Centex, that is!

Remember last year when they were going to do a deal that would give Warrenton $22 million and they would build homes in a 55+ community with prices at $900K?! At the time I speculated that the world had truly gone beserk if they believed there was a big market of retirees looking for $900K homes in which to retire. At least I was willing to be they weren't looking for those homes in Warrenton, Virginia!

And, eventually, the deal did fall apart. Centex executives no doubt came to their senses!

But a deal has been put back together. And while the money Centex is contributing is now down to $15 million, I suspect this is a smarter deal all around and much more likely to actually come to fruition.

I did notice, though, that there's no mention of the price of the homes that will supposedly be built here. I'm guessing they won't be anywhere near $900K!

What do you think?!

We've talked here before about proffers.  Perhaps the largest proffer ever was recently offered and then rescinded by Centex Homes as part of a development in Warrenton.

Word is out today that the proposed development has been cancelled. The handwriting was on the wall for this one for some time in my opinion.  This was a deal that made no sense even in a hot real estate market, never mind the cooler one we're currently in.

The development would have featured homes for individuals and couples who were at least 55 years of age.  The prices of these homes was to start at somewhere around $850K-$900K.  In return for the rights to proceed with this development, Centex offered to pay Warrenton $23 million dollars!

First of all, ask yourselves how many retirees, or people approaching retirement are looking for $900K homes? And, $900K homes in Warrenton, Virginia???  As nice as Warrenton is, I believe that price for this community would have always been unsustainable. And to offer $23 million to have the chance to build this money-losing development seemed truly foolhardy!

The only question remains, what in heavens name made them think this was ever a good idea in the first place! And maybe the other question is does this person still have a job at Centex?!