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In Hard-Hit Market, At Least One Condo Has No Problem With Sales

In Phoenix, one of the markets that are suffering the brunt of the housing downturn, the Plaza Lofts continues to enjoy strong sales.

By Sule Aygoren Carranza | Updated on June 20, 2008

[IMGCAP(1)]PHOENIX-When determining the success of real estate projects in many places, most will say the key is “location, location, location.” That adage definitely rang true for a Plaza Lofts at Kierland Commons, a community that is doing well with sales–without lowering prices or offering concessions–in this market, one of the hardest hit by the housing downturn.

A development of Woodbine Southwest Corp., the property is situated within Kierland Commons, a 600,000-sf, 38-acre mixed-use project that features upscale specialty retailers, dining, entertainment, office and luxury residential space into an urban neighborhood, “Main Street” setting. Phase I, which opened for occupancy in 2005, consists of 30 one and two-bedroom units that sold out within 30 days. The second phase, which was recently completed, has 54 one and two-bedroom units as well as five penthouse suites on the ninth floor of the loft tower. Signature Properties is handling the marketing of the project, which was designed by Nelsen Architects.

[IMGCAP(2)]While some projects in the area have seen a fall-off in potential buyers, Plaza Lofts is seeing a lot more activity, relates Daniel Gosnell, president of Woodbine Southwest. “In terms of why we’re still pretty steady, I think it’s that we’re in a location that’s been proven,” he says of the factors that led to the project’s success. “We’ve got 84 units, which is a pretty small boutique project, in terms of numbers. For the 30 in the first phase, the resale values are still higher than what we’re selling the new tower for, so there’s some implied built-in equity to close escrow.”

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