Creative thinking has real upside for downtown San Jose condos - Silicon Valley / San Jose Business Journal:

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There is plenty of evidence of that among downtownSan Jose’ s city leaders and developers of its distinctive new high-risd condominium towers, which is a good sign for the futur of the city’s core. Temporaryh conversion to rentals, stretched-out project lowered prices and new financing arrangements are all being used to get the projectes through a sharp sales Axis and The 88 joined forces last year to offe r brokers sliding incentives forreferring buyers, ranging from a 3 percen commission on the first referral to a 4.
5 percentf commission on a fourth Barry Swenson Builder cut his prices at City Heightsx and also switched to the rental router on The Lofts on The as has CIM Group with The Globee project. The latest examplee involves a proposed deal with Mesa which city leaders are set to discuss onJune 9. Salex have lagged at Mesa’s 360 Residencesa high-rise, despite much interest in its 213 unitas at the corner of Market and SanSalvadord streets. No buyers have actually signedr the dotted line and move d in thereso far. So the city and Mesa have workesd out an arrangement todefer $2 million of the $10 millio that Mesa agreed to pay for the 1.1 acre site four yearws ago.
The city bought the parcel in 2001for $9 million. A previoue revision of the sales agreementg about two years ago callecfor Mesa’s payments to the city to be spli t in two, with $8 milliobn when it closed escrow and the other $2 millioj to follow when the first unit was actually Under the new arrangement, all of the unit could get sold without the city seeinfg any of the unpaid $2 The new deal pegs the payment of that balancwe to when the projecf becomes profitable. It also requiresw the city to get its mone y before any return on equity gets distributerto Mesa, its affiliates or any otherd equity investor in the project.
At the current price that condos are gettingg atSan Jose’s three downtown high-rise projects, the Redevelopmenrt Agency estimates that it won’t get the remaininf $2 million. But if a profit is made by any of the investors in the 360Residenceds development, the city will share in that That’s how government needs to work in timeds like these — hand-in-hanrd with the entrepreneurs who are taking risks to make it a better place to live and do business.