High-end condominiums along Tempe Town Lake have sold in a bulk sale at at about 40% of their peak market value. The remaining 64 unsold condominiums in Bridgeview at Hayden Ferry Lakeside were sold to a Denver-based investment firm for $20.3 million - an average of $317,000 per unit. Prices in the complex at the peak of the market were over $800,000 for a typical condo. According to the assessor's office, the first sales in the complex were in February of 2008 (already a very distressed time) and the last recorded sale was in December of 2008.
Bridgeview was the second residential condo tower in the Hayden Ferry Lakeside project being developed by SunCor. The first was Edgewater, and sold out back in 2006 and 2007. SunCor had already successfully completed several officer towers in the complex.
I wrote back in July that there seems to be an uptick in distressed bulk residential condo sales in the Phoenix metro area. The earlier deals I was seeing were concentrated in condo conversion projects that have been discounted enough that they can be bought and turned back into cash-flowing rentals until the market improves. This sale is evidence that even the higher-end developers are getting realistic about the problems in the condo market and are giving significant discounts to unload their inventory. This is painful for individuals who bought prior to these large discounts, but the hope is that it will set a floor for comps in the complex and that future sales by the new bulk owner to individuals will be at prices significantly higher than that floor.
Expect to see other higher-end condo properties in Phoenix metro trade hands in distressed deals during the next six months - either from the developer getting rid of them, or the lenders foreclosing and then selling in bulk to a third party.
Bridgeview was the second residential condo tower in the Hayden Ferry Lakeside project being developed by SunCor. The first was Edgewater, and sold out back in 2006 and 2007. SunCor had already successfully completed several officer towers in the complex.
I wrote back in July that there seems to be an uptick in distressed bulk residential condo sales in the Phoenix metro area. The earlier deals I was seeing were concentrated in condo conversion projects that have been discounted enough that they can be bought and turned back into cash-flowing rentals until the market improves. This sale is evidence that even the higher-end developers are getting realistic about the problems in the condo market and are giving significant discounts to unload their inventory. This is painful for individuals who bought prior to these large discounts, but the hope is that it will set a floor for comps in the complex and that future sales by the new bulk owner to individuals will be at prices significantly higher than that floor.
Expect to see other higher-end condo properties in Phoenix metro trade hands in distressed deals during the next six months - either from the developer getting rid of them, or the lenders foreclosing and then selling in bulk to a third party.
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