April 18, 2008
What Happens in Tarzana…
18350 Hatteras St.
Tarzana, CA 91356
168 units
at least 16 (10%) listed for sale
In the celebrated movie, Scarlett O’Hara wonders if her beloved home, the plantation called Tara, is still standing after the Yankees occupy it or if, like so much else in the South after the Civil War, it is Gone With the Wind.
Condominium owners in the 168-unit mega-complex called Tara Village in Tarzana must be equally anxious for the financial fate of their real estate.
Like its fictional namesake, Tara Village is a microcosm of a larger upheaval. Tara’s conversion to condos from rentals was completed in 2006 - just in time to be slammed by the real estate downturn. It appears that many, perhaps most of the units were purchased by investors to be rented as income property. Now, a row of realtor lockboxes clings like mechanical lampreys to the front gate.
Debbie Dietrich, manager of the Homeowners Association for Tara, answers my questions guardedly. She isn’t sure how many of the 168 Tara condos are owner-occupied, a common yardstick of desirability for buyers who intend to be owner-residents themselves (my guess would be it’s a low number).
One listing agent told me her client owns six units at Tara, of which three are listed now. Public records strongly suggest they are seriously upside down - worth less than they were purchased for. Clicking through the other listings, priced from $210K to $444K, runs the spectrum of distress in this market: bank-owned, short sales, “motivated sellers,” many underwater.
Dietrich readily acknowledges the long row of lockboxes in front, but claims that there’s about a two-week turnaround when units go on the market. That’s hard to reconcile with the average 80 days on the market Redfin’s stats show.
Tara’s fate, which appears to be in freefall, is likely representative of the regional real estate market, or at least of the condo market in the San Fernando Valley. Unfortunately, what happens in Tara doesn’t stay in Tara.
Phyllis Harb said:
There are several different styles of lockboxes on the rail; one of which hasn’t been in use for approximately 10 years. There are also several variations of the combo (combination) lockbox which aren’t often used due to security issues. Some of these lockboxes may have been abandoned (the listing agent forgot to remove them). On the more expensive lockboxes is a serial number assigned to the Realtor who owns the lockbox; the local board of Realtors can contact the agent to remove an old lockbox.
If the Association could eliminate even ¼ of these lockboxes (assuming they are no longer in use) it would be less frightening to potential home buyers.
April 19, 2008 8:47 AM
Tim Hebb said:
We appreciate your keen trained eye, Phyllis. Thanks for contributing.
I will try to see that your comments get passed along to the manager of Tara’s Homeowners Association, who, I’ve been told, is a renter there. Go figure!
By the way, those with an interest in property in La Cañada and neighboring locales can check out Phyllis’ fine blog by clicking on her name above.
April 19, 2008 1:56 PM
PhyllisHarb said:
thanks Tim!
April 20, 2008 2:49 PM
Cindy Allen said:
Great post, Tim. Love the “Gone with the Wind” analogy. Look for my post later this week on the blog on how it’s going to be super-hard to buy condos starting in a couple of weeks.
April 20, 2008 11:12 PM