Boutique Developers Eager To Sell
It’s Not Just The Big Boys That Are Struggling.
Builder close-outs and mounting pressure among several of Portland’s large-scale developers have made headlines in recent months. Liquidation sales such as the joint-effort between Pacific Lifestyle Homes and Legend Homes have helped to substantially reduce inventory, a critical requirement as these developers seek to emerge from bankruptcy.
Smaller developments, by contrast, tend to fly under the radar, holding out for the elusive buyer – one at a time. However, developers of triplexes, boutique condo projects and groupings of custom homes are nonetheless immune to the workings of capital markets and the efforts of banks to clean up their balance sheets – especially when these places have been on the market for more than 2 years.
For Some, Time Is Running Out
Developers with a strong track record and evidence of a steady reduction of inventory are likely to weather the storm without too many bruises. Many over optimistic first-timers, however, are increasingly demonstrating their eagerness to sell.
Belmont East Condos
Sales started in early ’08. So far only 11 out of 26 units have sold. The developer is offering a wide range of incentives including 6-months paid HOA fees, 100% financing at 4.875% with no mortgage insurance, a $5000 contribution to closing costs and a $5,000 Visa gift card.
SUM-Thing-New Condos
Situated on SE 45 & Stark, this new development consists of three townhome-style condos, that were well received by notable design critics, but have nonetheless struggled to sell.
The two end units each provide three bedrooms and 2.5 baths, roof decks and private parking. Pricing started out in the low-to-mid 500s in early ’08. One unit sold not too long ago, the remaining two are now priced in the high 300s/low 400s.
Sacramento Lofts
Urban Sky Development has done a number of single-family home projects in Portland, but is a newcomer to the condo market – let alone the high end. Prices start at 500k, so far only one out of eight units has changed hands.
With not much of a track record in this segment, the lender is likely to be particularly involved as sales go forward.
Concordia Courtyard Condos
Reminiscent of some of Frank Lloyd Wright’s work, this 4-unit project was developed by a NE Portland developer hoping to attract the eco-sensitive, artistic minded and well-heeled crowd.
Sales started earlier this year. No bites so far. Prices start in the mid 300s and are down as much as 80k from original price points.
Blueberry Lane Townhomes
Just a couple of blocks in from MLK, this 5-unit townhome style, green development is at a point – according to the listing agent- where it “must sell”. Homes start in the high 300s for a 4-bedrm, 4-level, 2000 SF carftsman.
One unit sold almost nine months ago. Prices are now down as much as 200k from the day they were listed.
Bridgewater Vista Condos
Another one-hit-wonder that has been on the market for a whopping 2-years. There are still half a dozen homes left at this St. Johns condo project. Price points start at 169k. Some units are down as much as 50k. Still, there’s plenty of room for creative negotiations.
Overlook Condos
This mid-century-inspired condo project in North Portland is the development team’s entry-level response to the greener than thou movement sweeping across town (and the nation for that matter).
Evidently the sub 250k market has been more concerned about their wallet than the environment. Since mid ’07 roughly half the units have sold. Prices are down as much as 100k on select units.
Ivy Creek Estates
Situated on 8,000 SF lots in Portland’s Bridlemile neighborhood these 4-bedrm luxury homes went on the market only a couple of months ago. Already prices have dropped as much as 150k. Buyers are now starting to respond and the first home went under contract last weekend.
There’s More Out There…
Needless to say, this list is not complete. There are about a dozen additional boutique developments stuck in similar situations in each of Portland’s close-in SE, NE, N and W neighborhoods. If you’d like to find out more, drop me a note.
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