FOUR CLICKS up from Channel 17, the public-access outlet where the South Coast’s flotsam and jetsam wash ashore alongside local city-council members, abides the more quodlibetic SBEDU—a.k.a. Channel 21. (The “EDU” is for education.) If you’re a local cable subscriber whose invitation to the Lobero Theater for the mid-April symposium on the South Coast economy was lost in the mail, don't throw a hissy fit quite yet; now playing on Channel 21 is a videotaped broadcast of the event.
The symposium, which starred UCSB Economic Forecast Project, climaxed when Dr. Bill Watkins, executive director of EFP, took the stage to address a monochrome-patchwork quilt comprised chiefly of the South Coast bourgeoisie and the Realtors who love them. (Spoiler Alert) Immediately following the good doctor’s palliative assurances that the American Riviera’s economy shall in all likelihood “truck right along” its “boringly steady” path—in marked contrast to those of the recession-riddled regions immediately north and south—came Dr. Watkins’ closing line: “. . . so relax, enjoy life, and look at your neighbors suffer.”
Now, the question is not whether Dr. Watkins is in violation of the Hippocratic oath, for he is a Ph.D.—not a medical doctor. (Did you know he used to be with “the Fed”?) The question, rather, is whether his final remark that evening is to be taken merely as a suggestion or as words to live by. To discover the answer, we consult the Brahmavihāra Sutra.
Of the four Brahmavihāras, or the Four Immeasurables—a series of virtues that includes metta (loving-kindness), karuna (compassion), mudita (sympathetic joy), and upekkha (equanimity)—the third, mudita, is traditionally regarded as the most difficult to cultivate. But the effort is apparently worthwhile because proper cultivation of all four Brahmavihāras creates a power that causes the practitioner to be reborn in the realm of the Brahma.
Sounds good.
And so even as we pack our bags for a Roman Holiday* of immeasurable duration, we provide below a sequence of meditations on six earlier posts—each one a refill of Dr. Watkins’ prescription for joyful living, and each one for the reader’s earnest practice of the third of the four Brahmavihāras: mudita.
Mazel tov.
* * *
(Click on a date to link to the post.)
4/14/08 (“The Hottie and the Nottie”). 5277 Austin Rd. is relisted with a fresh MLS No. (08-1653) and price tag: $13.9 million, marked down from the initial asking price of $15 million. Fractional ownership is also available at prices ranging from $1,195,000 to $1,995,000. According to the MLS listing detail, 5277 Austin “will knock your socks off.” But please read our 4/14 post carefully before submitting an offer, as all expressed and implied caveats therein still apply. 5289 Austin Rd. is no longer listed on the SBMLS, and public records show no recent sale of the property.
4/7/08 (“Booby Prize”). The grand-prize winner of the million-dollar Santa Barbara home up for raffle at the annual fund-raiser for the Santa Barbara Contemporary Arts Forum opted for a $1 million cash prize instead. What the winner passed up, we believe, is Unit 12 at Villa del Mar, the luxury townhome development shown here and located at the intersection of Garden Street and the 101 Freeway, in Santa Barbara’s waterside district.
2/25/08 (“Police Blotter”). 2923 Lomita Rd., formerly for sale by owner at $925,000, is currently listed on the SBMLS for $868,000 (MLS No. 08-887). The current owners paid $910,000 for the property in August 2007.
12/17/07 (“Chapala Canyon”). In March 2008, BDC Paseo Chapala LLC encumbered seven of its Paseo Chapala townhome units (Nos. 2, 3, 17, 18, 19, 20, and 25) by way of a Deed of Trust rec. 3/18/08. The instrument identifies Business First Bank as the lender-beneficiary but does not indicate the loan amount. On 5/13/08, Pre-Con Industries, Inc., DBA Premier Drywall filed a Mechanics Lien in the amount of $156,952.66 against the Paseo Chapala property. A Paseo Chapala advertisement in the 6/06/08 issue of CASA Magazine indicates that 7 of the 29 residences remain and provides the following suggestion to the reader: “Ask about our Lease Before You Buy Program.”
11/19/07 (“Purple Haze”). A total of 35 of the 40 townhome units at Lavender Court in Carpinteria (shown here) are currently listed on the SBMLS as for sale. Current listing prices are as follows (all listed units are “new construction”):
3bd/2bth units: $679,000 to $745,000
2bd/2bth units: $595,000 to $675,000
2bd/1bth units: $619,000 to $639,000
1bd/1bth units: $505,000 to $525,000
Initial, Aug. '07 prices for two- and three-bedroom units at Lavender Court were $750,000 and $850,000 (respectively).
10/15/07 (“Creative License 3.0”). The “New Library Additions” page of the Santa Barbara Association of Realtors website lists the following two new titles among the SBAOR stacks: 100 Years in Celebration of the American Dream (by the National Association of REALTORS®) and A New Earth: Awakening to Your Life's Purpose (by Eckhart Tolle). Both books are, we think, timely additions to the SBAOR library.
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*Roman Holiday (n.) 1. novel by Upton Sinclair, first published in 1931 (recommended). 2. Paramount Pictures movie directed and produced by William Wyler and starring Gregory Peck, Eddie Albert, and Audrey Hepburn; released in 1953; 118 min. (recommended). 3. pleasure or advantage gained from the discomfort or suffering of others (not recommended).
Buddhism information obtained from Wikipedia (see, entries for Brahmavihāra and Mudita). PHOTO CREDIT: astrogu at Flickr.
June 9, 2008
Mudita Takes a Roman Holiday
June 2, 2008
REO Speedwagon
RICK’S CAR was in the driveway, which meant he was already home from work. But that made sense, since it was almost five-thirty. His wife Lori and their seven-year-old son Cody scurried up the driveway in tandem. Cody pushed past his mother through the front door and into what some architect had decided forty-five years earlier should be a living room.
Lori had brushed off her afternoon disappointment but nevertheless was in no mood for horseplay. “Rick, what are you doing on my pole?” she snapped. “Get off there and give me the keys to the car—I need to get going.”
But Cody was delighted with his father’s antics. “Look, Mommy,” he said. “Daddy’s being per-cosus! You’re funny, Daddy.”
Half-an-hour earlier:
Lori Leggett and her son Cody boarded the No. 10 bus—the express that ran from Hollister Avenue’s upper end down to Turnpike Road, six miles or so pretty-much due east along Hollister. They’d just left Bacara, where Lori had hoped for a job as a meeter-and-greeter: front desk clerk, junior concierge, something like that. She’d also hoped that applying in person would help, since she was what generally passed as attractive. But apparently, Bacara wasn’t hiring.
Most of the bus seats were empty. Lori picked one on the left side, sat down with Cody, and began to play back the last hour’s events in her mind. Her eyes squinted leftward toward the foothills as she tried to convince herself that her job-hunt had been sabotaged. She blamed her babysitter for being unavailable that afternoon. She blamed her ankle tattoo—Rick’s idea—for betraying her. She blamed the jealous bitch who interviewed her at Bacara.
The bus eased forward ceremonially, and Lori blamed her mortgage-rate reset for coercing her onto the No. 10 by wrecking her relationship with her 2007 Honda Pilot a few months earlier. She half-watched as El Encanto Heights, a suburban misnomer in every sense, scrolled passed her and Cody and the No. 10’s dozen or so other passengers. An angry-looking man seated just behind Lori and Cody—too close, really, considering all the empty seats—leaned forward.
“Look at all those El Encanto sh—boxes!” the man exclaimed. “FB-ers as far as the eye can see. Can you believe a million dollars for a North Goleta crackerbox? I bet half those people are upside down. And they’re supposed to be victims? Yeah, right. It’s g-r-e-e-d, plain and simple. I’ll tell you one thing—they get no pity from me . . . no pity at all.”
Cody stood up and leaned over his mother toward the window for a better look. Then he sat back down and scrunched his face and thought for a minute. Cody was precocious for seven, and he wasn’t about to take a day off.
“Mommy, where are the upside-down people?” he finally asked. “I didn’t see them back there.”
Lori only half-understood the man’s point but ventured an answer, as mothers do.
“Honey, the people are not really upside down,” she explained. “I think what the nice man means is that sometimes when people buy a house they have to pay money to the bank each month, like your Mommy and Daddy do, and if they run out of money the bank won’t let them live there anymore. They have to sell their house and go live somewhere else.”
The man had leaned back in his seat, but he heard the exchange and nosed up and between the two again.
“What I mean, little lady, is that we’re in what’s called Negative Equityville out here—short sales all over the place. If it was me,” he continued, “I’d just do the jingle-mail thing and walk. Either way, John Q. Taxpayer’s the one who gets screwed six ways to Sunday . . . as usual.”
Cody was curious, but he wasn’t about to talk to a stranger. So he addressed his mother instead: “Mommy, you said upside-down people have to sell their houses. Do they have to sell their shorts, too?”
The No. 10 was approaching Patterson Avenue. The man behind Lori and Cody aimed a finger in the direction of the foothills.
“More short-sellers,” he sneered, “all the way up to Cathedral Oaks. Not a bad neighborhood up there. No surprise, though . . . none what—so—ever.”
True to form, Cody wondered aloud: “Mommy, why do people buy houses if they know they won’t have enough money to pay the bank?”
Lori pretended to think about the subject for the first time. “That’s a very grown-up question, Cody. Hmm . . . maybe it’s because adults, like your Mommy and Daddy, make wishes just like little boys do. A lot of adults wish they owned their own home . . . and maybe even a nice car like the Honda Pilot your Mommy used to have. But sometimes wishes aren’t enough, and adults need to ask the bank to help make their wishes come true . . .”
The man didn’t bother to lean forward this time. “Ma’am, I believe the euphemism of choice these days is aspirational . . . but you wanna know what I call it? I call it the same old bullsh—. That’s what I call it.”
Cody saw the diner he was named after, and he knew they’d reached Turnpike Road. (Lori used to wait tables at Cody’s Cafe, which is where she met Rick back in 1998.) As ceremonially as the No. 10 had begun its six-mile trip, it slowed to a stop. The door hissed open. Lori and Cody exited down those three now-familiar steps and began their half-mile walk back to their San Marino Drive home.
“C’mon, honey, grab my hand. Let’s walk faster!” Lori entreated. “Quick, quick, like a bunny! I don’t want to be late for my job interview at the Spearmint Rhino* tonight.”
Cody obliged and picked up the pace and smiled in a way only seven-year-old boys do. “I want to see the rhinoceroses, too,” he said. “Can I go with you, Mommy?”
Lori laughed a joyful laugh. She loved Cody so much.
“Oh, you precocious little man. You’re just like your father,” she quipped. “Maybe you can go there when you’re older—when you’re allowed to make some adult wishes of your own.”
They rounded the final turn home. It was pushing five-thirty. Rick’s car was in the driveway.
[The preceding fictional account is intended as entertainment only. Any similarities between the characters portrayed therein and any real persons, living or dead, are purely coincidental.]
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NOTES:
Following is information about just some of the single-family residential properties for sale and located between the western terminus of Hollister Ave. (in North Goleta) and Turnpike Rd. (near the Santa Barbara city limits). The information was obtained from the SBAOR website, from Zillow.com, and from public records. The information here is deemed accurate, though its accuracy is not guaranteed.
The current owner(s) of 74 Brandon Dr. (located in the El Encanto Heights area of North Goleta) acquired the property in July ‘04 for $922,000 with purchase-money secured loans of $728,000 (from America’s Wholesale Lender) and $91,000 (from Countrywide Bank). The most recent prior sale occurred in June ‘01, for $472,500. 74 Brandon (a 1,482-sq-ft house on a 6,969-sq-ft lot) is currently listed with the SBMLS (No. 08-2072) for $700,000. The property at 74 Brandon Dr. is not pictured here.
The current owner(s) of 7553 Hempstead Ave. (also located in El Encanto Heights) acquired the property in Sept. ‘05 for $1,000,000 with purchase-money secured loans of $750,000 and $187,600 (both from Fremont Investment and Loan). Recorded on 5/12/08: a Notice of Trustee’s Sale (non-judicial foreclosure) respecting the $750,000 loan. The amount owing at the time of the Notice was $793,728; the public sale is scheduled for today (June 2). 7553 Hempstead (a 1,490-sq-ft house on a 7,405-sq-ft lot) was recently listed with the SBMLS for $819,000. We have no information as to whether the public auction scheduled for today occurred or as to the status of legal title in the property. 7553 Hempstead is pictured here as well as earlier in the post.
The current owner(s) of 73 Brandon Dr. (also located in El Encanto Heights, and pictured at left) acquired the property in Dec. ‘04 for $800,000 with purchase-money secured loans of $640,000 and $160,000 (both from Long Beach Mortgage Co.). Recorded on 3/4/08: a Notice of Trustee’s Sale (non-judicial foreclosure) respecting the $640,000 loan. (The amount owing at the time of the Notice was $698,646.) 73 Brandon (a 1,164-sq-ft house on a 5,662-sq-ft lot) is currently listed with the SBMLS (No. 07-1884) for $595,000.
The current owner(s) of 7485 Evergreen Dr. (also located in El Encanto Heights, and pictured at right) acquired the property in Feb. ‘07 for $850,000 with purchase-money secured loans of $680,000 and $170,000 (both from New Century Mortgage). Recorded on 3/11/08: a Notice of Default (non-judicial foreclosure) respecting the $680,000 loan. 7485 Evergreen (a 1,860-sq-ft house on a 4,356-sq-ft lot) is currently listed with the SBMLS (No. 07-4235) for $750,000.
The current owner(s) of 527 Lira Pl., located in South Goleta (below Cathedral Oaks Rd. just west of Patterson Ave.), acquired legal title in the property in Aug. ‘05 (S.B. County assessed value at transfer of ownership: $975,000). In Aug. ‘06 the owner(s) refinanced out of two prior secured loans into a $735,000 secured loan (from Lending First Mortgage). Recorded on 6/21/08: a Notice of Trustee’s Sale (non-judicial foreclosure) respecting that loan. (The amount owing at the time of the Notice was $808,665.) 527 Lira Pl. (a 1,679-sq-ft house on a .19-acre lot) is currently listed with the SBMLS (No. 08-2049) for $710,000. The property is pictured here as well as earlier in the post.
The current owner(s) of 575 San Marino Dr. (located south of Hollister Ave. and west of Turnpike Rd.) acquired the property in Aug. ‘04 for $815,000 with purchase-money secured loans of $650,000 (from America’s Wholesale Lender) and $82,685 (from National City Bank). The most recent prior sale occurred in July ‘97, for $240,000. In 2006, the owner(s) refinanced, obtaining two new loans in the amount of $744,000 and $92,000. 575 San Marino (a 1,122-sq-ft house on a 6,098-sq-ft lot) is currently listed with the SBMLS (No. 08-954) for $659,000. A sale is currently pending. The property is pictured here as well as at the top of the post.
*The Santa Barbara location of Spearmint Rhino Gentlemen’s Club is 22 E. Montecito Street, just south of the 101 Freeway in Santa Barbara’s waterside district. The club is open daily from 3pm to 2am (Fri. and Sat. until 4am).
May 26, 2008
Saks and the City
MIDTOWN Manhattanites with a yen for an American Riviera vacation home but who suffer the vapors whenever they stray six or more blocks from either of the two Mets should run, not walk, to the reservations office of One Twenty One—two blocks south of Saks Fifth Avenue, near Santa Barbara's vibrant urban core. For it was at this address, 121, along West De la Guerra Street, that on a recent cloud-spotted day we encountered fourteen newly encrusted residential jewels set in a contempo-Spanishesque milieu (urbane-Spain, if you will) that usurps all shopworn conceptions of what near-Westside S.B. art, architecture, and (life)style is and is becoming, and hence should put even the artsiest and fartsiest of Big Applets in the mind of Museum Mile—that is, of home.
What has risen up just one parcel east of the crossroads at De la Vina and De la Guerra Streets—the hub of Santa Barbara's storied DeDe district—is nothing short of a counter-revolution. Recall that it was the early 1990's (by most accounts) when the South Coast progeniture of New York's neo-Dadaists moved to translate the DeDe district's overall visual sense—a bourgeois aesthetic epitomized (still) by the Home Furnace & Plumbing building at the district's epicenter—into provocative action. Locally, as elsewhere, the movement was largely regarded as an indictment of upper-middle-class values, which were presumed culpable in the horrors of Westside gentrification.
Since then, the district has, along with bohemian Section 8 to its immediate west, produced some of most antibourgeois, antirational expressions that Santa Barbara has seen—from random performance art and nonsensical mobile verse to chance-generated collages and combines made of found and borrowed objects, all in counterpoint to the larger-scale post-industrial mechanomorphic works that had already come to dominate the artscape of the neighborhood's east end. But now comes One Twenty One, which seeks to reclaim the district's Dede heritage. And judging from the watercolor rendering currently on public display along the structure's JumboTex-exposed front facade, in this endeavor the project will succeed, we think, beyond all reasonable expectations.
Yet, to summarily brand One Twenty One as neo-Dede, and leave it at that, would amount to a deception vis-à-vis the viewer. For One Twenty One does not request that we consult it as a field manual for further battle against the neo-Dada detritus that all but surrounds it still. Nor is it merely a reinvestigation into the motives, principles, and applications of Dede. Rather, in its ironical post-Pop context One Twenty One calls us to confront our own internal dichotomies as well as to remind us that we, and each one of us, are to an extent an uncomfortable synthesis of the conventional and the chaotic, the banal and the bold, the archaistic and the adventurous, the bourgeois and the bohemian.
But the challenge de rigueur for the would-be patron, as distinguished from the casual streetside viewer, is to come to terms with an uneasy nexus between the statistically improbable and the wildly unaffordable, as both qualities are central to the deluxe condo complex. Know, however, that the duality shall soon tear away, as lottery applications for purchase of the three below-market-priced units at One Twenty One are accepted only through Friday, May 30th. For prospective market-rate patrons (including Manhattan residents), the exhibition runs indefinitely. Call the One Twenty One office for reservations; ask for Mr. Big.
* * *
One Twenty One
150' × 300' (stucco and wood on terra firma)
Cearnal Andrulaitis LLP, architect
2007-08
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NOTES:
Please consult the One Twenty One website for project details (unit specifications, pricing, site plan, features, CC&R’s, etc.) in addition to those provided below. For details about the project's three below-market-rate units, see especially the site's Affordable Housing FAQ (purchase eligibility, the lottery process, covenants and conditions, etc.).
One Twenty One consists of 14 residential units (ranging from 563 to 2,067 sq ft) and two commercial (office) units (1,673 and 1,942 sq ft). Residential units are currently scheduled for Sept. 2008 occupancy. Monthly homeowner-association fees, which apply to owners of affordable- and market-rate units alike, are estimated at $278 to $312 but are subject to change.
Unit prices of the 11 market-rate residences range from $825,000 for a 758-sq-ft studio ($1,088 per sq ft) to $2,250,000 for a 1,971-sq-ft 2-bdm. unit ($1,142 per sq ft). Three residential units (units 1, 2, and 8 described below) are reserved for sale to "middle income" purchasers under the city's Affordable Housing Program Policies and hence are subject to a 45-year Affordability Control Covenant. Eligibility is determined by application and subsequent lottery drawing.
- Unit 1 ($216,000) is a single-story, 850-sq-ft 1-bedroom unit located on the second floor, shown in the photo immediately below (above the parking-garage entrance along De la Guerra Street).
- Unit 2 ($163,800) is a single-story, 593-sq-ft studio unit located on the second floor, directly behind the cement-block wall shown in the photo above and in the one below. (The wall provides a barrier between the east face of One Twenty One and the adjacent alley, which contains the patio of Elsie's Bar and a pre-fab storage building.)
- Unit 8 ($268,400), is a two-story, 1,360-sq-ft 2-bedroom unit located toward the rear of the building, facing the four-story Paseo Chapala condominium building. In the bottom photo here, the second floor of unit 8 (on the structure's third story) is shown at the center, just above the cement wall behind the storage building in the foreground.
May 19, 2008
Three, the Hard Way
BABY NEEDS a new pair of shoes. Not only that, Sis' needs a cute pair of double-button capris, Daddy needs a old pair of Jaguar Series-E's, and Mommy needs a nice pair of 38D's (ideally). And the list continues. Tax rebates only go so far. More money is required—much more. And some luck . . .
Luck!—be a lady tonight. But where to take Lady Luck . . . to the Chumash Casino? Hardly. That might be an option for small-time wheel-spinners or arm-pullers hoping to jeep their way to some fast cash. But if high-stakes Craps is your game—and why shouldn’t it be?—you're to go directly to the Coral Casino. No, not the beachfront swimming pool by the Biltmore. We're talking about the Craps table at Coral and Grove, just off the upper-State strip. And if you're a greenhorn, that's okay—we're about to explain all you need to know to play the odds like a pro and win big at the Coral.
The house rules for Coral Street Craps should ring familiar to any table-game aficionado. From the street's east end (far right in Figure A, below), shooters throw the dice down the cul-de-sac; both dice must hit the back wall (far left in Figure A). On the come-out roll, any roll but craps (2, 3, or 12) or a natural (7 or 11) establishes the point, and the shooter rolls again until a seven-out (all pass-line bettors lose) or until rolling the point again (all pass-line bettors win).
At the Coral, the minimum pass-line (contract) bet is one SFR (single-family residence); there are five each along the table's north and south rails, numbered by street address. A bettor may also take odds (place a "come bet") before or after the come-out roll. Odds on come bets are off ("not working") during the come-out roll unless the bettor declares them "working." Odds at the Coral are from double to 19 times the amount of the line bet (66.6 to 95 percent loan-to-value). By the way, downtown odds are more liberal—up to 100x (called "betting the house"), depending on the casino.
Players can also make proposition bets (called "seconds") on their SFRs. Experienced players call these "sucker bets." Single-roll bets made after the come-out roll—for example, a HELOC—are considered sucker bets as well. (At some casinos, boxmen no longer allow HELOC bets.) If a player leaves the table with money in play, the bet (called a "sleeper bet") continues to parlay up. If the round ends before that player has returned, the player's money goes into the dealer's toke box.
The best way to master Craps according to the Coral Casino house rules is to learn by example. We'll look at two here, both hypothetical and both involving an experienced bettor whom we shall call Bond . . . James Bond. We'll follow Bond's play on two Coral Street SFR's—their positions shown in Figure A, along the table's north rail—as well as on a third SFR (in the same pit, but at the next table over).
- Example 1
Bond is the next shooter at the Coral Street Craps table. He intends to wager $288,000 in gaming cheques. Bond bets one SFR (3724, pictured at right) on the pass line. Before the come-out roll, he takes odds at 2.3x (70% loan-to-value), declaring the come bet "working." On the come-out, Bond rolls Ozzie and Harriet (two squares), and the point is 8. No win or loss yet; the round continues.Bond now makes a "place bet" on 3724, wagering an extensive interior renovation and exterior facelift. Place bets pay flat odds (the house holds a slight edge). Bond rolls snake-eyes, and the renovation continues until complete. On his third roll, Bond wins by rolling 8 (the point) again. All other Coral Street homeowners win as well. The round is over. The house comps Bond a dry martini.
Example 2
The shooter is Bond's female companion, whom we shall call Honey Rider.* With $256,000 of Bond's cheques, Honey bets one SFR (3710, pictured at right) on the pass line, takes odds at 3x (75% loan-to-value), and then rolls a 9 (called a "Nina") on the come-out. The point is 9. In the meantime, Bond leaves for a round at an adjacent table (Dixon Street). With a pass-line bet on 3728, a Dixon fixer, Bond takes 4x odds on a $190,000 wager and wins handily by applying the same HGTV strategy as in Example 1. The house comps Bond a dry martini.Bond's $250,000 sleeper bet at Coral Street parlays up as Honey strips 3710 to its studs and goes shopping for hardwood flooring and a subzero fridge. House rules at the Coral do not allow bettors to "call off" odds on bets already made. Shaken but not stirred, Bond orders a dry martini, watches Honey roll again, and hopes for another Nina.
Both of our examples are, we emphasize, hypothetical and intended for pedagogical purposes only. Whatever your status as a Craps player—bush-league or licensed-to-kill—be cautioned against taking odds on more than one SFR at the same time. By making danger your business, you'll risk losing out on that new pair of jeans, Jags, or jugs. Not only that, you'll have Miss Moneypenny to answer to.
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NOTES:
The house at 3710 Coral St. (1,391 sq ft, shown at top here) and the one at 3724 Coral St. (1,493 sq ft, shown at middle here) were both constructed in 1960. The house at 3728 Dixon (1,338 sq ft, shown at bottom here) was constructed in 1959.
In December 2006, Mr. and Mrs. Bond (our pseudonym) purchased the property at 3724 Coral St. for $959,500—partially with a $671,397 loan from Moneyline Lending Services, Inc. In March 2007, the Bonds purchased the property at 3710 Coral St. for $1,025,000—partially with a $768,750 loan from Moneyline Lending Services, Inc. In July 2007, the Bonds purchased the property at 3728 Dixon St. for $950,000—partially with a $760,000 loan from Washington Mutual Bank.
In 2007, the Bonds obtained city permits "for interior remodel" of each of these three properties; according to city records, all three remodeling projects were completed later the same year. We have no information as to the amount of money spent on any remodeling or as to the source of those moneys.
Two months ago (March 2008), the Bonds sold the property at 3728 Dixon St. for $1,230,000 ($919 per sq ft). This month (in May 2008), the Bonds sold the property at 3724 Coral St. for $1,310,000 ($877 per sq ft). The Bonds still own the property at 3710 Coral St., which is currently for sale. The property's SBMLS listing (No. 08-492) states that the seller "will respond to offers between $1,300,000 - $1,500,876." The listing broker is Prudential California Realty (Coast Village Rd., Montecito). Also see this Zillow page for aerial views and additional property information.
(All sales price, sales date, and permit information from records of Santa Barbara County, Office of the Clerk-Recorder. Any similarity between the characters in the fictionalized accounts herein and any real-life real-estate investors is purely coincidental.)
*The heroine in Ian Fleming's Dr. No was named "Honeychile Rider"; for the 1962 film adaptation, the character's name was changed and shortened to "Honey Ryder" (according to Wikipedia's Honey Rider entry).
PHOTO CREDITS: F. Sinatra, P. Lawford, D. Martin, and S. Davis, Jr. (pierre proust, Creative Commons Lic. 2.0); J. Bishop (trainman, CC Lic. 2.0); B. Pitt (Fisheye Harvest, CC Lic. 2.0); A. Garcia (brajeshwar, CC Lic. 2.0); G. Clooney (azugaldia, CC Lic. 2.0); S. Connery (andy z, CC Lic. 2.0).
May 12, 2008
I'm Alright
GOLF IS A METAPHOR for life: if you can't afford the greens fees, you're not allowed to play. Which is why the Tee Time driving range in Carpinteria is so great—pony up three U.S. pesos for a bucket of balls, and you can at least pretend.
Tee Time's been there, at 5885 Carpinteria Avenue, for years (as has the other tenant, sunflower grower Johannes Flowers). But the venue's whack-a-ball days are numbered because for the past three-and-a-half years two foursomes of corporate players have been superimposing their own high-stakes match over the entire 27.53-acre ocean-bluff property. And of course the players brought along their caddies: a pool of 75 amateur-status investors to hand the pros their clubs, replace their divots, and wash their balls.
We've TiVo'd the entire 18-hole match for you. Following is the unedited playback. If you'd like to keep score, you'll need a sharp pencil and a scorecard (scratch paper will do). When you're done, we'll meet you at The 19th Hole for cocktails and a bankruptcy auction.
* * *
The Front Nine Organization, Acquisition, and Financing
Tee Time — Oct. 2004
Hole No. 1
10/01/04. Corporate registration documents for Summerwind at the Bluffs, LLC, a Nevada Limited Liability Company, which company intends to do business in California, are filed with the California Secretary of State.
Hole No. 2
10/07/04. Corporate registration documents for Summerwind at the Bluffs, LLC ("Summerwind" hereafter) are filed with the Nevada Secretary of State. The managing members of Summerwind are Creative Energy Corporation (Costa Mesa, Calif.) and Ehline Carpinteria Partners, LLC (Palm Springs, Calif.). [1]
Hole No. 3
10/18/04. To secure a promissory note in the amount of $7,250,000, Summerwind's president executes a Deed of Trust (rec. 10/26/04), by which Integrated Financial Associates, Inc. of Las Vegas acquires a security interest in the two parcels of property in Carpinteria described immediately below.
Hole No. 4
10/22/04. By Grant Deed (rec. 11/26/04), Summerwind acquires two adjacent parcels of real property in the city of Carpinteria, California: 5669 Carpinteria Ave. (4.13 acres, AP No. 001-170-010) and 5885 Carpinteria Ave. (23.4 acres, AP No. 001-170-010). The sale price that is recorded with the Santa Barbara County, Office of the Clerk-Recorder is $3 million.
Hole No. 5
3/21/05. Corporate registration documents for Ehline Carpinteria Partners, LLC are filed with the California Secretary of State.
Hole No. 6
4/14/05. By Grant Deed (rec. 4/21/05), Summerwind transfers all title and interest in the property at 5669/5885 Carpinteria Ave. to Summerwind at the Bluffs, LLC, DBA Carpenteria [sic] 5885, LLC ("Summerwind DBA" hereafter).
Hole No. 7
4/8/05. Ehline of Summerwind DBA executes a "Deed of Trust, Security Agreement, Assignment of Leases and Rents, and Fixture Filing Statement" (rec. 4/21/05 and identified therein as a second deed of trust) for the purpose of securing a loan of $10 million from approx. 76 disparate private investors. (Presumably, the funds are intended for the acquisition and subsequent development of the property at 5669/5885 Carpinteria Ave.) The largest of the investors, by far, and the party presumably responsible for pooling the investors' capital is Point Center Financial, Inc. of San Juan Capistrano (Dan C. Harkey: president, CEO, and 100% owner). [2]Hole No. 8
4/21/05. Point Center Financial assigns partial interests among all 76 investors, most of whom are individuals and family trusts, by a Corporate Assignment Deed of Trust (rec. 5/10/05). Under this instrument, Point Center Financial's pro tanto interest is 42.75%, while each of the other 75 investors acquires a pro tanto interest ranging from 0.25% to 4.0%—depending (presumably) on investment amount, which averages approx. $75,000 per investor.
Hole No. 9
2/6/06. To secure a promissory note in the amount of $372,949, Summerwind further encumbers the property at 5669/5885 Carpinteria Ave. by way of a Deed of Trust (rec. 4/27/06) in which American Realty Capital Advisors, Inc. (of Laguna Hills) is named beneficiary.
[Having negotiated the first nine holes each at or under par, the players retreated to the clubhouse for brunch. (Their caddies brought sack lunches along for themselves.) After mutual congratulations on a half-round well shot, the players proceeded to the back nine, oblivious to encroaching gales and not-too-distant thunder claps.]
The Back NineDefault, Bankruptcy, and Liquidation
Tee Time — May 2006
Hole No. 10
5/19/06. A Notice of Default on the $10 million loan to Summerwind DBA (secured by second Deed of Trust rec. 4/21/05) is recorded in Santa Barbara County.
Hole No. 11
5/26/06. A Notice of Default on the $7.25 million loan to Summerwind (secured by Deed of Trust rec. 10/26/04) is recorded in Santa Barbara County.
Hole No. 12
8/23/06. A Notice of Trustee's Sale, the next step in foreclosure respecting the investor pool's $10 million secured loan, is recorded in Santa Barbara County. As of the date of the Notice, the total amount owing is $11,387,391.
Hole No. 13
9/11/06. A Notice of Trustee's Sale, the next step in foreclosure respecting the $7.25 million secured note to Integrated Financial Associates, Inc., is recorded in Santa Barbara County. As of the date of the Notice, the total amount owing is $8,533,029.
Hole No. 14
11/22/06. Summerwind files a Voluntary Chapter 11 Petition (single-asset real estate) in US Bankruptcy Court, Central District of California.
Hole No. 15
2/02/07. Corporate registration documents for Summerwind Investors, LLC are filed with the California Secretary of State by the newly-formed company's managing member, Dan Harkey. The company's other members are the approximately 75 additional Summerwind investors.
Hole No. 16
9/11/07. At a public Trustee's Sale, the pool of investors foreclosing on their security interest in the property at 5669/5885 Carpinteria Ave. acquire legal title, pro tanto, in the same (Trustee's Deed rec. 9/12/07 and 12/04/07 as to individual investors). [3] According to the Trustee's Deed, the amount owing on the underlying obligation as of the date of the Trustee's Sale was $18,812,492.Hole No. 17
1/09/08. A second Notice of Trustee's Sale respecting the $7.25 million secured loan by Integrated Financial Associates, Inc. is recorded in Santa Barbara County. As of the date of the Notice, the total amount owing on the debt has increased from $8,533,029 (on the date of the original notice) to $10,129,080. (The sale is later canceled, presumably due to pending bankruptcy proceedings.)
