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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Stock Farmer who wrote (68916)	4/29/2008 3:08:16 PM
From: Elroy Jetson	Respond to of 74559

At least in Los Angeles I expect rents will decline along with home prices. The ultra-lax credit bubble has also produced an eye-popping array of new apartment buildings, most still under construction. Bank of America told it's shareholders last week that more than 55% of it's construction loans on apartments are not current or otherwise in default of one or more loan provisions. Probably the largest lender for new apartment buildings in Los Angeles, City National Bank is in serious trouble. The glut of apartments coming on line is that bad. .

To: Stock Farmer who wrote (68916)	4/29/2008 3:17:41 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 74559

I might add, the new trend in Los Angeles are "hotels". The first one I saw was a condo project downtown built by Standard Pacific. After selling only 21 of the units, SP returned the deposits to the buyers "because of a title problem". It turned out that they decided to rent these buildings as apartments. But wait there's more! After rentals went poorly, they applied to the city for a Hotel license. We're seeing a lot of the same "condo-to apartment-to hotel" projects in the Palm Springs area. I've forgotten, what comes after hotel? .