Downtown San Diego Neighborhoods

Spotlight On: Gaslamp Quarter

Mortgage Interest RatesHistoric Lows Continue

It’s Easy to be CheesyThe Melting Pot’s

Famous Cheese Fondue

Downtown San Diego’s Real Estate Report

FEATURED PROPERTY

October 2010

If your home is currently listed, this is not a solicitation for that listing. Produced by UpscaleRealEstateMarketing.com • 877.660.0996

800.588.7382 • www.DowntownSanDiegoProperties.com

HORIZONS CURRENTLY AVAILABLEBed / Bath Est. SF Floor List Price 1 / 2 1,036 16th $527,0002 /2 1,245 9th $564,9002 / 2 1,245 12th $590,0002 / 3 1,640 TH $749,0002 / 2 1,497 19th $892,0002 / 2 2,007 25th $1,125,0004 / 4 2,516 TH $1,395,0003 / 4 2,752 22nd $1,949,0003 / 3 2,918 22nd $2,500,000

SALE PENDING1 / 1 897 2nd $379,0002 / 2 1,301 3rd $449,9002 / 2 1,544 16th $925,000

SOLD UNIT SOLD PRICE1 / 2 1,249 207 $369,9002 / 2 1,263 2001 $575,0002 / 2 1,245 1005 $610,0002 / 2 1,530 1803 $975,000

PARK PLACE CURRENTLY AVAILABLEBed / Bath Est. SF Floor List Price 1 / 2 1,113 TH $460,0001 / 2 1,113 11th $499,0002 / 2 1,575 4th $550,0001 / 2 1,268 25th $555,0002 / 2 1,545 5th $595,0002 / 2 1,545 3rd $649,9002 / 2 1,338 5th $650,0002 / 2 1,545 9th $660,0002 / 2 1,374 13th $1,045,000

SALE PENDING2 / 2 1,375 TH $485,0003 / 4 1,776 TH $699,000

SOLD UNIT SOLD PRICE1 / 2 1,113 408 $410,000

CURRENT REAL ESTATE ACTIVITY IN HORIZONS & PARK PLACE

ARG-Abbott Realty Group435 4th Ave. • San Diego, CA 92101

All information is deemed reliable but not guaranteed.

The properties on this list have been listed/sold by various participants in the MLS.SANDRA MELVILLE

Realtor, CRS, GRISandra@ MelvilleAndAssociates.com

619.454.5464

HorizonsUnit 19021,497 Sq. Ft.2 Bed | 2 Bath$892,000

Southeast exposure complimented with impressive views from every room. Boasting 1497 square feet with a very open floor plan, island kitchen with granite counters and eating bar, spacious master with walk-in closet, granite counters in bathrooms, tiled floors and custom painted throughout.

Carrie UnderwoodSan Diego Sports Arena, October 1st619.224.4171 | SanDiegoArena.comDon’t miss a great opportunity to see this songbird perform live. As a past winner of American Idol, this award-winning singer is sure to please the crowd with many hits from her recent album Play On including Cowboy Casanova and the heart-warming melody Temporary Home.

Fifth Avenue Auto ShowcaseGaslamp Quarter, October 10th619.233.5227 | Gaslamp.orgWhether you are an avid car collector or just enjoy a good show, this one-of-a-kind auto display is sure to please. There is something for everyone including Italian Exotics, Detroit Muscle, American Legends, European Luxury Vintage Motorcycles and the Iconic Woodies from California’s own beach culture days displayed along Fifth Avenue.

3rd Annual Everything is PossibleSan Diego Hall of Champions, October 10th800.794.8282 | TheseAnyFoundation.orgThis festive evening will start with cocktails, a deliciously catered meal by Pamplemousse Grille and live entertainment from Ruby Summer. Don’t miss out on the silent and live auctions featuring some great prizes with proceeds benefiting the Seany Foundation, an organization dedicated to funding research for pediatric cancers.

