August 20, 2008
UPDATE: According to a report in the Phoenix Business Journal, the Centerpoint Condos development may be close to finishing a deal with a lender to fund the remaining $75M to complete the project. Not all too surprising, the money looks like it will be "funneled" through Mortgages Ltd after all. Just a little speculation on our part, but our guess is that the new money is coming from an investor or a group of investors who were involved in the original loan of $132M from Mortgages Ltd to the Centerpoint Condos and this will insure that the investors will not be required to take a second position to the new financing. No facts there, just speculating.
What remains to be seen is how the developer plans to sell these new condos at the same prices as before. The construction loan may finally give the developer what they need to finish the development, but then what? With the real estate market slowdown, we estimate that Centerpoint may still need to perform an appropriate downward price adjustment.
If the Phx Business article is true, this will be very good news for downtown Tempe city council and the residents already living in the area. With the recent plans to put on "hold" the Whole Foods Market in the Mosaic development, downtown Tempe needs to see the "Aroma Cafe & Market", which is planned for the plaza level of the Centerpoint Condominiums, open up for business. This would be good for everyone involved!
