Marcato Auction - The Results
The big Marcato close out auction was this last weekend and the results are in. The TNT is reporting that the last 17 units of the 93 unit building sold in 70 minutes for $3,365,000. The discounts were significant versus the original asking price from a few years ago. Yet, unlike some other buildings, every unit is now sold.
For instance, a two-bedroom, two-bath, 1,210-square-foot unit with two inside parking places sold at auction for $180,000, just 46.3 percent of its original offering price of $388,900. That’s a $208,900 discount.
Did any of you, our fine friends here, acquire one of the units?
Link to The News Tribune
Previously on Exit133: Marcato Condos Close Out Auction on Oct. 17th
Filed under: Downtown Tacoma, Neighborhoods, Developments, Marcato
39 comments
D Douglas Tooley October 20, 2009
The folks moving into Tacoma now as first time homebuyers or retirees are going to make this City, and its community.
B Brent October 20, 2009
Yep, I got really f&cked here.
C crenshaw sepulveda October 20, 2009
I hope they got that horrifying roach infestation problem solved, finally.
D drizell October 21, 2009
A few years ago I considered buying one of the one-bedroom units for about $200,000. Now I’m looking to scoop up a four-story rowhouse in central Baltimore, within walking distance of grocery stores and every cultural amenity imaginable for under $120K. Though parts of me miss living in the Pacific Northwest, I definitely don’t miss the high housing costs there.
O offbroadway October 21, 2009
Interesting perspective you’ll have for us from your new city by the bay, my friend drizell. Give the giant Nipper-dog a pat on the paw for me.
T Thorax O'Tool October 22, 2009
Sweet! We’re now within the “too expensive” category instead of the “raping you with the business end of a rake” category.
When condos start going for $90K regularly, you know we’ve returned to fair value.
Unless it has gold tiles and diamond windows, ain’t no condo in this state worth $180K.
C crenshaw sepulveda October 22, 2009
OK, I’d give 180k for one of those fancy waterview 4000 square foot condos at the 4 Seasons. Ask any of the residents of the Marcato that bought their unit before the auction and intervening price reductions and see if they think their unit is worth what they paid for it. I bet they are all feeling a bit ripped off about now.
T Thorax O'Tool October 23, 2009
@ Rick:
Sir, you are entitled to take my opinions with as large of a grain of salt as you see fit.
I happen to believe that spending large sums of money to own an apartment (regardless of how “prestigious” the address is) is a tremendous waste of money. Why pay a $1900/mo mortgage for what you can rent for $800/mo? In my own opinion, condos are a foolish purchase. I figure that if you’re going to spend $X00,000 on a property and be beholden to a bank for 3 decades, you may as well have some land. Even a modest yard is good, because it’s the land that’s really the bigger “investment”. You can’t put a shop in the communal underground garage or grow your own veggies on your 40 sq-ft cement balcony in a condo.
If you wish to buy a condo, then do go ahead. It’s your money, not mine.
And in regards to my book:
I’m still in the first revision, which has proved to be a far slower process than I had hoped.
A Altered Chords October 23, 2009
Thorax – would it help if I co-authored the book? I could heavily sprinkle it with haiku poetry.
I bought a condo.
It seemed good when I bought it
It lost it’s value.
a Haiku poem by altered chords.
T Thorax O'Tool October 23, 2009
@ AC:
Sir, I would welcome your collaboration.
J Jesse October 23, 2009
A strong condo market is vital to a downtown revival. Apartment buildings are good but condo owners have more “skin in the game” and usually have more disposable income than apartment dwellers.
We should be HOPING for condos to return… not the opposite.
J Jim C October 23, 2009
I’m no real estate expert, but I have been house-hunting for about six months now so I’ve been watching what’s on the market fairly closely. IMHO, we’ve seen the end of condo-building in Tacoma for several years, if not a decade. Not until the value of the single-family homes that are not even a half-mile away (in some cases, a block away) up the hill start to catch up, anyways.
T Thorax O'Tool October 23, 2009
@ Jesse… I’d like you to consider this for a moment.
Let’s say that Adam the Alien and I both work for the same company and have the same benefits and salary. We both make let’s say $60,000 per year. That’s $5,000 per month. Let’s assume that after taxes and such, both Adam and I bring home $3,800 per month (Uncle Sam is not kind to single people without kids).
I continue to rent my 1 bedroom, 750 sq ft apartment in a building built in 1906 the North Slope neighborhood. My rent is $800 and all utilities except power are included (we won’t be counting cable, internet and phone as “utilities” because you don’t need those like you need water and heat). My power bill is usually about $15 a month. So my actual housing expenses are approximately $815 per month. That leaves me with $2985 per month that I can save or spend.
