This isn’t a global warming post in any sense of the phrase. Unless, of course, it is your bank account that is melting away faster than you care for it to melt away. This post is a kinda-sorta extension of last week’s post in which I said a new wave of foreclosures is in the immediate future.
My statement was based on the commercial real estate market and lo and behold the very next Monday, Corus Bancshares Inc. was seized by the Feds. As it turns out, CBI financed a 377 unit condo called The Montage in downtown Reno. Several years ago the latest craze to hit this city was to take shuttered casinos – yes, casinos go belly up – and convert them into condo complexes.
This particular complex had units priced from $150,000 to more than $1 million. This was during the high flying years. Today these same units won’t fetch $10,000 no matter where they are located in the complex.
My youngest son was in the market at about that time for a dwelling. He liked the idea this complex was only two blocks from his job and he could walk to work even in the dead of winter, and not freeze before he got there. I went along to see what was worth $1 million.