Housing Giants - September 10, 2008 - (Page 30) f e at u r e and nightlife — and far, far away from bargain detached homes and townhouses. “In a housing recession, the first things that soften are condos, then townhouses, then detached homes,” says Tom Krobot, president of Atlanta-based Ashton Woods Homes, No. 50 in PB’s Giant 400 with $493.5 million in 2007 housing revenues. Krobot is one of the pioneers of the movement of single-family builders into mid-rise condo development. “We started building mid-rises four years ago in Atlanta,” Krobot says. “Some builders who got into it later general contract construction, but we build ours with our own people managing the process. “We’ve closed 500 mid-rise units in Atlanta in three locations, and we have a huge project in Orlando (Fla.), where we’ve closed 300 and still have another 150 to go. “These are units priced from $160,000 to $240,000,” Krobot notes, “and at those prices, many of the buyers are not just lifestyle purchasers. There’s an entry-level component, and as detached home and townhouse prices decline, those are the buyers that may go away. The extra price load on a condo flat is the homeowners’ association fee and it can be a significant burden.” Krobot calculates his stacked flats need to carry housing payments 30 percent lower than reasonably close single-family homes to maintain sales velocities at 8 to 15 units a month. “You’ve got a big infrastructure Garage wrap condos Garage wrap condo by Klipp 30 HOUSING GIANTS.9.10.08 www.HOUSINGGIANTS.cOm http://www.ashtonwoodshomes.com http://www.ashtonwoodshomes.com http://www.Housinggiants.com
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