Hey Linda,

First, I think you probably mean The Encore Condominiums as opposed to Pinacle. The Encore is just now coming to completion and was built just North of The Pinnacle which was originally built and developed by Hoyt Street Properties back in 2004.

There have been lots of rumors flying around many of the new construction towers. The fact is, right now the units are for sale. No indication has been given that the units will be converted to apartments. So we should move forward with the thought that they will be condos. There are alot of factors that go into the decision of converting from condominiums to apartments...market conditions, outstanding construction loans, deliverability of units etc....

I worked with the developers of The Wyatt while those were being sold as condominiums. The developers ultimately received an offer to purchase the entire building that was viewed as being great for the real estate market in general for Porltand and The Pearl District and so they were converted to apartments. The recent article in The Portland Business Journal mentioned that the building is already about 25-30% rented. So obviously that building is fitting the need of the rental market.

There definitely a bit of inventory in The Pearl right now...but there are very few projects planned past this year...Beleive it or not, we will probably see a lack of "new product" by late 2009. That being said, we could always see some of the buildings that had converted to apartments come back on board as condominiums to fill that need.

Sp although we dont know for sure whether The Encore will convert to apartments or not, they are currently available for purchase...and it's probably a great opportunity to write an offer right now!
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This is a good questions and the answer may be hard to know.

If the sales are not sufficient or if the ownership is in difficulty than the answer is likely yes. They appear to be all done and if they were all recorded as condos they will never be apartments fomr the standpoint that from a leagl perspective condos and apartments are differnet animals. One is for rent only and with a condo they can be rented or sold.

I would say that is the Hoyt Street Properties has untis for sale and can not sell them in this economy.....which is almost a certainty... they will rent them out.

I see 19 units for sale in the Pinnacle. The Pearl has a lot of inventory and has been a bit over built and has had to compete with new units uptown as well as new units by the dozens in the South Waterfront. not to mention all the condo conversions and new units in the "Burbs".

So I think you are partially right Linda. Having said that I would not worry too much.

There is only one Pearl!! It will shine again.

Regards;

Dirk T Knudsen
Remax Metro
#1 Remax Team in Oregon
503-799-8383