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Wednesday, December 29, 2010

"The Edgewater" in Uptown

Minneapolis' Most Discounted Condo?

I've blogged previously about deeply discounted single family homes in the Twin Cities.

A second-floor condo (#201) in The Edgewater (pictured above) may very well be the Twin Cities' most discounted condo.

Now at $749,823, the unit was originally listed for $1.981 million almost exactly three years ago.

That's a whopping 62% reduction!

"But Can You Afford the Property Taxes?"

The catch?

Not the A+ location, just off the Northeast corner of Minneapolis' Lake Calhoun.

And not the 2005 building it's in, a gleaming glass-and-stone structure with sleek walls of windows, great views, and open floor plans.

Rather, my guess is that it's the $19,000 annual property tax bill that is still attached to the unit, courtesy of its $1.35 million tax assessed value.

Opportunity Knocks

Does such a mismatch spell opportunity?

In this case, I think it does.

That's because the property isn't a short sale or foreclosure, where the tax authorities can (and do) argue that the ultimate purchase price doesn't reflect fair market value since it was a "distressed sale" -- and therefore disregard the sales price.

Translation: if you pay say, $725,000, that's also presumptively the new tax assessed value -- and that $19k property tax bill plummets.

In fact, if the Buyer closes in the next few months, they still have time to contest Hennepin County's 2012 assessment (determined January 2, 2011).

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