Nelson Landing’s initial eight condos were to be followed by another 257 to be built over the next 20 years by Storm Mountain Development Corporation.
“Nelson Landing was unfortunately not able to attract sufficient interest in the eight-plex offering and has decided to not proceed with the project in its current design,” Storm Mountain’s Mark West wrote in an email to prospective buyers. “We are reviewing plans and other development options and will keep you posted as the plans evolve.”
The units would have ranged from $509,000 to $599,000 for two-bedroom units, well beyond Nelson’s current average house price of $368,000.
Storm Mountain’s Allard Ockeloen, in a telephone interview, said buyers are wary of pre-sales.
“If I had built the building it would have sold, I am confident of that. The price is challenging for folks if they have to sell a house and risk not having the building finished. But if you see it built and are standing on your deck and looking at the view, I think $509,000 is not outside the ability of Nelson to absorb.”
He said that to go ahead with construction he needed six pre-sales, but had only four expressions of interest.
Ockeloen said he doesn’t know what the next steps will be, but he’s thinking of getting into rental housing.
“I have had discussions with another interested party who believes we should be building rental product, and am working toward that but have nothing to announce. There is a zero vacancy rate so there is demand. This requires someone who has an interest in owning buildings long term for income, and that is who we are speaking with. So we will see where it goes.”
Storm Mountain’s withdrawal from the plan for the eight-plex was triggered by a requirement set out in the Real Estate Development Marketing Act, which gives a developer nine months after signing the disclosure statement to meet its pre-sale targets in order to secure construction financing.