Home Buying in Sunnyvale>Question Details

Douglass Mcn…, Home Buyer in Palo Alto, CA

1720 Laurentian Way - what's up with this property?

Asked by Douglass Mcneil, Palo Alto, CA Mon Jan 27, 2014

On the market since Oct. 2012? Sure it needs to be updated...but it has a good-sized home (2400 SF) on a large lot (8500 SF) in a great school district (West Valley, Cupertino MS, Homestead). With the low inventory, I would have thought someone would have snapped it up by now.

Usually, when I see something on the market this long, it's because it has some inherent defect (e.g., backs up to the highway or train tracks, right next to large electrical tower, etc.). Doesn't seem to be the case here. Thoughts on why it's been on the market so long?

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Answers

9
Douglass,

As Alan already noted this is an elder care facility and must be purchased with the understanding that the residents must be allowed to remain in the facility until the last tenancy expires. Because of the restriction and the fact that the home was originally listed at $1.6 million, the majority of buyers have not been interested in this property.

Until and unless a homebuyer can use this home as a personal residence and is not forced to obtain a business loan for the property, the home will remain a poor purchase for all but a select few looking to invest in an elder care facility.

In the meantime, the season is starting soon and there will be other homes available for purchase in the same area.

Sincerely,
Grace Morioka
Allison James Estates and Homes
Buyer Rebates and Low Cost Listings for Sellers
2 votes Thank Flag Link Tue Jan 28, 2014
This property is an elderly care facility licensed for 6 residents. It's being sold as real estate with a business. Listing states buyer must submit an offer before inspecting the facility. Any interest?

Alan Bien
Sereno Group
650-492-0811 (cell)
2 votes Thank Flag Link Mon Jan 27, 2014
Good Morning Douglass,

It looks like you have been researching on line for answers for over 6 months now. Based on the questions it's safe to assume you have not chosen a buyers agent to assist you. It does't cost you anything to employ an agent to represent you and that person is just an email, text or phone call away from you to answer your questions. I do suggest you interview and have a consultation with a buyers agent. The reason is that when you do find the right home to buy you will have the knowledge and confidence that the person you have chosen knows you and your needs and wants, along with their skill and ability to achieve them.

All the best to you.
1 vote Thank Flag Link Tue Jan 28, 2014
Sellers can and have sold their property with conditions, covenants and restrictions attached to the deed. In the past many of these violated civil rights and were struck down. In this case the concern is almost certainly with leases and city regulations. I'm sure you've seen the long drawn out battle to convert the mobile home park in Palo Alto into new residential housing. Laurentian Way is zoned R1 but few potential homeowners would be interested in a prolonged effort to move into their new home. Mountain View home values at http://julianalee.com/mountain-view/mountain-view-statistics.htm
Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Cell 650.857.1000
juliana@silicon-valley-homes-for-sale.com

Over 20 years experience
Over 1,000 homes sold in Santa Clara County and San Mateo County
Web Reference: http://julianalee.com
0 votes Thank Flag Link Wed Jan 29, 2014
Hi Douglass,

California tenant laws strictly protect a tenant's use and occupation of rental property--be it an elder care facility or a simple home rental--and prevent tenants from losing their current tenancies due to a change in ownership of the property. So whether an apartment building, an elder care facility, halfway home or single family rental, any lease currently existing on the property must be fulfilled by the new owner at the contracted rate. This doesn't prevent the new buyer from trying to "buyout" the leases of the current tenants, but unless the tenants are motivated to leave, there is little chance that such tactics would work.

If I recall correctly--because this is the part of Sunnyvale in which I tend to focus my practice--the negotiated tenancies were long term, so that if purchased, the buyer would be unable to easily convert this home from elder care to residential unit for several years.

If you are looking to purchase a thriving elder care facility with long term tenants, this is certainly a good choice. However, if you're hoping to purchase the property and convert it to a residential home, it can be done but only after the last lease for one of the tenants expires. This restriction applies to any home in California that is sold with a tenant lease on the property. Good luck!
0 votes Thank Flag Link Wed Jan 29, 2014
You are very welcome, Douglass. Let me know if you need any additional information in this area. I am a rebate agent who lives and works in West San Jose, Cupertino and, in this particular case, down the street from Laurentian. Thanks!
Flag Thu Jan 30, 2014
Grace - Very helpful. Thank you.
Flag Wed Jan 29, 2014
Thanks for the responses.

Just curious: how can a seller stipulate how the buyer would use the property after purchase? Is it zoned only for business use? If yes, that would appear odd since other properties on the block are traditional SFHs?

If purchased with a business loan, how easily/quickly could one change for personal residence use? Not suggesting one would kick out tenants, but just trying to understand constraints. Thx.
0 votes Thank Flag Link Tue Jan 28, 2014
this more than a residential home. It is a senior residentia home care and this entails expertise and licensing. The owners must have knowledge in order to run this business. It is possible to change the property to a residential unit but tenants have to be moved etc. As a business it requires the proper person that may be interested in that type of Home Care. Manuel Macias, Broker, CRS, GRI.
0 votes Thank Flag Link Tue Jan 28, 2014
Nothing is up with this property. It is a business and property being sold as one and current residents have agreements to be fulfilled. So nothing other than that makes this a unique opportunity for the right person.
http://www.ServingSantaClaraCounty.com
"Born,raised, live and work right here in Sunnyvale"
0 votes Thank Flag Link Tue Jan 28, 2014
Are you interested in this property? Now would be the time before the market heats up going into the spring.

Alex Greer Loan Officer NMLS #1056079 http://www.TheMortgageOutlet.com 408-352-5147 AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Tue Jan 28, 2014
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