More unseen…

More unseen destruction

An 8-acre landmark site on Ventura Boulevard that was both an entertainment venue and worship site for a half-century has been foreclosed on, a victim of the recession.
Bank of America seized the property on April 21, after a development company that planned to build a 340-unit condominium and retail project there defaulted on the loan, according to Los Angeles County Assessor’s Office records.

An 8-acre landmark site on Ventura Boulevard that was both an entertainment venue and worship site for a half-century has been foreclosed on, a victim of the recession.

Bank of America seized the property on April 21, after a development company that planned to build a 340-unit condominium and retail project there defaulted on the loan, according to Los Angeles County Assessor’s Office records.

Yes, this is what recessions do.  They clear out the malinvestment.  But what is unseen is what could have been instead.
That building was razed shortly after JPI bought the property in April 2007. However, construction of the condo project never got under way.
“They (JPI) put a very large loan on (the site), graded it and ran out of money,” said a Valley real estate executive familiar with the project who did not want to be identified.
“Ran out of money”.  That I find hard to believe!!!  I thought Uncle Ben was printing like crazy.
But a sales brochure said that the land is shovel ready and that construction can start after minor administrative matters are taken care of.
Condos might not be the only option, either.
“If investors don’t deem this plan as the highest and best use in the current market, there are a number of variations that conform to the current entitlements,” it said.
Well, that’s good news.  It’s “shovel ready”, perfect for “stimulus” funds.  I guess that’s what the “administrative matters” would deal with.
Maybe investors see the value, or lack thereof, in this piece of property and don’t want to sink any more capital into non-productive assets.
Again, what is missing from this article, as well it must, is what was not built, what wealth was not created, by the diversion of capital to projects such as this.  We’ll never know.  Just another sign of the credit riven boom/bust cycle courtesy of our wise overlords at the Fed.  Just another sign of the destruction of policy driven consumerism and over-leveraging.  It’s going to be along time and a painful one too, for the economy to recover.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: