Urban Living in California

A new study on subprime mortgages — deals made to folks with risky credit profiles — suggests that Orange County may experience the largest percentage increase in subprime defaults on major metro areas in the U.S.

The study by by the consumer advocates at the Center for Responsible Lending found that 3 percent of subprime deals made in O.C. in 1998 to 2001 will end in foreclosure, the fourth lowest among metro areas. That rate jumps to 22.8 percent for subprime loans made in 2006, the seventh highest rate nationally. This adds up to a 668 percent expected increase, the study says. Statewide, the center sees subprime foreclosures ran at 4.5 percent for the ‘88-’01 vintage subprime loans. For ‘06 deals, California is projected to see 21.4 percent eventually go to foreclosures. The state is home to 14 of the 15 markets to see the largest percentage increases in subprime foreclosure rates.

The Center for Responsible Lending, a long-time critic of subprime lending, says of the overall national outlook: “As this year ends, 2.2 million households in the subprime market either have lost their homes to foreclosure or hold subprime mortgages that will fail over the next several years. These foreclosures will cost homeowners as much as $164 billion, primarily in lost home equity. We project that one out of five (19 percent) subprime mortgages originated during the last two years will end in foreclosure. This rate is nearly double the projected rate of subprime loans made in 2002, and it exceeds the worst foreclosure experience in the modern mortgage market, which occurred during the ‘Oil Patch’ disaster of the 1980s.”

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Located in an enchanting setting overlooking the Sacramento Valley, The Summit Collections at Winchester Country Club offers an opportunity to own a luxurious home surrounded by the natural beauty of the western Sierra Nevada foothills.

“Every home ¬has a dynamite view of the golf course and overlooks the Sacramento Valley,” says Eric Nitzschke, director of sales and marketing for the new community. “It’s a beautiful, natural setting with rock outcropping, manzinita and oak trees, and lots of deer and other wildlife.”

Home away from home

To match the remarkable setting, Myer Homes, The Summit Collection’s developer, set forth to create a sumptuous new home community that would attract high-end second-home buyers, and weekend warriors seeking temporary refuge from the complexities of urban life, yet offer all the features that a full-time resident and permanent urban transplant would demand. With that task at hand, Myers Homes spent an enormous amount of time ascertaining the scope of architecture, amenity, and service demands and trends to appeal even the most discriminating of buyers. The result is a limited collection of 24 classically styled homes designed as a maintenance free, lock-and leave retreat with all the conveniences of home and exceptional five star service. “All it takes is a phone call to have our concierge service pick you up at the airport and have your refrigerator stocked with food and the air conditioning or heat on when you arrive,” notes Clinton Myers, president of Myers Homes.

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By Mark Mueller Orange County Business Journal Staff

Irvine-based Standard Pacific Corp. saw its stock approach a six-month high on Wednesday, after executives noted improved fourth-quarter housing trends.

Chief Financial Officer Andrew Parnes said at a homebuilder’s conference that the company is seeing home order and cancellation rates improve in the first two months of the fourth quarter, compared to a difficult third-quarter for the homebuilder.

During the past two months, new home orders, or contracts to buy a Standard Pacific home, have seen a modest improvement, and now are down close to 40% from a year ago. That’s an improvement from the 58% decline in the third quarter.

At the same time, the cancellation rate for home orders has fallen to the low 40% range, down from 50% in the third quarter. That’s still up from a cancellation rate of about 20% a year ago.

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METROSOURCE

Have you ever dreamt of living in the unstructured space of a downtown style loft? But do you also dread the notion of giving up the lifestyle and creature comforts of a home near the beach in order to move into an abandoned warehouse in the meatpacking district? Dream on! Loft lovers and beach buffs are united with cause to celebrate because finally, someone is doing urban different!

We found the best of both worlds in the Marina del Rey, CA area, of all places. I know what you’re thinking, and we were as surprised as you are now. It’s an urban haven called Redwood Lofts, located just five minutes from the beach and in the heart of one of the fastest growing metropolitan areas in the United States. Walking distance from great restaurants and shopping, each Redwood Lofts home comes standard with its own unique urban vibe.

What’s more, these lofts are built with all the creature comforts and amenities of an upgraded home. Whereas typical urban lofts come standard with, well, nothing; great fixtures and finished walls, hardwood floors and upgraded design schemes in the kitchens and baths come standard at Redwood Lofts. Okay, not exactly standard; as you get to choose a loft that already has one of six designer palettes including cabinetry, flooring and kitchen and baths with upgraded granite and tile. From color schemes to raw materials, the design schemes provide your opportunity for personal style, to make your loft really feel like home, comfortable, livable and inviting.

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By TIFFANY MONTGOMERY

Britain’s Tesco PLC plans to open stores in Fullerton and Laguna Hills and is looking at several other Orange County spots as part of its U.S. push.

Tesco, Britain’s biggest retailer and one of the largest in the world with $73 billion in yearly sales, has said the stores will target folks on the go. They’re set to be modeled along the lines of Tesco’s upscale Express convenience stores, which number 800 in five countries.

The 14,000-square-foot Fullerton store is planned at Euclid Street and Orangethorpe Avenue in a 50,000-square-foot shopping center proposed for the site, according to Matt Stowe, chief operating officer of Lake Development Group in Newport Beach, which is developing the center.

In Laguna Hills, city officials have approved a plan for a 14,000-square-foot Tesco store at Moulton Plaza, said Vern Jones, community development director. The building is set to go up within the next year near the entrance to the center, he said.

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