Adam buys a 750 sq ft condo in a similarly old building 3 blocks up and pays $210,000 for it. He puts down $7,350 and uses an FHA 3.5% down loan to get the condo. His credit good but not flawless so he gets a decent 5.5% rate for a 30 year fixed. Let’s assume a 0.5% PMI and a 1.125% property tax rate. So Adam’s base payment is $1,425.05 per month. Let’s give him a quite modest $100/month HOA dues (most people in Condos that I know pay closer to $200 or more). Let’s assume he only has a utilities bill of about $100 for water, sewer, garbage and power. That means that Adam is paying $1,625.05 per month. That is $2176 per month Adam has left over to save or spend.
Adam and I are living in essentially equivalent places in the same neighborhood, making the same wage. My monthly housing expenses are $815. Adam’s are $1625 per month.
Which one of us has more disposable income? It certainly isn’t the one who pays $810 more per month just to keep a roof over their head.
A Altered Chords October 23, 2009
Apartment living.
Neighbors banging on the walls.
Wish I owned a house.
A Tacoma-centric, socio-economic haiku poem by altered chords.
T Thorax O'Tool October 23, 2009
AC… we need to work on that Tacoma Haiku format… the Taiku?
Anyway, my email is the same as my name without spaces (or punctuation) at gmail.com
drop me a line…
J Jesse October 23, 2009
TOT: Most people who would buy a nice condo are those who want to own something and generally can’t afford a house or don’t want the chores that come with a yard and maintenance – they are usually a different demographic than a condo buyer. I am sure you would find a higher income average in condo owners as opposed to apartment renters.
Also, your $810 difference is not exactly accurate. A condo owner, in a NORMAL market, would gain equity along with a significant tax write-off. But… this isn’t a NORMAL market and that’s why there aren’t any condos going up right now.
So, I suppose you are right that an apartment dweller, income to income, would have more disposable income but a condo owner would have a larger net worth.
T Thorax O'Tool October 24, 2009
Net worth via real estate is only gained by people who own property that they rent out.
The bubble of the last 10 years was an anomaly, with a magnitude that we haven’t seen in 80 years. Real estate does not typically increase 15% or more a year. People used to say “real estate never goes down” which is not true. Obviously it’s going down now. But it also went down in the 90s, in the 70s and (of course) in the 30s.
If you look at the long trend, real estate has kept pace with inflation. Take a look at any type of real estate index you like, and you’ll see that the historic return on real estate has been about 1.1% annually over the last fifteen decades. I’ve said it before and I’ll say it again: Owner-occupied real estate is barely a hedge for inflation, not an investment. You’ll make more $ on stocks than you will that condo. Or better yet, buy a 16-unit apartment building or build an office tower. You’ll make $ on those because you get a rental income.
I’d like you to consider another scenario, again involving me and Adam.
Adam makes $25,000 a year and rents an apartment for $600/month. We’ll assume that after taxes and housing, he has $1000 left over per month.
I make $65,000 and pay $3500/month for my mortgage (as many people who bought with the funny money during the boom or with refis do). After expenses and taxes, I have $1000 per month left too. But like Adam, that amount I have left doesn’t include spending on food and clothes, cell phones and such stuff. So both of us have little to spare. Since I’m tapped out, I don’t have the cash to repair my mower or paint the garage. The house does look a bit run down. Adam’s building however, is maintained by the property owners and has a nicely mowed lawn.
Who is a better contributor to the neighborhood? It certainly isn’t the guy with the 15” tall grass.
********************************************
I’m certainly not anti-homeownership. I’d like to own my own house one day with a yard. I’d love to have space to garden. At this point in my life, I feel renting is the better option, and the $ I am saving is going into savings. How many people have a years’ worth of expenses (including housing) in savings? I do because I only pay $800 for rent. It would take me 4x longer to get to the year-savings mark if I paid $1600 for a mortgage… And god help my poor savings if my roof needs replacing.
All this really bothers me because it is a pet peeve of mine when people assume that ownership is always better and that people who own homes are somehow a better class of people. Both statements are stereotypes and not true.
When it comes down to it, these prejudices are harmful. As a renter, I am every bit as conscientious as a homeowner, every bit as concerned about my city. I am in no way inferior to a person who owns their place. It’s all equal. Most renters are just as quality people as most homeowners.
This isn’t some sort of “us versus them” thing. Those who choose to rent choose for their own reasons, just as do those who buy.
But who is more responsible? The renter who knows they can’t afford to buy or the buyer who can’t afford it and gets foreclosed on in 18 months?
********************************************
Owning a home of any kind only makes sense in certain financial and life circumstances. It does cost a lot more than renting, ties you down and your $ isn’t liquid. Think about everyone who bought in 2008 with 10% down. They lost that money with the decline in prices. All investment carries the risk of loss, even real estate. To think otherwise is irresponsible.
