I wrote about City North, located in Desert Ridge in Phoenix, back in February when they started taking lot reservations for the condo over retail units, currently being built. At the time, demand was pretty high, and City North had over 30 of the units reserved in the first week alone. Those units spanned 2 buildings, which are slated to be complete in November, in time for the grand opening of High Street on November 13, 2008. I’ve watched as construction has continued (my family frequents the movie theatre at Desert Ridge), but since I don’t have a client that is specifically interested in the project, I had lost sight of City North a little bit.
Recently, I heard a rumor that City North was no longer planning to sell the condos, but rather was planning to turn the project into luxury rentals, which surprised me. Being a rumor, however, I had to stop in and get the scoop right from the source, so last Friday I dropped by and spoke to Trudy Hammond, Director of Sales at City North. Trudy informed me that although demand isn’t quite as high today as it was at the time of the opening, they are still selling condos that are available in the first building along High Street. She wasn’t shy, and said that while they did initially have 30 interested buyers, when the decision was made to limit sales only to the first building, some buyers fell out, partially as a result of the floor plan some buyers wanted no longer being available. Thus, there are now 15 condos scheduled to close escrow in November. The first building has approximately 30 units, so it is roughly 50% sold out.
As every good rumor often does, there was some truth to the fact that City North would have luxury rentals. The second (and larger) building along High Street will indeed be turned into luxury rentals. This build is a larger L shaped building, which has frontage along 54th Street as well as High Street. The ~60 units in this second building will all initially be luxury rentals. No pricing information is currently available regarding rental rates for the rentals. Purchase prices for the condos are thus far unchanged, starting in the $400′s, for a 1 bedroom, and moving up over $1,000,000 for the large 3 bedroom.
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Very good info. It’s a good indication of the market right now and further illustrates the complete opposite of what we experienced three years ago. Condos turned into rentals versus rentals converted into condos. Smart developers will create rental opportunities now that have floorplans that can easily be converted to condos later.
That’s exactly what we don’t need more of: rentals. The current market has seen a decline in rental rates – even in North Scottsdale area- and an increase in both economic and physical vacancies. No more inventory!
Can you re-route my current subscription from my former employer’s email address to my new one? Sorry it is unrelated to your blog but I thought it the best way to ask. You have my permission to ignore the request if you think otherwise
Eric-
Sure thing. I’ll look at the email subscriptions and see if I can find you and re-subscribe you.
Eric-
Oops, my only choices are to delete your email subscription and/or suspend it. I can’t subscribe you, nor change the email address. Accordingly, I deleted your old email address. Love to you have re-subscribe with your new address!
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