Next Round Of Price Cuts At Portland Condos

Posted on 07/10/09 4:09 PM

Westerly, Benson and John Ross Cut Prices Again

Faced with occupancy rates below even the most optimistic break-even proformas and increasing pressure from commercial lenders, condo developers throughout Portland’s city center are taking another hard look at their pricing. This week it was the The Westerly, Benson and John Ross’ turn to take action.

In an effort to break through the 2/3 occupancy barrier the Westerly, located just a block away from Portland’s NW 23rd extended their “Limited Pricing” edition to another five units. On average prices are now down 25% from ‘08 price points, with some units offered at $300/SF.

Down at the South Waterfront the John Ross faces a similar predicament. Units went on sale back in late ‘05, but the Ross too has struggled to break through the 2/3-sold barrier. The Ross currently also hosts the most Fannie Mae repos among city center condo developments. Here’s a sampling of what “Value Pricing” at the Ross looks like:

638 SF, most recently at 229k, now 199k
1205 SF, most recently at 399k, now 349k
1831 SF, most recently at 759k, now 634k

Price cuts also made an appearance at the Benson, one of downtown Portland’s highest-end developments, situated on the streetcar line with close proximity to the cultural amenities. At 90% occupancy, the investment consortium isn’t quite under the same pressure, thus price cuts were limited to 25k on 2-bedroom, floor-plan “J” units in the mid 400k range.