So, Mike!  What exactly is a life style mall?  Haven't heard that one before!

Wow - that's a pretty sizable loss. It's sounds like an opportunity for someone.

Pat,

Here's a link to the article that describes the proposed mall.

Elizabeth,

I'm sure it will be an opportunity.  Stay tuned.

Mike in Tucson

Mike,

I have seen this same thing going up here in Phoenix, but not to that magnitude.  A lot of the national home builders are selling back their land to the investor they bought it from with contracts to buy it back later.  All the builders  are in a liquidation state right now until they can get a better footing on this new market.  Great Post

Well Mike, I'm not surprised given the state of our economy now.  I don't know of anything of this magnitude but I am seeing smaller developers tanking too and trying to sell out their entire development.  It's a bumpy ride but things can change in a big hurry too.

That is very interesting.   It will also be interesting to see what happens to it and what the repercussions are in the area.  Good post.

That is alot of money to lose if things don't work out.  Whew!!

Mike, So what happens now to the property? Is it just going to sit their partial developed? Sounds like a real mess

7 Comments on 2500 Home Development in Tucson May Revert to Original Owners

So, Mike!  What exactly is a life style mall?  Haven't heard that one before!

Life style malls started many 15 years ago. They have all the big name stores. Everything is outside rather then having to walk inside or roofed.

Mike:  Interesting post and more than likely happening in other places too.  That's a sizable loss!

Ouch!  A huge loss for someone, yet a terrific opportunity for someone else to jump in and make a statement.

With any luck at all, it will take some time for a new developer to come in and start building.  The last thing we need right now is 2500 more homes on the market!  I understand that Red Rock is hurting, and they can't give 'em away in Continental Ranch and Gladden Farms.  We need to allow some time for the existing homes to sell and bring the inventory down.  As for the mall - at least there will be somewhere for all those people to shop, but it might be difficult for the stores to succeed...remember what happened to the Foothills Mall?

Just my opinion!

Mike, Do you think that the original owner might be inclined to sell individual lots?

Bill Roberts

Please keep us posted on how the event unfolds.

When I was in India, there were a bunch of "investment oppotunity" ads for large parcels in Florida such as this.  With the value of the dollar so poor in Europe, there is a great amount of European investment in New York City...maybe it will trickle to the south and west too.

This is only the tip of the iceberg in my opinion...new construction is taking a huge hit . In our area the largest inventory that is sitting is the new construction...a lot of people will lose their jobs!

Joan,

New construction is taking a big hit; I agree.  I'm glad, though, that the project stalled at this stage instead of after the homes were built, give our inventory in Tucson.

Tina,

Overseas investment due to the relatively weak dollar has been on the rise across the country.  Many Canadians have benefited from the appreciation of the Loonie vs the USD.

Michelle,

We'll do that.

Bill,

I think it's unlikely that the original investor will sell individual lots, but it could happen.

Dawn,

The saying for commercial real estate is that "retail follows rooftops."  This bears watching.  Thanks for a thoughtful comment.

Bill,

Exactly right!

Jan,

It's a lot of money to walk from.

Richard,

Thanks for your input.  An article by Peter Van Allen of the Philadelphia Business Journal explains the concept as follows:

"The concept of lifestyle shopping centers is becoming more widespread nationwide. Most include the high-end retailers of regional malls (like the Court at King of Prussia or Cherry Hill Mall), but in more of an outdoor, storefront setting. Rather than massive parking lots, customers drive right up to nearby parking -- allowing time-rushed suburbanites the freedom to rush in and out of a store.

Shoppers spend an average of 57 minutes at a lifestyle center, compared to 78 minutes at a more traditional enclosed mall, according to 2002 research by the International Council of Shopping Centers. Despite their shorter stay, lifestyle shoppers spend an average of $84 an hour, vs. $57.70 at malls, ICSC reported. "

Matt,

No one knows for sure.  The developer hasn't commented publicly, to my knowledge.  Stay tuned.  Video at eleven.

Latonia,

Things didn't work out.  They've already lost the $70 million.

Judy,

We'll keep you up to date as we find out more.

Donna,

When things do turn around, they'll likely do so in a hurry.  I'm doing many more loans now (purchases) than I was last quarter.

Gary,

Thanks for commenting.  Where is your business coming from in Phoenix right now? 

  Mike in Tucson

Mike - Sign of the times, isn't it?  Good post!

I am seeing here also I recently listed two homes a for a small builder they are going back to the private investor on the 15th of the month. I doen't sound like a big deal but he was building 12 to 15 homes per year and now faces bankruptcy because of the 3 specs he had when the market softened 2 years ago.

Interesting, Mike, but I would cite my source as a CYA measure.  Just a suggestion.  It sounds like someone might pick up a good deal.  I do have knowledge of someone looking for major real estate purchases (nearly 100 m) for a 1031 exchange, so contact me offline if you have any info I could pass on.

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Wow! Big hit for some stockholders. Nothing like that happening here because we're just not on that scale. Though construction is way down in Flagstaff.

One company's rutted-out, pothole-filled journey becomes another's thrill ride!  Hopefully the ownership will be able to get this project in gear--I wonder what will happen if the I-10 interchange situation delays the mall construction and starts a whole "snowball effect" going? 

Oh see just when I was about to say..."oh we don't have any lifestyle shopping malls" after hearing the description, I was wrong.  Hearing your comments about that article makes even more sense as to why they are building them that way.  Of course it rains everyday in the summer here so that made me question why they didn't do covered walkways.  Interesting article keep us up to speed about this deal...It will be curious how it all plays out! :)

I feel bad for them. It is crazy how the market is changing things as we knew them. Thanks for posting.

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