Book Cadillac's condos to come down in price.

**bailey** · July-30-09, 02:18 PM

Book Cadillac's condos to come down in price

Most units still unsold

BY JOHN GALLAGHER â€¢ FREE PRESS BUSINESS WRITER â€¢ July 30, 2009

Faced with the worst residential real estate market in decades, the developers of the Westin Book Cadillac Hotel are relaunching the sale of the condominiums atop the hotel with a new campaign and price cuts on remaining units.

Prior to the hotel's grand reopening last October, Cleveland-based developer John Ferchill had taken purchase orders on almost all of the 64 condominium units on the hotel's upper floors, including the priciest at $1 million or more.
But the collapse of the economy, which led to a nationwide credit crunch, prevented many buyers from closing on their units. Only about 12 deals closed.
To jump-start a new sales effort, Ferchill said Wednesday he is putting all the unsold units back on the market and cutting the prices 10% to 35%. A few units that had been priced at $289,900 when first offered for sale in 2006 are now listed at $199,900.
Jeff Glover, manager of agent development for Keller Williams Real Estate, the listing broker for the project, said a by-invitation-only reception will be held at the hotel this evening for potential buyers.
For more information about the sale, visit the Web site www.BookCadillacResidences .com.

Wasn't there a bet on the site about how many of the 64 would actually close? I seem to remember some folks getting pretty testy at the suggestion that the sales the builder was claiming a few years ago were exaggerated.

**Detroit500** · July-30-09, 02:26 PM

But look at how foolishly they are continuing to market this project. They tried the "invitation-only" route, and no one wanted to buy them. Now, they're trying it again and not holding a general event which might find some prospective buyers.

EastSider · July-30-09, 03:05 PM

Originally Posted by Detroit500

But look at how foolishly they are continuing to market this project. They tried the "invitation-only" route, and no one wanted to buy them. Now, they're trying it again and not holding a general event which might find some prospective buyers.

Perhaps this should be cross-posted to Crap Journalism, but John Gallagher's usually more careful than that. If you go to the BookCadillacResidences web site, you'll see this

Call 734 259 1110 today or register on-line to schedule your private tour of the most luxurious hi-rise in Detroit.

The link to register for the shin-dig on the 30th is online. It's "invitation only" but anybody can request an invitation.

**ghettopalmetto** · July-30-09, 03:08 PM

Originally Posted by bailey

[b]

Wasn't there a bet on the site about how many of the 64 would actually close? I seem to remember some folks getting pretty testy at the suggestion that the sales the builder was claiming a few years ago were exaggerated.

Said "testiness" was before the bottom fell out of the banking system in October.

**bailey** · July-30-09, 03:11 PM

regardless of the "how" of the marketing, it's fairly obvious to anyone that has opened a newspaper that there is no "market" for these right now. 12 out of 64 managed to close in three years might be another hint. Do they lose tax credits if the builder rents them out? Why take a bath [[and screw the 12 that did manage to buy them by killing the comps) right now in this market?

**Detroitnerd** · July-30-09, 03:15 PM

Jesus. What dreary attitudes. I'd hate to see you guys when Henry Ford started marketing the motorcar. You'd be the guys shouting, "Get a horse!"

EastSider · July-30-09, 03:28 PM

Originally Posted by ghettopalmetto

Said "testiness" was before the bottom fell out of the banking system in October.

But is the inability of the BookCadillac to sell these properties because of the banking system's problems or because the downtown market can not support them, regardless of the insolvency of the banking system?

**bailey** · July-30-09, 03:28 PM

Said "testiness" was before the bottom fell out of the banking system in October.

IIRC there were plenty of cancellations prior to that, which is what predicated the bet. could be wrong. cant find the thread.

**lo_to_d** · July-30-09, 04:59 PM

Originally Posted by bailey

regardless of the "how" of the marketing, it's fairly obvious to anyone that has opened a newspaper that there is no "market" for these right now. 12 out of 64 managed to close in three years might be another hint. Do they lose tax credits if the builder rents them out? Why take a bath [[and screw the 12 that did manage to buy them by killing the comps) right now in this market?

Three years??? The units have only been available for closing for nine months. That's 1.33 units a month. Not great, but I have to bet that this is better than any new subdivision around the metro area.

**lo_to_d** · July-30-09, 05:02 PM

And as for the tax credits, no they won't lose that, and they won't loose the NEZ, but by next spring, they will lose the homestead status and the property taxes will triple until someone buys it as a primary residence. I believe they will rent some of the units.

**Meddle** · July-30-09, 05:19 PM

A million bucks? Downtown Detroit? What the hell are they smoking?

