It has become abundantly clear that our first poster child Maxwell Place locked in abstractly high pricing due to the timing of its construction and closing dates. The result is a (barely) half-constructed development and its associated amenities.
The accelerating credit crisis and employment fears will have an even greater impact on a loftier bubble atop the W Hoboken Hotel. The portion attributed to private residences are beginning to emerge on listings as resellers contemplate their odds of remaining above water during the oncoming onslaught.
The marketing of these units has been kept very opaque so as not to drive any present contracts into contemplating walkaway strategies. But the writing is on the wall. And walkaway strategies are beginning to break traditional bounds.
As closings come due, the percentage of unsigned obligations will put a strain on what is one of the riskier RE projects in Hoboken history. How the developers, their partners and associated financiers handle these circumstances will prove to be a valuable lesson in marketing and crisis management. This site will track and reveal the same level of cost analysis already revealed in the MP situation.
Stay tuned... after all, it's a matter of cost - per square foot that is!
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2 comments:
You should gear your blog to posts related to verifiable information, not gossip. Here's something:
http://blogs.wsj.com/developments/2009/03/17/hard-times-for-hovnanians-jersey-city-condo/
According to Real Estate Alert, the iconic Union Square W Hotel may just be it. The hotel, which was acquired by Dubai's troubled sovereign wealth fund, Istithmar, for $285 million in 2006 (one of the few acquisitions of a hotel at a price of more than $1 million per room) has been bleeding cash lately after room rates have declined by 24%. The result has been an inability for the owner to even meet debt service obligations: a sure sign the current balance sheet is doomed, with an outright default just a matter of time.
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