From the Commercial Property News:
Tarragon Moving Ahead on 3 Projects Totalling $590M
Despite the declining housing market, New York City-based homebuilding firm Tarragon Corp. has announced progress on three projects: a $115 million mixed-use project with townhouses, condos, and retail in East Hanover, N.J.; a $350 million mixed-use project with residences, retail, a hotel and several amenities in Ridgefield, N.J.; and a $125 million condominium project located at Wequetequock Cove in Stonington, Conn. The total value of all three projects is estimated to be $590 million. The progress includes:
At East Hanover, The Township of East Hanover recently approved Tarragon’s proposal for redeveloping a 37-acre industrial site with 200 townhouses and condominiums and 100,000 square feet of retail. The site resides in an upscale area of Morris County.
At Ridgefield, The Borough of Ridgefield has chosen Tarragon to redevelop a 44-acre corridor of underused industrial land. Plans call for 783 residences, 220,000 square feet of retail, a 150-room hotel, a waterfront boardwalk and several small parks.
At Wequetequock Cove, Tarragon has proposed a 167-unit condominium project priced from $734,000. The project includes the conversion of an historic inn to a community center and bed and breakfast with operating marina across the street.
The status report comes from Tarragon on the heels of a Wall Street Journal report that mortgage backed securities covering Tarragon’s 244-unit Monterra condo project in Bonita Springs, Fla., have been downgraded to “rating watch negative.” The securities at issue cover seven condo projects in all, six of them pursued by other developers.
U gotta be kidding?
More and more inventory…
really, really, sucks if you bought a condo or townhouse during the bubble.
SAS
yep. although the author is from florida this article i think spells out what we can expect here too.
http://www.safehaven.com/article-6109.htm
the over development will be huge in NJ.
Spelunker,
WOW!!!
“I sold three homes last week for one public builder. Each of these homes sold for 40% less than the same homes sold a year ago.”
Unchartered waters!!!
delicious no?
The FDIC report (included below for convenience) link on that page is quite a lot to pour over but worth the read time. One thing it goes over is the decreasing segment of population that can afford to do anything about buying a home and just how vested banks are in mortgages as compared to say ten years ago when only 25% of their business was in mortgages.
Now, for the truly bubbleheaded…
http://www.fdic.gov/news/conferences/2006_Economic_Outlook/whitney.html
The report indicates that 64% of the population “owns” their own home and 26% is at or near the poverty line. You know my next question; Sell???? To whom????
Really, who are the future buyers? Take a good look at people age 21-30
I suspect most are still in school full time with hefty student loans and car payments, cc debt and no savings. Sure there are those who have wealthy parents, but I think a majority are flat broke with horrible credit
That age group doesnt even have a hope of buying the fixer-upper ranch in NJ at 450K + 9K taxes. Not a hope in heck to do so. I can’t afford that at 37.
A fellow bubblehead wrote this one and i just love it. Dont know who the author is.
It’s a new paradigm, and everybody who doesn’t buy, now, will be priced out forever. Anybody who does buy will be rewarded with a lifetime of riches, as their property will continue its 30% yearly price increase.
Renters, and anybody born in a future generation, will not be able to afford a 15,000,000 starter home in 15 years. They will live in tent cities, and Hondas.
This asset bubble is different than all of the others – it will never slow down, or pop. The gains are permanent.
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