Home Buying in 19103>Question Details

lmkt1, Home Buyer in Philadelphia, PA

The developers of 10 Rittenhouse square(`19103) are in bankruptsy. Is this a buyer nightmare or opportunity? Should we bother to look?

Asked by lmkt1, Philadelphia, PA Fri Oct 28, 2011

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10 Rittenhouse is possibly the best new construction property on Rittenhouse Square. When the dust settles the building will still be located at 18th and Walnut and in 10 years you'l be happy you bought the property.

For more info visit http://www.CenterCityTeam.com/

Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106
215.521.1623 Direct
610.636.4364 Cellular
888.308.1148 Fax
Frank@CenterCityTeam.com
0 votes Thank Flag Link Mon Oct 22, 2012
There are many great buildings, including "10"..."10" is not at fire sale prices and is turning down offers. it is however selling for under the original asking prices. so don't go expecting to steal something.

Developers like Symphony House, Western Union Building and Aria are all nearly sold out. in all these the developers have become more begotiable, each to a different degree. take a look at everything and decide what is a good buy for you.
0 votes Thank Flag Link Sat Nov 19, 2011
IMKT,

Cogent question.

This project is in receivership and the bank has retained Carl Dranoff to manage the transition of ownership. Mr. Dranoff is a highly skilled and successful Center City and Univ City developer with the agility to successfully step through the financing to save the project from troubled waters.

Essentially this boils down to purchasing leverage for buyers up to at lease 50% of building owner occupancy for several very good reasons.

1/ The building needs to generate sufficient funds to pay for operating costs, normally this occurs in the form of condo fees. So they need to quickly fill it up with live residents.

2/ New Fannie Mae condo rules requires 50% sold before they will insure a 'conventional' loan. This means that all transactions will be 'non-conforming' loans underwritten by a local bank ... and NOT branded lenders like Wells Fargo or Bank of America. So the develop must work with buyers on acquisition price nearly for a considerable time period.

The non-conforming loans will be a slightly higher rate than otherwise and the buyer will be required to put down at least 20% of the purchase price. After 50% of the units are sold to owner-occupants (not investor types), Fannie-Mae will start writing 'conforming' loans and branded lenders will become available to write loans for purchasing individual condominium units.

Underneath all of the building activity and turnover, the buyer should be aware that because of its size, the building, especially in the existing economy, will require perhaps 10 years to shake out.

The owner should purchase with the idea of a 10 year occupancy plan with the intention that it is 'housing' that will serve their urban lifestyle very nicely.

Charles Balducci,
d. 215.531.2000
charlesbalducci@me.com

Coldwell Banker Preferred (Avenue Arts)
1401 Walnut St Eighth Floor
0 votes Thank Flag Link Fri Oct 28, 2011
Good morning, I am a Broker with Kurfiss Sotheby's International Realty on Rittenhouse Square, so am EXPERT at discussing this building. I would be happy to meet in person and discuss the pros and cons of this opportunity. I will prepare a folder of information for your review.

Please let me know if I can buy you a cup of coffee sometime soon.

R. Eric Axelson, Associate Broker
Kurfiss Sotheby's International Realty
856.617.1212 mobile
axelson@kurfiss.com
Web Reference: http://kurfiss.com
0 votes Thank Flag Link Fri Oct 28, 2011
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