Can't sell? Rent
Add one more to the group of would-be sellers putting their homes up for rent instead: Somerset Development Co., developer of the Station North Townhomes near Baltimore's Penn Station. Lorraine Mirabella reports today that 14 of its 32 units are unsold, and it's offering them for rent or lease-to-own:
Somerset's sale prices, which started at a range of $280,000 to $300,000 in summer 2005 and climbed in a matter of months to the high $400,000s for the largest corner units, have already been reduced. They now range from $300,000 to $450,000. [Developer James D.] Campbell said additional price cuts were not an option.
This is an interesting residential development because it's in what is often called a "transitional" neighborhood, a place with potential but also a lot of boarded-up homes. It appears that some of the buyers saw it as an investment rather than home: One of the residents estimates that just 10 or 11 of the 18 sold units are actually occupied by the owners.
On another note, click HERE to read about Sun parent Tribune Co. buying the paper's headquarters on Calvert Street -- a dozen blocks south of the Station North Townhomes -- and the printing plant in South Baltimore. Real estate experts have speculated that some of the unused building space or land could be tapped for mixed-use development.
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Comments
You know the problems go way beyond the real estate crash when NEW homes in a location like this (basically next to Penn Station) are forced to be rentals. The area directly east of these new houses is lawless. Who wants to pay $300,000 to live a block away from an area with no law and order? How can I say this? Well look what just happened to me during my jog over there the other day:
http://www.baltimoresun2.com/talk/showthread.php?t=133327
This is Baltimore! Until we address the rampant drug dealing and related threatening activities we are never going to make progress in so called "transitional areas". Anarchy does not produce transition, it only produces more anarchy.
Posted by: Adam Meister | February 1, 2008 12:13 PM
I glanced today at the Rental section of the newspaper. There are loads of units renting for 1500-2000$ a month. Who is supposed to rent at so high price??? All of these are unsold and now the owners want to cover the mortgage. However, there are loads of new rental units in Baltimore, and this market seems to be experiencing overload now....even if the professional rental companies seem to wishfully think that prices need to necessaruly go up when sales prices fall.
Posted by: Jon Backmeister | February 2, 2008 12:46 PM