950 N Orange Grove Avenue: "Builder's Close Out"

Four (more) architectural lofts in a five unit complex east of Fairfax in West Hollywood have come to market at “builder close-out prices”.
Address: 950 N Orange Grove Avenue, Los Angeles 90046
Asking price: $849,000 - $1,095,000
Unit type: 3 bedroom, 3.5 bath
Square footage: 2,078 – 2,150 sq ft
Number of units in development: 5
Number of units sold: 0? Unclear – one unit is not currently marketed
Days on Market: 14

These gargantuan units have over 2,000 sq ft of living area on four levels, and 3 bedrooms and 3.5 baths – enough room for an entire family.
Despite their size, the monthly cost for even the most affordable unit ($850,000) may be considered onerous. Do the math:

$850,000 purchase price

First, cough up the 20% downpayment -- $170,000 -- in case you have that lying around (say under your mattress.) Add in mortgage points and closing costs, and total cash requirements to buy the unit are $180,000.

Then, finance the remaining 80% with a 30-year loan -- $680,000 @ 4.875% = $3,599/month
Add in homeowners fees: $450/month
Add in property tax (approximately): $815/month

Total monthly nut: $4,863 – for the most “affordable” unit
Even with interest rates at 50-year lows, the cost of owning is far more expensive than renting. With the glut of unsold condos, a similar unit could be rented for $3,000 - $4,000/month (and the landlord will throw in a free flat-screen TV). And you can keep your $180,000 in a safe investment like a CD (or under your mattress).

Despite the polished, glimmering concrete floors, the spanking freshness of ceramic tile and Grohe-esque fixtures, and the generous, loft-like space, the price is too high.

You might see this pricing at a central West Hollywood or Beverly Hills or a Westside location – but not East of Fairfax … not at Romaine.

Bottom line: Good product. Wrong price. Wait it out.