Hole No. 18
2/28/08. Summerwind Investors files a Voluntary Chapter 11 Petition (single-asset real estate) in US Bankruptcy Court, Central District of California. (The petition's signatory is Dan Harkey, Managing Member of Summerwind Investors.) [4]
THE PLAYERS are now at The 19th Hole for drinks. (Their caddies are hanging out at the practice range—waiting for their tips.) Missing at the bar, however, is Dan Harkey (Managing Member of Summerwind Investors, LLC, and owner-president-CEO of Point Center Financial, which arranged for the financing of the Summerwind development). Dan's in the pro-shop next door, loading up on more Titleist 3-packs, admiring some new pitching wedges, and cleaning his cleats. Everyone else has thrown in the towel. But Dan's still in the game—and he's in it to win. [5]____________
[1]
In January 2004, Creative Energy Corporation of Nevada (Victor Lee, President) registered with the California Secretary of State to do business in California as CEC Acquisitions (with its principal business address in Costa Mesa). Lee was the signatory on the 10/18/04 Deed of Trust in security of Summerwind's $7,250,000 note. However, either Richard Ehline or Paul Ehline was the signatory as to all subsequent documents executed on behalf of Summerwind and/or its DBA (Carpenteria 5885 [sic]) and referred to herein.
Richard Ehline is the president of Ehline Development Co. of La Quinta, California. Ehline Development builds custom homes, residential communities, and commercial as well as mixed-use developments—primarily in Palm Desert, Rancho Mirage, and La Quinta, but also in Orange County and, further north, in Camarillo and Santa Paula. The Ehline Co. website lists Summerwind at The Bluffs in Carpinteria as coming soon and describes it thusly: "This development has great ocean views and includes a spa, restaurant, commercial center, 230 room hotel and 28 homes."[The photo at right and immediately above shows nearly the entire 27.53-acre property for which Ehline's development was proposed. The photo is taken from near the bluff looking across the driving range toward Carpinteria Ave. and the foothills beyond.]
[2]
Dan Harkey is CEO, president, and sole (100%) owner of Point Center Financial, Inc., which is engaged in the business of making commercial-property loans as well as packaging, underwriting, and selling them (in whole or in part) to private investors (lenders) and/or institutional lenders as asset-backed securities. Point Center Financial is also the manager and less then 1% owner of National Financial Lending, LLC, a California mortgage pool.
Harkey is also the sole (100%) owner of Escrow Professionals, Inc. (a licensed escrow company) and Investment Data Systems, Inc. (a computer consulting company). In addition, Harkey is 50% owner of Landmark Realty Capital, LLC (a real-estate acquisition and development company) and Lending Resource Capital, LLC (a direct lender for commercial real-estate development). Both of these companies are divisions of Phoenix-based LRC Companies, LLC, of which Harkey is a 50% owner.
Dan Harkey and his wife Diane, who is mayor of Dana Point, are the objects of continual political controversy and increasing scrutiny among southern Orange County residents. Dan Harkey has been accused by some local residents of using Point Center Financial as a conduit for contributions to his wife's recent State Assembly campaign. (See, for example, a 10/30/07 discussion at OC Blog.) And his wife is currently the object of an intense, and organized, Recall Diane Harkey effort by Dana Point residents seeking to remove her from her position as mayor.
[3]
As Managing Member of Summerwind Investors, LLC, Harkey has retained real-estate auctioneer Tranzon Asset Strategies (with branch offices in Irvine, California) to sell the property at 5669/5885 Carpinteria Ave. by sealed-bid auction. The last opportunity to view the properties was today (Monday, May 12) between 12 and 3 p.m. Sealed bids must be submitted by 12 p.m. on Friday, May 16. The minimum bid is $12 million. The sale is subject to approval by the US Bankruptcy Court, which may in its discretion call for an open auction following the sealed-bidding period.[5]
Other able parties that may be interested in purchasing the distressed property at 5669/5885 Carpinteria Ave. include, but are of course not limited to, the following four: (1) Los Angeles-based developer Rick Caruso, whose firm is responsible for The Grove (in L.A.'s Fairfax district) and The Americana at Brand (in Glendale), and who owns and intends to redevelop the Miramar Hotel in Montecito
(3) The Land Trust for Santa Barbara County, which owns the 52-acre nature preserve (shown in the photo above and in the foreground of the photo at right) located adjacent to (just south of) the property at 5669/5885 Carpinteria Ave.(4) Oil driller Venoco, Inc., which has already proposed an oil-drilling facility adjacent to the property at 5669/5885 Carpinteria Ave. and behind Carpinteria City Hall. (See a description of Venoco's proposal at the website of the Citizens for the Carpinteria Bluffs.)
(All information contained herein is based on public documents filed with the Santa Barbara County Office of the Clerk-Recorder, on data from the websites of the Nevada and California Secretaries of State, and on the various websites and online documents to which this post links. All such information is believed, but not guaranteed, to be accurate.)
