The Wyatt | x | 15 floors | Complete

[360Rich]

Originally Posted by tworivers

Has anyone else had an experience like this?

My wife and I feel fortunate to have been first time home buyers in late 2001, rather than today.

We bought a 1450 sq ft home for $150K, with only 3% down. (We only lived there about 2 years) That home recently sold again for $289K.

[360Rich]

A bit behind the curve, wouldn't ya think?

Governor signs condo conversion bill
Portland Business Journal - 2:51 PM PDT Wednesday, August 8, 2007

Gov. Ted Kulongoski has signed a bill requiring developers to give 120 days' notice to tenants before converting their apartments into condominiums.

The bill is sponsored by state Reps. Chip Shields and Tina Kotek, both Democrats from Portland. It also adds other consumer protections, points people toward other housing resources if their unit is converted and requires that conversion-related construction work be done between 8 a.m. and 5 p.m.

The red-hot housing market has led many Portland apartment building owners to convert their property into condos. Shields said such conversions rose by 400 percent last year in Multnomah County.

Shields said there were 17 condo conversions in his North Portland district in 2006. The bill was one of his late-session priorities.

"It's a good day for low-income people and seniors looking to hold on to their place," Shields said.

Shields and Kotek hammered out several compromises with such opposition groups as multifamily Realtors and developers.

http://www.bizjournals.com/portland/...ml?jst=b_ln_hl

[jonnyz1245]

so they don't need to do anything to convert to apts. except give the earnest $ back. easy as that

[PDX City-State]

^
I think he was talking about Kulongoski's bill being way behind the curve...and it was. This should have been law three years ago.

[oregone]

Yup, three years ago would have been nice. Although, with all the displaced people in my neighborhood (because of the conversions), it has made my job as an apartment manager very easy. For every vacant apartment that rarely comes up, there are fifty twentysomethings that need a place to live.

[zilfondel]

It's disturbing how few available apartments are available in the city these days... we need to tear down more junky buildings and build up, otherwise we're going to continually lose a % of our pop to Gresham and Beaverton.

[PDX City-State]

It's disturbing how few available apartments are available in the city these days... we need to tear down more junky buildings and build up, otherwise we're going to continually lose a % of our pop to Gresham and Beaverton.

Land is cheaper in Gresham and Beaverton, and Portland isn't really losing population too much. Apartment building is the next wave in Portland--there's no question about it. There are large apartment projects in the works for downtown, Hawthorne, NW Portland and the Pearl District. It didn't make sense to build apartments a couple of years ago because vacancy rates were so high. Now, one-bedroom apartments rent easily for a thousand dollars or more in desirable neighborhoods. The 450sf shoe-box I've just moved from (which I rented for $795 11 months ago) is on Craigslist for $950.

[BrG]

I've now heard scuttlebutt independent of this forum (from someone who could know) regarding the Wyatt as well. I'd say this rumor has some legs.

Keep in mind, if there is some negotiation going on behind the scenes, for a total buyout, it can also not pan out.

Have to wait and see.

[PDX City-State]

We'll see...I've heard many rumors as well: Apartments, buyout, giving buyers the option to rent and purchase in three years at 2007 prices. Who knows what's true and what's not? I'm sure Robert Ball is on solid financial footing...it's just a tough market. What I'm really intrigued about is the Encore...it's only sold like 10 units in several months. Boora has another building in the works too, which I understand they're moving forward with. Meanwhile, there's all this Eastside infill. Unless the market improves, who is going to buy all this stuff? It's going to be interesting indeed.

[BrG]

Ball will be just fine if this goes down. He'll just make his share (perhaps a little less), that much faster.

Don't be surprised to see a few of the buildings going into the ground as condos end up as apts in the short (5-10 year term).

The tide is turning on the commercial development lending/ commercial real estate loans, as well as the family mortgage sector.

[Leo]

I'm beginning to think that these apartment conversions may not be as easy as all that. I'm sure that the details of the financing will be quite different than from a condo building, but ultimately, the new apartment building owners will still use credit secured by what investors are beginning to believe is a declining asset. You could argue that there should still be steady income from rent in markets that have tight housing markets, but so far, investors have pretty indiscriminately refused to finance loans (mortgages as well as developer financing) regardless of the details of local real estate markets. I'm not sure it will be so easy to line up financing for rentals or condos going forward.

The thing that really strikes me is the poor sales performance of the Wyatt and the Encore *before* the subprime debacle had even begun. Now Alt-A and Jumbo loans are toast, too. In the Pearl, even with $100k down, buying a condo without a Jumbo loan will limit you to <$517k, which is a pretty standard one-bedroom. I would not be surprised if people experience problems closing on condos in the next few weeks due to jumbo loans simply disappearing a day before closing.

Some people think this credit crunch is a momentary phenomenon. I don't see how that could be. I mean, I do believe that Wall St is overreacting a bit, but once they go down the current path, it will be difficult to regain confidence that some jumbo and Alt-A loans are OK. They've pretty much stopped buying anything that they couldn't sell to Fannie Mae/Freddie Mac, so they will never find out that some of the securities they are now turning down would've been OK. Since it took them almost half a decade to figure out that some kinds of subprime loans were a bad idea, I don't expect them to be any quicker in figuring out that some kinds of Alt-A/jumbo loans were actually a good idea ...

