The Washington Post reports that the luxury Canyon Ranch condominium community in Bethesda, Maryland is now officially off. The announcement yesterday, informed potential buyers that the project would be reevaluated for 30 days because of a slowdown in the real estate market and rapidly increasing construction costs.
In the past six months, developers of 31 condo projects with a combined 5,700 units have abandoned their plans, according to Delta Associates, an Alexandria real estate consulting firm whose clients include Penrose. Condos are taking much longer to sell, as speculators have all but abandoned the market and buyers have become cautious.
Kevin Kelly, president of Canyon Ranch, said the deal fell apart because 'the market had changed on us." Kelly said that had the deal hit the market a year ago -- or even a year from now, when he predicts a rebound -- there wouldn't have been a problem. But the development had sold just 30 of 434 units, for $59 million. The project, which also included hotel rooms, retail space and a 90,000-square-foot wellness center, was valued at $1 billion.
In the past six months, developers of 31 condo projects with a combined 5,700 units have abandoned their plans, according to Delta Associates, an Alexandria real estate consulting firm whose clients include Penrose. Condos are taking much longer to sell, as speculators have all but abandoned the market and buyers have become cautious.
Kevin Kelly, president of Canyon Ranch, said the deal fell apart because 'the market had changed on us." Kelly said that had the deal hit the market a year ago -- or even a year from now, when he predicts a rebound -- there wouldn't have been a problem. But the development had sold just 30 of 434 units, for $59 million. The project, which also included hotel rooms, retail space and a 90,000-square-foot wellness center, was valued at $1 billion.