the markets. The release of June’s and July’s Leading Economic Indicators (LEI) will have insight on the housing sales, big-ticket item manufacturing activity, and the Fed Beige Book which breaks down economic activity in the U.S. by region. 
Well, if you made it this far into the blog, you are probably wondering what the bottom line is…right?  Some mortgage commentators, with fear of continued rising rates, state to be cautious if still floating an interest rate.  Also, real estate consultants recommend taking advantage of “good deals” before interest rates increase to a level that prices monthly mortgages out of reach for the average homeowner.

Check out this short video of the Public Urban Art in San Diego.  All along the waterfront, it is hard not to spot all the unique and colorful art and sculpture pieces.  They are hard to miss with all the enhanced shapes, colors, and urban themes.  These art projects are designed to enhance San Diego’s rich artistic culture, and provide memorable spaces for both residents and tourists visiting San Diego.  The Projects are supported and funded by The Port of San Diego Public Art Program.  Here is the mission of the Port’s Public Art Program: “To enhance The Port of San Diego’s public image through community development programs that anticipate and meet aesthetic integration through art projects with the Trust Cities, Port departments and District staff.” 

Information for this blog was researched using the resource of the Port of San Diego website.  If you have some time check it out.  It is an amazing resource filled with all kinds of facts and pictures of the San Diego Waterfront and Bay. 

A lot of discussion these days is about the market “tanking” and all Real Estate Sales ”going into the dumps”. We believe that you can’t blanket the entire 92101 with a “market trend”. We have the numbers to prove it. Cynics, prepare to sit back in your armchair and seethe at the facts.

At the Harbor Club, the average time on market is about 36 days. Average price per square foot is in the mid $700 range, and the biggest tell of all is that the units are sold within 95% of their list price.

At the Pinnacle Museum Tower, the average time on market is 47 days with the average price per square foot at about $720. The units are sold within 98% of their list price. That is incredible!

Now to the Old Guard of Downtown San Diego Luxury, the Meridian. For a 20+ year old building it is looking like the best Marina luxury deal in town. With an average price per square foot of $634 and a market time of 39 days, you need to jump on this one quickly! Units within are sold on average of 82% of list price, a greater negotiating curve than the other two towers of luxury.

Something to consider when looking for high rise luxury.

The issue of higher gas prices will continue to be a trigger point for homeowners and renters making the decision to live closer to hubs of mass transit.  See our Blog last month Entitled “Higher Gas Prices Mean More Urban Development.”  Today, my clients Mike Bierne (Executive Vice President of Kamson Corporation) and his wife Shari sent me this article “Renters go Downtown to Save on Gas, Commuting“  as a contribution to the website.  Mike is quoted in the article several times as a representative from a company that manages apartment complexes in the New Jersey area.  The trend toward an Urban Lifestyle is occurring in cities all across the United States.  Currently, Downtown San Diego has less than a 5% vacancy rate for rental units. This is always great news for investors who are taking advantage of the current “Buyers Market“.  As indicated in the article, two bedroom two bath units in Downtown San Diego start at $2400 to $2600 a month.  A comparable unit a half hour to an hour commute away would go for at least half that amount monthly.  Renters would rather pay the higher amount in rent to live close to work/mass transit, than spend the extra money on gas and potentially sit in the car several hours a day.  Not only is this the environmentally friendly thing to do (Live Green…Live in Cities), it may also be the most affordable option as well.