Oliver McMillan Building Loft Condominiums and Apartments in Tempe

We just learned two days ago that Oliver McMillan purchased the dirt on the south side of Tempe Town Lake, at 260 E Rio Salado, Tempe, next to Bridgeview at Hayden Ferry. The 3.7 acre site was acquired for $5.85 million and is intended for 264 units with four stories of apartments, a fifth floor of luxury loft condominiums plus two levels of underground parking.

We Know Urban Realty is familiar with OM (Oliver McMillan) because of its apartment buildings in downtown San Diego, including The Lofts at 707 Tenth Avenue, The Lofts at 655 Sixth Avenue, The Lofts at 677 Thirteenth Avenue and ALOFT on Cortez Hill. OM has also begun construction of The Lofts at 688 Thirteenth Avenue in Downtown San Diego. All of these are in solid locations and are well designed, well constructed and popular. We’re excited to see OM coming to Phoenix/Tempe and we look forward to doing business with them. Stay tuned….

Condo Prices Up… But What About Urban?

The Arizona Republic wrote today that ASU’s business school recently reported that Phoenix single family home prices are up almost 30% since March 2012 and that condominium prices are up 43% over the same period.

We get a lot of calls and emails from urban fans asking whether urban condo owners are enjoying similar gains.

You might guess that we study the heck out of the current state of the urban condo market, and you’d be right!

Here’s what we’ve seen in just a few of the urban condo buildings in Phoenix and Scottsdale:

  • Optima Biltmore Towers – 2012 average up 17.37% over 2011 average. Up 5.36% year to date (YTD) in 2013
  • Optima Camelview Village – 2012 average up 19.86% over 2011 average. Up 2.23% YTD 2013.
  • Crystal Point – 2012 average up 7.08% over 2011 average
  • Residences at 2211 – 2012 average up 39.91% over 2011 average. Up 6.39% YTD 2013.
  • Esplanade Place – 2012 average up 26.83% over 2011 average.

Note – I did not include a YTD improvement for the buildings in which there is not adequate data (i.e. sales in 2013) to determine an accurate or supportable number.

As you can see there’s a pretty broad range when comparing average appreciation in our market niche. But isn’t it great to see that after years of getting pummeled, urban condo prices are rebounding?

If you’d like to learn more about what is going on in a particular building or even in a particular part of town then give us a ring or shoot us an email. We really do know urban.

 

New Chiller System for Crystal Point Condos

Crystal Point Chiller Lift-19Last Saturday and half of Sunday, four lanes of Osborn Road were completely shut down between roughly 13th Street and 7th Street so that a massive crane could lift three new chillers onto the roof of Crystal Point, the 200+ foot high rise condo building.

Crystal Point was completed in 1991/1992 and the old chiller system worked great for the 20+ years of its existence. However, as some of the photos show, the pipes were beginning to plug up and metal was leaking so it was time to replace the system. I used to wonder if it would take helicopters to lift new chillers that high. I had no idea that mobile cranes on wheels could make that lift.

One of the guys on site told me that each chiller produces 300 tons of cooling capacity. Here’s a definition of a “ton of refrigeration” but basically it’s the amount of energy needed to melt a ton of ice in 24 hours. So the three new chillers produce 900 tons. An average home a/c produces no more than 5 tons of cooling capacity!

Word is that the HOA at Crystal Point has enough cash in reserves to pay for the renovation so that no assessment will be needed.

Trivia: we heard that the cost of the crane runs about $900 –  $1,000 from the time it leaves the yard to the time it returns so the cost of the crane alone must have been somewhere in the neighborhood of $36,000. I would have guessed more.

Anyway, in addition to the one photo I posted here I posted a ton more to DropBox. Feel free to view, download or whatever.

2/2 Urban Tempe Architecture.!


