Striking an elegant profile alongside Sugarhouse Casino, the three Waterfront Square towers (down from the five that were originally planned) provide luxury living and wonderful views of the Delaware River. While the condo units in the first two towers, built in 2005-06, sold briskly, this has not been the case for the units in the delayed third tower, completed in 2009.
According to this article from the Inquirer, sales were so slow that the developers, Isle of Capri Associates, offered 35 units at discount prices at auction in October of 2010. But there are 179 units in the 22 story building, and many have remained unsold in the year and a half since the auction. Now, it seems that the wheels are coming off entirely for this development, with 119 units in the last building going to sheriff’s sale next week, on an $83M+ debt.
We don’t know whether the sale of these units will be postponed, but if they sell, we’d imagine they’ll end up being taken back by the lender. Perhaps the bank will have better luck selling these condos in the future…
Meanwhile, the people who seem most hurt by this unfortunate turn of events are the folks who purchased condos in the first two buildings. Along with the uncertainty that’s surrounded the future of the third building in the past few years, these people have taken a financial hit as well. The auction in 2010 had enough of negative impact on their home values, but a sheriff’s sale and eventual REO sale may further erode their shrinking equity. Just a shame all the way around.