Domaine Heads to Foreclosure, Veer Lowering Prices…
The Daily Journal of Commerce has the news that, Trustee’s sale is set for Intracorp condo project. That project is Domaine.
Looks like Ben has a subscription and has the full details in, Domaine development to be auctioned:
The article states a limited liability company affiliated with Intracorp is in default on a $22.51 million construction loan with KeyBank. They are also behind on a $11.6 million mezzanine loan through Residential Funding Company (RFC), plus interest and other fees. RFC is foreclosing on all its collateral for the loan.
Intracorp has been hit hard this year with dismal results of its downtown condominium strategy (Expo62, the Parc, Domaine and 1915 2nd Avenue) and, reportedly, reduced its staff.
The auction will take place at 9:30 AM at the King County Administration Building on February 6th, 2009.
Veer Lofts Price Discovery
Ben also recently blogged about a price adjustment at Veer Lofts. For example, first floor lofts started off during pre-sale in the mid-500’s and are now in the low 400’s.
Vulcan vs. Flipper
Meanwhile EconE analyzes Vulcan vs. Flipper…the final chapter? and concludes:
So what’s the moral of the story?
You can lose big flipping condos.
Even more than your original deposit.
I can only assume that these flippers wish they had just walked from their original deposits now.
From the New York Times, Rent Now, Buy Later.
If you search Craigslist there is always a few, and I’m sure, increasing number of folks offering rent-to-own. How much longer until a big development with many unsold units uses this as a way to monetize their unsold inventory?