Buyers reluctant to play pioneer
The Encore - The less-pricey building on the tip of the Pearl has sold just 12 units
Sunday, April 06, 2008
The Oregonian
"They're not as decisive as they once were." Tiffany Sweitzer Pearl District condo developer
Developer Tiffany Sweitzer, one of the Pearl District's most prolific developers, has two condo buildings within a few blocks of each other that symbolize the rise and fall of Portland's condo craze -- the Metropolitan and the Encore.
At Northwest 10th Avenue and Lovejoy Street, the modern Metropolitan rises 19 stories, wrapped in glass, concrete and cream travertine. The building, one of the city's priciest, hit the sales market in 2005 when condos were the rage. Three-bedroom penthouses with towering views fetched $3 million.
Sweitzer, president of Hoyt Street Properties, ran a lottery to sort through the potential buyers. About 500 people entered to make deposits on the building's 136 condos.
Construction finished last fall, and the buyers had to close their purchases. But 70 backed out. Some couldn't get a mortgage. Some just weren't interested any longer. Some got new jobs.
Sweitzer and her staff managed to make up a lot of those losses, selling 35 condos in the past six months. The building is about 80 percent sold.
Then there's the Encore, just three blocks north on 10th and Northwest Overton Street. The curved, 16-story building rises next to land that will become the Pearl's largest park. The sales prices are a bit more moderate than the Metropolitan but still pricey.
Sweitzer opened sales for the 177 condos early in 2007 and the building is scheduled to finish late this year.
The tally so far: just 12 sales.
The unsteady economy, tightened lending and a glut of condos aren't helping. But the Encore is a tougher sell because it sits on the Pearl's northern edge and next to railroad tracks, leaving Sweitzer and her staff to sell buyers on a life as temporary urban pioneers until the neighborhood fills out.
Sweitzer says today's buyers are different. They're less willing to buy a concept without a condo to inspect.
"They're not as decisive as they once were," she said. -- Ryan Frank
http://www.oregonlive.com/business/o...540.xml&coll=7