In the June 4th AZ Republic article, "High-end condos' low opening bids signal glut" the author cites.....In the June 4th AZ Republic article, "High-end condos' low opening bids signal glut" the author cites the auctioning of condo units at two different communities as "a sure sign that too many high-end condominiums are going up in metropolitan Phoenix."
This is a totally reckless and poorly researched example of journalism. There's no way the "journalist" bothered to visit either The Vale Lofts or Optima Biltmore to determine the underlying problems with those communities before writing the article.
I sell loft and urban style properties for a living. I live, eat, and breath the life style. Yes, we had a ton of investors sweep through the valley over the last couple years and our market has slowed as a result. However, I hardly believe that the problems we're experiencing in those specific communities signal a glut in general.
The architecturally interesting and colorful Vale Lofts has been slow to sell because it's inferior to the competition. The developer stuck it on a crummy lot, apparently cut corners with poor construction and offered ho-hum finishes. It has "urban" design but has a far from urban location. It's not walking distance or even a casual bike ride from anything. Why would someone buy there when they can buy at Orchid House Lofts or Portland Place Lofts or Artisan Lofts on Central or the much older Hayden Place or any one of the many wonderful "in-fill" loft projects throughout the Valley? The Vale would not have sold well to begin with without the benefit of an unusually strong real estate market over the last couple of years. It's now suffering because the competition is so much better. BELIEVE IT OR NOT, INFERIOR PRODUCTS SELL SLOWER THAN SUPERIOR PRODUCTS. This my friends is the same problem with Optima Biltmore.
Optima Biltmore is located in a fantastic area. Unfortunately, the community in general was poorly designed and the amenities are marginal. Even if we had not had a fantastic real estate market it would have sold because of the area. BUT IT WOULD HAVE SOLD MUCH SLOWER AND PRICES WOULD HAVE GONE UP MUCH SLOWER. The investors who bought up as much as 60% of the building bought with the hope of making hundreds of thousands of dollars profit. Well, that ain't going to happen, at least not any time soon. It's no surprise to me that this inferior product is selling slowly but again I don't think that it's fair to say that this signals a general glut in the Phoenix condo market.
I'm not saying that we aren't facing a potential glut in higher end lofts and high rises but I do ask that The Arizona Republic PLEASE dig a little deeper before making gross generalizations supported with unjustified opinion.
Sunday, June 04, 2006
The AZ Republic Over Reacts Again
Sunday, April 23, 2006
Portland Place Lofts Update
The sales office says that they are about a year out on delivering the 6th floor and sounds like they have decided to go ahead with the resort style pool and rec center in front of building 2. The model is gorgeous but if you were to recreate it you'd pay $135,000 in upgrades.
Read More......Thursday, April 06, 2006
Portland Place Lofts, Phoenix - Big News On 4/6/06
Portland Place was just sold to Crescent Resources, a subsidiary of Duke Energy. According to information I found on the web Duke Energy had net income of $1.82 billion in 2005. According to the Crescent Resources website it is "a real estate development and land management company" established in 1969 with land, commercial developments and residential communities, primarily in North Carolina and Florida but also in Georgia, South Carolina, Texas and Arizona. The Arizona holdings consist of two golf course clubs/residential communities in Payson; The Rim Golf Club and Chaparral Pines.
I have always loved the architecture, floor plans, location, amenities, etc of Portland Place. However, I have been concerned about the financial wherewithal of the developer. With the sale to a financially huge company like Crescent Resources, those concerns have been put to rest. Now, the only think I'm worried about is that the new owner might raise prices or do something else to damage the good will that the former sales team has built. I'll wait and see.
Sunday, April 02, 2006
Portland Place, two more things
I just learned that the developer of Portland Place is toying with the idea of NOT building a pool on the roof of the second phase but instead might build a "resort" pool at ground level overlooking the Japanese Friendship garden. This saves him some money and in my opinion greatly improves the common area and allows for a bigger pool with easier access. Also, it looks like they're finally getting numbers from their Design Center so they'll be able to give final purchase prices to everyone who has signed contracts.
Read More......Safari Drive
Safari Drive has begun taking reservations. The builder already let friends and family reserve 20% of the units but now the public can get in. Prices start at about $600 a foot so they're not cheap but they are right in the heart of Scottsdale. I personally still prefer Portland Place and Hayden Ferry Bridgeview but if you gotta have Scottsdale then Safari Drive might be the way to go. The styling of the finishes are definitely geared for a younger audience, kinda retro like Valley Ho or James Hotel (which by the way recently sold) but with a European flavor.
Read More......Portland Place Is Going Up
Can't tell for sure but it looks like not only the garage but also the first and maybe even second floor of the units are underway (concrete and steel). I had been concerned that this project might not get built (what with things slowing down and all) but now that construction has begun my mind is at ease. They're still quoting starting prices at $350ish a foot which I think is a no brainer. FYI, there's a one bedroom that just came available for under $400,000 and has views of the Japanese Garden.
Read More......Thursday, March 02, 2006
New Phoenix Loft Projects, 3/02/06
Look for a ton of new hip, cool, edgy and architecturally interesting loft projects to come to Phoenix over the next year or more. Three of the more interesting or more recent ones include:
Portland Place is one of my favorite of the larger projects coming to Phoenix. It's a three phase, two hundred unit, condo flat, two story loft, and brownstone flat project located at the edge of the Phoenix art district, next to the new Phoenix light rail line, walking distance from the Phoenix Art Museum and Phoenix Library and a short drive from downtown Phoenix. The floor plans are great, the architecture is interesting and I like the location. The entire project includes three buildings with six, eight and ten stories to house 184 flats and lofts. Four other two story buildings will house sixteen brownstone style flats (their description). The flats and lofts range from small 892 square foot studios to large two bedrooms plus den lofts with 2829 square feet. The brownstone models have two bedrooms with 1563 square feet. All floor plans come with just one parking space (ouch) but some additional spaces are available to purchase. Hopefully with the new Phoenix light rail line owners will need fewer parking spaces.
A super condo conversion with a retro feel like that at the newly redone Valley Ho is coming to Phoenix near 16th Street and Missouri. The Palmaire Condos with eighteen one, two and three bedroom condo flats is just waiting for the Public Report from the City of Phoenix Planning Department. Prices are not available but I’m guessing that prices will be from the mid $250 to 350k range.
Forma is another architectural knockout with sixteen two story lofts to be built in a great part of Phoenix at 3rd Street near Osborn. The owners hired a Chicago architect with a real flair for the dramatic. These two and three bedroom lofts will have a minimum of 2200 square feet and two parking spaces in the first level secured parking structure. In keeping with true loft styling each unit will have 19’ 9” ceilings and private roof decks. Again, no prices yet but I’d guess prices are going to start in the very high $700k range.
I will keep you posted on future events concerning these and other Phoenix loft projects. But know that this is a hot product niche and one worth keeping an eye on.
Will Daly, a Realtor with RE/MAX Excalibur in Phoenix and owner of the marketing labels http://WeKnowUrban.com/ and http://CondosPhx.com/ combines years of experience, a thorough understanding of current real estate markets, and cutting edge technology to provide his clients the best advice for proven results. He specializes in Loft and High Rise Development/Sales and Condo Conversions. You may reach him directly at (480) 510-8755 or by visiting his blog at http://We-Know-Urban.blogspot.com/.