Does Costa Mesa Real Estate Have Leased Land?
Let’s have a quick primer on Costa Mesa real estate terms- what is the difference between normal land you own (Fee Simple) and leased land? This is one of the most important distinctions when purchasing a home or condo in town. Fee Simple as it is referred to in the real estate industry is land that you own and may develop as you see fit within the bounds of city regulations. Should you buy a home or townhome on leased land, it is not land that is owned by you. You essentially have bought a building that sits on land that is owned by another. For this type of Costa Mesa real estate you would pay some type of regular fee for the privilege of having your building sit on the leased land. The ultimate drawback to leased land is that the owner has the right at the end of the lease to do whatever they want – lease it to someone else, extend the present lease, or redevelop. Ultimately, it is their choice. It’s probably the biggest drawback to buying on leased land.
Why would you buy on leased land if you don’t own it?
Well, just about everytime I have seen it offered, it boils down to one thing – it’s cheaper. The other time I have seen it offered is on commercial property and it is on a prime location. I think in commercial real estate it makes a lot more sense.
Where does it exist in locally in Costa Mesa?
Mostly in the area surrounding Bear Street and Sunflower streets in Costa Mesa. It also spills over into Santa Ana right around the same streets. Who owns it? Most of it is Segerstrom owned land – the same folks who own the other prime land (think South Coast Plaza and Crystal Court) right around the South Coast Metro area.
Considering leased land? Give Colin Delaney (email or 714-743-9882) a call before you jump on it. I can tell you all the ins and outs of the leased land question. Here are a few condos on leased land below – they are quite nice and a lot cheaper than lots of others:
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