Talk to Phoenix high rise developers trying to hawk their goods and they’ll tell you their prices make all the sense in the world. If so, how come no one’s buying? Sure the market is slow and its harder to get loans today but some people are buying but not at the brand new condominiums in midtown and downtown Phoenix. Sounds like a price issue doesn’t it?
Because high rise living is so relatively new to Phoenix one way to get a perspective on values is to look at what’s going on in other markets.
The San Diego high rise boom began several years before our boom in Phoenix AND the number of condos built there dwarfs what’s happening here. Because of this San Diego MAY be a great indicator of where our market is heading.
The Legend is an A-Class building in downtown San Diego overlooking the Padres Ball Park. Prices are advertised at about $550 per foot plus discounted interest rates and 3 years of HOA fees. How much you want to bet that the $550 per foot is soft at that?
Now, I love Phoenix, but I don’t think that the average buyer would consider downtown or midtown Phoenix to be “comparable” to San Diego. So, is it reasonable that someone pay as much to live in Phoenix as San Diego? Probably not. Century Plaza recently advertised prices in the $480 to 500 per foot range. And even though Century Plaza is a really good looking building it is not comparable to The Legend and even though Century Plaza is on the Phoenix Light Rail that is not comparable to The Legend location. Gang, IF The Legend sells at $550 per foot (again IF) then there is no way that Century Plaza is worth anywhere close to that number.
But now here’s where things get really subjective. Compared to downtown San Diego what are high rise condos in midtown or downtown Phoenix worth? Ten percent less? Twenty percent less? Fifty percent less? What do you think? Should prices for a high rise condo in downtown Scottsdale be about the same as downtown San Diego? MAYBE. But wouldn’t most of you take a condo in downtown San Diego over a comparable condo in Scottsdale. I would. I believe that San Diego prices should be about double what a comparable place in midtown or downtown Phoenix and maybe as much as 50% more than the same unit in downtown Scottsdale. Thoughts?
I can’t imagine that anyone will think that Century Plaza prices make sense in this light. Fortunately prices at Century Plaza are about to come down; way down.
March 20, 2009 – 10:03 pm
Active Rain is one of the premier national real estate specific web sites sharing general information, strategies, sales data and opinions of various neighborhoods throughout the country. WeKnowUrban has been a member of the community for about 1 1/2 years but has recently begun participating in the Localism.com site that digs in and focuses exclusively on what is goin on in specific markets. Visit our page for a quick update on all things urban, high rise, and loft, throughout Phoenix, Scottsdale and Tempe.
January 27, 2008 – 6:52 pm
Another high-rise tower has recently been announced for the Phoenix Metro Area. Located adjacent to the Phoenix Art Museum near the southeast corner of Central Ave. and McDowell Rd. is the new site for two 46-story residential towers called Museum Towers.
A local development company, Southwest Development Company, bought the 1.56 acre piece of land for a mere $7 million. For all you realtors, brokers and analysts don’t get out your calculator, it ends up at slightly over $100 per square foot.
With architectural work already kicked off, the developers estimate the project costing around $250 million. The two towers, consisting of 700-800 units total, if built soon, could and will be the tallest residential buildings in Arizona. You wont see dirt move on this lot for at least 18 months, however, presales will open in a year with prices starting in the $300,000 range. It is too early to tell if this project will actually get built. We have seen numerous projects all over the valley open sales centers, show off beautiful renderings and never see a crane dig into the bedrock. As soon as we here more information we will let you know…
If you want to read the entire story, go to http://www.globest.com/news/1075_1075/phoenix/167541-1.html
January 25, 2008 – 8:19 am
There are two condominiums available in the Crystal Point High Rise at 10th Street and Osborn, Phoenix, that are NOT on the MLS yet.
The first is a fantastic two bedroom (currently set up as 1 bed with a den) two bath, 2000 sf, condo on the 15th floor of the building with fantastic views of Piestewa Peak, Camelback Mountain, and more. It’s a formal model so has many special upgrades not available in any other condominium in the building. The price? $600,000 A great deal.
A second condo, again NOT on the MLS, is a floor plan identical to my own. It’s a two bedroom two and a half bath floor plan with a huge living area and over 2300 square feet. It has gorgeous views of Phoenix Midtown and Phoenix Downtown PLUS it overlooks the Phoenix Country Club Golf Course. The price? $650,000
Now remember, the only way to learn more about these is to give us a call. No other real estate agent in town has access to either one of them. Let us know if you’d like more information or if you’d like a tour of the condos and the building. Nobody knows Crystal Point Condominiums better than we do, after all, we live here 
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November 20, 2007 – 5:42 pm
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The heavily traveled intersection at Central Avenue and McDowell Road, just north of downtown, is the latest Phoenix corner to be targeted for high-rise condominiums.
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The developers who plan to build a pair of high-rise projects near Central Avenue and McDowell Road say several factors will help their projects overcome the dim housing market.
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