Now, if your circumstances favor ownership, then go ahead and spend what you like where you like. It’s great that you can and want to buy… it is a part of the American Dream, after all.
…Just remember that there are those of us who would rather rent at this point in our lives because to buy right now is a foolish decision for them.
T tarek October 24, 2009
Condomint housings. I personally think Tacoma needs more of the sky scraper condoms for sale.
I mean really have any choice in terms of cost.
Please help raise the rent for yuppies and Eyesores.
A Altered Chords October 24, 2009
Announcing the all new, Tacoma centric poetic format: A collaboration between Thorax O’Tool and Altered Chords. Similar to the haiku. It utilizes 2 syllables, 5 syllables and 3 syllables. It is coincidental that this rythmic pattern is like the area code of Tacoma.
Here is the first Taiku poem. It is based on TOT’s last economic example where he earns $60,000 per year but
Adam only earns $25,000 per year.
Adam’s poor.
I am very rich.
He’s lazy.
This format is extremely challenging but given the “gritty” nature of Tacoma residents, we expect it to catch on like wildfire!
T Thorax O'Tool October 24, 2009
Ha! Nice one. Great minds think alike, no? Well, disturbed ones do at least.
Me next! Ready?
I am
So very tired
I will sleep
************
Chalk Off
My hands are dirty
No votes? Sad.
************
Meow.
Orange cat wants food
Wakes me up.
*************
Email.
Nigerian scam?
Deleted!
A Altered Chords October 24, 2009
Thorax.
He be the master.
Of Taiku.
T Thorax O'Tool October 24, 2009
A.C.
Other inventor
of Taiku
A Andrew October 25, 2009
Hey guys
I want in on this
Accept me
T Thorax O'Tool October 25, 2009
Really?
It’s your lucky day!
One of us…….
A Andrew October 25, 2009
Oh crap
I have seen Hot Fuzz
This ends bad.
O offbroadway October 25, 2009
Barnett.
Gone off the deep end.
Yes, me thinks.
Crenshaw
Sings blues over Blue.
But not here.(?)
T-Town.
Once a Two-Oh-Six.
Two-Five-Three.
Fall rain.
Bloggers stay inside.
Getting pale.
Hijack.
The Marcato thread.
What you’ve done.
A Andrew October 25, 2009
Bloggers
Pale every season
No news there.
T Thorax Z. O'Tool October 25, 2009
$75,000 is a fair price for a condo.
That $591 certainly sounds quite attractive, but I’m not diggin’ that 625 sq ft. I already am cramped at 750… I doubt losing 125 sq ft will make the situation any better.
But yeah, this is the area where condos should be priced. The whole appeal that condos had was being cheaper than a house. It’s why they boomed in Seattle. If you can’t afford $800K for a house, $300K for a condo looked like a godsend. That’s the same reason why condos didn’t boom as hard here. Why pay the same price as a house to live in an apartment?
It’s very good to see some fair values finally creeping into the housing market.
M Mofo from the Hood October 26, 2009
Season
Number 1 Haiku
Hot and Cold
M Mofo from the Hood October 26, 2009
Autumn
T ceremony
Bring Taiku
R RR Anderson October 26, 2009
you guys crack me up.
J Jim C October 26, 2009
Nice link, boomer, but think that one is a mistake – that same unit is duplicated in another listing on redfin for $159K, which is about where it should be, I think. There are a ton of North Slope/End condos on the market right now, aren’t there, that seem to reflect what the real market would bear rather than what “luxury” developers wish they could get.
____
the days turning gray
housing market pissing match
a way to pass time
A Altered Chords October 26, 2009
Jim C. has reverted to the old fashioned haiku form. Very retro. Very old school. Classic.
A Altered Chords October 26, 2009
Jim has reverted to the old fashioned haiku form here. Very retro. Old school. Classic.
North slope.
Condo like shoe box.
Suffocate.
a taiku poem by altered chords.
J Jesse October 26, 2009
Thorax
Should buy that condo
Do it now!
B boomer7 October 27, 2009
@ Jim C
They are 2 different listings and addresses. One is 418 the other 422 (same building though)
The one I posted is listing as a short sale with multiple price reductions.
Price History
10/19/2009: $75,000
10/13/2009: $89,999
09/21/2009: $99,999
09/04/2009: $109,000
07/27/2009: $129,000
07/01/2009: $132,000
A Andrew October 27, 2009
Jesse
GET TO DA CHOPPAH
DO IT NOW!
J Jesse October 27, 2009
Choppah?
A Andrew October 27, 2009
Jesse:
Predator reference
Tried too hard.