Firebird Lyceum Theatre, October 21st – 24th619.294.7378 | SanDiegoBallet.orgBeautiful dancers bring to life two very different ballets. Reimaging the very first ballet performed by the San Diego ballet 20 years ago, the first piece shows the evolution of the ballet dancers as they grow into artists in An Old Sweet Song. In Firebird, an urban dance is performed mixing modern ballet with hip-hop, all danced to Stravinsky’s thrilling score.

Global Runway for LiteracyThe Fashion Institute of Design and Merchandising, October 21st415.561.3331 | RoomToRead.orgThis stylish evening is sure to entice any fashionista! Mingle with local designers over cocktails as they share their wearable art inspired by the evening’s charity, Room to Read. Afterwards enjoy a fabulous meal and dance the night away to the lively entertainment. The Room to Read organization is dedicated to spreading literacy and gender education equality throughout the children of the world.

Beauty and the BeastCivic Theatre, October 26th – 31st619.570.1100 | SanDiegoTheatres.orgThis Academy-Award winning Disney hit is brought to life on stage in a captivating and delightful presentation. One of life’s best lessons is learned in the tale of a girl who dares to look past a man’s beastly exterior and love the true prince inside. Dazzle at the exquisite sets and costumes, and sing along to all your favorite musical numbers such as Be Our Guest and the self-titled number Beauty and the Beast.

OCTOBER 2010

WISCONSIN TRIPLE CHEESE FONDUE

Featuring The Melting Pot901 5th Ave.

619.234.5554 | TheMeltingPot.com

INGREDIENTS:

1 and 1/2 cups (6 oz.) shredded Butterkase cheese

1 and 1/2 cups (6 oz.) shredded Fontina cheese

3 Tbs. all-purpose flour

3/4 cup white wine

1/4 cup dry sherry

2 tsp. chopped shallots

1 tsp. freshly ground pepper

1/4 cup crumbled Bleu cheese

2 Tbs. chopped scallions

INSTRUCTIONS:

Toss the Butterkase and Fontina cheeses with the flour in

a bowl. Place a metal bowl over a saucepan filled with

two inches of water. You may also use a conventional

double boiler. Bring the water to a boil over high heat.

Reduce the heat to medium and pour the wine and

sherry into the bowl. Stir in the shallots using a fork.

Cook for 30 seconds stirring constantly.

Add half of the cheese blend, and stir constantly until the

cheese is melted. Add the remaining cheese blending a

small amount at a time and stirring constantly. Fold in the

pepper and bleu cheese. Pour into a warm fondue pot

and keep warm over low heat. Garnish with the scallions. San Diego’s historic Gaslamp Quarter has become one of San Diego’s most popular neighborhoods, featuring a charming blend of old and new buildings teeming with activity. In the 1870s Alonzo Horton built a wharf at the foot of Fifth Avenue and a development boom ensued. Although these days a wide variety of people enjoy the Gaslamp’s bars and restaurants, the original visitors in the 1880s were gamblers and prostitutes, such as Wyatt Earp and Ida Bailey, who founded numerous gambling halls, saloons and brothels in San Diego’s red light district, known as the Stingaree. San Diego remained a popular navy liberty port until 1912 when city officials cracked down on prostitution, effectively shutting down the lively Stingaree. In 1885, the Chinese Mission School opened. It quickly became a social center for Chinese and Japanese immigrants and facilitated interaction between Caucasian and Asian San Diegans. Today the Gaslamp’s unique architecture stands as a testament to its 30-year heyday, between the years 1880 and 1910. Throughout the 1900s, the Gaslamp Quarter suffered economic and social decline, as the old buildings

deteriorated and criminal activity mounted. In an effort to combat social blight, the Redevelopment Agency drew upon the historic character of the Gaslamp Quarter to infuse it with new life. Their objective formed in 1976 was to “preserve the distinctive character of the original commercial architecture found in the Gaslamp Quarter while also providing for orderly change.” The success of Horton Plaza, opened in 1985, helped stimulate the initial redevelopment activity within the Gaslamp Quarter. This 16.5-block neighborhood is now recognized on the National Register of Historic Places. The Asian Pacific Thematic District also has a significant history in the Gaslamp, and several Asian-style buildings still stand. Known today as an elite urban destination, the quarter’s 94 historically or architecturally significant structures now house more than 200 restaurants and nightclubs, movie theaters, shops, offices, galleries and lofts. Annual events such as Street Scene, the Mardi Gras Celebration, ShamRock, Taste of Gaslamp, and Cinco in the Gaslamp are held in this district, to the delight of San Diego area residents and visitors.

