Sunday, February 28, 2010

2121 Belmont SE: Condo Defaults with 94% Occupancy

The glaring and growing gap between monthly rents and monthly mortgage payments in Stumptown rears its ugly head, despite 94% of the condo being occupied at some of the highest rental rates in SE Portland.

Telling quotes from the story are abundant, but this one takes the cake:

"Williams and Stehman launched the effort in 2006, when the housing market was still roaring. It was a bold move -- constructing a $30 million building with all the granite and hardwood-floor touches of the Pearl District in gritty Southeast Portland.

The units came to market in 2007 bearing price tags of $220,000 to more than $500,000. The timing was exquisitely bad. By early 2008, Stehman acknowledged that only four units had sold. Shortly thereafter, CityView converted the 123 units to apartments.

Monthly rents at the building range from $1,275 for the smallest 707-square-foot units to $2,275 for the larger corner apartments that boast 1,583 square feet."

Jeff Manning covers the story for the Oregonian.