Thursday, February 14, 2008

The Business Journal of Milwaukee: Luxury condos going fast in University Club Tower - Bucking the housing trend

When I meet people on the street, many ask me about the state of real estate market. Most are surprised about my answer. I think many expect me to talk about the fragile state of the housing market and the “doom-and-gloom” you read about in the newspaper. However, my initial response is typically to ask, “What sub-market are you specifically asking about?

Most people look at the downtown condo market as a whole. However, I look at different demographics, price points, amenities, location, etc. The average price for a downtown condo is between $250,000 and $400,000. We have a lot of condos for sale in this price range. Therefore, the market is quite slow for this sub-market. Those condos priced below $250,000 and over $400,000 continue to show signs of life.

Pete Millard, writer for The Business Journal of Milwaukee, is featuring high-end, luxury condominiums in this article. The two condominium associations that are showcased in his article are University Club and Kilbourn Tower.

Despite the swift downturn in the housing market, multi-million-dollar condominiums are still selling at a brisk pace.


University Club Tower

The University Club is a 36-story luxury high-rise featuring 53 high-end units. Since the first unit sold, the developer has sold 41 units (77%). Thirty-nine of the 41 units sold just during the past year - a year that was marked by slower sales and foreclosures. The developer is in the process of negotiating offers for seven of the final 12 available units.


Kilbourn Tower

Kilbourn Tower is another luxury high-rise featuring 74 high-end units. Since the first unit sold, the developer sold 54 units (73%). Approximately one-quarter of the Kilbourn Tower condos are priced at least $1 million.



Millard interviewed several real estate professionals and asked why they felt high-end condominiums are immune to the “doom-and-gloom” of the housing market. One felt that buyers of luxury condominiums aren’t impacted by a fluctuating stock market, high interest rates, or a slowing economy. Another felt that condominium buyers who are capable of paying more than $1 million in cash aren’t affected by the highs and lows of the economy. Click here to read more about the purchasers of downtown Milwaukee luxury condominiums>>>


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