Josh Carlson | We Know Urban Realty | jchomes4sale@yahoo.com | (480) 510-8755 x23
1111 W University Dr Unit 2011, Tempe, AZ
Great two bedroom/two bath split floor plan biking distance from ASU (about one mile). Contemporary Will Bruder designed
2BR/2BA Condo
$1,175/month
Bedrooms 2
Bathrooms 2 full, 0 partial
Sq Footage 1,160
Parking 2 dedicated
Pet Policy Cats, Dogs
Deposit $1,200

DESCRIPTION

Great two bedroom/two bath split floor plan biking distance from ASU (about one mile). Contemporary Will Bruder designed community with fitness center, pool, spa, underground parking, storage, and more.
see additional photos below
RENTAL FEATURES

- Air conditioning - Central heat - Walk-in closet
- Tile floor - Living room - Dishwasher
- Refrigerator - Stove/Oven - Microwave
- Washer - Dryer - Laundry area – inside
- Balcony, Deck, or Patio    


COMMUNITY FEATURES

- Garage parking - Clubhouse - Fitness center
- Swimming pool(s) - Gated property  


LEASE TERMS

Looking for 12 month minimum. Possibly willing to consider shorter term lease.
ADDITIONAL PHOTOS


Main

Kitchen

Living

Common area
Contact info:
Josh Carlson
We Know Urban Realty
jchomes4sale@yahoo.com
(480) 510-8755 x23

Posted: Feb 22, 2013, 11:49am PST

The Standard at Valley Ho – Luxury Rentals Comin’ To Scottsdale

Rendering of The StandardThe PB Bell Companies is planning a 135 unit luxury apartment project on the 4.3 acre vacant site immediately east of The Mark and catty-corner to The Valley Ho, located at the southeast corner of 68th Street and Indian School Road in downtown Scottsdale.

The project will consist of a three story building housing apartments ranging from approximately 650 to 1800 square feet built on 4.3  acres. One level of underground parking will provide roughly 80% of the total parking with the remaining 20% begin at grade level. Currently plans are for 1.6 parking spaces per unit which would work out to be more than one parking space per bedroom. So one bedroom apartments would get one parking space while two bedroom apartments would get two spaces.

Rental prices are expected to be at approximately $1.20 per square foot or approximately $1250 to 2250 depending on the size of the apartment and its location.

Total building height is expected to be 35 feet and the residences will have nine foot ceilings.

According to PB Bell, “Westroc [the owner of Valley Ho] has agreed to offer residents of The Standard at Valley Ho access to the hotel and its amenities, which includes the pool, cabanas, spa, lounge, restaurants, valet parking, room service and concierge services.”

PB Bell is hoping to begin excavation in June of 2013 but that will depend largely on City of Scottsdale processes. If construction begins in June then the hope is occupancy can begin roughly August of 2014. That may be a bit optimistic.

What I have seen looks very promising. If it turns out as nicely as the plans suggest I think it will be a very good addition to the corner and will bring vibrancy and energy to the area. Stay tuned….

Context Plan for The Standard Valley Ho in Scottsdale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Urban Tempe condo only $1200/month


Josh Carlson | We Know Urban Realty | jchomes4sale@yahoo.com | (480) 510-8755 x23
1111 W University Dr Unit 2011, Tempe, AZ
Great two bedroom/two bath split floor plan biking distance from ASU (about one mile). Contemporary Will Bruder designed
2BR/2BA Condo
$1,200/month
Bedrooms 2
Bathrooms 2 full, 0 partial
Sq Footage 1,160
Parking 2 dedicated
Pet Policy Cats, Dogs
Deposit $1,200

DESCRIPTION

Great two bedroom/two bath split floor plan biking distance from ASU (about one mile). Contemporary Will Bruder designed community with fitness center, pool, spa, underground parking, storage, and more.
see additional photos below
RENTAL FEATURES

- Air conditioning - Central heat - Walk-in closet
- Tile floor - Living room - Dishwasher
- Refrigerator - Stove/Oven - Microwave
- Washer - Dryer - Laundry area – inside
- Balcony, Deck, or Patio    


COMMUNITY FEATURES

- Garage parking - Clubhouse - Fitness center
- Swimming pool(s) - Gated property  


LEASE TERMS

Looking for 12 month minimum. Possibly willing to consider shorter term lease.
ADDITIONAL PHOTOS


Main

Kitchen

Living

Common area
Contact info:
Josh Carlson
We Know Urban Realty
jchomes4sale@yahoo.com
(480) 510-8755 x23

Posted: Feb 6, 2013, 6:46am PST

Condos Existed in Roman Empire?

I haven’t verified any claims made in the article, Father of Condominiums Lives in Utah, but I sure like the story…. especially if it’s true!

FHA APPROVED !!! Mezzo in Phoenix is the hot spot!

