If you can really purchase for that price I do not see how you could go wrong. I did a quick search and came up with five condo's in that area that are price at $40 per sq foot or less. I searched the closed transactions and nothing has recorded for under $40 per sq foot in that area.
I think it is a slam dunk if you can get an offer accepted. Please keep in mind if the property you are thinking of making the offer on is a short sale the Bank will probably not agree to accept an offer that low if there are no recorded sales close to that price.
Let me know if you need any further assistance.