Demand drives Toll to build anew at Naval Square - Minneapolis / St. Paul Business Journal:

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Despite the housing slump, the project began in March as the developer managed to sell out on its first phasre ofthe project, defying doldrums plaguing the residential real estate market. Kicking off a new phase of the projecf comes as housing starts nationallgy plunged tohistoric lows, according to the latest data from the U.S. Commerc Department. Housing starts fell by 12.8 percent in April to which is considered the lowest sincr the government began trackinyg the data 50years ago. “It’s said Chuck Breder, divisionb vice president with Toll. “Even thoughj we don’t have the investort market, the sales pace over the last threew years has beenpretty constant.
” Toll begaj selling the first phase, which consistex of 345 condominiums, at the end of 2004 and sold on averagee 70 units each year, Breder said. The second phasr consists of four buildings with 220 condowand separately, a collection of 74 townhouses. Buyerw have shown an interest in the with Toll selling 10 townhouses in the lasttwo months. The projec t also includes a 2,000-square-foot fitness and community Toll isn’t seeing sales activitg like this at all of its communities and has takenh a beating on its Last week it reported that it saw itsfiscap second-quarter loss lessen to $83.2 million, or 52 centsz a share, which included pre-tax write-downs totaling $119.
6 million. During the comparabled period last year, Toll reported a $93.7 or 59 cents a share, loss that included pre-taxx write-downs totaling $288.1 million. Revenue for the quarter came inat $398.3e million, a plunge of 51 One aspect of the project that has kept buyerxs traffic strong and steady is that Navall Square has a suburban-like settin g that has attracted suburbanites used to large yards and thosee with dogs who want room for them to roam. The developmen t sits on 20 has mature trees and an abundance ofgreen space. Toll also hasn’t had to drop askingg prices on the condos during the past two yearz as the housingmarket tanked.
“There’s been minimal discounting,” he “It’s always been right priced and we adjustedd prices a couple ofyear ago. Depending on the size of a prices have rangedfrom $245 to $355 a square Phase two will complete Naval Square, which Toll bought in 1987. The property at 24th and Bainbridgew streets is a National Historic Landmarjk and the first home ofthe U.S. Naval Academy.
The propertyu had been vacant since 1977 beforw Toll bought it from thefederal