20120722192520476275000000-o


Joshua Carlson | (480) 695-4841
1145 E Whitton Ave Unit 1006, Phoenix, AZ
FHA APPROVED!!! Mezzo in Phoenix is a must see!
2BR/2+1BA Townhouse
offered at $245,000
Year Built 2008
Sq Footage 1,380
Bedrooms 2
Bathrooms 2 full, 1 partial
Floors 3
Parking 2 Covered spaces
Lot Size 43,560 sqft
HOA/Maint $138 per month

DESCRIPTION

FHA Approved community!!! Mezzo in Midtown Phoenix designed by Will Bruder. One of the true great mid century modern interior designs in Az. Great central Phoenix location- close to all that is the new vibrant downtown and not too far from the light rail line. Bamboo floors throughout the main living area line the dramatic angles, striking textures and colors, and eco-friendly touches like dual pane windows. European style kitchen with sleek Corian counters and nice cabinetry. All Bosch and GE Monogram appliances are included. The dining/living area extends to a private cantilevered balcony. The unique common garden creates a true neighborhood experience.
see additional photos below
PROPERTY FEATURES

- Dining room - Family room - Dishwasher
- Dryer - Garbage disposal - Microwave
- Refrigerator - Stainless steel appliances - Stove/Oven
- Washer - Balcony, Deck, or Patio - Garden
- Air conditioning - Double pane windows - Cable-ready
- High-speed internet - Gated property - Covered parking
- Hardwood floor

ADDITIONAL PHOTOS


Photo 1

Photo 2

Photo 3

Photo 4

Photo 5

Photo 6

Photo 7

Photo 8

Photo 9

Photo 10

Photo 11
Contact info:
Joshua Carlson
(480) 695-4841
For sale by agent/broker

Posted: Jan 25, 2013, 5:41am PST

Phoenix Urban Condos by the Numbers

I’m sure you have heard, probably multiple times from multiple sources, that real estate prices have been going up in the Valley.  But the data is never granular enough to know if these price gains have been enjoyed by condominium owners, let alone high rise and loft condominium owners.

I not only wanted to know if urban condos have enjoyed appreciation but I also want to know if conditions are such that developers can begin building new urban condos again.  There are a number of factors to consider to answer this second question but one of them includes the state of today’s market.

I had to dig into the numbers.

I looked at sales prices of several of the newer high rise and loft condo in and around the Biltmore and downtown Scottsdale.  I also included some “non-urban” condominiums which I believe buyers looking at brand new urban condos would also consider buying (i.e. the competition).  I pulled MLS sales data from January 1, 2007 to December 5, 2012 (I’ll update the numbers at the close of 2012).

The buildings I analyzed were Biltmore Jewel, Biltmore Lofts, Esplanade Place, Fairway Lodge at Biltmore, Optima Biltmore Towers, Portland Place,  Residences at 2211, Safari Drive, Sage, Stella and Two Biltmore Estates.  These buildings are not all comparable to each other in price, finishes or amenities but do offer a good picture of what is going on.

Appreciation from 2011 to 2012 based on MLS data:

  • Biltmore Jewel – 12.75%
  • Biltmore Lofts – 9.94%
  • Esplanade Place – inadequate data
  • Fairway Lodge – 1.33%
  • Optima Biltmore Towers – 22.35%
  • Portland Place – 12.30%
  • Residences at 2211 – 10.29%
  • Safari Drive – (.3%)
  • Sage – 6.62%
  • Stella – inadequate data
  • Two Biltmore Estates – 1.09%

Please understand that the properties that enjoyed the higher appreciation rates were heavily beaten up during the bust, meaning that prices plummeted.  Because of this there is arguably more room for immediate appreciation.

The buildings that had fewer short sales and foreclosures had less severe price depreciation and hence will most likely enjoy less immediate appreciation.

Optima Biltmore Towers were completed right as the market was peaking and suffered an enormous number of distressed sales.  Prices in 2007 averaged $419 per square foot and dropped to an average of $163 in 2011, a 61.20% drop!  As of December 5, 2012 prices averaged $199 per square foot for the year equaling a price gain of 22.35% over 2011 prices.

Residence at 2211 suffered from distressed sales too but not nearly as many as Optima Biltmore Towers.  Prices at 2211 dropped from an average of $360 per square foot in 2007 to $202 per square foot in 2011, a 38.08% drop; big but not nearly as drastic as Optima Biltmore Towers.  I’m not surprised to see the price appreciation at 2211 of 10.29% to be less severe as well.  This number may change as there are two condos currently “pending”, meaning that buyers are in the process of closing purchases.  Once these close, I suspect that we’ll see even higher appreciation than what I reported above but the final number will still be far lower than that enjoyed at Optima Biltmore Towers.

