Century Plaza Phoenix

[Progress4Phx]

Hello Forumers, as you can see this is my 1st post/thread. However, I have been reading your posts for sometime as a means to keep up to date with news related to development in Phoenix. It seems that most of you are very opinionated, intelligent and have a good knowledge base regarding this subject matter. Like most of you, I am excited about the projects taking place in the areas of Tempe, Scottsdale, Biltmore and especially the downtown/uptown central core of Phoenix. I wish this city could be further along, move at a faster pace and have projects exceed our expectations rather than fall short of them. I also wish the housing market and economy was not tanking so badly!

The main reason for me opening this thread is to get some feedback from you all on a personal conundrum I am facing. Generally, I think I am a fairly good decision maker and rarely second guess myself but in this case I am hoping that the opinions of complete strangers (you all) might give me some clarity.

3 years ago I put a deposit down on a 1 bedroom 730 sq ft unit, several floors up at Century Plaza. The base price is $236k and at this point I have a 10% down payment into the place. My close of escrow looks to be July, nearly 3.5 years after my initial deposit. I had looked at Summit, 44 Monroe as well as some other projects that never materialized but the bottom line was that they were just too expensive for my taste.

Not to get into too much detail, but my dilemma is that I am not sure this is a good investment anymore even though I like the place and plan to live there for at least a few years. Also, due to some other variables I might have to commit more money for a down payment which I really don’t want to do especially when the current market value on the property is probably lower than my contract price.

I am curious to hear your general thoughts on Century Plaza, its pricing/value as compared with other condo projects and or anything else you might have to say.

I appreciate your opinions and feedback.

[HX_Guy]

I'm not too familiar with the current prices at Century Plaza, I'm sure of the the realtors on here are more knowledgeable on that. Having said that, the $236k price you paid actually seems "low" in relative terms compared to other new building high rise downtown projects, plus the location is great with being on the light rail line. Personally, I would keep it.

[combusean]

^ It is. That's a hard price to beat. Might not be flippable immediately but if you may as well ride this crazy boom/bust with a view.

Secondly if you're getting a lender on it and the contract price is greater than market value I'm sure the appraiser will have something to say about that.

Park Central is aching for a redevelopment. I'm sure its time will come soon--and you can't get any closer to it. Sell when the time is right--not now.

[Don B.]

Breaching a bilateral contract - a promise to purchase that you signed, and walking away from a $23,600 down payment - seems kind of silly for the reasons you have stated, especially if you intend to live there for several years.

I would encourage you to honor your obligation and fulfill the bargain that you have agreed to. Unless you simply can't complete the transaction, I think the market will rebound by the time you may wish to sell.

--don

[gymratmanaz]

I agree, also Cielo isn't totally dead, just reduced to one tower. It will be a nice possible addition. You are also across from more prime land - Park Central. You never know when that might perk up more. I would stay with it. It sounds like a great price. I agree with HX_Guy!

[Progress4Phx]

Thanks guys, I appreciate your input.