The Gaslamp Quarter: ITS CHARMING RENAISSANCE

Take yourself back to 1981. Reagan led our country, MTV launched into living rooms, IBM released the first PC, Post-It notes were invented, and the world was obsessed with Di and Charles’ Royal Wedding. Oh yes, that’s also the year that your $400,000 mortgage payment was $5,572.97 a month. Back in 1981, the annual average interest rate was a whopping 16.6 percent. If you’re thinking of refinancing or buying a home, now truly is the time to do it. We are currently at a point where mortgage interest rates are at an all-time historic low. According to Freddie Mac, 30-year fixed-rate mortgages averaged 4.35 percent at press time. But let’s get some perspective on just how low that number really is. Last year at this time, the 30-year rate averaged 5.12 percent, and in 2000, the average annual interest rate was 8 percent; nearly double what it is today. Want to see more annual rates going back to 1970 when records were first kept? There’s a great chart to view at www.FreddieMac.com/pmms/pmms30.htm. So what does all this mean to the bottom line—your wallet? Let’s compare the cost of money today versus recent history. With the same example of a $400,000 loan, the

current interest rate of 4.35 percent makes your monthly payment $1,991.25 (principal and interest only). Not bad! In 2000 (the interest rate was then 8 percent), your monthly payment would have been $2,935.06. Even this time last year with those fantastic rates, your payment would have been $2,176.72 per month. Today’s calculated mortgage payment shows how the current rates truly are at historic lows. Why are rates so low? There are two reasons for this. First, it’s no secret that we are currently in one of the worst recessions in US history. And this kind of bad news has translated into a record low in mortgage rates. There is a lot of downside risk in the stock market these days. As a result, savvy investors have invested in mortgage-backed securities, increasing the demand and driving up their yield. Because mortgage rates offered to the consumer have an inverse relationship to the investment yield, mortgage

rates have been plummeting. Oddly enough when you look at the record number of foreclosure filings in the United States over the past few years, one has to wonder who wants to buy mortgage-backed securities during a time of high home-loan defaults? And that question leads to the second reason why

mortgage rates are at historic lows. Last year and early this year, the Federal Government bought huge blocks of mortgage-backed securities to keep mortgage rates from spiking and to make sure

that Fannie Mae and Freddie Mac could sell the securities to survive. Remember the question of who in the world wants to buy US mortgage-backed securities when home-loan defaults are at a record high? The answer is: everyone in the world. Mortgage-backed securities are essentially a mutual fund-like pool of newly issued home

loans. While loan defaults in the pool may slightly hurt the investment return to the investor, the defaults are diluted by the majority of the loans in the pool that are performing. What is more important to an investor is whether the entity issuing the securities (Fannie Mae and Freddie Mac in this case) are financially sound. Since Fannie Mae and Freddie Mac are now owned by the Federal Government, their mortgage-backed securities have an implied guarantee that investors find very attractive. The global recession and world-wide debt woes have resulted in many countries teetering on the verge of bankruptcy. Despite how bad the US economy may seem, investing in US-backed securities is still very appealing versus other alternatives, bringing money from investors worldwide into our mortgage-backed securities market. The substantial demand in recent months has turbo-charged the drop in mortgage rates. Until the stock market returns to stability, there is expected to be heavy demand for investments in mortgage-backed securities, keeping these record mortgage rates in place. But like all good opportunities, they often disappear quickly.

today’s cost of money: how low can you go?