Prices appear to have “bottomed” and are in the midst of recovering.  As I stated above, we’ll know a lot more over the next couple months as some of the pending sales close.  I suspect that we will see prices continuing upward.

Should developers plan to build new urban soon?  That will depend on land costs, construction costs, labor availability, construction financing options, end user financing and so many so many other factors.  But, if prices continue to recover, then a lot of the risks associated with development begin to become more palatable.  I’ll have more data to share soon.

Condo Landlord Disclosures are Important

Lease Owner's Property Disclosure Statement

August 2011, legal counsel for the Arizona Association of Realtors created a document called the Residential Lease Owner’s Property Disclosure Statement (LOPDS for short) and recommended that rental agents encourage their clients to use it.  It is very similar to the Seller Property Disclosure Statement (SPDS) which has been widely used in the sale of real estate for years.

The LOPDS was designed to serve several purposes:

It gives the Landlord a very clear way to avoid inadvertent non-disclosure of material facts.  Even inadvertently failing to disclose certain issues may be a violation of Arizona Law.  Why go there?

It gives the Tenant a very clear means to discover any known problems with the property and helps the Tenant to make informed decisions about the property.

It helps all parties get on the same page and thus hopefully avoid problems or litigation later.

Happy Tenant / Happy Landlord

In my experience an informed tenant is much more likely to be a happy tenant.  Happy tenants tend to cost landlords less money thereby making happy landlords.

The strange thing is that even though this document was created by an unbiased third party and its use is recommended by the Arizona Association of Realtors, real estate agents have been very slow to accept it.

Some landlord agents state that the Landlord has “never lived in the property, therefor has no knowledge of the property and won’t fill out a disclosure statement.”  This is complete and absolute hog wash.

Line 9 of the LOPDS asks the Landlord: “Are you current on: mortgage, property tax and HOA fees.” Certainly the Landlord knows the answer to those questions.  And CERTAINLY the answers are important to the prospective tenant.

Line 21 asks the Landlord: “How many parking spots are available for tenants?”  Another important question to a tenant and certainly something the Landlord should know.

The form asks other questions about known structural problems, known AC or heating problems, known electrical problems and more.

Gang, if a landlord refuses to answer these questions do you really want to rent the condo?  I mean are they just being lazy or are they intentionally trying to hide something.  Either way this should be a red flag.

Landlords, if your agent discourages you from completing an LOPDS then ask yourself “why?”  Landlords have certain obligations pursuant to the Arizona Landlord and Tenant Act and other laws.  Why expose yourself to a possible law suit?  Take the ten or fifteen minutes and fill out the form.

Disclosing known issues does NOT obligate the landlord to correct the issues unless the issues render the property uninhabitable or pose a real or potential threat to a tenant’s health or safety (hiding such issues could get a landlord into real trouble down the road).

Quick Story

Here’s another reason for a landlord to complete the form to the best of his or her knowledge.

Once upon a time I represented a seller of a home.  I strongly encouraged the seller to disclose any and all known problems with the property using a SPDS (remember this is the sister form to an LOPDS).  A question in the SPDS specifically asks if there are any known problems to any doors on the property.  Turns out that a bathroom door had been severely cracked along the door knob at some point and screwed back together somewhat haphazardly.  Unfortunately the seller did not disclose this to anyone.

I never noticed the cracked door.

The buyer never noticed the cracked door.

The buyer’s inspector never noticed the cracked door.

Just before closing the buyer noticed the cracked and the buyer believed that the crack was new and insisted the owner replace the door.

The owner swore that the crack had been there all along BUT the remember the owner did not mention the issue in the SPDS.

The owner had to buy a new door.

Moral of the Story

If your response to the story above is that sales are different than rentals I would agree with you….mostly.  However, I will always stress the importance of disclosing known problems with any property.  Simply saying that you don’t know anything won’t hold up if the proverbial stuff hits the fan.

It’s better to put all your cards on the table up front.  Disclose known problems up front while the renter or buyer is excited about the property and willing to overlook little things like cracked doors.  If you try to sneak it by, or simply forget that it’s there, then you might pay a price later.  Remember….disclose, disclose, disclose.

 

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