Lack of sales spurs developer to lease
Download story podcast
12:16 PM PDT on Wednesday, September 1, 2010
By LESLIE BERKMAN The Press-Enterprise
After two months of marketing his 141 luxury condos with not one sale, Mark Rubin said he has given up wooing buyers to the Raincross Promenade project in downtown Riverside that cost him $40 million to build.
Although late last week the sign fronting Market Street said the homes were for sale, Rubin said the truth is they now are for lease and the sign soon would be changed.
Lots of people admired the tony project with its lush landscaping and fountains and the upscale appointments of the condos, including granite counters and stainless steel appliances, the Beverly Hills developer said.
But he said prospective buyers kept trying to beat down his prices, even after he shaved $30,000 off the initial list prices ranging from $240,000 for a one-bedroom, one-bath condominium to $475,000 for a two bedroom, 2 ½-bath townhouse.
"There were no sales," Rubin said. "Everyone wants a bargain. They read about foreclosures and think they can buy for distress prices."
Because he paid cash to develop the property, Rubin said he is under no threat of foreclosure from a bank and under no pressure to drop his prices.
He said he had promised the Riverside City Council he would attempt to sell the units but that nobody of the council had expected the condos would sell in the current economy and nothing legally prevents him from converting the project to apartments.
(more at the link...)
Poster comment: There, in a nutshell is your "Summer of Obama Recovery".
Shitter. It's all in the shitter.
