Fifth & Poplar located in the Fourth Ward has always been a wonderful location. The interior park is peaceful, and well maintained. An apartment conversion project, it sold out during the peak of the market back in 2005 - 2006. It was not uncommon to see square foot prices as high as $385!Back then, lenders were both lending, and being creative with the types of loans available. Balloon mortgages were frequently the mortgage of choice, and many others got a mortgage and a second mortgage basically putting nothing down.
The beauty of this property was that it was chocked full of amenities, everything from a great pool, to a doggie park, to a concierge, etc. These things all cost money, and the HOA dues, based on square footage, was in the upper $300 range.
Due to maintanence issues and needing to develop a legal fund to potentially pay for legal action against the builder, the HOA fees have been increased by around $110 per unit per month! Yikes.
The recession cost many their jobs, or lead to transfers out of the city. As the market went down, the balloon payments became due, further strapping the abilty of some owners to meet their obligations. Foreclosure activity and Short Sales began to be the norm.
I have shown the building many times, and there are significant deals and values to be had there. The good news is that it is beginning to work. Since July 1, five (5) properties have sold, and another six (6) have gone under contract. The average selling price is under $200,000, and the average $ per square foot is at $200!
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