Monarch Flips Back to Apartment Complex

Eric Bramlett
November 14, 2007

The Monarch, which started out initially as an apartment highrise & flipped to condo sales, has flipped back to its original conception as an apartment community. The project looks to be about 80% complete, and the word through the grapevine is that its investors set an end of October goal of 80% sold in order to move forward with the project as a condo sale.

There’s been a ton of speculation about the downtown Austin condo market. I’m a little leery of it – especially with the recent shifts in the mortgage market. Most of the projects are very close to sold out in pre-construction. However, I think that a large percentage of the buyers downtown are in the volatile “alt-A” category & will be very curious to see how many of the contracts convert.

Regardless, I think the Monarch’s conversion back to a rental apartment community is a good shift for downtown. It adds much needed lease units, and takes a nice chunk of sale inventory out of the market – which will help prop up the prices.

The Monarch

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James Boyer
November 21, 2007

From what is happening with condos in lots of other real estate marketplaces it seems like a good move. I would not want to be owning a major condo project at this time.

Sam Chapman
November 22, 2007

I’m glad to see your story and comment about being leary about the downtown condo market. I’ve been a bit concerned even before the lending meltdown hit. Seeing the Monarch go back I think is a good thing.

Eric Bramlett
November 22, 2007

What’s going on downtown is really cool…which is why I think a lot of buyers are throwing caution to the wind. Entry level 1200s.f. units (new construction) are in the $500k range & units half that size are starting in the $300′s. I just can’t see how these prices can appreciate, or at the worst – continue to stay this high.

The only plus side is the # of units being purchased as second homes – a big percentage are. That will help out the pricing.

Mike Taylor
November 23, 2007

I think you are right to be leery about the downtown condos. I know in other parts of the country many of these buyers bought at pre-construction prices thinking they could flip the thing the day they closed and make a 100% profit. I wonder how many of these will cancel.
Downtown living is really cool and a great solution to urban sprawl, I just wonder how many of these people are “real buyers”.

EstatesDubai
November 26, 2007

This is always an interesting process to watch in any downtown community. Pricing fluctuates as it is in some areas, a switch like this can likely impact a whole area.

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