DealWatch: Edge Lofts Under Siege
Things Are Different At The Edge Of The Curve.
Prices continue to tumble at the Edge Lofts, a Pearl District condo development completed in 2004 by John Carrol. A year ago 1,000 SF units with the building’s most desirable east-facing views were selling in the high 300s. Gradually distress crept in forcing prices down by 20% (year-over-year) for similar units.
Distress Spreads From South To East
Although year-over-year price declines in Portland’s Pearl District have edged into the teens, the pattern for the Edge Lofts has deviated substantially. Presumably the Edge would have fared much like rest of the Pearl District, had it not been for a downward spiral was initiated by forced sell-offs of several south-facing units over the last six months. Unit #929 introduced the foreclosure dilemma to the Edge, selling for 212k after being repossessed by the bank. Unit #626 followed suit shortly thereafter, finding a new buyer at 200k (or $222/SF).
Distress then worked its way up the food chain taking hold of the eastside of the building a couple of months ago when unit #521 went into foreclosure and sold for $260/SF. In the wake of these developments, regular listings too have been forced to adjust their pricing; recently 1,000 SF units have been selling for 320k, down from almost 400k a year ago.
More Distress On The Horizon
Just as things have started to pick up in the condo market, the Edge faces another slammer. This week Chase (formerly WaMu) took back unit #825 at the Edge for $270, that’s 50k less than unit #625 which sold less than three months ago. Find out more in this week’s Foreclosure Files or drop me a note.
