September 2010 home page

  Prime Prop on Block
Art Olson | Avenida Primavera

Photo Art Olson

What would you give to own one of the most spectacular view-properties in the City of Del Mar? Well, if you have the desire and the resources the rare opportunity is coming on September 29. On that date there will be a public auction of the City’s property, located at 2160 Balboa Ave. on a ridge with 270º unobstructed views from the beach to the River Valley and beyond. The motivation for the sale is to retire the City’s debt on the Shores Property, and hopefully help fund the new Beach Safety Center. The auction will have no specified minimum bid, but the City retains the right to decline the highest bid.

The 22,000 square foot Balboa property was originally acquired by the City in 1965 for about $250,000. It was purchased from the City’s water fund and had in place a pressure treatment plant and water reservoir tank. In 1992 the Council deemed the facility obsolete and directed the removal of the plant and tank. Since the property no longer had a water-related function, the asset was transferred to the City’s General Fund. It is now from this fund that the Council hopes to pay off the Del Mar Shores debt of roughly $3.25Million due November of 2011.

In early August the Council selected Steve Uhlir of SURE Real Estate Group to fulfill the marketing services for the sale of the property. Since the sale of this property is atypical, Uhlir’s extensive experience with real estate auctions weighed in his favor. For these services his group will be paid up to $20,000 and half of the 10% auction fee, which is paid by the buyer over and above the winning bid. From its 5% SURE is responsible for any buyer’s agent real estate fees. Assistant City Manager Mark Delin appeared pleased with the arrangement, stating that Del Mar would get 105% of the winning bid price. While there is no stated minimum acceptable bid, it appears doubtful that the city would agree to an amount that would not enable it to retire the Shores debt.

Delin is optimistic that the property will fetch at least that much, considering its size and location. While it could be split into two legal lots, the City is selling it undivided; sensing that whoever buys it will want to develop on the intact existing parcel. If you are interested in either buying or watching the action, the auction will be held on September 29 at noon at the Powerhouse. More information is available at the SURE website www.suresd.com/Balboa-Lot-Del-Mar.html.


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