A reader wrote in earlier this week about a sign on Aurora advertising that Carbon 56 was for rent. I interpreted that as meaning there was a small sign advertising one unit for rent but driving down Aurora this evening I saw a full billboard advertising it for rent. A sign indeed.
I’m puzzled since the Carbon 56 website doesn’t work, they still have units on the MLS, and people have bought there.
Does anyone know what is going on?
Update: edanger found this rental page on Move.com. 20 units from $1,675-$2,200. I wonder what’s happening to the people who bought there?
Popularity: 29% [?]
12 responses so far ↓
1 Eric // May 5, 2008 at 1:16 pm
Does anybody have the rental phone number? I drove by the complex and they didn’t have any number or info about renting.
2 Roger // May 5, 2008 at 2:06 pm
Not sure of what’s happening at Carbon 56 but I know they’ve been very slow to sell and I can see why as I’ve visited before. The base impression I got was that they were repainted apartments and there were a few upgrades done here and there but they’re pricing it at higher than new construction in the downtown area which made it seem like a bad value.
3 jcricket // May 5, 2008 at 2:43 pm
If true I get a teensy dose of Schadenfreude knowing this jerk I used to work with bought a place there about a year ago.
Haha.
4 edanger // May 6, 2008 at 9:35 am
Carbon 56 is indeed rentals now: http://www.move.com/apartments/listing/C708696
5 jo // May 6, 2008 at 10:05 am
???
so what happened to the people that have bought there?
this should be good.
6 jcricket // May 6, 2008 at 2:33 pm
What happens depends on the Purchase and Sale agreement. Some places have the ability for you to back out if enough of the units don’t sell, but that’s usually during the pre-sale period (this happened to some friends in DC, thank god they had that clause and got out).
Other people are simply “hosed”. They now own a unit inside a largely rental/apartment building. When they go to sell, their sale price will doubtlessly reflect a lower value (regardless of market dynamics), because who wants to pay a premium to live in an apartment building.
On the upside perhaps your condo fees/dues are lower because there’s no HOA.
7 Matt // May 6, 2008 at 2:57 pm
It looks like the building is 56 units. 37 of which have sold. This jives with the move site which says there are 20 units for rent. With 66% sold and the remainder going to rental I suspect those buyers are going to have an extremely hard time selling because it seems unlikely their buyers will be able to get financing.
Sucks to be #310 who bought on March 25th and is the only 2008 buyer.
8 UrbanAsh » Blog Archive » Carbon56-NOW LEASING?? // May 6, 2008 at 10:31 pm
[…] was the first day I noticed the Carbon56 sign on Aurora and I have to admit that I was pretty shocked! Being that there are several listings on the MLS for […]
9 andyf // May 7, 2008 at 11:30 am
what’s the frequency of something like this happening after people have closed on their units? I am closing in the next few days on a unit in trace north.
10 jo // May 7, 2008 at 5:13 pm
That blows.
I’d almost put something in my sales contract that would allow me to sell back the unit and recoup my costs if the developer pulled something like that.
If they really didn’t have any intention of converting to rental units they would agree. If not, well…buyer beware.
11 d // May 8, 2008 at 8:36 pm
I’m also closing in trace and don’t remember seeing anything in the public offering statement about units being converted to rentals…or about getting out…
12 jcricket // May 9, 2008 at 2:37 pm
Usually the only time you can get out and get your money back is before sale, especially with the “clauses” I referred to included - usually about getting deposit/earnest money back (i.e. on pre-sale condos). If those clauses aren’t in your P&S agreement, you might still be able to get out before you take possession/close, but I’d consult a RE attorney.
You’ll probably lose whatever earnest/escrow you’ve put down, but it might be nothing compared to what you’ll lose if you’re 1 of 25 purchased units in a building of 100 apartments. It’s just like walking away from any real estate transaction.
Note that I’m not saying anyone who bought in the Trace or any other as-yet-unfunished building should run (I’ve heard nothing about anything else turning into apartments), but these are unprecedented times and I’d be watching the goings on at any building I’d bought into if I were you.
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