Projects like Downtown Los Angeles' Standard Pacific, which had only sold 41 of its 272 units when it was abandoned, failed to take off, experts say, because investors entered into deals when the housing boom was at its peek. When that peek plummeted, so did sales.

Many believe that one way condo investors can avoid the axe is by holding back some of a project's top-priced units during most of the presale phase. This is in the hopes that the best units will garnish enough attention and interest that a waiting list or top-dollar bidding will usually result. And the Douglas Wilson Co. believes it.

"We have 147 contracts [out of 220 one- and two-bedroom condominiums, 13 penthouse suites and 11 town homes] and we won't release the last phase until next year," O'Connell notes. "When we're closer to completion and can take people into the building so they can really experience what they'd be getting."

So far, construction crews have completed the frame of the Mark's 32-story steel-and-glass tower that will reach 380 feet, making it the tallest building in Downtown San Diego's East Village area. The project will also encompass 10,000 sf of retail space that will open on Market Street. Leases on three of the six retail spaces are currently being finalized.