Non-Road Boards > Off-Topic

Major Real Estate Projects that Succumbed to the Housing Bubble

(1/6) > >>

kernals12:
I love to speculate on "what if" and given the presence of a "Fictional Highways" section on this website, it looks like you guys also do. When the subprime mortgage bubble popped in 2007 and 2008, the real estate industry practically ground to a halt. In the US, the impact was most acute in California, Nevada, Arizona, and Florida. I thought I'd make this thread to document some of the grandiose plans that never came to be

It's easy to forget what shady tactics were being used in the run-up to the financial crisis. In Arizona, so many people living out of state claimed to be residents, and even illegally got license plates, that it impacted the state's population statistics. When the bubble burst, lots of people "moved out". Based on this garbage data, the state was forecasting 15 million Arizonans by 2050. And developers were planning entire cities for these people.

One example is Amaranth, located in Maricopa County near the Pinal County line. It was to have 44,000 homes, enough for 120,000 people in the uninincorporated community of Mobile. The city of Goodyear decided to annex the land. The Amaranth Land company was to develop it, a consortium of 3 banks, one of them was Goldman Sachs. Montage Holdings bought the land for $80,000 per acre. In 2009, they defaulted on their payments and in 2011, Arcus Capital bought it for $3,200 an acre and even though Phoenix is once again a hot real estate market, there's no talk of developing it.


In the far north reaches of Phoenix, there was Palisene. I can't find many details on it except the planned 1 million square foot, 4 anchor mall, which was going to have a retractable roof. On google satellite you can see the markings of streets and lots, but if you look at streetview which is updated more frequently, the roads are still non-existent as of March 2021. And the whole thing is located on a floodplain, known as Rawhide Wash.


At the far edge of the East Valley, the most ambitious of the bubble area schemes was Superstition Vistas. Boosters wanted to plan the whole 275 square mile plot of land as one city that would have as many as 1 million people. That fell apart quickly and it lay dormant for a decade, but recently, development has started on the first 2,800 acres. But it looks like Superstition Vistas is destined to develop in piecemeal fashion.


Heading up to Nevada, we have Coyote Springs. It was to be a city of 416,000 50 miles north of Las Vegas straddling the line between Clark and Lincoln Counties. All that's been built is one golf course
. The project was conceived by Harvey Whittemore, and the impact the project would have on endangered species plus Whittemore's alleged use of his close ties to then-Senator Harry Reid to get around those regulations led to huge controversy. In 2012, Whittemore was sentenced by a grand jury to 2 years in prison on 4 felony convictions.

What other projects can you guys think of that went up in smoke when Lehman Brothers filed for Chapter 11?

Max Rockatansky:
Iím suddenly getting flashbacks of why leaving the Phoenix area was highly desirable around the turn of the 2010s.  Phoenix was great a 3 million people in the metro area but real estate speculation, house/property flipping and population influx took it down a big peg.  Given some similar real estate speculation and home flipping tactics started to re-emerge around 2012 it was a huge indicator for me to seem personal prosperity elsewhere.  Thatís basically how I ended up in Florida by early 2013. 

kernals12:

--- Quote from: Max Rockatansky on August 05, 2022, 09:33:20 PM ---Iím suddenly getting flashbacks of why leaving the Phoenix area was highly desirable around the turn of the 2010s.  Phoenix was great a 3 million people in the metro area but real estate speculation, house/property flipping and population influx took it down a big peg.  Given some similar real estate speculation and home flipping tactics started to re-emerge around 2012 it was a huge indicator for me to seem personal prosperity elsewhere.  Thatís basically how I ended up in Florida by early 2013.

--- End quote ---

You moved to Florida to get away from shady real estate tactics?

