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Old 01-13-2010, 06:36 AM
 
479 posts, read 595,386 times
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Intown condo values resetting?

Tuesday, January 12, 2010, 5:42pm EST

Starwood Capital Group has foreclosed on The Brookwood, a 20-story luxury condo tower on Peachtree Street in Buckhead. Starwood foreclosed on the $109 million loan secured by the building at a
foreclosure auction Jan. 5, according to Databank Inc.
Starwood is believed to have purchased the note

for at least 35 to 40 percent of the original value of the loan, which was
originated by the failed Corus Bank of Chicago.
Atlanta Business Chronicle reporter Scott Trubey wrote last October that
Starwood Capital Group’s winning bid for the assets of Corus Bank could
create a steep drop in condo prices as the condo towers are foreclosed upon and repurchased.
The Brookwood foreclosure is evidence that a reset in condo values could be under way. The Brookwood was developed by Regent Partners LLC and Urban Realty Partners.

From Doug Sams over at Atlanta Business Chronicle. I agree with him. What do others think?
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Old 01-17-2010, 06:45 AM
 
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Default The Brookwood

Word on the street is that The Brookwood may be put into hibernation for a year or two until the inventory of Atlanta condos starts to get bought up. Starwood owns 40% of that Corus portfolio with the FDIC holding the remaining 60% and I've heard Starwood basically has a no interest loan with the Gov't. That means they don't have to be in any particular rush to sell units at a deep discount.
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Old 01-17-2010, 12:08 PM
 
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Default The brookwood

Yes, I heard that about the Brookwood too. Could be one of those rumors meant to dissuade vultures. Who knows.

Course, even so, its just one of many buildings with tons of unsolds, and that unsold inventory will still overhang the market, even if its "held back".

Also, its quite a gamble to hold onto a completed building for two years and not try and market it. Maintance, insurance, and tax costs do not go away. Not too mention that unlived in structures tend to break down, which would be a concern for any eventual new buyers. Would the new appliance warranties still hold two years later? Might the decor appear dated? Will the market have recovered by then? There is no guarantee prices will be higher two years out. Imagine, they could hold out for..... lower prices....

Any gains in overall condo prices could well be offset by their carrying expenses and the decline in value of a mothballed project. Be interesting to see what happens.
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Old 01-17-2010, 06:15 PM
 
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I agree with all you have said. Frustrating for me as I actually had a contract on one of the units before Corus tanked. Now I'm out looking at houses because I'd be very concerned about what might happen to the HOAs if they can't get to critical mass in the building. The HOA would already be about $650 a month on my unit and I could just imagine that needing to go higher. I'm sure I could write some price protection into my contract but I just can't imagine there are that many buyers in the market for these high end units. The building is great, the finished materials are superior...it would be a great place to live, but whoever is the seller is going to have an uphill battle to not spook buyers away.
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Old 01-17-2010, 07:03 PM
 
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I visited the Brookwood several times and the buildout was absolutely top notch. Everything was of the highest quality. I didnt like the fact it was a midrise, though. I want to be higher up.

Having a deal pulled would be frustrating Im sure. Certainly you recognize how fortunate it was that the deal fell through when Corus blew up. Otherwise you might really be stuck. That said, once you make your mind up its annoying when you cant make it happen.

I hear you on the HOAs. All the new buildings have high fees. That whole concept seems so "last economy". Do I really need a 24 hour concierge and valet? This isnt New York city. Then, like you say, if the developer bows out and the owners are stuck with the gap, who knows where they could go.

I also looked at some units in Vinings. That looks to be a disaster too. Vinings Main has sold one unit, I think, and are now offering only their smaller sized units and only taking all cash offers. They were turned down by the zoning committee when they applied to go rental.

I never saw the movie, but I think its name applies: "There will be blood"
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Old 01-17-2010, 07:50 PM
 
Location: Norman, OK
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^I would be shocked to hear that Vinings Main only sold one residential unit. In fact, on Craigslist, I saw someone renting out a room in their condo in Vinings Main. I doubt he/she is the only one living in that whole building. Plus, I have driven by those condos and see evidence of several units being occupied.
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Old 01-18-2010, 03:37 AM
 
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Vinings Main may indeed have sold more than just one unit. Hard to know for sure without living there. According to the Cobb County Tax Assessor's database, three units have private owners. The rest other roughly 145 units appear as owned by Vinings Main.

As few units as are occupied, someone already renting out their unit is not a good sign either.
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Old 02-26-2010, 06:52 PM
 
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Does anyone know if The Brookwood is completely vacant? Was it occupied at any time before the foreclosure?

I'm curious about buying there, if they ever get on the market.

TIA
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Old 02-26-2010, 06:56 PM
 
Location: Inman Park (Atlanta, GA)
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Quote:
Originally Posted by kingrover View Post
Does anyone know if The Brookwood is completely vacant? Was it occupied at any time before the foreclosure?

I'm curious about buying there, if they ever get on the market.

TIA
Yes The Brookwood is completely vacant. No homeowners ever closed on their unit.
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Old 02-27-2010, 09:16 AM
 
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^ George how about 3630 Peachtree, has anyone actually closed on any of the Ritz Residences?
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