Thursday, January 18, 2007

More In Scottsdale

A lender called me yesterday to pick my brain. His company is considering funding the construction portion of a new project called Reflections to be built across the canal from Safari Drive and just down Camelback Road from Scottsdale Waterfront. The developer had told the lender that Optima Camelview was 68% sold out and that prices in the area were 650+/ square foot. Prices of Reflections would start at about $800,000 or $450/foot. The lender was also told that 18 of the 100 units were already under contract. I told him to be careful due to all the condominiums that are scheduled for delivery in 2007 in the immediate area (approximately 600); I think the recent Republic article exagerates the truth. Of those 600, I believe that at least 150-200 will go back on the market as re-sales due to the very high investor participation in those projects. I love urban communities but I want to see success stories; not failures. Unless there is adequate time to absorb the inventory already under construction I worry that new projects will cause trouble.

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