This Week in the Mercury
Monday, March 15, 2010
Build Out Symbol of S. Waterfront's Failure #217: Condo Auction
Posted by Sarah Mirk on Mon, Mar 15, 2010 at 1:39 PM
South Waterfront has zero units of affordable housing in part because the Portland Development Commission prioritized first investing in big projects that were supposed to create jobs and tax revenue in the district, like the John Ross condo tower.
- DAVE BOW
The Oregonian also has a interesting story on how the John Ross was the symbol of Portland's "condo craze," selling 80 percent of its units in five days in 2005. Five years later, the building is only 74 percent sold. And that's after price cuts last year helped move some units. Fifty units will head to auction in April, a closed event which requires a atendees pre-register and bring a $5,000 cashier's check. The John Ross Auction representative directed all further questions to JohnRossAuction.com, a website that does not seem to be up yet.
In closing, here is a quote from the Business Journal article: "At one point, the city projected the new district would contribute 10,000 jobs to the economy. No new building projects have been initiated in more than a year." #fail
2
Yes, because the reason they're struggling to sell the condos is clearly because SoWat is a failure and always will be, and nothing at all to do with the economy or the fact that the real estate market crashed or the fact that condos and houses in the rest of the city aren't selling either.
It could still end up being a failure in the long-term, but I doubt it. Far more likely is that it's just success delayed (and possibly reduced a bit) by the recession. This is the sort of short-term thinking that people opposing the bike plan normally come out with...
It could still end up being a failure in the long-term, but I doubt it. Far more likely is that it's just success delayed (and possibly reduced a bit) by the recession. This is the sort of short-term thinking that people opposing the bike plan normally come out with...
3
' ...economy or the fact that the real estate market crashed or the fact that condos and houses in the rest of the city aren't selling either.'
It makes no sense to try and say that artificially created government housing bubbles are the RESULT of government created housing bubbles.
It makes no sense to try and say that artificially created government housing bubbles are the RESULT of government created housing bubbles.
4
Stu's right on the money.
Of course, as all these condos were going up around the city half a decade ago, the majority of the people in my life (most of whom are architects and interior designers) were laughing their asses off as the writing on the wall pretty fucking clearly stated that there was close to zero condo market in Portland.
Our ongoing unemployment is far too low, as are our wages, to support a high-end condo market. This is not NYC or SF, and no matter how many Kalifornians move here, it never will be. (The good news with all that is that the majority of the people who move here don't want Portland to change, anyway.)
I live Downtown in a skyrise. I see all the high-end condos every night through every window in my entire place. They are DARK. Like maybe 10-25% of the units in all the buildings have lights on at all.
Abysmal failure.
Of course, as all these condos were going up around the city half a decade ago, the majority of the people in my life (most of whom are architects and interior designers) were laughing their asses off as the writing on the wall pretty fucking clearly stated that there was close to zero condo market in Portland.
Our ongoing unemployment is far too low, as are our wages, to support a high-end condo market. This is not NYC or SF, and no matter how many Kalifornians move here, it never will be. (The good news with all that is that the majority of the people who move here don't want Portland to change, anyway.)
I live Downtown in a skyrise. I see all the high-end condos every night through every window in my entire place. They are DARK. Like maybe 10-25% of the units in all the buildings have lights on at all.
Abysmal failure.
5
Gah! "our ongoing unemployment is far too low" should've read "our ongoing unemployment is far too high".
But I think you got the point. :)
But I think you got the point. :)
6
Not to mention Jack the ones on the east side now replacing old neighborhoods.
I kept asking people at the peak (2005-2006) who in the heck would buy one of these at half mil when you can get a 2-4 bedroom house down the block for the same or less?
I kept asking people at the peak (2005-2006) who in the heck would buy one of these at half mil when you can get a 2-4 bedroom house down the block for the same or less?
8
@Reymont I believe the 5,000 dollar check you have to bring to get admitted is just to show that you're serious about buying and you have enough money to get a 5,000 dollar cashier check just to get into an auction.
As for condos, well. Who wants to live in a goddamn condo?
As for condos, well. Who wants to live in a goddamn condo?
9
@ Will Radik -
I hate yard work.
I want to live Downtown. Not by it, IN it.
I want to "own" my abode (as much as anyone ever "owns" any condominium).
My wife is an interior architect and might (rather, WILL) want to make upgrades to the unit.
