US Bank looking for highest bidder at 360 Residences

Posted by Danielle & David Contreras on Wednesday, October 27th, 2010 at 10:42pm.

US Bank took over a little bank called Pacific National Bank back in 2009. In doing so they were able to scoop-up the debt to a little downtown San Jose building called 360 Residences. As most Realtors might already know from reading their marketing material from The Mark Company this development has been Half Sold Out since before they started construction.

The 360 Residence has been having financial problems? - "what is that you say how could they with half the units already sold?" I think that the Mark Company has been caught in a little fib that in our industry can cause some big issues. Now I know why they keep saying it, trying to build some sense of urgency for potential buyers but as a Realtor it is against rules and ethics to not tell the truth. Not sure why The 360 marketing company does not have the same rules to follow?

A class action lawsuit has been filed against the developers by the few buyers that did actually buy in the early months with many of them putting down very large deposits to secure their units. The buyers were told that they would receive delivery by Spring 2009 but as of today No Escrows have closed in the complex.

I may have been a little sour in my many comments regarding the 360 residences but I think it really started from them telling me that they are half sold out from day one! And now US Bank has begun to market the debt it holds against 360 residences. Some think that any buyers will turn around a re-market the building at a market rate or turn around a rent the units. Either way this will add an additional 213 condo units to the downtown market. With the Axis and the 88 seeing a seasonal slow down adding this amount of unit to the market could put their sales on hold.

Next we examine how much might a bidder need to bid on order to be the winning bid for The 360 Residences? Most recent Silicon Valley transactions of apartments include the acquisition of 101 San Fernando, a 323-unit property in downtown San Jose, for $64.1 million and a $42.5 million all cash purchase for The Commons, a 264-unit complex in Campbell. With these prices being for apartments and not for sale units I would expect that US Bank will get a sale price of about $50M or a little less than half what Pacific National Bank first lent Mesa to develop their luxury San Jose High Rise.

I love helping my buyers to learn everything they can about their purchase before their purchase. If your interested in buying a San Jose Condo give me a call!

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