Uh-Oh, Duncan

Posted by Dave Fratello on Thursday, April 29th, 2010 at 4:05am.

Most active listings in MB are not short sales or REOs, but when an extreme case like 939 Duncan hits the radar, some of the other local stories are going to get pushed aside.

Regular readers may recall 939 Duncan (4br/4ba, 3950 sq. ft. with views) from the late 1950s early days of MBC. It first hit the market in October 2007 after a major rebuild/remodel, as we discussed in "A 2-Yr. Flip on Duncan." Let's hit the history points quickly:

  • December 2005: Purchased for $2.53m
  • 2006-07: The big re-do
  • Oct. 2007: Starts at $3.895m
  • Feb. 2008: Cut to $3.695m
  • Sept. 2008: Canceled
It appears that Duncan rented out not once, but twice, over the past 18 months or so.

But trouble was brewing.

The first NOD was filed in Feb. 2009, not so long after the first tenants would have come in.

A trustee's sale date was set in May 2009, as MBC noted in "Courthouse Offerings." The tenants left, but the foreclosure was postponed.

In June, the owner was seeking – and finding – new renters. Caveat rentor.

The bank took the property a month ago, and now offers it back for...

$2.040m

That, of course, is nearly half the start price on the remodeled property in October 2007.

It's also nearly $500k less than the pre-remodel acquisition price in Dec. 2005.

Every dime that went into the massive rebuild/remodel project we described in "A 2-Yr. Flip on Duncan" has vanished. Where does that money go?

Just yesterday, we were talking about 801 11th as a pretty good deal (short) at $1.6m, but it's got a major location issue. For a step more, Duncan, with its views and all its quirks, is now positioned as the deal of the year in the Hill Section.

But every time we say that sort of thing, we're reminded that it's not even May yet.
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