Even after dropping the price by half, sales at the "Promontory" condo at City Creek have hardly moved. You can go to their web site and click through the floors to see what has (and hasn't) sold. Things look like they haven't changed in months! The building is still mostly empty. Many floors seem to be on hold to be developed at some time in the future.

Maybe they should re-name it: "THE HUBRIS TOWERS"

The following is from MSN:

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"Renters live it up in luxury condos that didn't sell
Glut of unsold condos in some cities gives urban professionals a chance to enjoy new buildings with lots of amenities for less.
Posted by Teresa at MSN Real Estate on Friday, June 3, 2011 12:21 PM
A glut of unsold luxury condos is providing a great opportunity for renters, who are finding deals on new buildings with lots of amenities.

It's not bargain living, but it's a lot cheaper than buying in those buildings would have been, especially during the boom.

Is renting the new American dream?

"People are liking the fact that they don't have to commit to a mortgage and a large dollar amount to live here," MaryAnne Gilmartin, executive vice president of Forest City Ratner, the building's developer, told The Associated Press.

In Miami, the once nearly empty condo buildings constructed near the end of the housing boom are home to tenants who are enjoying waterfront views and a vibrant urban lifestyle they could never have afforded before.

Find an apartment in a luxury building
"Five years ago, you wouldn’t have kids fresh out of college living in luxury like this," Brandon Klein, 26, told Bloomberg. He shares a $2,700-a-month waterfront condo in downtown Miami with two roommates, giving them access to a 24-hour concierge, gym, spa and steam room.

In some cases, developers are turning condos they had planned to sell into rental apartments. In others, investors are taking advantage of plummeting prices and buying units to rent out.

Buyers want shorter commutes, agents say
Either way, it's a boon for tenants.


The upscale buildings and amenities appeal to urban professionals who aren't sure they want to buy into an uncertain real-estate market.

As Michelle Conlin of The Associated Press writes:

Conflicting signals about the market have only added to the allure of renting for those who might otherwise buy. Prices and interest rates are low. But lending standards are strict. Supply is abundant. But so are the forecasts that the U.S. could be in for a lost decade of sideways house prices. It's led to a resurgence in people taking advantage of the "renter's subsidy," the idea that while real-estate prices are stuck or moving lower, it's better — and cheaper — to rent premium real estate than it is to buy."

And what does "future phase" mean? Some of the apartments are sold, some vacant, some "future phase."

$2700 a month condo! Waterfront or no that's insane (to me.) In many parts of the country you could get a mini mansion for that dough.

For perspective on why these aren't selling, I highly recommend reading some of the work of the following people:

Dmitry Orlov
James Howard Kunstler
Guy McPherson
Sharon Astyk

Many thanks for the info. I'm listening to this one, now.

http://fora.tv/2009/02/13/Dmitry_Orlov_Social_Collapse_Best_Practices

A while back I read about a family who were the only occupants of a big Miami high-rise. To start with, there was no one else to pay association fees for upkeep, so things deteriorated. The developer was bankrupt.

Since theirs was the only condo with air conditioning running, the rest of the building was a steam bath.

Thieves started stripping the building and squatters moved in. And since theirs was the only place with lights on at night, the bad guys knew which apartment to rip off. Over and over.

So I can picture the fate of the occupants of the church's sparsely occupied discount luxury condos.

The association dues are used to pay for maintenance, but also a master insurance policy. When there are fewer tenants, there are fewer people among which to divide these payments. So, a $200 association fee becomes $300, then $400. People don't want to own units in a place with association dues that high, so the vacancies increase, which makes the association dues even higher. I know of 2 bedroom/bath units here in Florida with $600/month in association dues. It gets a lot higher in luxury condos. The sky's the limit.

Eventually, the Mormon church will be forced to buy back these condos, and claim that they are all sold out to drive up demand. That's what happened with a very similar project here in Tampa called the Channelside Towers. Supposedly they're mostly sold now, but drive by the towers at night and you will hardly see any lights on. I suspect that's what will happen with the Mormon condos. They will probably sell eventually, but not at a profit by any means for the Mormon church as there will be a long death march of big payments for them.



Edited 1 time(s). Last edit at 06/04/2011 01:23PM by Makurosu.

Where was the decernment??? Didn't they pray about it first?? Didn't they ask for spitural gudance first?? Maybe they can use it to put up the homeless and people displaced by the housing dumper.

Maybe the church can give faithful, tithe-paying members who lost their homes in the recession a place where they can live, gratis.

Oh right, the church is too cheap to do that.

My best guess is that they will auction off a portion of the units. A developer did that with some unsold condos in my locale, and it worked well.

My wife and I have always thought the Avenues would be a nice part of SLC in which to live. Perhaps a 20th floor luxury flat facing east would be nice. I wonder if they have any rules about cabinet shops in the extra bedrooms?

CASH.