Everything is Changing at ESCALA
We got wind of some big news happening over at ESCALA. To begin with, the sales center is currently closed for approximately three weeks to discuss a new direction for the building.
Since all the statements below are still being considered and negotiated, there are no specifics in stone at this time. However, the statements following are all the things that are being discussed. Currently, everything is on the table.
First off, The Homeowner Dues (HOD) appear to be high and they are looking at ways to reduce them. One way to address that would be to reevaluate the relationship between the Club Cielo and the condominium units. There is a strong chance the club use will be separated from the condominiums. We do not know details on how this will affect owner use, or what additional charges may be for use of the club. If this is the direction taken, it would give owners the option to participate in the club, rather than the current structure which assumes membership. This should be a savings for those who do not wish to be a member. If this is indeed the direction that is taken, the question is how much of the club (if any) will be available to the owners without an additional fee. According to our sources, ESCALA is very sensitive on making this work for buyers. Therefore we would be surprised if the amenities were to not be included–such as the gym. There are a lot of options for the team to discuss. We think this will be very important to watch for before any decisions are made on moving forward.
The pricing will be also be addressed. Out of respect of the current buyers, we will not know what kind of price reductions will be determined until after that process is completed. We expect to see a big marketing splash in February with new pricing better representing the current economy.
Also, exciting news from behind the scenes is that the entire sales team is new. John L. Scott agent Erik Mehr from Team Builders will be taking over sales. Erik has a great reputation for moving inventory quickly. The marketing team will be headed by Bob Rennie from the very impressive Rennie Marketing firm. We are very excited to see what this team comes up with.
In regards to financing, there is wording in the original Public Offering Statement (POS) that the owners have the ability to use a unit as a time share. This caused difficulties in obtaining financing. This is being removed from the POS. We’ve yet to hear anything about any preferred lenders or what limitations will be in regards to investment purchases.
Another thing that is in conversation is what the current buyer options are. Earnest and upgrade money are being discussed.
Stay tuned to see what happens in three weeks. We will be on top of this along the way and will be posting news as we get it. If you want to be automatically updated on news about the ESCALA, please subscribe to our RSS feed. For past information on the project review our past articles.
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