$200K for the top unit and $80-$100K for the others and they'll be fine.

croweblack · July-30-09, 05:19 PM

not to toot my horn but it was I and crawford who said ferchill was full of crap

and that was before the national economy took a poop.

crawford · July-30-09, 05:50 PM

Originally Posted by Meddle

A million bucks? Downtown Detroit? What the hell are they smoking?

$200K for the top unit and $80-$100K for the others and they'll be fine.

Exactly, THIS is the correct pricing.

Until we see this sort of pricing, they can do as many "exclusive events" as they like. They are just wasting money. Even 400K for a penthouse unit is insane.

croweblack · July-30-09, 06:29 PM

Those 13 poor bastards that bought at those laughable prices.

God, I feel sorry for them [[there may even a couple of them on this board)

Now just wait till the hotel goes out of business or when Westin pulls the flag, then the prices will really fall

Imagine having paid 300K for a condo on top of the Pontchatrain!

Detroit_ExPat · July-30-09, 06:58 PM

I believe they will rent some of the units.

Give it another three years, and the lower floors will be let out to Section 8 tenants. [[Guaranteed rental income is better than nothing.)

Now just wait till the hotel goes out of business or when Westin pulls the flag, then the prices will really fall...Imagine having paid 300K for a condo on top of the Pontchatrain!

Yep. That's gonna suck hard for those unlucky 13.

**McIPor** · July-30-09, 08:25 PM

Its probably the view of the Holiday Inn, ATT and McNamara Buildings thats keeping buyers away. Tear those things down for a better view.

A $650,000, 3500sf live work unit in Bham just sold for $210,000 last week. Not much hope for the Book units no matter what they tear down for better views

**softailrider** · July-30-09, 08:42 PM

From what I understand, mortgages are very tough to get for condos these days. Way harder then for freestanding houses. Selling those remaining units is going to be difficult.

A friend of mine bought a condo in Las Vegas, at one of those highrises just off the strip. He paid just over 500000.00 about a year ago which he said was a steal. Since then the devolpers have lowered the price on his style unit by 150000.00. Nobodys falling over themselves to buy them either.

MIRepublic · July-30-09, 08:47 PM

Originally Posted by McIPor

Its probably the view of the Holiday Inn, ATT and McNamara Buildings thats keeping buyers away. Tear those things down for a better view.

A $650,000, 3500sf live work unit in Bham just sold for $210,000 last week. Not much hope for the Book units no matter what they tear down for better views

You have got to be kidding me that you think it's the views that are holding back buyers. I really hope your screenname doesn't indentify you as working for McIntosh Poris. That's be embarrassing, for them.

**Detroit500** · July-30-09, 08:48 PM

However, no one is pointing out that the taxes are $500 per year for the next 15 years. That's far less than we pay for property in White Lake, where you receive basically the same amount of public services [[that is to say, just about none). I'm sure the condo association fees must be through the roof.

Depending on what the state of the market is a couple years from now, I would love to buy one of these places around this price.

croweblack · July-30-09, 09:01 PM

Originally Posted by Detroit500

However, no one is pointing out that the taxes are $500 per year for the next 15 years. That's far less than we pay for property in White Lake, where you receive basically the same amount of public services [[that is to say, just about none). I'm sure the condo association fees must be through the roof.

Depending on what the state of the market is a couple years from now, I would love to buy one of these places around this price.

What price?

If you mean 40--60k, then maybe

If and only IF the hotel is doing well. The hotel is not doing well now and will not do well in the future

so I would stay away from purchasing anything

now renting.......

**McIPor** · July-30-09, 09:42 PM

. [quote]

Originally Posted by MIRepublic

You have got to be kidding me that you think it's the views that are holding back buyers

That is the reason being given for wanting to demolish the Lafayette Building. Look at the Holiday Inn, ATT, McNamara Fed, and Lafayette Buildings and let me know if you think I'm kidding or not

**Trumpeteer** · July-30-09, 10:08 PM

Incredible the number of real esate EXPERTS on this forum. Your attitude really shows well..as in half empty

**spiritofdetroit** · July-30-09, 10:30 PM

what is your source for the information that the hotel is failing miserably?

**Gistok** · July-30-09, 10:36 PM

Originally Posted by MIRepublic

You have got to be kidding me that you think it's the views that are holding back buyers. I really hope your screenname doesn't indentify you as working for McIntosh Poris. That's be embarrassing, for them.

MIRepublic... go to thread "Lafayette Buildings Top Two Floors Subsiding"... read pages 3 and 4 of said thread... and then come back here and you may want to "rephrase" your post....