Carrie UnderwoodSan Diego Sports Arena, October 1st619.224.4171 | SanDiegoArena.comDon’t miss a great opportunity to see this songbird perform live. As a past winner of American Idol, this award-winning singer is sure to please the crowd with many hits from her recent album Play On including Cowboy Casanova and the heart-warming melody Temporary Home.

Fifth Avenue Auto ShowcaseGaslamp Quarter, October 10th619.233.5227 | Gaslamp.orgWhether you are an avid car collector or just enjoy a good show, this one-of-a-kind auto display is sure to please. There is something for everyone including Italian Exotics, Detroit Muscle, American Legends, European Luxury Vintage Motorcycles and the Iconic Woodies from California’s own beach culture days displayed along Fifth Avenue.

3rd Annual Everything is PossibleSan Diego Hall of Champions, October 10th800.794.8282 | TheseAnyFoundation.orgThis festive evening will start with cocktails, a deliciously catered meal by Pamplemousse Grille and live entertainment from Ruby Summer. Don’t miss out on the silent and live auctions featuring some great prizes with proceeds benefiting the Seany Foundation, an organization dedicated to funding research for pediatric cancers.

Firebird Lyceum Theatre, October 21st – 24th619.294.7378 | SanDiegoBallet.orgBeautiful dancers bring to life two very different ballets. Reimaging the very first ballet performed by the San Diego ballet 20 years ago, the first piece shows the evolution of the ballet dancers as they grow into artists in An Old Sweet Song. In Firebird, an urban dance is performed mixing modern ballet with hip-hop, all danced to Stravinsky’s thrilling score.

Global Runway for LiteracyThe Fashion Institute of Design and Merchandising, October 21st415.561.3331 | RoomToRead.orgThis stylish evening is sure to entice any fashionista! Mingle with local designers over cocktails as they share their wearable art inspired by the evening’s charity, Room to Read. Afterwards enjoy a fabulous meal and dance the night away to the lively entertainment. The Room to Read organization is dedicated to spreading literacy and gender education equality throughout the children of the world.

Beauty and the BeastCivic Theatre, October 26th – 31st619.570.1100 | SanDiegoTheatres.orgThis Academy-Award winning Disney hit is brought to life on stage in a captivating and delightful presentation. One of life’s best lessons is learned in the tale of a girl who dares to look past a man’s beastly exterior and love the true prince inside. Dazzle at the exquisite sets and costumes, and sing along to all your favorite musical numbers such as Be Our Guest and the self-titled number Beauty and the Beast.

OCTOBER 2010

WISCONSIN TRIPLE CHEESE FONDUE

Featuring The Melting Pot901 5th Ave.

619.234.5554 | TheMeltingPot.com

INGREDIENTS:

1 and 1/2 cups (6 oz.) shredded Butterkase cheese

1 and 1/2 cups (6 oz.) shredded Fontina cheese

3 Tbs. all-purpose flour

3/4 cup white wine

1/4 cup dry sherry

2 tsp. chopped shallots

1 tsp. freshly ground pepper

1/4 cup crumbled Bleu cheese

2 Tbs. chopped scallions

INSTRUCTIONS:

Toss the Butterkase and Fontina cheeses with the flour in

a bowl. Place a metal bowl over a saucepan filled with

two inches of water. You may also use a conventional

double boiler. Bring the water to a boil over high heat.

Reduce the heat to medium and pour the wine and

sherry into the bowl. Stir in the shallots using a fork.

Cook for 30 seconds stirring constantly.

