AgentIndustry News

The great condo collapse

Owners advised to wait out downturn, not walk away
Published on Jun 26, 2009

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by CareyBot

In early May, Opus West Corp. filed for Chapter 11 reorganization for one of its developments. The Phoenix-based commercial developer, according to press reports, owed $160 million to a group of banks on a shopping center development in Texas. The news was of interest to a close friend of mine who lived in a condominium complex in Irvine, Calif.; his development is owned by Opus West.

When I talked to him about the bankruptcy, he didn't appear concerned. With the average condo price in his building at $1.4 million, this was a fairly upscale development and all the glorious amenities that were an inducement to move there were still intact, all services operational and there had been no additional calls for re-assessments of condo fees.

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