Hig rise condos blink

Implications: Here’s an example of a conversion from an older hotel property in an OK but not great location losing its momentum. The per unit cost of the renovation will prevent a reasonable return from being realized for the current owners. The only investment hope will come after the monetization of losses in a subsequent transfer to new ownership with a new plan for a product which meets the then market, whether sale housing or not. 

Analysis: The budget expended to date will be lost, but new ownership will be in the enviable position of operating a building in good condition from the onset at a possibly bargain price. I’m struck by the design of some high rise condos underway in the Phoenix Metro area-Downtown Phoenix, Scottsdale, downtown Tempe and Tempe Town Lake alike. The buildings shimmer in the sun as they reflect the rays, which means that they cook the inhabitants of the South and West facing units. Floor to ceiling glass oriented south or west even if heavily tinted is unlivable through almost nine months of the year. There is one good example in Scottsdale of a building which offers substantial landscaped balconies and deep overhangs while turning its windowless back to the afternoon sun. That design will work for the life of the building and turn its neighborhood into a class investment act as it matures.