Centerpoint, Tempe - Mortgages Ltd, the original construction lender AND Avenue Communities, the developer, both filed for bankruptcy earlier this year. At this point the entire project is moth-balled. My guess is that the developer will eventually settle with the lender, regain the high rise project, and put the condos on the market for sale at a greatly reduced price. It would not surprise me if only one of the buildings was offered for sale while the other one remained moth-balled until the market gets much better.
X Wine Lofts - Mortgages Ltd was the original construction lender for this project as well. We don't expect the developer to save this asset but this is pure speculation. We will hopefully see some sort of resolution to this matter in 2010.
Biltmore Towers by Optima, Phoenix - In late 2009 we saw the developer close its on-site leasing office and stop doing business in the community. We assume that this was because it did not make financial sense to continue. All rentals in the building are now handled by individual real estate agents like us or by the landlord themselves. The Biltmore Tower HOA instituted a rule disallowing real estate agent lockboxes on the property that will eventually hurt property values/owners there. Rents have significantly dropped in the building. The average cost per foot for rents in the first two quarters of 2008 was $1.73 while the average for the last quarter of 2009 was $1.38 or more than 20%. Sales prices dropped as well but activity is up. In the first two quarters of 2008 there were only two sales with an average cost per foot of $407.13. In the last quarter of 2009 (historically the slowest period for Phoenix real estate sales) there were six condos sold at an average cost per foot of $245.65, a 39.5% drop. Is there any good news? Absolutely. the average cost per foot for the sixteen sales from April 1 to September 30, 2009 was much lower ($210.63 per square foot) so prices at Optima Biltmore Towers seem to be going up! We at We Know Urban Realty believe that the worst is behind us at Biltmore Towers. Now if only the HOA would find another solution to the ban on lock boxes.....
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