The Urban Flop? Will Mid-Rise condos EVER have a place in Orange County?

As a society, we’ve been trying to design housing to provide the best balance of proximity with open spaces and quiet. As a result, some far-fetched ideas never make it and some are built with lofty expectations.

Wild Concept: Disneyland's "House of the Future" was a wild idea that had many materials made of PLASTIC. — Wild Concept: Disneyland’s “House of the Future” was a wild idea that had many materials made of PLASTIC.

At the height of the housing boom of ’04-’06, investors were literally drowning in credit lines and cash and the housing market seemed like a no-brainer for growth. Since the new generation of buyers didn’t seem to mind about shrinking backyard spaces (or no backyard at all), builders started to think even bigger.

After being released in 2007, the "Stadium Lofts" in Anaheim had studio units starting at $400,000 with melo roos. The project sit directly across the corner from Angel's Stadium and a Metro / Amtrak Station. — After being released in 2007, the “Stadium Lofts” in Anaheim had studio units starting at $400,000 with melo roos. The project sits directly across the corner from Angel’s Stadium and a Metro / Amtrak Station.

With successful rejuvenated Downtown areas like the Gaslamp District in San Diego gaining headlines, it became easier to pitch to investors that buyers have come full circle: Suburbs are out; downtown living is in. California freeways are getting slower and slower. Couples are getting married much later in life and having less kids or no kids at all.

Stadium Lofts opened with El Torito, Subway, and Kelly's as their tenants on the ground floor. While I don't know exactly what led to the retail locations closing, I do remember many occasions where the structure didn't have available parking. Angel fans found a way to park in the structure and have their tickets validated. — Stadium Lofts opened with El Torito, Subway, and Kelly’s as their tenants on the ground floor. While I don’t know exactly what led to the retail locations closing, I do remember many occasions where the structure didn’t have available parking. Angel fans found a way to park in the structure and have their tickets validated.

Private outdoor spaces give way to lavish common amenities such as exercise rooms, saunas, and pools.

After all, everyone longs for living like the characters of “Friends” and “Seinfeld” where they’re only a short elevator ride away from bars, subway access and, shopping, right?

Well….sort of. There are many factors that made these mid-rise developments immediate flops. For starters, the lifestyle would not be like Seinfeld because most would still need to commute to just about everywhere. Public transportation in Southern California has always been very limited due to our love for cars and freeways. Socially, Orange County has been notorious for being “snobs” that don’t even know who lives next door. Forget about the idea of going downstairs to the local bar or hangout where “everyone knows your name.”

While the fancy marketing and amenities were enough to get crowds to the models, buyers knew the idea was a contradiction on many levels.

TOO MANY OPTIONS: During the housing slump of 2008-2010, a 2 bedroom condo like the one shown above can be bought for around $270,000. No melo roos and HOA dues were much cheaper. — TOO MANY OPTIONS: During the housing slump of 2008-2010, a 2 bedroom condo like the one shown above can be bought for around $270,000 in Anaheim Hills. The owner would enjoy the convenience of a direct access garage and a private patio area. No melo roos and HOA dues were much cheaper.

BIGGEST FLOP: "Astoria" in Irvine's "Central Park West" had lower floors available in the high 400s. After factoring melo roos and TWO HOAs, it was the equivalent monthly payment of buying a home near $700k. — BIGGEST FLOP: “Astoria” in Irvine’s “Central Park West” had lower floors available in the high 400s. After factoring melo roos and TWO HOAs, it was the equivalent monthly payment of buying a home near $700k. The building has since been converted to rental units.

Going Urban 2.0

After the countless price reductions and conversions to rentals, builders were able to learn many lessons.

Brookfield’s “The Domain” community is directly across the street from The Packing District of Anaheim.

Since people love their cars in Southern California, most buyers prefer a private garage over underground terrace parking. — LESSONS LEARNED: The Domain has many units that have a direct access garage. Housing assistance is available through the City of Anaheim.

A sheik rooftop lounge is a great gathering place to entertain and look down on the rooftops of nearby buildings.

No project was impacted by the flop more than Anaheim’s “A-Town” project that was supposed to take cues from San Diego’s Petco Park.

MISSING THE MARK: Anaheim's "A-Town" has sat empty for almost 7 years. The project has since been scaled back to more of your cookie-cutter townhouse development. — MISSING THE MARK: Anaheim’s “A-Town” has sat empty for almost 7 years. The project has since been scaled back to more of your cookie-cutter townhouse development.

From the OC Register:

“Gone are the grandiose ideas to change Anaheim’s skyline with 11 high-rises, an urban village of 2,681 homes and 150,000 square feet of office and retail space near Angel Stadium….

Plans now call for building 1,400 to 1,742 condominiums and apartments, along with up to 50,000 square feet of shopping and office space grouped into eight neighborhoods spanning 43.1 acres, according to a revised development application submitted Thursday to the Anaheim Planning Department.”

After reading the article, most of the blame was placed on the housing market. I have a feeling the builders are in denial or just don’t get it.

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