Thus, condos are perfect for us.
I hate yard work.
I want to live Downtown. Not by it, IN it.
I want to "own" my abode (as much as anyone ever "owns" any condominium).
My wife is an interior architect and might (rather, WILL) want to make upgrades to the unit.
Thus, condos are perfect for us.
10
Don't forget the original promise of the South Waterfront investment was a lively biotch industry cluster that was going to provide living wage jobs for up to thirty thousand people. OHSU came out and said that wasn't going to happen way before the economy tanked. The whole thing was a shell game.
11
Here's the list of all 50 condos for sale: http://media.oregonlive.com/frontporch/oth…
The cheapest studios have a minimum bid of $110,000, down from an original list price of $265,232.
The cheapest 1-bedroom has a minimum bid of $155k, down from $484k.
The cheapest penthouses are $290k, down from a list price of $1.1 million (!). That seems like a staggering discount....
The cheapest studios have a minimum bid of $110,000, down from an original list price of $265,232.
The cheapest 1-bedroom has a minimum bid of $155k, down from $484k.
The cheapest penthouses are $290k, down from a list price of $1.1 million (!). That seems like a staggering discount....
13
Reymont,
You're out of luck. Starting bids on the condos are $110,000. You're supposed to be able to check the minimum bids per condo on the website that currently doesn't exist.
You're out of luck. Starting bids on the condos are $110,000. You're supposed to be able to check the minimum bids per condo on the website that currently doesn't exist.
16
@willradik
I also hate yard work. And ants. And basements littered with clutter, etc..
Condos are nice.
In summary: CONDOS!
I also hate yard work. And ants. And basements littered with clutter, etc..
Condos are nice.
In summary: CONDOS!
17
It's not so much about "do people want condos?" as "how many people want condos?" The very existence of the Pearl answers question #1. Looks like a lot of developers made a bad bet on that second question.
18
But I don't get it. This is a dense, urban, mixed-use neighborhood with transit connections. It's an urban planner's wet dream. Yet, somehow it hasn't worked out.... Strange.
I thought that we never had to build in the suburbs again, because everyone will want to live in one of these "transit-oriented" nirvanas.
And it was going to be brimming with jobs too. How many office buildings have been built down there again? OHSU moved some offices down there, but otherwise none, huh? Really?
It's almost as if the planners who sell all these extremely expensive plans to us don't know what the hell they're talking about. Hmmm. That can't be right, can it?
Probably we just need to spend another gazillion dollars running a train through it. That will fix it!
I thought that we never had to build in the suburbs again, because everyone will want to live in one of these "transit-oriented" nirvanas.
And it was going to be brimming with jobs too. How many office buildings have been built down there again? OHSU moved some offices down there, but otherwise none, huh? Really?
It's almost as if the planners who sell all these extremely expensive plans to us don't know what the hell they're talking about. Hmmm. That can't be right, can it?
Probably we just need to spend another gazillion dollars running a train through it. That will fix it!
21
Also, I wonder just how many of the condos they built under the Fremont bridge have been sold. I can't imagine living under the bridge witth all the noise from 24 hour traffic overhead. Unless the condos are really well insulated, it has to be noisy. Oh, and I forgot the wonderful view of the Willamette that is available there.
22
I love new dense urban housing, but they ALWAYS seem to make the ground level storefronts, bike, & ped access atrocious. Has riding a bike N/S through this place is stupid. And there is absolutely nothing on the ground level that would make me want to stop. These people need to learn how to design neighborhoods before they are allowed to design condos.
23
There is one component to a proper dense urban environment that is lacking in Portland, and has been to an increasing extent for a while now: jobs that are not in Washington County.
24
If you hate yardwork, can't you hire landscaping companies who will, in-turn hire cheap illegal immigrant laborers to do it for you?
I wouldn't know. I kinda like yard work.
I wouldn't know. I kinda like yard work.
25
@ Will Radik -
I suppose you could if you were into that sorta thing, yes.
But then I still can't seem to find any bona fide houses that are actually IN Downtown (not around it).
I enjoy my walks to work every morning while the majority sit in traffic pissed-off and burning gas.
/smug
I suppose you could if you were into that sorta thing, yes.
But then I still can't seem to find any bona fide houses that are actually IN Downtown (not around it).
I enjoy my walks to work every morning while the majority sit in traffic pissed-off and burning gas.
/smug
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