Castleberry Point: The Other Side of the Coin

Jon Real Estate Leave a Comment

A couple of weeks ago, I wrote about good times at Castleberry Point, a Castleberry Hill condominium development.  An art gallery opening, a writers’ workshop, free beer and more.   What the post failed to address was that these “”good times”” were not necessarily universal.  There’s a back story, one that gets at the heart of today’s real estate market.

Yesterday’s AJC published an in depth piece about the project- entitled, appropriately enough- How crash hit big downtown Atlanta development.  Quite often, I’m asked how the market is.  I have many thoughts….though as it relates to this development, please read the article linked below.  The lede cuts right to the quick:

Just before Bruce Gallman and Jerry Miller opened their $33 million-plus Castleberry Point project near downtown Atlanta in the fall of 2008, they thought they had 70 percent of the units sold.

Then the economy hit the skids.

Nearly two years later, they consider themselves lucky to have sold 60 percent of the units.

If you bought a condominium, and two years later a neighbor moves in to an identical unit at a 40% discount, the market stinks.

If you were the on that bought the heavily discounted condominium, the market rocks.

If you’re selling condominiums, and you’ve had to reduce your sales price by 40%, the market stinks.

If you’re planning on buying a condominium in a market where sellers must reduce their prices by up to 40% just to stay competitive, the market rocks.

One thing is for sure: things are no’t back to normal.  Not that we’d know exactly how to recognize normal, at this point.

Photo Credit: Castleberry Point

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