A Real Estate Bet on Spurrier? Really?
September 9, 2008
There are few things in life quite as enjoyable as a fall Saturday spent tailgating and watching SEC football. At least that was the thesis behind Stadium Village Lofts' "Cockominiums," a condo development that was strategically placed adjacent to the University of South Carolina's Williams-Brice Stadium. Apparently, though, the moneyed set isn't quite on board, or at least hasn't been since the real estate market collapsed.
(Full disclosure: I spent many a Saturday at Tally-Ho before Gamecock football games, swapping swigs of Beam with Popeye's chicken, so I get it.)
South Carolina newspaper The State reported that initially, in 2006, the developers sold 60 condos in a mere six months, largely to independent investors. It seemed like a good start for the more than 470-unit complex. Since then, however, the sales have slowed to a crawl, precipitating an auction to unload the empty properties. It's been bad enough that one investor, who owns three "cockominiums," is offering a buy-back guarantee, promising, The State reported, "80% of market value or their purchase price plus 10 percent."
In a market that is searching for bottoms, the situation at Williams-Brice might ironically serve as both a peak and a trough. From the name to the rationale, the cockominium project was too ambitious from the get go. But anytime investors offer a buy-back guarantee, it's difficult to get much lower than that -- at least that's the wisdom I gleaned from Chris Farley's Tommy Boy.
If there's a sign of hope, any Gamecock fan who watched last week's disaster at Vanderbilt will tell you that it can only get better from here.
Ken MacFadyen
ken.macfadyen@sourcemedia.com
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