When we first heard there was going to be a 15 story condo project in Chandler, yes, Chandler Arizona, many of us laughed and laughed.
No matter how purty the stock-art photos of young couples doing wine and cheese, it's tough to sell a $1,000,000 2-bedroom condo in such a lame area. Well, we're now finding out, it's not just tough, it's impossible.
Wonder how they'll tear these condo building frames down, in Arizona, in Miami, in San Diego, in Denver, in ...?
Work has virtually stopped at the 10-story luxury hotel under construction south of Chandler Fashion Center, and the city has warned the project architect that some permits issued in January have yet to be paid for.
When asked Friday whether there were problems with the project, Oaks, the architect, said he could not comment. Builders have finished eight floors, but the ninth and 10th floors for condominiums are considered a different phase of the project.
Plans call for 243 rooms, including 10 executive suites. The top two floors will house 27 condominiums that range in price from $500,000 to $2 million. The hotel has a projected opening date of November 2007. The 10-acre site will include a 15-story condominium tower southwest of the hotel and a four-story parking garage with more than 600 spaces. Construction on that tower is expected to begin in late summer.
May 03, 2006
Here come the mid-construction halted condo projects...
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26 comments:
They can turn all these failed condo projects into detention centers when they round up all the unemployed illegal aliens from the construction sites. The can be kept in the same buildings they were working on while waiting to be deported.
Funny you posted this keith, I remember back in the previous bubble, there were several halted projects like this and just skeleton buildings like the one you posted.
deja-vou all over again...my brother in-law is a super on a over 50 condo site, $600/$700 plus units...3 sold.
I tell him all the time to put your resume out there, for like a building inspectors job or something like that cause the market is going to go belly up mid fall early 07.
His reply..no way! we have permits for 300 more units.
I say permits yes..is the ground broken yet?
His reply.....next week...for the last 3 months...
I say ok..take care now..as he drives away in his brand new $700 a month quad-cab 6 year loan..
reality for some people is in fact fiction.
keith, can you dig up any info on the scottsdale condo projects.... Camelview, Portola Place, Waterfront???
I knew a mortgage broker (he was smart) who said everyone at work, except him, were pooling money to go partners on a bunch of condos in the 3 mentioned scottsdale projects. they have no intention of renting them, because the flow neg 2-3k/month. they think they can flip for 150-300k profit.
meanwhile, google az dept of re, and you will see the roster of new homesales bimbo is falling. check a builder and then check it in 2weeks... there is bleeding.
btw, those condos in scottsdale are hideous... some palms were greased to approve this crap... you forgot to mention
Hotel Valley Ho, yes a real name...
these structures are nasty and block all views of the mountains.. they soar 8-14 floors in an area of 2story commericial shops.
I guess we can send all that scrap structural steel to China. Time to invest in demolition companies!
Who are these people willing to drop that kind of money to live in cookie-cutterville? If I had 3 million to drop, I'd be doing it in a really city like SF or NY.
Give these homes to Katrina victims who are now in trailors waiting for the next hurricane.
I'm in HR in the Phoenix area and have seen a lot of resumes from Montecito, a condominum conversion company based out of Florida. They all say they think the company will go under, but all of the press releases, etc. from the execs at the company say things are strong. Sad, really.
Montecito may (hopefully) will go under, but in the meantime Chip Conk has made $millions at the steep expense of thousands of people who used to rent at apts. in Phoenix (Biltmore), Scottsdale Cove, Tucson, etc., etc., etc.
Unfornutately in our whore capitalistic society, these people are worshiped when they should be flushed down the toilet.
Chandler is a glorified Mesa.
Alot of mismashed, a**hole to elbow tacky houses next to stinky farms and nasty weedy fields.
In fact, parts of east Mesa look better!
To the HR person,
Please don't hire any of the people from Montecito!
At Scottsdale Cove (Aventura Condos), every one of them treated the remaining tenants horribly!!! I never saw such crude, ignorant, rude, arrogant, nasty, mean greedy liars in my life!
I'm glad they made it almost impossible to buy since they put all the realtwhores in the sales line in front of everyone else. Al least 1/3 of the property has been for sale since late December with only about 10 apts. at the most being flipped. I can only hope their negative cash flow eats them alive!
I talked to a girl yesterday and she says her friend just bought a new house in Phoenix. They think that RE is still very hot. When I told her about the inventories climbing from 7K to 22K, she looked shocked. She was thinking about buying a home, but I told her to keep renting unless she found a good deal on a foreclosure. It's pretty apparent that people don't have a clue about the bubble bursting.
I used to live in Chandler and as soon as I read about that project, I knew it was the top - so we sold.
I never did think that project would make it. Looks like it is in serious trouble.
Thanks to the housing bubble, Chandler is no longer that smelly. Just about all the diaries have sold out to tract home developers.
Please dont stereotype all Montecito employees. As a former Montecito employee (recently one of 40 to be laid off), i can agree that the heads of that operation are completely ignorant, greedy, etc. etc. But many of us went to work for them with high hopes and no prior knowledge of the way they did business.
