Last week Dallas Morning News real estate editor Steve Brown shook the Dallas condo market world when he wrote that “Lenders may take Palomar condo tower”. He said that since last year, “Behringer Harvard has been trying  to renegotiate the debt on the Residences at Palomar condo building.” The news was that one of Behringer Harvard’s funds missed a $3 million payment in early 2011 on both the Palomar Residences and a Colorado project. What this means is that the lenders, a credit union under the control of federal regulators, could get testy and snatch the unsold units in its Residences at Palomar condominium building in Dallas.

I flew to the phone and called Adam Hignite, who is marketing the residences with Allie Beth Urban. His line was burning up with people assuming that the Palomar was going back to renting when it had in fact launched major price reductions and a sales program last July. Units have been decked out by designer Mark Godson and have been moving. Not flying off the shelves, but moving. Here’s what Adam said:

The Palomar going back to rentals? WRONG! Behringer Harvard is very focused on finding someone to pay off the entire underlying mortgage to take Texans Credit Union, which is under the control of federal regulators, out of the picture, which would be a good thing for the building. That would bring in a new developer as a partner, says Adam, and all financial issues will be wiped away at that point.

The Palomar units are still for sale, and not being converted to rentals. Over next couple months, the Allie Beth Urban team hopes to have good news to report on the new financial partner. Meantime 26 units of 39 are rented, not  46 as Steve reported, and a total of 24 are sold. That’s 33% of the building sold. Six sales have been made since spring. The one and two bedroom homes overlooking the pool are the most popular units. And pricing? In 2007 prices were just under $400 a square foot, now they are down to $210 and $230.  Texans Credit Union held the original mortgage, now the NCUA holds it under Credit Liquidity Services. Here’s more from Steve:

The Addison-based real estate firm has been negotiating since early last year with the mortgage holder on the building at Mockingbird Lane and North Central Expressway.

The project lender, which is under control of regulators, has now demanded full and immediate repayment of the entire debt.

“Conversations with the lender still continue,” said M. Jason Mattox, chief operating officer of Behringer Harvard. “We were in negotiations on a recapitalization and only learned very recently that it was not going to be acceptable.”

 

 

 

Little soiree tonight at The Palomar Residences at Mockingbird and Central/75 from 5:00 to 8:00 p.m. We will be showing off one of my favorite second home developments in La Paz, Costa Baja. And if you’ve never had a Bajatini, well, you are in for a treat!

It’s like how many days are left ’till Christmas. Only for me, an avowed House Porn addict, I count the days down to Rockitecture 2011. This is Rockitecture’s SECOND annual swanky auction on Wednesday, October 26, 6:00 to 10:00 p.m. at the cool Filter Building at White Rock Lake — that’s 2810 White Rock Lane. Tickets are a mere $75 and benefit the Dallas Center for Architecture, all those wonderful men and women who create the House Porn we drool over. How can I NOT be a big supporter? There are many cool items to be (silently) auctioned off, from a great Dr. No chair to sculpture to great restaurant certificates to DMS memberships to a five star night at The Palomar… architecture can work miracles, but you may have to contribute some to making those stars, well, explode!   Go here for details… and to buy your tickets! See you Wednesday night at Rockitecture!

If you are looking for swanky, arty art, furniture or objets, I have a great big secret for you: get ’em all, and get ’em cheapo at Rockitecture’s SECOND annual swanky auction on Wednesday, October 26, 6:00 to 10:00 p.m. at the cool Filter Building at White Rock Lake — 2810 White Rock Lane. Tickets are a mere $75 and benefit the Dallas Center for Architecture. (Can you say WRITE OFF?) So many cool items to be (silently) auctioned off, from this great chair to sculpture to great restaurant certificates to DMS memberships to a night at The Palomar… and more coming in every minute. Go here for details… and to buy your tickets!

OK, I am grabbing all the credit for this one. Stopped by the Palomar Residences tonight where marketing director Adam Hignite tells me has has closed 5 more units since we last spoke in July, and has 6 under contract, this out of 53 units left. And Allie Beth Allman agent plus Palm Springs designer extraordinaire Mark Godson has decked out two Palomar units in design splendor — on display tonight and photos forthcoming. (Get ready to have your socks knocked off!) But here’s what tickled me pink: recall how I have this crazy marketing idea that sellers ought to let buyers “try before they buy” homes or condos, particularly condos if they are coming from a home and have not lived in multi-family for years.

Just like trying on jeans to see how your butt looks in them.

Well, tonight Adam told me he has launched my idea not once but thrice: three potential buyers have spent the night in the Palomar units they fancied to try them out for the weekend.

Out of the three, two bought the units. That’s right, two sales. I want to tell you this was done without a NICKEL of print advertising, on a tight marketing budget.

Try before you buy — it works! Patent pending…