Thanks HP'ers for the lead. I actually looked at both these complexes two years ago, and yes, that's why I decided to sell my loft in Tempe and start a housing bubble blog. The Vale project in Tempe was the jump-the-shark moment for Arizona I believe - a god awful eyesore in a crack den infested part Tempe, on a busy street with a gun dealer, a pet food supply store and a lot of drug dealers as neighbors. Going for about four times what they should have been I thought.
They got bought up by flippers, relisted immediately, and nobody ever moved in to some of the units. And now, the auction, and half off. I'd love to see what the original sales price and final auction price is - someone in Arizona wanna track this for us?
The same people behind The Vale also built a very similar eyesore The Duke in a rough part of Scottsdale - again, think crack dealers, blight, etc. An 8-unit complex, doesn't look like a single unit has sold, yet you can get a "closeout incentives" if you act fast! Isn't that supposed to read "Pre-builder-foreclosure special?"
Away we go.
High-end condos' low opening bids signal glut
Here's a sure sign that too many high-end condominiums are going up in metropolitan Phoenix: Units at two pricey new developments are being auctioned off, and the minimum bids are half of what the homes originally cost.
Four condos in the Optima Biltmore Tower on Phoenix's posh corner of 24th Street and Camelback Road are going on the block this month. The high-rise homes cost $949,000 last year. The opening bid for one of the condos now is $475,000.
In Tempe, three condos at the Vale development at 1111 W. University Blvd. will go to the highest bidder this month as well. The units originally cost $429,000 to $699,000. The "suggested opening bid" starts at $240,000.
A growing number of real estate market watchers say there are just too many pricey condos being built or were recently built and not enough buyers. Almost 8,000 condos and lofts are planned or under construction across the Valley now, more than what went up in the Valley in all of the past 10 years.Condo developer Reid Butler estimates that less than 20 percent of all the planned high-rise residential projects will be built.
Sheldon Good & Co. is auctioning the Camelback Road and Tempe condos on June 25 at the Arizona Biltmore Resort and Spa.
June 06, 2006
Posted by blogger at 6/06/2006