[Inkdaub]

I was tossed out of my apartment recently and could have used the extra time to prepare. Instead I came home from work one day to a thirty day no cause eviction notice. I'm still behind financially. If I had a little more time the transition would have been much easier. My friend at work told me a few days ago that his building was sold. The owner is giving the residents six months to move, though.

The rules state that a tenant with a lease must be given 180 days notice while a tenant without a lease...month to month...must be given 30 days. I hope Kulongoski's bill helps out the month to monthers. Every apartment I've lived in up here has gone month to month after the original lease expires. So it's almost like being penalized for being a long-term tenant.

Moving is expensive and if you don't make much money...like myself...it can be a serious burden.

[BrG]

Originally Posted by Inkdaub

I was tossed out of my apartment recently and could have used the extra time to prepare. Instead I came home from work one day to a thirty day no cause eviction notice. I'm still behind financially. If I had a little more time the transition would have been much easier. My friend at work told me a few days ago that his building was sold. The owner is giving the residents six months to move, though.

The rules state that a tenant with a lease must be given 180 days notice while a tenant without a lease...month to month...must be given 30 days. I hope Kulongoski's bill helps out the month to monthers. Every apartment I've lived in up here has gone month to month after the original lease expires. So it's almost like being penalized for being a long-term tenant.

Moving is expensive and if you don't make much money...like myself...it can be a serious burden.

Interesting. Your situation is basically the inverse of what is happening now. In that folks are putting deposits on condos, and getting left out in the lurch as thier projects switch to apartments.

[pdx97209]

It's confirmed. The Wyatt is canceling all condo sales and will become a rental building. The sales staff at Pearl Real Estate confirmed that this was true after buyers were spreading the word that their condo purchases at The Wyatt were canceled.

[dkealoha]

I just saw a segment on channel 8 that confirmed it as well.

[MarkDaMan]

For many reasons I wouldn't live in a Bob Ball building, and with his nasty attack on Adams this week, I have even more reason to hope for massive failures for that scumbag.

The Wyatt started before the Metropolitan and is still not finished...I don't get it.

[pdx2m2]

WOW...I"m shocked that the Wyatt is going apartments..not that this is a bad thing...just surprised. The neighborhood could use high quality rentals. Ball may not have had the staying power as Hoyt Street or Gerding to ride this slow time out.

I wish the best things for the City and the environment. I also find Bob Ball a total jerk over the latest dirty politics that appear as totally unfounded in fact and toally self serving for Bob's dream to be Mayor. He would be a jerk of a mayor...I enjoyed reading Randy Leonard's quote to Bob..." you aren't running for mayor....you aren't running for anything"

[MarkDaMan]

Wyatt in Pearl scraps condos, switches to apartments
Wednesday, September 19, 2007
The Oregonian

Portland's recent slowdown in condo sales has claimed another victim: The 15-story Wyatt in the heart of the Pearl District will switch to apartments, Bob Ball, the developer, said Tuesday.

The Wyatt becomes the second high-rise to switch to apartments in the past six months.

With sales slower than expected, Ball said he tried to entice buyers with discounted prices for condos and upgrades. But he sold 53 condos, fewer than half of what he needed by now. Move-ins were to begin in early November.

"It just wasn't there," he said of sales.

Ball designed the Wyatt to be among Portland's fanciest towers. Plan called for a brick exterior, a courtyard terrace and a lobby with slate floors and a water feature. He also planned to offer a full concierge service.

The 244 condos -- from lofts to penthouses -- were listed between $250,000 and $2.5 million, Ball said. The average price per square foot hit $500, putting the Wyatt in the Portland market's top scale.

Ball said the buyers, who put down about 3 percent to 5 percent in earnest money, will get full refunds.

The Wyatt will be finished in January. Ball said he wasn't sure when apartment leasing would begin.

In March, Opus Northwest announced the Ladd Tower in the South Park Blocks would switch from condos to apartments.

-- Ryan Frank
http://www.oregonlive.com/business/o...860.xml&coll=7

[BrG]

Originally Posted by pdx2m2

Ball may not have had the staying power as Hoyt Street or Gerding to ride this slow time out.

As I understand it, the deal had more to do with his investors (i.e: Spring Capital) looking to make some sort of profit now, rather than less later, once you subtracted the carrying costs of owning all those unsold units (and the property) until they sold.

Oh, and Ball just hung himself, politically. Bizarre descision to sully Sam Adams at this stage .

[Leo]

Originally Posted by MarkDaMan

Wyatt in Pearl scraps condos, switches to apartments
Wednesday, September 19, 2007
The Oregonian
With sales slower than expected, Ball said he tried to entice buyers with discounted prices for condos and upgrades. But he sold 53 condos, fewer than half of what he needed by now. Move-ins were to begin in early November.

Wasn't someone on this board looking at buying in the Wyatt? Care to share with us what type of discounts Ball was giving? My bet is that he didn't try too hard ...