Sun, Jul 05, 2009
This planned "green" town home development on Golf Links just east of Pantano Road seems to be on the rocks. The area is fenced in, and no work is happening at the site.
Benjie Sanders / Arizona Daily Star

Business

Real Estate by Christie Smythe: 'Green' builder halted by bad timing

By Christie Smythe
Tucson, Arizona | Published: 07.22.2008
As far as "green" developments go, a town home development at East Golf Links and South Pantano roads might have been the greenest.
Literally.
The developer, Waterstone Homes LLC, had plans to build grassy lawns on the roofs of the 54 town houses, said the project's former real estate broker and contractor. The buildings were also intended to be constructed to Leadership in Energy and Environmental Design certification standards.
But timing wasn't kind to Mark Mansheim, manager of Waterstone Homes and Grow Homes Inc. Formerly the chief operating officer of Pathway Developments, Mansheim launched his own companies, specializing in green developments, just as the market was starting to slow, said Gerard Raneri, a broker who previously worked with Mansheim.
"He did his best to stay afloat," said Raneri, whose number is listed on signs for the town house development, even though he is no longer involved. "He just didn't have any income."
A number listed for Mansheim has been disconnected.
Raneri and Mansheim's former contractor, LEED-certified builder Francis Maasland, said Mansheim's development properties may be in foreclosure. Raneri said he was sad to see Mansheim's plans fail.
"He was definitely going in the right direction," Raneri said about Mansheim's green-building concepts. "We need that kind of stuff."
Higher energy efficiency, solar power, low-flow bathroom fixtures and other green home features are still in demand — in fact, in even higher demand after rapid increases in energy costs, Maasland said. Although Maasland lost Mansheim's business, he had no trouble finding other work. Most is custom-home and remodeling business, though.
"There's not a day I can take off," Maasland said.
But selling green homes in a down market can be tricky because buyers perceive them to be expensive, he said.
Not all energy-saving features involve higher upfront costs, but even those that are more expensive can yield major savings in the long run, he said.
Civano, a Southeast Side master-planned community focusing on green building standards, has seen a decline in sales activity over the past year, said Joy Mergen, a real estate agent who previously sold homes in the area. Mergen, of Del Oro Realty, said she thinks price has been a turnoff for many would-be buyers.
Homes on the market in Civano have an average asking price of about $286,000, she said. Currently, the strongest market is for homes under $200,000, she said.
"You're going to pay more for those type of homes," she said about Civano's greener homes. "And I don't think (buyers) are willing to pay that."
Still, production builders are increasingly pitching environmental features. KB Home started offering green upgrade options, such as a radiant roof barrier, as part of its "My Home, My Earth" initiative, launched last February, said KB Home spokesman Craig LeMessurier. The builder also provides some standard features such as low-flow plumbing and Energy Star appliances, he said.
A.F. Sterling Homes is also aiming for energy-conscious buyers with its Riverside Pointe neighborhood, at West River Road and North La Cholla Boulevard. The homes are made with ultraefficient spray-on foam insulation, usually available as an upgrade, said Michael Collins, A.F. Sterling sales and marketing manager. So far, about 20 homes have been sold there since April, Collins said.
Indigo Modern, a green town home complex built by Ice House Lofts developers Randi Dorman and Rob Paulus, is still making sales despite a far-from-low-end price point.
The three 1,800-square-foot homes that remain unsold in their 11-home development, near East Speedway and North Alvernon Way, are priced from $339,000 to $379,000.
"These are not inexpensive homes. They are really well-built," Dorman said. "We think they're well worth it, because we think it's really the right way to live now."
● Christie Smythe covers real estate for the Star and writes a weekly column on the industry. Send news about commercial and residential real estate to her at Business, Arizona Daily Star, P.O. Box 26807, Tucson, AZ 85726; fax to 573-4144; or e-mail to csmythe@azstarnet.com.