Condos "Having Trouble Attracting Buyers"
The Rocky Mountain News reports from Colorado. "Developer Keith Simon tosses out terms like 'urban,' 'edgy,' and 'high-density,' about his fledgling $200 million mixed-use community. 'Imagine if you took Larimer Square and built it here, in the heart of suburbia,' Simon said, while driving to the site, where the ground was still thawing from the latest barrage of snowstorms."
"'Commonwealth Heights will be much more urban and much more dense than we are used to seeing in the suburbs,' Simon said."
"The new 20-acre Commonwealth Heights will have energy efficient homes, all sporting fiber-optic cables from Qwest. 'We require every home in RidgeGate (and there eventually will be as many as 12,000) to be Green Built,' said Simon. He said the Qwest deal will 'future proof,' the homes technologically."
"'One thing about New Urbanism-communities as they always talk about walkability, but often there is no place to walk to,' said Kevin Puccio, project manager for New Town Builders. 'The great thing about RidgeGate, is there are a lot of place to walk to,' he said."
"Housing consultant S. Robert August said he thinks Commonwealth Heights needs neighborhood retail, such as bakeries, dry cleaning, coffee shops, a book store and specialty retail. 'Also, I know that there is a movie theater at Park Meadows, but I don't think it will be too long before they sign a deal to bring a new theater to RidgeGate,' August said."
"Simon said that he would like that, but is thinking a new theater should have an urban twist. 'We might consider a theater that shows more art films,' Simon said."
The Billings Gazette reports from Montana. "Two long-vacant commercial buildings in the heart of downtown Billings are about to be reborn as living space, adding 21 loft apartments and condominiums to the downtown housing scene."
"Despite a few setbacks, more than 100 apartments, condos and extended-stay suites have been built, with three-fourths of them occupied, purchased or spoken for. At least another 50 are on the drawing board."
"Architect Randy Hafer, who has been involved as a developer, investor or designer on many of the ventures, and he helped build two new condominium complexes. 'That's why we have to keep doing projects, because we learn something every time,' he said."
"Two of Hafer's condominium developments are having trouble attracting buyers. A project on which Hafer was the architect, a little west of the heart of downtown, did well as apartments but attracted no buyers when the attempt was made to convert the units to condos."
"Howard Sumner, a real estate agent who closely watches trends in the local housing market, said there seems to be a steady but not particularly large demand for condominiums in the downtown area. 'I have found in the Billings housing market, it can be very dangerous to be avant-garde,' he said."
"There hasn't been much activity in the condo and townhouse market in the downtown proper, he said. Sumner counted nine such sales that have closed since the start of 2005, eight pending sales and 10 still on the market as of last week. The way Sumner sees it, that means the number of condos and townhouses for sale in the downtown area represents about a two-year supply at present levels of demand."
"Every downtown project seems to have its own headaches. In terms of construction and permitting, the Oliver has probably been his smoothest project yet, Hafer said, but he's having trouble attracting commercial tenants to his basement, ground floor and second floor."
"'It's been very curious why that hasn't moved,' he said. 'I just don't know why.'"
"Attorney Tom Towe, Hafer and the other partners in the Skyline Court project still plan to build 44 of the three-story condos, but the five completed units remain vacant after more than a year on the market. Buyers now have lease options on two of the units, but one is hung up while awaiting a City Council decision on a zone change that would allow a small, home-based business in the condo."
"Realtor Susan Lovely, who has been marketing the units, said the location seems to be the main problem with Skyline Court. She said there are 'a lot of seedy-looking characters wandering around there,' and the five completed condos look out on the blank back wall of the Albertsons."
"Sumner said the allure has not been helped by the chain-link fence surrounding the neglected lot behind the condos."
"Hafer doesn't share their views. He said the problem with Skyline Court has been that he and his partners haven't been able, yet, to offer what they have advertised. 'It's designed to be inward-focused, but we don't have any 'inward' yet,' he said."
"Hafer said he's facing similar problems at SoNoMa. He built four new condominiums there and bought an adjoining apartment building that eventually will be converted to condos. But he needs to sell at least two of the new units to obtain financing to begin the conversion of the apartment building. The condos have been on the market since last summer, but none has sold."
"Jeff Kanning, with Collaborative Design Architects, wasn't sure why he has had difficulties with the five units he built at 18 Grand Ave. The urban-style condos feature five two-story units with 960 square feet, plus a 300-square-foot basement. He has managed to sell two of the units, but he got tired of waiting for the other three to sell and has begun renting them out. Two are occupied."
"Hafer said some of the objections people have to living downtown are similar to those that have kept people from trying out his SoNoMa condos on the South Side. 'Once they get there they're going to find out there's no big problem,' he said. 'But we've got to get them there.'"