What's the deal with Live Oak Lofts

[stirach]

Does anyone have any info on Live Oak lofts? Everything I read on the internet tells me that it's a great buy (and everyone seems to like the building), yet, there are like 10 on sale right now and a bunch of them are in foreclosure. Why is that? Is this another Treemont Tower?

[kylejack]

Does anyone have any info on Live Oak lofts? Everything I read on the internet tells me that it's a great buy (and everyone seems to like the building), yet, there are like 10 on sale right now and a bunch of them are in foreclosure. Why is that? Is this another Treemont Tower?

I think its just typical mortgage crisis stuff. Also, some people are probably snooty about the area its located in. I live a few blocks from it in some townhouses on St. Emanuel, and it looks like a nice secure building.

[HTX]

Or it might be the uptight neighbors.

http://swamplot.com/living-the-high-life-a...fts/2008-01-16/

[kylejack]

Or it might be the uptight neighbors.

http://swamplot.com/living-the-high-life-a...fts/2008-01-16/

Ha, that is pretty funny. Poor neighbor probably just wants someone to smoke him out and introduce him to a dealer.

Edited December 8, 2008 by kylejack

[stirach]

The article doesn't really bother me. I would rather live in this kind of community than with some old ladies that would call the cops every time I turn the radio up too loud.

In all seriousness though, there hasn't been anything that anyone has heard that would cause so many of them to be in foreclosure?

[musicman]

In all seriousness though, there hasn't been anything that anyone has heard that would cause so many of them to be in foreclosure?

quite a few of the downtown ones also have foreclosures. don't think they've reached tremont stage yet.

[travelguy_73]

The article doesn't really bother me. I would rather live in this kind of community than with some old ladies that would call the cops every time I turn the radio up too loud.

In all seriousness though, there hasn't been anything that anyone has heard that would cause so many of them to be in foreclosure?

I believe it is more a function of the market, and a number of lofts owned by investors or others who qualified but shouldn't have. I haven't heard anything negative about the place, other than the parking is all carport-ish.

[jdbaker]

In all seriousness though, there hasn't been anything that anyone has heard that would cause so many of them to be in foreclosure?

My best guess would be that mortgage fraud led to the foreclosures. A number of building downtown have had a large number of foreclosures due to so called "investors" who were actually running mortgage fraud scams.

[Scott08]

Isn't Live Oak the building that comes with NO parking whatsover? If so, that would be enough to steer me clear of the place, even if you think you can live without a car, future resale might be tough because of it.

[kylejack]

Isn't Live Oak the building that comes with NO parking whatsover? If so, that would be enough to steer me clear of the place, even if you think you can live without a car, future resale might be tough because of it.

Just looked it up on Google Maps and it appears to have covered parking. Not a garage, granted.

[Daniepwils]

Isn't Live Oak the building that comes with NO parking whatsover? If so, that would be enough to steer me clear of the place, even if you think you can live without a car, future resale might be tough because of it.

No, that is Kirby Lofts on Main. Live Oak Lofts has secured parking and street parking.

[jscarbor]

Thise are also not the best floorplans and I believe they could get noisy if the building were more full. Seemed like the construction had little sound proofing. Still I think the price is right. One thing to mention is the HOA could be weak and in need of money? That would be of some concern to me although I have no knowledge that that is the case.

[BillyG]

Just bumping this in hope of more feedback. I have been searching for my first home, and while I work in the Energy Corridor, it would be nice to live inside the loop while I have my youth and before I have a family. Today I found a couple listings for foreclosures at the Live Oak Lofts, and was pretty much shocked at how inexpensive they were.

So my questions are:

What about this area of Downtown? I've never spent a ton of time in Downtown Houston, just not a lot there that interested me outside a Rockets game. Is this area looking good for the foreseeable future?

What developments area open/opened in the area? The big knock on Downtown Houston has typically always been that outside of the bars on Main there is very few restaurants, and minimal retail. I'm guessing I'll still be going to Midtown/Heights area for shopping?

