To cope with the sagging real-estate market, The Church of Jesus Christ of Latter-day Saints has lowered prices on a large condo project in its City Creek development in downtown Salt Lake City.
Under construction at 35 E. 100 South, The Regent is set for completion in mid- to late 2011. The 20-story project, which will have 150 units, was originally priced starting from around $300,000 to as much as $1.7 million. The church said prices now start in the mid-$100,000s.
In a statement, the church said that prices were “re-evaluated” because of the economic downturn, decreased construction costs and an overall review of the project once the building’s shell was complete. Since City Creek construction began in late 2008, Utah’s economy has deteriorated, and a booming real-estate market has given way to one plagued by falling prices and foreclosures.
A church spokesman said the condo project has not been reconfigured — the smallest units at The Regent are still 759 square feet for a studio and 900 square feet for one bedroom. He would not say whether any amenities or features have been changed.
“Prices for some high-demand premium units have gone up, while prices for other Regent homes have come down,” the church said in its statement, without elaborating.
The condos are part of the massive City Creek development in downtown Salt Lake City, which also will feature retail shops, restaurants, offices and about 100 apartment units.
The church’s pricing change didn’t surprise Bill Heiner, president of the Salt Lake Board of Realtors. Seven out of 10 homes sold in May in Salt Lake County were priced under $250,000, he said, adding that demand drops off sharply in the higher price ranges.
“Nobody is immune” from the downturn, Heiner said. “We’re all subject to what the market will bear.”
The Regent is one of several condominium projects in City Creek. The twin 10-story Richards Court towers already have opened across from the LDS Church’s Temple Square at 45 W. and 55 W. South Temple. Richards Court features 90 units priced from $442,000 to more than $2 million. The first buyers already have moved in, although many units are still available.
Two other condo projects are in development: the 30-story, 185-unit Promontory tower at 99 W. South Temple, across from Temple Square, and a fourth tower that is in the planning stages.
Since it started work on City Creek, the LDS Church has released little information about its condos, other than to say that interest has been good given the economic climate. Neither the individual units nor the project are listed on the Wasatch Front Regional Multiple Listing Service.
But there’s no mistaking the economic downturn’s impact on the housing market. Prices for residential real estate, including single-family homes and condos, are falling in many areas. The median selling price of condos in Utah’s most populous county was $137,500 in May, down 16 percent from $164,000 in May 2009.
Although Realtors say the City Creek condos’ distinctive location and the LDS Church’s business pedigree enhance their appeal, several other developers have put condo projects on hold for better times. Most say they are unable to get financing, given market conditions.
The economy was blamed for sidelining Rick Howa, of Howa Capital, who had planned to build high-end condos west of the state Capitol, and Craig Mecham, who had hoped to build higher-end condos near 1100 East and 2100 South in Sugar House.
Andrew Pratt, director of sales and marketing for The Metro condominium development in the downtown area , said he’s not surprised about the church’s repricing but was taken aback that The Regent units will start in the mid-$100,000s.
“That’s a little lower than I would have expected them to go down to,” he said.
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