June 06, 2006

And away we go: New Phoenix and Tempe condos being auctioned off - opening bid 50% off


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.

25 comments:

Anonymous said...

Visited it about a year ago- no residents. Wondered what was going on and why anyone would want their f*cking bedroom right on Broadway Rd.?? You would HAVE to be on crack to stand the noise 24/7. It is in the nasty northwest part of Tempe where cars are stolen daily at AZ Mills.

Anonymous said...

How about 90% off?!

Anonymous said...

70th Street and Earll? Don't make me hurl. That is a hop skip and a jump from one of the worst Mexican ghettos this sides of Nogales! They must be smokin' crack. They'd better get rid of the glass and install bars to stay alive. Woops, forgat about the flying bullets.

Your Original Prices said...

09/13/2005 MapIt! 1111 W UNIVERSITY DR # 3016 TEMPE $537,713
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 1021 TEMPE $352,068
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 1028 TEMPE $351,381
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 1017 TEMPE $350,308
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 3013 TEMPE $338,655
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 3018 TEMPE $338,616
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 3012 TEMPE $335,000
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 3008 TEMPE $326,368
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 1025 TEMPE $317,237
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 2016 TEMPE $292,162
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 1016 TEMPE $279,053
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 2010 TEMPE $277,617
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 2011 TEMPE $269,718
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 2008 TEMPE $268,617
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 1011 TEMPE $264,579
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 1009 TEMPE $264,287
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 1010 TEMPE $263,420
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 1012 TEMPE $211,800
09/13/2005 MapIt! 1111 W UNIVERSITY DR # 1013 TEMPE $211,800

zerosum said...

Let's ask that reporter (what was her name) for the Phoenix paper whether they are going to cover this. And if they are, are they going to quote the standard realtor line of BS, per their usual practice?

Anonymous said...

I drive by those everyday. Nasty looking things. I personally thought it was built for public housing. Must've been designed by an architect smoking crack. They are touted as being in downtown Tempe. They are about 1 mile and a half from downtown. You have a 50% chance of making it to downtown if you walk. You'll get mugged way before then. Plus who the fuck walks a mile an a hlaf to bullshit downtown in 115 degree heat. It's going to be long hot sweaty summer for builder, investors and sellers in general.

monarchcrest said...

I'm going to the auction cause I'm curious as to how many people show up and actually bid. I'll let you know what they go for.

Anonymous said...

Thanks, monarchcrest. I am curious about how it plays out.

David said...

Are those condos or prisons?

What ugly POS! LOL!

David
Bubble Meter Blog

Anonymous said...

Will someone bulldoze that slum, please!

Los Angeles Friends In Deed said...

What is the situation with Prescott Arizona?

Any news of bubbles out there?

borkafatty said...

for real I thought that was a penitentiary!

Mark in San Diego said...

What I can't believe is that here in San Diego, they just broke ground last week on the Saphire - yes another new luxury highrise. . .From my rented condo, I can see three construction craines just in the Little Italy section alone, and I have counted at least 12 condo buildings (most 20 stories are higher) under construction right now downtown. . .most of the built condos are half dark (see earlier stories on HP) . . .I will walk around in a few days to see who is financing all of these - I saw Comerica at a few sites - in case anyone wants to short banks!

borkafatty said...

If they already paid for the permits and engineering and such, they will loose vast ammounts of money if they dont at least get a skeleton off the ground.

Anonymous said...

If these condos are such a great deal, why must they cap the low bid at 50% off???

It would be hysterical if nobody showed up.

Anonymous said...

I have been to that condo place in tempe... meth heads all over... riding on bicycles looking for shit to steal and pawn for more drugs. lots of illegals roaming around too.... and in the SFMs right behind the condos, you can buy an SFM for 200k, with a pool and a yard. Who the fuck woudl buy this shit condos.

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Anonymous said...

Do they have retail space on the ground floor? I've never understood this development. I've never seen a person going into them. I did see a "community event shuttle van" for this develpment in Scottsdale.

Anonymous said...

I so suggest that you do a bit of research.....the starting bid may be "50%" off, but the minimum amount the sellers will take is nothing near that figure. Think eBay.....the starting bid at $1, but not because that is what you think your item is worth (or what you will accept as a sale price), but to get bidding started. It drives me crazy that reporters and bloggers will throw things around without actually getting all of the information.

And no, I'm not saying at all that I think those condos are worth what they originally paid.

Anonymous said...

Those condos in concept are very hip and uban. I once looked at them on www.azarchitecture.com to see the interiors. I was surprised at the poor workmanship. They are in a pretty harsh part of Tempe although north of University is remarkably rougher than the southern 'student ghetto'. While I agree with your blog about those condos, there are some very well-done condos down by Casey Moore's off in the Maple Ash neighborhood.

Will Daly said...

Anonymous on June 11th hit the nail on the head; everyone (especially Catherine Reagor) "will throw things around without actually getting all of the information."

I have written a couple things in response to the referenced article at http://we-know-urban.blogspot.com/
"Another Example of Journalist Real Estate Bashing" and also "The AZ Republic Over Reacts Again."

Look at comments for the actual prices according to the auction company. W

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Anonymous said...

Ok, I see that this is a realy hole. My question is what about the one at 8026 E. Del Tesoro Drive. It is listed on the same page as this upscale abandoned crack house for 1.3 mill or so. What makes it worth anywhere near that?
Roidy