Any idea what the $300/month building fee covers? I've seen some fees over $900/month, and that covered electricity, trash, water, and basic cable. $900/month I feel is ridiculous (basically doubling the mortgage), but if the $300 covers those same items I think it's a steal.

Is there an official website for these Lofts? I spent some time on Google and found nothing.

Any other comments definitely welcomed. Thanks in advance.

[musicman]

Just bumping this in hope of more feedback. I have been searching for my first home, and while I work in the Energy Corridor, it would be nice to live inside the loop while I have my youth and before I have a family. Today I found a couple listings for foreclosures at the Live Oak Lofts, and was pretty much shocked at how inexpensive they were.

So my questions are:

What about this area of Downtown? I've never spent a ton of time in Downtown Houston, just not a lot there that interested me outside a Rockets game. Is this area looking good for the foreseeable future?

i wouldn't consider this downtown but rather the near east end. what are you interested in?

What developments area open/opened in the area? The big knock on Downtown Houston has typically always been that outside of the bars on Main there is very few restaurants, and minimal retail. I'm guessing I'll still be going to Midtown/Heights area for shopping?

what type of businesses are you looking for? there are numerous restaurants fairly nearby however retail is limited

[BillyG]

I only ask about retail because I would like to see pedestrian traffic, and a decent lively area. I used to live in Toronto, and downtown Toronto was bustling at all hours everyday just thanks to the sheer amount of businesses open and catering to the public. I would rather not be somewhere that 4PM on Saturday is a dead zone.

[musicman]

I only ask about retail because I would like to see pedestrian traffic, and a decent lively area. I used to live in Toronto, and downtown Toronto was bustling at all hours everyday just thanks to the sheer amount of businesses open and catering to the public. I would rather not be somewhere that 4PM on Saturday is a dead zone.

if seeing pedestrian traffic is a important, don't move there. this is definitely not an area where you will experience it.

[kylejack]

Its a raggedy area. But in my opinion, its going to be the next big area to pop. Its relatively cheap land (compared to Midtown, etc) and close proximity to downtown are going to make it explode shortly. You can already see the 3 story townhouses popping up.

[TheNiche]

Just bumping this in hope of more feedback. I have been searching for my first home, and while I work in the Energy Corridor, it would be nice to live inside the loop while I have my youth and before I have a family. Today I found a couple listings for foreclosures at the Live Oak Lofts, and was pretty much shocked at how inexpensive they were.

So my questions are:

What about this area of Downtown? I've never spent a ton of time in Downtown Houston, just not a lot there that interested me outside a Rockets game. Is this area looking good for the foreseeable future?

What developments area open/opened in the area? The big knock on Downtown Houston has typically always been that outside of the bars on Main there is very few restaurants, and minimal retail. I'm guessing I'll still be going to Midtown/Heights area for shopping?

Any idea what the $300/month building fee covers? I've seen some fees over $900/month, and that covered electricity, trash, water, and basic cable. $900/month I feel is ridiculous (basically doubling the mortgage), but if the $300 covers those same items I think it's a steal.

Is there an official website for these Lofts? I spent some time on Google and found nothing.

Any other comments definitely welcomed. Thanks in advance.

Live Oak Lofts are on Polk Street, and so is the new Houston Pavilions. If you like their tenant mix, that should be of interest to you. The nearest grocery store is also on Polk Street but to the east, and it is a Kroger. Right next door to that is a CVS.

Right around there are a handful of restaurants, including District 7, Lucky's Pub, Kim Son, and Champ Burger. In the Eastwood area you've got Bohemeo's, Kanomwan, Pete's BBQ, and Loma Lita. A little to the north is Mama Ninfa's. It isn't many, but there are some good ones, and if you're looking to buy and hold for at least a few years, I can assure you that there will be more entrants into the market.

