Downtown Journal Picks Up 607 Washington Lofts Story

by Alex Stenback on May 14, 2007

Front and center over at the Downtown Journal (which, by the way, has a GREAT new look/website) is a story we first reported on here: The apparent debacle at 607 Washington Lofts:

The cause of the foreclosure spike at 607 Washington is something of a
mystery, but real estate documents indicate that three condo owners are
behind nine of the foreclosures, with more than one foreclosure in some
condos due to multiple creditors. Several units in the building
remained on the market for two years and sold in the summer of 2005 at
hundreds of thousands of dollars more than the original list price, a
trend that seemed odd

Also in the article, a nice little hat tip from the author, Michelle Bruch:

Speculation about the building’s foreclosures first surfaced on the
blog Behind the Mortgage in February, in a post written by mortgage
banker Alex Stenback with data analysis by Downtown real estate agent
Michael Roess.

A Flurry of Foreclosures [downtownJournal.com]

{ 5 comments… read them below or add one }

Nathan May 14, 2007 at 4:30 pm

I’ve been following these listings in the MLS since your first post on the topic, I’m glad to see more details emerge in this story. I’m curious how this activity can’t be viewed with extreme concern.

With half the units in the building foreclosed on, the association must be seriously underfunded. I can’t expect that will improve until they’ve managed to resell most of these properties, which based on the current sales rate of DT condos may take some time.

As someone looking for a DT condo, I would have to way the very real probability that association fees will sky-rocket versus the current prices on the units. I expect these will have to get offered at a very aggressive price in comparison to other DT condos in order to sell. Though they did manage to sell them the first time for hundreds of thousands more than they were listed for, so maybe they will find more individuals with deep pockets.

Brian May 15, 2007 at 5:29 pm

MSP posted a piece on the sagging condo market today, too. Seems a little more optimistic, though:

http://www.mspmag.com/homes/features/acoolingcraze/default.asp

Chuck May 16, 2007 at 6:50 am

“three condo owners are behind nine of the foreclosures, with more than one foreclosure in some condos due to multiple creditors.”

Any info on the mortgage brokers/lenders involved?

Watch the unraveling of this mess here :

http://ml-implode.com/

Editor May 16, 2007 at 6:51 am

The MSP article is probably the best we’ve seen yet on the downtown Minneapolis condo market.

607 Washington seems to be an isolated problem with a single project, though there are probably more units and projects in and around downtown where some similar shenanigans have taken place.

concerned May 29, 2007 at 10:22 pm

The owner stated in the article that he gave seller’s contributions for improvements to the units that sold for much more than the original asking price.
I saw these units finished. Many of them had high end appliances, hardwood floors and expensive fixtures and tile. The units did not need to be upgraded.
What really went on at 607 Washington??

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