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New Mediterean Community Coming to Surprise

New Master Planned Community Coming to Northwest Valley

Looks like Surprise is going to get a shot at a new construction mediteraean village from Chicago based Terrapin Properties. Bellazano is set to break ground in early 2008 and will offer 444 condos on 28 acres of property near Grand Ave and Parkview Place . That puts it squarely between three golf courses by the way!
What makes Bellazano different from other Surprise communities will be the lush open spaces in and around the community. Dog parks, walking paths and colorful landscaping, along with ramadas, barbeques and fire pits will create a great a beautiful environment that will invite residents outdoors for walks, swimming or socializing. Amenities will include a 6000 sq ft clubhouse with kitchen, billiards, library, and theatre room. The floor plans (there are nine) will range from 1140-1916 sq ft. Living spaces will all be on one level and some will come with enclosed 2 car garages.
Surprise is still an outlying area so prices are always good, but retail development is on the rise with restaurants and shops moving in. Bellazano homes start in the $190’s.

Reservations are currently being taken at Bellazano and the deposits are a steal for pre-construction. Contact WeKnowUrban directly for more information on this, or other urban projects.

Phoenix High Rise and Lofts in 2007

It appears that, contrary to what the AZ Republic says, we have weathered the real estate duldrums of 2006 here in the fair city of Phoenix. All statistical indicators show that although sales volume was down compared to 2005 (volume was similar to 2003 which wasn’t a bad year) sales prices still creeped up. This was not true across the board but in general.

However, I do see trouble on the horizon for the newly built and under construction high rise condos. With as much inventory on the market, or about to hit the market, one has to expect downward pressure on prices. The key will be whether or not the investors in these new buildings (by my estimates 30-45% of the total buyers) have the staying power to rent their homes out for a couple years rather than slashing prices to get out. In general, that is what happened at Orpheum Lofts and Optima Biltmore; the investors rented out their properties on the cheap just to cover some of their monthly outlay. The expectation is that within a year or two more they will be able to sell for a profit.

I think that this strategy will work for the better buildings and might fail miserably for the others. Frankly, most investors will need help getting through the next couple years from someone who knows what the heck they are doing. The days of buying and flipping for big bucks are over; at least for now in Phoenix. Stay tuned for new tools coming to wku to help all you urban owners in 2007.

The June 7, 2006, Property World article (http://www.weknowurban.com/HighRise-Loft-News/06-07-2006_Eight_Figure_Profit_Potential.htm) about Michael Peloquin and his investment opportunities left me wondering. If his developments Metro Lofts, McKinley Lofts, Compound Lofts and City Lofts are such a wonderful opportunity to make eight figure profits, how come he hasn’t broken ground on a single one of them? Seems to me he missed the most recent Phoenix boom and is looking for someone to help him cut his losses. I hope I’m wrong and that he’ll actually build the products, but I’ll believe it when I see it.