Right now, the demographics that retailers use to evaluate new stores and restaurants go by pitifully outdated assumptions about household characteristics, especially household income. When the 2010 Census data becomes available you'll probably see more neighborhood retail. And Frank Liu's project at the corner of Harrisburg and Lockwood is still creeping forward. Incidentally, the availability of that retail will cause immediate appreciation of residential real estate, so I'm pretty sure that Live Oak Lofts could be a good buy right now (assuming their Association is in at least decent shape).

[coasterguy]

I'm a resident at Live Oak Lofts and I'm also on the board of the HOA. I was one of the first folks to move in (4th or 5th, I believe) so I've got some history with the building.

To answer some of the questions posed here, I can tell you that if you are at all interested in living here, NOW is the time to get in. The prices are unbelievably good right now because everything for sale in the building is a foreclosure. This wasn't due to the sinking market, however, but a shady deal done a couple of years ago. There were about 10 units sold at the time and we would often check the building's website to see which units came up "sale pending". One day, all the prices listed were about twice what they were the day before(!) Not long after that, the entire building sold out at the hyper-inflated prices. You guessed it, investors from out of town had bought them up three at a time (you are allowed a maximum of three units) with hopes of flipping them around at even higher prices. Needless to say, they sat unsold (at $400K and up!). Eventually, the investors realized that they couldn't get their money back, and when the real estate market began to falter, they just abandoned hope and let them foreclose. That's what is up for sale now, the last remaining units that were bought at inflated prices. I wish I had waited until now to buy! Some of my new neighbors got incredible deals on their condos. I'm jealous!

As far as the mix of tenants, it's about 65% white, maybe 15% black, 10% hispanic and 10% asian. That's just a guess based on the turnout at the recent owners' meeting, I don't have any hard data. Most of us are youngish (under 50), and either single or married without kids. There have been a few children here in the past, but I don't believe any kids live here at the moment. Perhaps 20-30% or so of the tenants are gay. Those who live here treat the building as a micro-community and we generally are a pretty friendly, social group of folks.

Downstairs units have concrete floors, upstairs are (original to the building) hardwood. All units have granite counters in the kitchens and bathrooms and come with stainless steel appliances.

The HOA is operating in the black, but since I'm not the treasurer, I can't tell you specific numbers off the top of my head. As the foreclosed units sell, back-owed HOA fees are paid, so we're continually getting farther ahead. We're not wasteful spenders, but we don't hold back when things need attention, either.

The neighborhood is QUIET. There's not much pedestrian traffic, except for Sunday mornings when St Nicholas church is having mass next door. Downtown nightlife, Discovery Green, Toyota Ctr, George R Brown, and Minute Maid park are all walking distance from here and I've had no problems with safety while walking to these areas, even at night. There's a 20-mile hike/bike trail just three blocks from here that stretches through TSU, the Med Center, Hermann Park, and ends in SW Houston at Brays Bayou and Gessner.

On the down side, there are some issues with the structure of the building not being waterproof after the hurricane, but that is being addressed and will be fixed. Also, it's true that it's not the most soundproof structure I've ever lived in, but it's still better than most apartments I've had. Side-to-side neighbor noises are minimal, but downstairs folks get an earful of their upstairs neighbors sometimes. If I were doing this again, I'd buy upstairs for that reason alone.

Even though I bought at a price substantially higher than what is being sold now, I'm confident that when the market rebounds, these units will be a good, solid investment. If I had the money to do so right now, I'd buy two more! One of our residents has already bought a second one and is negotiating on a third.

As far as restaurants, that was covered in another post, but The Park mall is right next to Discovery Green just a few blocks away for shopping. Additionally, it's very easy to hop on any of the freeways from here and getting to more shopping areas is quick and easy.

The official website for the building was taken down after the building sold out. I am currently working on creating a new one with resident forums and other stuff.

There is covered, assigned parking in a gated lot behind the building. One parking spot per bedroom.

The monthly HOA fees aren't a flat $300, but rather about $0.21 per sq ft of your unit. This covers insurance on the building (you only need contents insurance), building maintenance and repair, groundskeeping, water, trash pickup, basic cable, and cleaning of the common areas.