Add half of the cheese blend, and stir constantly until the

cheese is melted. Add the remaining cheese blending a

small amount at a time and stirring constantly. Fold in the

pepper and bleu cheese. Pour into a warm fondue pot

and keep warm over low heat. Garnish with the scallions. San Diego’s historic Gaslamp Quarter has become one of San Diego’s most popular neighborhoods, featuring a charming blend of old and new buildings teeming with activity. In the 1870s Alonzo Horton built a wharf at the foot of Fifth Avenue and a development boom ensued. Although these days a wide variety of people enjoy the Gaslamp’s bars and restaurants, the original visitors in the 1880s were gamblers and prostitutes, such as Wyatt Earp and Ida Bailey, who founded numerous gambling halls, saloons and brothels in San Diego’s red light district, known as the Stingaree. San Diego remained a popular navy liberty port until 1912 when city officials cracked down on prostitution, effectively shutting down the lively Stingaree. In 1885, the Chinese Mission School opened. It quickly became a social center for Chinese and Japanese immigrants and facilitated interaction between Caucasian and Asian San Diegans. Today the Gaslamp’s unique architecture stands as a testament to its 30-year heyday, between the years 1880 and 1910. Throughout the 1900s, the Gaslamp Quarter suffered economic and social decline, as the old buildings

deteriorated and criminal activity mounted. In an effort to combat social blight, the Redevelopment Agency drew upon the historic character of the Gaslamp Quarter to infuse it with new life. Their objective formed in 1976 was to “preserve the distinctive character of the original commercial architecture found in the Gaslamp Quarter while also providing for orderly change.” The success of Horton Plaza, opened in 1985, helped stimulate the initial redevelopment activity within the Gaslamp Quarter. This 16.5-block neighborhood is now recognized on the National Register of Historic Places. The Asian Pacific Thematic District also has a significant history in the Gaslamp, and several Asian-style buildings still stand. Known today as an elite urban destination, the quarter’s 94 historically or architecturally significant structures now house more than 200 restaurants and nightclubs, movie theaters, shops, offices, galleries and lofts. Annual events such as Street Scene, the Mardi Gras Celebration, ShamRock, Taste of Gaslamp, and Cinco in the Gaslamp are held in this district, to the delight of San Diego area residents and visitors.

The Gaslamp Quarter: ITS CHARMING RENAISSANCE

Take yourself back to 1981. Reagan led our country, MTV launched into living rooms, IBM released the first PC, Post-It notes were invented, and the world was obsessed with Di and Charles’ Royal Wedding. Oh yes, that’s also the year that your $400,000 mortgage payment was $5,572.97 a month. Back in 1981, the annual average interest rate was a whopping 16.6 percent. If you’re thinking of refinancing or buying a home, now truly is the time to do it. We are currently at a point where mortgage interest rates are at an all-time historic low. According to Freddie Mac, 30-year fixed-rate mortgages averaged 4.35 percent at press time. But let’s get some perspective on just how low that number really is. Last year at this time, the 30-year rate averaged 5.12 percent, and in 2000, the average annual interest rate was 8 percent; nearly double what it is today. Want to see more annual rates going back to 1970 when records were first kept? There’s a great chart to view at www.FreddieMac.com/pmms/pmms30.htm. So what does all this mean to the bottom line—your wallet? Let’s compare the cost of money today versus recent history. With the same example of a $400,000 loan, the

current interest rate of 4.35 percent makes your monthly payment $1,991.25 (principal and interest only). Not bad! In 2000 (the interest rate was then 8 percent), your monthly payment would have been $2,935.06. Even this time last year with those fantastic rates, your payment would have been $2,176.72 per month. Today’s calculated mortgage payment shows how the current rates truly are at historic lows. Why are rates so low? There are two reasons for this. First, it’s no secret that we are currently in one of the worst recessions in US history. And this kind of bad news has translated into a record low in mortgage rates. There is a lot of downside risk in the stock market these days. As a result, savvy investors have invested in mortgage-backed securities, increasing the demand and driving up their yield. Because mortgage rates offered to the consumer have an inverse relationship to the investment yield, mortgage

rates have been plummeting. Oddly enough when you look at the record number of foreclosure filings in the United States over the past few years, one has to wonder who wants to buy mortgage-backed securities during a time of high home-loan defaults? And that question leads to the second reason why

mortgage rates are at historic lows. Last year and early this year, the Federal Government bought huge blocks of mortgage-backed securities to keep mortgage rates from spiking and to make sure

