4th Quarter Downtown Ann Arbor Condo Sales
Activity in the downtown Ann Arbor condo market has essentially remained the same when compared to the 4th quarter of 2010. Last year saw 8 condo sales and 3 rentals, versus 7 sales and 4 rentals this year. (Excluding Tower Plaza). Of the 7 sales, 2 were sold by the developer, 1 was a bank sale, and 4 were traditional sales. Of those 4, the change in value from when the sellers purchased until they sold, ranged from a loss of 5.4% for a unit purchased in 2008 to a gain of 46% for a unit purchased in 1989. For more detailed information feel free to give me a call.
A very noticeable trend has been the very high demand for rentals, and the prices that tenants are willing to pay. The 4th quarter saw the highest price ever paid for an Ann Arbor condo rental – $4,500 for a penthouse condo at Ashley Mews in Syndeco Plaza. Just in our office alone, we have a number of tenants who are willing to pay in the $4,000 – $5,000/month for a downtown condo, so the demand is very high for good rental properties.
Other exciting news is that Ashley Terrace, which had gone into foreclosure with Bank of America, was sold to Alidade Capital Fund LP for $6,000,000. The purchase included 29 unsold condos. Prior to the sale, there was some concern that whoever purchased the building would dump the unsold condos on the market resulting in depressed values. Fortunately that has not been the case. The purchasers have taken advantage of the strong downtown rental market by offering a few condos on the market at a time – at market value – and renting the balance until sold.
Currently there are 18 condos in downtown Ann Arbor for sale (43 if you include Tower Plaza), and only 2 rentals available. As we head into spring, the demand for well maintained and well priced condos will remain strong. Here at The Bouma Group, we will be keeping a close eye on the downtown condo market as it continues to recover. Be sure to subscribe to our Ann Arbor Real Estate blog to receive information as soon as it’s posted. For instant listing and sold information, visit www.condohotline.com/ann-arbor, the premier source for up to date condominium information. Should you be interested in purchasing, selling, or renting your downtown condo, contact me today at 734-761-3060 or info@bouma.com.