Mandel Group Announces Sellouts at Two Condominium Developments
Mandel Group announced that it has successfully completed the sellout of two downtown condominium developments, The Point on the River and Rivercrest.
Mandel Group announced that it has successfully completed the sellout of two downtown condominium developments, The Point on the River and Rivercrest. The Point consists of 147 condominium homes and was the subject of a receivership in early 2008. Mandel coordinated development, construction and sales efforts to complete the unfinished project on behalf of the receiver. Rivercrest is a 40-unit bluffside development along the Milwaukee River, at the northern end of the Beerline B neighborhood. The combined sales of both developments exceeded $65 million.
“It was a bit of a challenge selling into the market conditions we’ve had for the past few years”, commented JoAnne Marks, condominium sales manager at Mandel Group. “Buyers were able to realize some tremendous values while the market was bottoming, buying into homes that they couldn’t otherwise afford.”
Once a failed condominium development with a bleak future, The Point on the River anchors a now-bustling area just south of downtown at the confluence of the city’s rivers, a remarkable turnaround story in the context of the worst condominium market ever experienced in downtown Milwaukee. In May 2008, Mandel Group was selected by the court-appointed receiver Michael S. Polsky to devise and execute a recovery strategy for the half-completed development.
Completion of The Point on the River was funded by a consortium of banks involved with the original construction financing for the project. Many of the participating banks further provided favorable mortgage loan financing for qualified buyers. “Once an offer was written and accepted, the real work involved aligning financing, appraisal, and title insurance services. None of the closings were conventional in nature”, added Ms. Marks. Mandel provided purchase contract management services to ensure that buyers were able to match up with appropriate mortgage loan providers. “Finding financing for buyers was a bit of a ‘needle in the haystack’ effort at times.”
Rivercrest Condominiums was begun earlier in the condominium cycle but saw sales wane as the Beerline B condo market sputtered. Further complicating the sales process was the uncertainty of land uses abutting the property. “Our single greatest challenge was the uncertainty surrounding the old Melanic’s Wheelhouse property”, explained Ms. Marks. “Until its future was determined through its purchase and improvement as a public access park, people were concerned that the river frontage and views would be cut off with inappropriate development.”
Mandel Group has been developing condominiums in downtown Milwaukee since 1994, beginning with the Astor Court enclave on East Ogden Avenue. “A lot of people have bought at a very advantageous price in the current down cycle”, commented Robert B. Monnat, chief operating officer at Mandel Group. “It will be interesting to see what the recovery looks like, and how quickly values and prices return to more realistic metrics.”
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