Max Rockatansky:

--- Quote from: kernals12 on August 05, 2022, 09:43:49 PM ---
--- Quote from: Max Rockatansky on August 05, 2022, 09:33:20 PM ---Iím suddenly getting flashbacks of why leaving the Phoenix area was highly desirable around the turn of the 2010s.  Phoenix was great a 3 million people in the metro area but real estate speculation, house/property flipping and population influx took it down a big peg.  Given some similar real estate speculation and home flipping tactics started to re-emerge around 2012 it was a huge indicator for me to seem personal prosperity elsewhere.  Thatís basically how I ended up in Florida by early 2013.

--- End quote ---

You moved to Florida to get away from shady real estate tactics?

--- End quote ---

It contributed driving up costs considerably, so yes it played a big part.  Another factor was it was in my career interest to move to Florida given what I do was in way higher demand at the time. 

When I moved to Phoenix in 2001 my brother had bought his house near Tatum and Bell a couple years prior (1998 or 1999) for $189,000.  That same house was selling for $630,000 right before the real estate bubble collapse.  Even post bubble it shot back up to a selling price of about $370,000 in 2012.  This was a 1,600 square foot home in an average neighborhood, nothing special or fancy. 

I initially went to Key West when I took a DOD job. When the DOD transferred me to mainland Florida I wound up owning a home I sold for 170k in 2015.  Said house was in a nice neighborhood, 1,650 square feet and was built in 2007.  Money usually went way further in Florida than it did for Phoenix regarding real estate prices. 

Even now the current home we own in Fresno was purchased for 180k.  It is also 1,650 square feet, in an HOA neighborhood and was also built in 2007.  The big advantage Fresno has over Florida is access to recreational opportunities more my speed and ironically similar to Phoenix.  Out of our combined income about 10% in a normal year goes into a mortgage payment.  Iím always looking for another transfer but really there isnít much out there domestically that makes a lot of sense to pursue at the moment financially.

kernals12:

--- Quote from: Max Rockatansky on August 05, 2022, 11:21:17 PM ---
--- Quote from: kernals12 on August 05, 2022, 09:43:49 PM ---
--- Quote from: Max Rockatansky on August 05, 2022, 09:33:20 PM ---Iím suddenly getting flashbacks of why leaving the Phoenix area was highly desirable around the turn of the 2010s.  Phoenix was great a 3 million people in the metro area but real estate speculation, house/property flipping and population influx took it down a big peg.  Given some similar real estate speculation and home flipping tactics started to re-emerge around 2012 it was a huge indicator for me to seem personal prosperity elsewhere.  Thatís basically how I ended up in Florida by early 2013.

--- End quote ---

You moved to Florida to get away from shady real estate tactics?

--- End quote ---

It contributed driving up costs considerably, so yes it played a big part.  Another factor was it was in my career interest to move to Florida given what I do was in way higher demand at the time. 

When I moved to Phoenix in 2001 my brother had bought his house near Tatum and Bell a couple years prior (1998 or 1999) for $189,000.  That same house was selling for $630,000 right before the real estate bubble collapse.  Even post bubble it shot back up to a selling price of about $370,000 in 2012.  This was a 1,600 square foot home in an average neighborhood, nothing special or fancy. 

I initially went to Key West when I took a DOD job. When the DOD transferred me to mainland Florida I wound up owning a home I sold for 170k in 2015.  Said house was in a nice neighborhood, 1,650 square feet and was built in 2007.  Money usually went way further in Florida than it did for Phoenix regarding real estate prices. 

Even now the current home we own in Fresno was purchased for 180k.  It is also 1,650 square feet, in an HOA neighborhood and was also built in 2007.  The big advantage Fresno has over Florida is access to recreational opportunities more my speed and ironically similar to Phoenix.  Out of our combined income about 10% in a normal year goes into a mortgage payment.  Iím always looking for another transfer but really there isnít much out there domestically that makes a lot of sense to pursue at the moment financially.

--- End quote ---

How much is your house worth now? It must be at least half a million.

Navigation

[0] Message Index

[#] Next page

Go to full version