What do you do with a project no one wants?

340 Valley Rd

340 Valley Rd

The developer who put up ten condominium units at 340 Valley Rd in Cos Cob probably thought he’d achieved a coup when he fought the town and forced them to permit such a large development. That was the last thing he won, though. The units have been completed since 2007 yet only two have sold: #3, for $2.3 million in July, 2008 and #5, for $2.360 in January, 09. Unit 8 rented a year ago April for the astonishing rent of $11,000 per month but that may have terminated by now. In any event, at least seven of these sit empty. Sp how do you sell them? They’re perfectly nice free-standing houses which should appeal to weekenders and empty-nesters, but I can’t even begin to give price guidance on these. They obviously aren’t worth their asking price but what is the value of one unit in a faltering complex? The only advice I can give is to wait for the foreclosure, if there ever is one, and buy then after several others have  sold.

In all this time the developer has barely budged the price – down about $200,000, with most units once priced at $2.1 million and now asking $1.9 million. The developer could just be obstinate and well-funded enough to wait a decade until he gets his price but more likely is his lender being shortsighted and refusing to adjust the “release price” – the dollar amount that must be paid before a lender releases a particular unit from its lien. Whoever is the stubborn one here, it’s killing all possibility of sales. Clearly, the original pricing for these has failed, and they won’t sell until they come down: I’m guessing $1.3, but that could be way too pessimistic. Or not, but unless a significant price cut is taken, these aren’t going anywhere. And I’m sure that makes the buyers of #3 and 5 delirious with joy. I wonder if they’ve asked their agent yet what exactly it was about these units that caused her to recommend them in the first place?

3 Comments

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3 responses to “What do you do with a project no one wants?

  1. Cos Cobber

    I like the homes. I like Cos Cob. I don’t like the steeply sloped lot or living on a micro plot in a part of Cos Cob where most homes have 1/3 to 2 acres. In addition, if I am going to own a home with no yard, then I want to be in a walkable community such as Cos Cob proper, Greenwich proper or OG. If I have a family, I would also want a walkable location near a park. 340 Valley is just too remote to have that walkable community ~ aka new urbanism ~ type of lifestyle that these cluster homes require.

    All that said, the price point was never realistic either. Even if it were still 2007, these units were mispriced out of the gate. I just don’t think you can support pricing over 1.5m for this part of town. There are too many better alternatives.
    You need to show compelling value and its just not there.

  2. J

    The market has spoken. These units are overpriced relative to their location. Let’s not forget there must also be monthly maintenance fees.

  3. Anonymous

    I may have bit at $1.3 a year ago. I think that is probably an OK level now but certainly not a bargain.
    Better than my condo next to the bins. But that really was an idiot who jumped at my neighbours condo with $1.3.

    There is no ship hauler here either.

    I think that if they sell low, the bank would not consent as the bank possibly have control over the whole development.

    I think valuation all comes back to land values. Is the condo worth the land it sits on plus rebuild cost?