Condominium Conversion Sells out in Soft Real Estate Market.

CHICAGO & CHANDLER, Ariz. -- Robert Sheridan & Partners, a Chicago-based developer, today announced the sellout of Lakeshore at Andersen Springs, a 299-unit lakeside condominium conversion in Chandler, Arizona. The sellout occurs in the midst of an Arizona real estate market that has received national headlines for its recent sluggishness.

The news represents the first successful close to a large condominium conversion project in the Phoenix area in more than nine months. Condominium conversions have seen tepid sales in many regions of the country, a trend many experts attribute to a dramatic change in the marketplace in late 2005.

"We're very pleased," said Robert Sheridan, president of the company. "We always viewed Lakeshore at Andersen Springs as a strong asset and Chandler as a promising locale. Despite the weakness in the market, I think the property's inherent quality, along with an aggressive and responsive marketing strategy, combined to win the day."

Lakeshore at Andersen Springs was Chandler's first condominium conversion, arriving at the market in October of 2005. The property was instantly popular with buyers but soon saw sales fall off as a slump slowed Phoenix-area real estate activity in late 2005.

Despite the sellout of this property, Sheridan doesn't see signs of an imminent market rebound.

"I think in many areas of the country, including Phoenix, there's a price correction yet to come to burn off excess inventory," he said. "Many will hope I'm wrong, but I think we'll see condominium prices decline rather than rise in the medium term. We're not out of the woods yet.

"For most properties, the current rate of sales isn't covering the holding costs of projects. Lenders appear to be viewing the market with a combination of denial and hope. If prices firm up and sales rebound soon, it will help many projects. If prices correct further, trying to move present inventories is going to result in a lot of project distress."

According to Sheridan, his company's success with Lakeshore at Andersen Springs comes in spite of, and not because of, current market conditions.

"For buyers, Lakeshore at Andersen Springs represented a high-quality investment at a great value," Sheridan said. "For Realtors, it was a great sales opportunity. I think it speaks to the appeal and value of the units, but it also speaks to our willingness to test the market for prices at which prospects would actually buy, and to market the property forcefully."

In business since 1975, Robert Sheridan & Partners has overseen more than 8,000 high-end property conversions in markets around the country, in the process growing to become one of the most trusted and respect real estate and development and investment companies in the country. Its luxury properties have earned a reputation as excellent investments and sought-after residences, distinguished by unmatched quality, remarkable value and a painstaking attention to detail.