On the national scene, the name with most fame has been Sam Zell, but we on the local scene had our own group of adventurous entrepreneurs who were bright enough and persistent enough to swoop in and buy wildly undervalued apartment properties en masse. As part of our Pershing Park research, we were able to pinpoint more than two dozen properties that had been acquired on the cheap through the REO process, fixed up and then resold within a 24-month period. Most of the complexes acquired and resold within this time frame were less than 50 units in size and were in middle income or poorer areas. Those who opted not to sell most often saw their property cash flows increase to legendary proportions, providing them with wonderful income streams and an eventual opportunity to sell their properties at still higher values. In the meantime, fortunes were made off the backs of small property owners, including too many in San Diego.
Court is adjourned.
Alan N. Nevin is an economist with Market Profiles, a consultancy providing real estate and demographic statistics, feasibility studies and litigation support to the California land use industry and legal profession. He was director of real estate research for HomeFed from 1989-90.