Foreclosure Auction Listings Add Arizona Condominiums

The foreclosure auction listings in Tucson, Arizona have added two condominium conversion projects after their developer defaulted on the almost $47 million loan.

In July 2007, UBS Real Estate Investment Inc. loaned almost $47 million for two condominium projects, the Williams Centre and Tierra Vida Apartments. According to the Arizona Corporation Commission records, Terry Brown is the identified manager for the conversion condominium projects.

The trustee’s sale for the foreclosed condominiums will be held on December 23. Scotia Group Management LLC Principal Rob Aronoff explained that the placement of the condominiums on foreclosure auction listings will not affect their residents, whether these people own or rent the units.

He said that the homeowners’ association of condominium residents is fully funded, with assessments fully paid. He added that the association has capital reserve that it can use for future projects.

According to industry experts, Brown initially plans to convert into condominiums the Tierra Vida Apartments. However, the weakening economy had stopped the conversion. Currently, Tierra Vida’s 200 units are 92 percent occupied.

On the other hand, the Williams Centre condominiums are occupied by owners and renters. Out of the 344 condominium units in the building, 105 were sold. The unsold 239 units are still under Brown’s name, with many of them being rented. The Scotia Group is handling the management of the condominium units and maintenance of the homeowners association.

Industry experts noted that managing the condominium conversion project is not easy because it means dealing with many people who have different needs. Compared with renters who are transient, homeowners want stability.

In 2007, the condominium market in Arizona, just like in other real estate business, experienced unprecedented growth, with 1,013 sales. But for the first seven months this year, condominium sales reached only 314. Meanwhile, condominium units in Arizona had a median sale price of $93,000 in August. The figures are way below the median sale price of homes which reached $162,575.

Industry experts explained that prices for condominiums are high because of the exorbitant costs of converting apartments into condominium units. They added that condominium conversion is a good investment move three years ago but not today.

They advise families to buy properties on foreclosure auction listings rather than rent because there are so many good deals to be had on the residential real estate market.

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