Chip Conk is a convicted felon --- money laundering, bank fraud, perjury.
http://pacer.ca4.uscourts.gov/opinion.pdf/964530.P.pdf#search=%22chip%20conk%22
There is vast speculation that he is operating a ponzi scheme -- he takes back end investors and pays high returns to them. They are under severe scrutiny and federal investigation.
He has a motivational speaker leading his company, who has no real estate experience, which is nonsensical.
Montecito is morphing into a commercial real estate investmnent company and has relocated to Montecito, CA.
Chip Conk is a crook. He is stealing peoples money.
chip conk is in no way a crook or a felon. you have no idea what you are talking about. I am very close with chip conk and there is no way those statement are true.
Chip Conk is NOT a convicted felon - that is completely false. He is the most ethical business leader I've ever worked for - When the real estate market cooled off and Montecito was forced to lay off, he stepped up and gave everyone an extremely generous severance package and did everything he could to help in the transition. Clearly, you don't know what you're talking about, believe me I've been there and would go back to work for him in a second...
Chip Conk is very nice to all levels of employees. I wouldn't say the severence was all that great, but I would go back to work for him too if I could. He cared about the company, his employees, his customers. He is very business savvy and he gets very excited about new projects! He treats all levels of employees with respect and is very down to earth. The bubble can't be blamed on Chip - get real! People lined up (literally) to buy the beautiful condo's and the price was right or people wouldn't have bought! The buyers that bought them to flip had the same idea as Chip, to buy and resell... It was almost like a gamble for all levels. Hey it even made a lot of renters home owners! They were given the 1st choice of units and they got to purchase at a really nice discount!
Chip Conk is a liar, crook and thief! He will do, say and promise anything in order to accomplish his objective!I would go as far to say he is a pathological liar and truly believes the things he is saying! When he sold Day Dream to Cullman Ventures he was sued after the sale for overstating the value of the company. He claims he was never involved with his Father's Company yet he received phone calls when money was tight that"the eagle had landed"..meaning Ed Sr.made a deposit in the Day Dream account in order to cover payroll! Chip conveniently "forgets" reality unless it works in his favor! Day Dream was set up as American Surgical Supply in order to funnel money from Blue Cross of Maryland thru his Father's company and then into Day Dream. Ed Sr. served 99 months for a dozen or so Federal charges related to Money Laundering, Bank Fraud, and Perjury. If you want more Conk background please post your interest and I'll put more up!
Day Dream Publishing's comptroller that although she did not specif-
ically remember endorsing the Big B check issued on November 15,
1989 in favor of MPS, she knew that she would not have done so
unless she had been ordered to do so; (2) evidence that Conk was a
substantial owner of Day Dream Publishing, who controlled the com-
pany directly and through his son, Chip Conk; (3) a memorandum
from Chip Conk dated October 11, 1989 to Wilkinson that lists a
$497,250 account receivable of Day Dream Publishing from Big B
with an expected receipt date of November 1, 1989 as collateral for
expected loans from MPS totaling $330,000; (4) evidence that Conk
and Wilkinson started MPS in order to financially aid their non-
30
medical businesses; (5) evidence that Conk and Wilkinson caused
their non-medical businesses to partially repay MPS for any funds
advanced to them from MPS; and (6) evidence that Conk was the
only meaningful link between Day Dream Publishing and MPS.
The Conk's are a pathetic trio of opportunists! Chris and Joellyn cling to Chip like flies on stinky shit! Please, just look at their past business dealings starting with Day Dream Publishing to present...a substantial history of law suits, highly questionable business and accounting practices, subpoenas, depositions, Federal and State Tax Audits, their Father's incarceration in Federal Prison are just a few of the Conk highlights! Yet,they all now reside in pricey Montecito, California. It's amazing how people of their character continue to thrive at other people's expense and hardship! They truly are the scum of the earth!
Two Edward Conks...yes, there are 2!
Edward M. Conk (ie:Slick Eddy the convict) is Chip's Father. Here's his not so pretty Federal conviction and FAILED appeal information! http://vlex.com/vid/18183619
Chip's name is also Edward but with R. as the middle initial. Here's some of Chip's way of doing business, enjoy!
http://www.in.gov/judiciary/opinions/previous/wpd/08290201.msm.doc
Following the sale of Day Dream, a dispute arose between Cullman and the selling shareholders of Day Dream, including Conk. In this dispute, Cullman asserted claims totaling more than the purchase price for Day Dream. Cullman brought an arbitration action in New York against the selling shareholders asserting, among other things, claims for securities fraud and breaches of written representations and warranties regarding Day Dream’s financial statements. Conk and other selling shareholders also sued Cullman in Indiana. See footnote The New York arbitration was settled as to all selling shareholders except Conk. Cullman has withdrawn all its claims against Conk for fraud and breach of representation and warranties relating to Day Dream’s financial statements. As part of these claims, Richards & O’Neil attorneys appeared pro hac vice in Indiana courts on behalf of Cullman and Day Dream. Richards & O’Neil attorneys also traveled to Indiana to review documents and interview witnesses.
Did he or didn't he know where the money came from...here's a quote right off Chip's website "As President of Day Dream, Chip not only oversaw the financing of the company and big picture vision for its future, he also directed the creative focus."....he knew!
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