that Fannie Mae and Freddie Mac could sell the securities to survive. Remember the question of who in the world wants to buy US mortgage-backed securities when home-loan defaults are at a record high? The answer is: everyone in the world. Mortgage-backed securities are essentially a mutual fund-like pool of newly issued home

loans. While loan defaults in the pool may slightly hurt the investment return to the investor, the defaults are diluted by the majority of the loans in the pool that are performing. What is more important to an investor is whether the entity issuing the securities (Fannie Mae and Freddie Mac in this case) are financially sound. Since Fannie Mae and Freddie Mac are now owned by the Federal Government, their mortgage-backed securities have an implied guarantee that investors find very attractive. The global recession and world-wide debt woes have resulted in many countries teetering on the verge of bankruptcy. Despite how bad the US economy may seem, investing in US-backed securities is still very appealing versus other alternatives, bringing money from investors worldwide into our mortgage-backed securities market. The substantial demand in recent months has turbo-charged the drop in mortgage rates. Until the stock market returns to stability, there is expected to be heavy demand for investments in mortgage-backed securities, keeping these record mortgage rates in place. But like all good opportunities, they often disappear quickly.

today’s cost of money: how low can you go?

Downtown San Diego Neighborhoods

Spotlight On: Gaslamp Quarter

Mortgage Interest RatesHistoric Lows Continue

It’s Easy to be CheesyThe Melting Pot’s

Famous Cheese Fondue

Downtown San Diego’s Real Estate Report

FEATURED PROPERTY

October 2010

If your home is currently listed, this is not a solicitation for that listing. Produced by UpscaleRealEstateMarketing.com • 877.660.0996

800.588.7382 • www.DowntownSanDiegoProperties.com

HORIZONS CURRENTLY AVAILABLEBed / Bath Est. SF Floor List Price 1 / 2 1,036 16th $527,0002 /2 1,245 9th $564,9002 / 2 1,245 12th $590,0002 / 3 1,640 TH $749,0002 / 2 1,497 19th $892,0002 / 2 2,007 25th $1,125,0004 / 4 2,516 TH $1,395,0003 / 4 2,752 22nd $1,949,0003 / 3 2,918 22nd $2,500,000

SALE PENDING1 / 1 897 2nd $379,0002 / 2 1,301 3rd $449,9002 / 2 1,544 16th $925,000

SOLD UNIT SOLD PRICE1 / 2 1,249 207 $369,9002 / 2 1,263 2001 $575,0002 / 2 1,245 1005 $610,0002 / 2 1,530 1803 $975,000

PARK PLACE CURRENTLY AVAILABLEBed / Bath Est. SF Floor List Price 1 / 2 1,113 TH $460,0001 / 2 1,113 11th $499,0002 / 2 1,575 4th $550,0001 / 2 1,268 25th $555,0002 / 2 1,545 5th $595,0002 / 2 1,545 3rd $649,9002 / 2 1,338 5th $650,0002 / 2 1,545 9th $660,0002 / 2 1,374 13th $1,045,000

SALE PENDING2 / 2 1,375 TH $485,0003 / 4 1,776 TH $699,000

SOLD UNIT SOLD PRICE1 / 2 1,113 408 $410,000

CURRENT REAL ESTATE ACTIVITY IN HORIZONS & PARK PLACE

ARG-Abbott Realty Group435 4th Ave. • San Diego, CA 92101

All information is deemed reliable but not guaranteed.

The properties on this list have been listed/sold by various participants in the MLS.SANDRA MELVILLE

Realtor, CRS, GRISandra@ MelvilleAndAssociates.com

619.454.5464

HorizonsUnit 19021,497 Sq. Ft.2 Bed | 2 Bath$892,000

Southeast exposure complimented with impressive views from every room. Boasting 1497 square feet with a very open floor plan, island kitchen with granite counters and eating bar, spacious master with walk-in closet, granite counters in bathrooms, tiled floors and custom painted throughout.