A visit to Grace Poe’s former US Home

Uy, malapit lang. Sa Herndon. Madaanan nga. (Herndon, it’s just near. Why don’t I pass by?) These are the first thoughts that ran through my mind when I read that Rappler article entitled, “What we know about Grace Poe’s house in Virginia.” I have heard from friends here that Grace Poe and family once upon a time lived nearby but I did not know where or how glamorous the house was. It was time to visit it. The address was 2809 Winter Oaks Way, Herndon, Virginia 20171.

I checked Google Maps and it said 8.5 miles or 25 minutes from where I was in Tysons Corner, Virginia. It was a perfect getaway during lunch break as the weather has vastly improved, no more snow on the street, no more cold air. It’s almost springtime. I needed to get out to drive around. This was the perfect excuse.

Mostly I just wanted to see how elegant it is, as the photo on the Rappler article (obviously from an online real estate website) makes it appear like a mansion. Other online stories said it is one of the most expensive houses in the county.

I came, I saw, I took photos on my iPhone. I observed the community, too. Here’s the gist: no, it is not a mansion and it looks like any ordinary well-maintained house in a well-kept residential neighborhood.

Pretty but not ‘million-dollar’

This is not to say that the house isn’t pretty from the outside. It is but it is not a “million-dollar” property nor is it located in a posh, ultra high end, gated community. It is not one of those 7,500 square feet or more elegant mansions situated on a 3 or 5-acre lot with many other mansions of similar size right next to it.

Just from the outside (I don’t think anybody was home) and assessing the surrounding residential community, the house appears to be a property that would typically be owned by a family with both parents working decent-paying jobs. (See photos below.) It is not a house that would strike you as owned by a multimillionaire, by someone who just sold his/her e-business to Microsoft for $$$ millions, or by someone who benefited from inappropriately secured wealth sourced elsewhere and stashed in the US.

In short, it was not ostentatious by any stretch. It pales in comparison to Janet Napoles’s daughter’s alleged property in Los Angeles, California, specifically Unit 37I at the Ritz-Carlton Residences that’s worth almost $2 million. It was nothing like that.

But note that this home is not a property that can be bought by just about anyone. Given the community, its location in Herndon, the short distance to Washington DC, the assigned public schools, its conduciveness in raising a family, proximity to commercial areas, and it being a part of an appealing cul-de-sac – interested buyers will need a certain amount of steady income.

If Grace Poe worked as a preschool teacher, in sales, and then as a procurement liaison officer with a government agency, while the husband worked in IT, there is no question that they can afford this house. Hindi lang ipon ang basehan kung di credit score din at lalo na ang current employment/income profile (The basis is not only one’s savings but the credit score as well and most important, the current employment/income profile).

Sold for $947,000 in 2006, bought for $450,090 in 1999

The impression of many in the Philippines is that a house sold for almost a million dollars in 2006 is very expensive as that’s about P46,000,000 at the current exchange rate. (In 2006, it was P53 to $1.) Who would buy a P46-million peso house? Only the very rich could possibly afford this, some would say. But see, there are a lot of factors that contribute to why a house costs this amount in this area but may cost far less in another area despite having the same house size, lot size, structure, architecture and amenities.

Grace Poe and her husband purchased the property on June 1, 1999, for $450,090 from the builder. In 7 years, the value of the property more than doubled and they were able to sell it for $947,000 in mid-2006. Again, because of the great location of the house, the highly rated public schools around it, and proximity to Washington, DC (Herndon is a DC suburb) and Tysons Corner, it is no wonder the property quickly appreciated in value. When they sold it, they most likely earned a handsome profit.

Remember, though, that they bought it for $450,090. This is the cost or amount that should be highlighted as that was what they were able to afford in 1999. It was Poe’s and her husband’s luck – perhaps foresight – that the house they bought for their family would have increased in value by almost half a million dollars in just a few years.

Yes, they were successful in selling it for $947,000 to a couple in 2006. But the reality is that homes in the Washington DC metro area belong to one of the most expensive housing markets in the US.

Here’s one thing that is not being discussed. Imagine if Grace Poe and Neil Llamanzares waited for another year or so before selling the house with the actual closing taking place in late 2007 or 2008. Do you remember what happened starting in late 2007 that sent the whole financial world crumbling (maybe not in the Philippines)? The most recent US recession that affected many global markets.

At that point, many properties lost their value. People couldn’t sell their houses or lots because no one would buy them. Even if somebody was interested, the value was so low (underwater prices) that it was best to simply hold on to the property until the market improves.

Had that scenario occurred, Poe and Llamanzares would not have been able to sell that property for $947,000. Assuming they still wanted to sell it in 2007 or 2008, the closing price would have dropped a few hundred thousand and there will not be a discussion today of it being a “million dollar home”.

