More MBB Surprises

Posted by Dave Fratello on Wednesday, April 8th, 2009 at 5:42am.

Not quite 2 weeks ago, they posted a new escrow at 1110 John, the biggest of the 3 brand new, ultra-modern townhomes right on MBB.

(Click for pics & details via Redfin; also, see "A Surprising Development on MBB" for our first look at the offerings.)

That deal – the first for the group – is off.

And here's a shocker: The price, after return to market, is a huge jump down. It's now priced lower than the start price on the smallest unit from just 9 weeks ago. All 3 units are down substantially.

1110 John (3br/2ba, 2475 sq. ft.) began at $1.793m, chopped to $1.525m at the time a deal was made, and returned Tuesday at $1.250m, a total chop of $543k (-30%) in about 9 weeks.

You might imagine that the deal they made was near that $1.25m price – the first indication of what the market really is for nice, new condos on a busy street that are fairly isolated from walkable services. If so, they're using the information they have to try to draw in another buyer at the right price.

The other 2 TH's are down big-time, also:
  • 1106 John is the smallest at 2br/2ba, 1550 sq. ft. Started at $1.299m, but is now at $989k (-$310k/-24%).
  • 1108 John, the middle child, is slightly larger than 1106, at 2br/2ba, 1800 sq. ft. It began at $1.450m, and has chopped to $1.050m (-$400k/-28%).
These MBB condos are among the wackier projects pursued at the peak of the local RE bubble, and therefore an irresistible subject here at MBC, even though THs are mostly off our beat.

You don't often see sellers concede that they were off by 25-30% within a couple of months. Spec homes may linger for a year or more at the price point that penciled out back when the project was green-lighted, even though it's no longer realistic.

So credit the group that developed these modern condos with this much – they're trying to find the right price in this tough market, and quickly.

The commercial space and the housing units all are offered for rent, too, so they may take whatever they can get. Wouldn't you?
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