I hope I've answered everyone's questions. If I missed one (or more), just hit reply.

[jscarbor]

That was very helpful, thank you. I agree, it is a good time to buy there.

Those "investors" weren't investors, they were scammers is my bet. They raised the price and pocketed the difference and never made a payment.

[diggity]

coasterguy,

thanks for all the information. I toured these places when they were being converted but had not been back in a while.

I took another look this weekend and like a couple of the plans.

One question, how are the electricity bills there? I see they have double-paned windows but the insulation seems minimal.

Can you give me a ballpark figure on summer and winter utilities?

Also, how does the parking situation work? I see half of the spots are designed for double parking. Are those for the upstairs units?

Thanks again for the good info.

[rs1976]

I heard they are only accepting cash offers for the units they have for sale. If you don't have cash, don't even waste your time...

[kylejack]

I heard they are only accepting cash offers for the units they have for sale. If you don't have cash, don't even waste your time...

That's kind of bizarre.

[diggity]

I heard they are only accepting cash offers for the units they have for sale. If you don't have cash, don't even waste your time...

there was one unit where the bank was only accepting cash offers, but it's already been sold.

Most every unit is owned by different bank(s), so there's no set rules for the entire complex.

That being said, I don't think the remaining units will be around much longer. HAR is showing 6 active units currently and I can confirm that at least one of those has sold.

[rps324]

there was one unit where the bank was only accepting cash offers, but it's already been sold.

Most every unit is owned by different bank(s), so there's no set rules for the entire complex.

That being said, I don't think the remaining units will be around much longer. HAR is showing 6 active units currently and I can confirm that at least one of those has sold.

You can't get a mortgage at Live Oak right now. No one will lend on it due to a few factors such as very low owner occupancy rate. In the current market situation the remaining units will have to be bought all cash.

it is a great building. I also think that many of the sales were the "straw buyers." I sold one in there a year ago (a foreclosure) and the brochures were still in the appliances. They were never used. It tends to support the theory of the units being mortgage fraud situation.

Eventually it will work itself out, and I would think prices would rise at that point. In the mean time the inability to get a mortgage is keeping prices low. My sale was one of the last ones before things tightened up. I have even had other agents call me and ask me how I got financing for my buyer, because they are running into walls and can't get anyone to finance their well-qualified buyers.

Edited January 27, 2009 by rps324

[kylejack]

Banks will do surprising things with lots of cash down. I don't really see how they could lose on a $110,000 unit and 40K down.

[rps324]

Banks will do surprising things with lots of cash down. I don't really see how they could lose on a $110,000 unit and 40K down.

Won't happen right now.

[diggity]

You can't get a mortgage at Live Oak right now

how do you explain the unit that sold 2 weeks ago? The MLS sheet states that the buyer only put 20% down.

There was also one that closed in November with 20% down.

Edited January 27, 2009 by diggity

[coasterguy]

how do you explain the unit that sold 2 weeks ago? The MLS sheet states that the buyer only put 20% down.

There was also one that closed in November with 20% down.

The "must buy with cash" thing is completely untrue. While some of the banks that hold the foreclosures have very strict rules, others are happy just to sell the thing and be done with it. The longer it sits on the market, the more HOA fees build up and must be settled at closing. That's not a good financial move for anyone.

As of this writing, there are only three units left for sale. The owner occupancy issue has been resolved with the recent flurry of buying and getting financing is therefore easier than it was a few months ago.

The prices came down to the point that one resident bought the unit next to him for use as an artist studio workspace and is about to close on the unit above him as well.

The website for the building just went live, by the way: http://liveoaklofts.squarespace.com

[diggity]

As of this writing, there are only three units left for sale.

In reality, there is only one unit left for sale (#105). That one could actually be gone too as I haven't inquired about it in a while.

#122 was a short sale that's now been foreclosed on. The agent on that one is too lazy or incompetent to pull the listing.

#119 had an offer accepted on Friday.

Some units are still allowing financing but cash offers are obviously very attractive right now.