Twice as large as neighborhood houses?

It doesn’t have 9 bedrooms. According to Redfin.com and other real estate websites, it has “9 rooms” but this includes rooms that are not bedrooms but are still part of the house. The house has 4 bedrooms.

At 3,468 square feet, 2809 Winter Oaks Way, Herndon, Virginia 20171 is not a small house anywhere in the US. That’s bigger than where my family and I presently reside. But it is not larger or twice larger compared to neighborhood houses. It is not the largest, most towering house in the hood, unlike those in the following photos:

Take a look at the photo below. That is the house on the immediate right of the former Poe/Llamanzares home. That house is larger than the home in question, appears more expensive and more stylish, and is a corner lot to boot. Those two houses and others near them form part of a nice cul-de-sac.

Now look at the Google map below. The red balloon with a dot in the middle is Grace Poe’s former house. Just by looking at the structures of the houses, it is not bigger than the other homes in the community. The lot sizes are also pretty much the same. With the lot size at 9,916 square feet (0.09 hectares), Poe’s lot is not very big but neither is it small. It’s just the right size to put up a backyard play area, a patio and maybe a grill.

House prices and house sizes are relative in the US. In some parts of Virginia, you can build or buy a very large house that costs only a fraction of Grace Poe’s house (as sold in 2006). But this would mean that such house is located far from city centers, very far from DC and Tysons Corner, with probably not so good public or private schools for your kids, limited employment opportunities, and perhaps needing to go through some rolling hills.

The same is true for other regions in the US. There is a premium to pay if a homeowner wants city or suburban living with great public schools.

Relatively easier to take a home loan in the US

Another thing that can easily be lost in the shuffle is the relative ease to take a home loan in the U.S. compared to the Philippines and elsewhere. Of course, this goes without saying that the person seeking the loan has a steady stream of income and has undergone strict background and financial investigation.

As Grace Poe and her husband were working in good-paying jobs during the time of their residency in Virginia (in the city of Herndon, in the county of Fairfax, in the Commonwealth of Virginia), it is no surprise that they were granted loans that enabled them to purchase the property. According to Rappler research, the couple was able to take out at least 4 mortgages using the house and lot as security.

Thus, it cannot be argued that they paid $450,090 in cash for the property in 1999 or that it can be assumed they actually had $450,090 in cash sitting in a bank (but most likely they had, given the husband’s background and Grace Poe being the daughter of two very famous and successful Filipino movie stars).

Ever heard of a relative’s or friend’s story about borrowing money in the US to finance the purchase of a Philippine property? It might not be very common but it does happen.

By the looks of it, it would seem that Grace Poe and her husband embodied the classic example of highly educated Filipino parents (or Filipino-American parents in their case) who worked in good paying jobs that allowed them to purchase a very decent home and raise the family in a quiet, suburban neighborhood.

Not McLean or Great Falls

If you want to know where the great mansions are in Northern Virginia, look to the cities of McLean and Great Falls. Not every house in either city are mansions, but they are generally concentrated there. If you drive through some of the neighborhoods in these adjacent cities, it is common to see soaring mansions with 5 to 10 bedrooms, great architecture, long or circular driveways, manicured lawns and landscaped gardens. Lot sizes vary but usually start at 2 or 3 acres. My family lives nearby – sa McLean gilid (periphery), just like houses in Ayala-Alabang gilid.

These McLean and Great Falls mansions do not have security guards as those are very uncommon in the US. Not many gates either but there are some gated estates. A few of these houses are so spectacular that they have full views of the Potomac River. Some have tennis courts, large pools, gazebos and sport courts. Median income is very high. Most of the owners are highly educated. As expected, the public schools assigned to these Northern Virginia cities are at the top end state-wide and country-wide.

Who lives here would be the question in your mind when you drive through. Many government contractors, defense contractors, diplomats, businessmen, members of Congress, and high-ranking government officials live in these two cities. Both cities are on the Capital Beltway.

But, no, Grace Poe did not live in McLean or Great Falls. If she did and it was in one of those mansions, then you and I might raise suspicions. Or raise eyebrows. But she didn’t. She lived nearby but still not in those two cities with the highest concentrations of mansions and wealthy people in Virginia.

I agree with the Rappler article: nothing seems fishy with the former house of Grace Poe. Well, nothing fishy at this point at least. – Rappler.com

Disclaimer: The ideas and content above are solely the opinion and perspective of the author. They are not representative in any way of the position, opinion or outlook of his past or present employment affiliations, nor should they be interpreted as any form of legal or tax advice.

Carlo Osi is a lawyer & writer based in Metro Washington DC and was educated by Georgetown Law, University of Pennsylvania Law School, Wharton School of Business, Kyushu Law, and UP Law.