A small new-home subdivision in midtown that was launched in the midst of the housing market crash, then slid into foreclosure, is getting another chance with a new owner.
Encanto Village, an 11-home development in the Miramonte Neighborhood north of El Con Mall, attracted its new owner, Crew Development Corp., due to its potential for "new urbanism," said the real estate broker representing the property.
The idea is to promote sustainable living by offering people a lifestyle in which they can shop and work near home, said Len Casebier of the Savi Real Estate Group.
Two homes already had been built. Construction on two other homes has started, and the developer is in the process of completing the common areas.
The property itself - while small - exemplifies the recent challenges the real estate market has faced.
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And while Casebier represented the property under its first owner, Eric Abrams, and after it went into foreclosure, he is still optimistic that this go-round will be successful. (Abrams' difficulties with this development were featured Sunday on Page B3 in the article "Neighborhoods have too much say, developer asserts.")
The prices for the two homes for sale in the development have dropped considerably. A four-bedroom home once priced at $440,000 has come down to $369,000, and a three-bedroom home priced at $349,000 has dropped to $269,000.
Newly built homes in the development would have additional environmentally sustainable features that would make them more expensive, Casebier said.
Also, when Abrams tried to sell the two houses before slipping into foreclosure, his debt structure made it difficult to accept lower prices.
"It just hit the market at a terrible time with a debt structure that didn't allow them to sell it for less," Casebier said.
With Crew Development having bought the property at $850,000, it isn't dealing with as significant an amount of debt, Casebier said.
While the price point for homes in Encanto Village may be higher than for others nearby, Casebier said that was justified because the homes are new and won't have damage that a lower-cost foreclosure might have.
Casebier touted the development as one reminiscent of Tucson's older barrio style.
And though the development struggled in the past, there are signs for optimism, he said: Interest rates are low and housing prices are down, enticing some people to enter the market.
Contact reporter Dale Quinn at 573-4197 or dquinn@azstarnet.com