I've heard two theories on the status of Pointe Blue - one positive, one not so much.
1. A major lender dropped out because it was overexposed in the current sub prime lending crisis. The developers are looking for a new lender, and shouldn't have a problem because the project is in a prime position on Lake Michigan. In this scenario, Pointe Blue is delayed, but far from dead.
2. Condo sales for Pointe Blue are slow, and the developer can't move forward until more people commit to the project. This is also related to the housing market, but suggests the project itself isn't viable - at least not at this time.
A recent J-S article reported that a quarter of the 440 units at Pointe Blue have buyers, which seems like a good start to me. But I haven't confirmed sales with the developers (who won't return calls or emails) and I'm not sure if that quarter is people who are reserving a condo, or who are actually committed to buying one.
Also, the Washington Post had an interesting article over the summer about a national cool down in the condo market. The article reported that the slow market led lenders to require more units to be pre-sold before loans are approved. During the boom market, developers could get away with pre-selling a quarter of the units; during the downturn they're being asked to sell half, according to the Post.
Pointe Blue may be seeing the same effect. Even if they've pre-sold 100 units, the lenders may want 200 or more.
If the Lender had good info he woyuld be returning emails right?
ReplyDeleteHE ALSO WOULD HAVE BOUGHT THE LAND
You know...since the Racine JT won't say anything bad, and there isn't anything good to say, we should probably start a discussion about all the rumors swirling about the project. I must hear a new rumor every week. If our discussion was really off-base, the JT could write an editorial to straighten it out (ha).
ReplyDeleteMost of the rumors that I hear are really destructive, and many of them have proven to be incorrect. You would think that Pointe Blue would want to do some rumor control. The latest rumor which I heard was that buyers were demanding their deposits back. If that rumor is not true, somebody had better be quashing it!