Mega condo finish delayed
Phoenix West II opening set for January 2011, 18 months late; developer cites weather, slow sales Sunday, March 08, 2009 By KATHY JUMPER Real Estate Editor
Developers of the 31-story Phoenix West II in Orange Beach, touted as the state's largest condominium building, say weather and slow sales will delay completion by 18 months, and they have notified an estimated 140 clients who have already signed sales contracts.
The 358-unit, approximately $160 million complex was scheduled to open in July, but anticipated completion is now January 2011, according to Brett-Robinson based in Orange Beach.
A March 14 owners meeting is planned at Phoenix West, the new condo complex adjacent to Phoenix West II, according to Tillis Brett, one of the developers.
At least 69 buyers paid cash for units in 2005 when construction started, he said. Brett-Robinson sales agents are working to sell remaining units, priced from $650,000 to $850,000, to help pay for construction of the 1.9 million-square-foot building, according to Brett, 74.
"Or we've got to get a loan of some kind, and of course we're working on that," he said, "but banks are just not lending. We're getting some sales, but it's not like we need it to be."
About 40 owners have already agreed to the extension, said Gene Brett, 73, Tillis' brother and one of the developers.
The Press-Register was able to contact two owners, neither of whom chose to comment on the record.
The federal Interstate Land Sales Full Disclosure Act requires, among other things, that a building be finished within two years of the date a buyer signs a contract. The Bretts said they believe they will remain in compliance because there are allowable delays in the contract that buyers signed for Phoenix West II.
One such provision covers acts of God, Gene Brett said, and developers blame Hurricane Katrina for part of the delay. The August 2005 storm destroyed the facility in Pass Christian, Miss., that was making the 75-foot long pilings for Phoenix West II, Gene Brett said.
Unlike most developers, Brett-Robinson doesn't borrow money to build condos. The company first offers presales at a discounted price and uses that money to buy the land and start construction, according to Tillis Brett. Buyers in a second round of sales, at higher prices, pay 1/5 of the purchase price every 90 days.
The company has used the method with all but the first three of its 19 condo projects, Tillis Brett said. "It's a way for us to give a price that's lower than the market," he said.
Because of the delay, Brett-Robinson has offered Phoenix West II buyers rebates of $90,000 for cash buyers and $65,000 for buyers making the five payments. Every owner will also be able to choose $10,000 worth of upgrades such as granite countertops or upscale cabinets.
Developers are also willing to help an owner resell a unit, "but it would not be immediate like in 2003 or 2004," Gene Brett said.
"We've sold and completed 15 buildings through every kind of conceivable market," he said. "We're not infallible. But we're here, Tillis and Tommy Robinson, the three of us, at least every day and on weekends. Nobody is running from anybody. We enjoy it, love it and will always talk with the owners."
Gulf Shores attorney Craig Olmstead said Brett-Robinson has a loyal following.
"I suspect that if anybody is unable to close (on Phoenix West II units), it's because they are overextended and not because they are unhappy with the project," said Olmstead. "These guys work hard and are bending over backwards to try to help people out, from what I have heard."
Olmstead has represented owners at other condo complexes at the Gulf, but does not currently represent anyone involved with Brett-Robinson's properties, he said.
Other agencies at the Gulf are trying to help Brett-Robinson sell units at Phoenix West II, said Patrick Daily, owner of REMAX of Orange Beach. "I'll sell any unit I can, and they've put some pricing in place to make that possible. They build one of the best projects and have got the most stable rental inventory in the entire market."
The scale of the building "is mind-boggling," said Vince Burchfield, a Realtor at Brett-Robinson. "When you pour a floor of concrete, it's an acre."
The units are large: A three-bedroom, four-bath unit is 2,000 square feet, and the four-bedroom, 4cm HALF-bath units are 2,560 square feet. The amenities will include a lazy river on the beach, indoor and outdoor heated pools, tennis courts, hot tubs, a fitness center, meeting rooms and a glassed-in parking garage.
Sales are slower, but the construction is ongoing, according to Burchfield, who has received calls from buyers asking if the construction has stopped. "There is definitely activity on the site; it has not shut down."
