Nexus Cos. Skyline at Macarthur Place website disappears but towers remain

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[quote author="freedomCM" date=1245892461]Because of the location, these towers, like the Jamboree towers, have a somewhat limited audience of buyers and renters, in addition to the limitations of being towers in suburbia.



I doubt that they could rent them for IAC level rents. Even then, they will be competing with the two new apartment developments around south coast.





I think the only successful exit strategy is to convert them into offices. And by successful, I mean recovering 15c/dollar rather than 8c/dollar for residential.</blockquote>


No way they can be converted to office. The walls dividing up the floorplans are concrete with re-enforced steel. The buildings construction is concrete with re-enforced steel. Office construction is done with steel beams that allow for large, open floorplates. This building can never have those open floor plates.



Ultimately the lender is going to decide what happens here. It will be foreclosed. It will then sell to either a group that will convert it to rentals, or a group that will try to sell off the units as condos. Either way, the price that somebody buys it for after foreclosure will probably be less than half of what it cost to build.
 
They are screwed then.



BTW, not all office is steel beam. They are building two buildings next to me that are concrete/rebar (only 5 floors, but 18 foot ceilings).
 
[quote author="freedomCM" date=1245918415]They are screwed then.</blockquote>


The only question is how badly. 75% off, 80% off, or worse?



<blockquote>BTW, not all office is steel beam. They are building two buildings next to me that are concrete/rebar (only 5 floors, but 18 foot ceilings).</blockquote>


This is true, but this particular building was structural steel. I watched it go up.
 
[quote author="freedomCM" date=1245926349]So if it was steel, they could open up the floors and convert it to office?</blockquote>


Structural steel, and the answer is absolutely not if it requires more than removing drywall.



The World Trade Centers were concrete and structural steel, designed with an open floor plan.



Plus, it's not zoned nor is there parking to accommodate commercial. Plus zoning. Plus highrise commercial does worse on paper than residental because you NEED rents to cover it.
 
Well it's not like there's a desperate shortage of office space in OC anyway. :-/



Those are pretty nice units, but a million each for construction costs? That's insane. Even at bubble prices, I don't think they could have gotten that.
 
I watched it go up daily too. They had a lot of water issues with the pond leaking into the foundation. They had to do a lot of dewatering. They hit the sewer line once or twice as well.
 
[quote author="Geotpf" date=1254973895]Seems like these are still vacant. Any updates? They can't leave these vacant for years upon years, can they?</blockquote>


Ask Detroit...
 
Here's a thread on Bangkok talking about highrises that have been <a href="http://forum.skyscraperpage.com/showthread.php?p=2990280">vacant for a decade</a> after the Asian financial crisis of 1998. This is after a recovery from the crisis, and in a dense city.



Unlike the uncompleted buildings in the article, Skyline is pretty much done and would return *some* money if firesaled or rented. But, if they wait long enough, deterioration and dating might knock that to nothing, and "extend and pretend" might drag things on for the necessary years at the rate things are going.
 
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