Jeff Ostrowski
Alexandra Clough
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Two City Plaza: 50 closed contracts so far, 12 have walked away
Closings have begun at the 467-unit Two City Plaza in downtown West Palm Beach, and so far more buyers are making good than making tracks.
Ed Jahn, senior project manager for Two City Plaza developer Kolter, says 50 buyers have closed and 12 have forfeited their deposits.
Two City Plaza has contracts on 424 of the tower’s 467 units, Jahn says, and closings are scheduled through January. He won’t hazard a guess about how many will close.
“Our confidence level is high, but we understand people are in a difficult financial situation,” Jahn says.
With condo values plummeting and mortgages hard to come by, Kolter has been making its sales pitch anew to buyers who have committed.
“Once we get them to the building, they’re basically resold, because it turned out great,” he says.
Kolter isn’t cutting prices, Jahn said. Units are priced at $250,000 to $2.4 million.
Two City Plaza is one of three large condo towers recently completed in downtown West Palm Beach. The others are CityPlace South Tower and City Palms.
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By Mr. Solvent
October 27, 2008 12:22 PM | Link to this
“Kolter isn’t cutting prices, Jahn said. Units are priced at $250,000 to $2.4 million.”
Apparently Kolter doesn’t want to anger the people they’ve sold to. Doing so will only prolong their pain. Even assuming they continue to close on 81% of their contracts…that still leaves 124 vacant units. Good luck with that.
By Mr. Solvent
October 27, 2008 12:45 PM | Link to this
“Kolter isn’t cutting prices, Jahn said. Units are priced at $250,000 to $2.4 million.”
Apparently Kolter doesn’t want to anger the people they’ve sold to. Doing so will only prolong their pain. Even assuming they continue to close on 81% of their contracts…that still leaves 124 vacant units. Good luck with that.
By trew97
October 27, 2008 2:07 PM | Link to this
How many units need to sell for the development to break even? At the current rate, assuming no more new sales, this place will be about 69% occupied. How will this occupancy rate affect the HOAs of the residents? At what point does the developer turn over control of the HOA to the residents?
By Jack McCabe
October 28, 2008 1:18 AM | Link to this
It should be noted that Kolter has formed a vulture/opportunity fund with partner Och Ziff, a large hedge fund from New York. Similar to the one billion dollar fund formed by Jorge Perez with Lubert Adler, a private equity group. It shouldn’t be surprising if unsold units at Two City Place are bought by Kolter’s vulture fund. Then, you’ll see the deeply discounted prices.
By bocaguy
October 28, 2008 10:57 AM | Link to this
Yeah Right, they are giving away everything else possible to get people to close