The Business Journal of Milwaukee: Despite times, downtown area condos selling
Many of my readers have asked me about how I am surviving in the current real estate market. There is no doubt that the market has been extremely challenging during the past 12 months. However, despite the “doom-and-gloom” you hear about, there is plenty of good news to report – especially for the downtown condo market.
Despite the delays of a few condominium projects, three developers are happy to announce that they will have finished condominium units for downtown condo buyers in early 2009. It appears that The Breakwater, Park Lafayette, and The Edge will survive this dynamic real estate market.
The Breakwater, located near Knapp and Franklin, is a 21-story high-rise condominium developed by Renner Architects LLC. The Breakwater features 101 condominium units. By the end of October 2008, Renner has sold 68 units. Buyers will be able to move in as early as February 2009 and Renner is expected to be completing construction in June 2009. Renner’s other developments include Hansen’s Landing, Harbor Front, and The Waterfront.
Park Lafayette, located on the corner of Prospect and Lafayette, are twin, 20-story-tall high-rise condominium towers developed by Renaissant Development Group. Through October 2008, the Park Lafayette sales team secured 83 sales contracts and another 15 reservations are pending. Real estate purchasers who bought a condominium unit located on the lower ten floors will be able to move in as early as January 2009. The upper ten floors will be ready for occupancy in June 2009.
The Edge, located next to Lakefront Brewery on Commerce Street, features two, six-story-tall condominium towers. The Edge is developed by Chicago’s Tandem Development and Milwaukee’s Brewery Works Inc. Phase one of the development is nearing completion. Through October 31, The Edge’s sales team secured 48 sales contracts of the 77 total units available for the first phase.
What Does This Mean To You?
If you are a condominium purchaser, you still have plenty of options available to you. The number of newly-constructed condominium developments is down from previous years. However, you still have options. Your ability to obtain financing for a newly-constructed condominium development might also pose additional challenges. In the current financial markets, it is not uncommon to request larger down payments for a newly-constructed development. I have seen some lenders require down payments as high as 20% for a newly-constructed association.
If you are a condominium purchaser with limited funds for a down payment, then you can still find some exceptional deals with slightly older condominium units. Let’s not forget that most of the condominium units located in downtown Milwaukee are less than ten years old. Existing condominium sales will offer greater flexibility for loan programs as well as down payment requirements. In addition, interest rates are still low. Since the beginning of 2008, rates were as low as 5.75% and as high as 6.875%.
If you are a condominium seller, then this is the time to test the market. Inventory levels are shrinking as a result of delayed condominium developments. Real estate purchasers are considering all of their options – not just newly-constructed developments.
Pete Millard, writer for The Business Journal of Milwaukee, provides more details regarding The Breakwater, Park Lafayette, and The Edge. To remain fair and balanced, Millard also discusses a few other developments that have yet to break ground. Click here to read the latest news regarding the downtown condo market>>>
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