Alabamas Brett/Robinson Beats Condo Pitfalls, Opens New Beachfront Building, Second Largest in State

Gulf Coast real estate developer Brett/Robinson and Alabama Governor Bob Riley announced the grand opening – and stellar sales – of the state’s second largest building earlier this month. Not only does the opening of the $175 million, 25-floor Phoenix West demonstrate buying power in a weak economy, it’s a bright spot in a national real estate stall. “This is a big deal for Alabama’s Gulf Coast, and an example for the nation,” said Alabama Governor Bob Riley. “It proves that when the condo market is done right, it can thrive.”

Brett/Robinson credits the success of its 18th Gulf Coast development to sound sales and construction strategies it has followed for decades. “People felt they could come here, buy up our beaches and flip for fortunes,” said Gene Brett, president of Brett/Robinson. “We never got in that game and that’s why we’re on top today.” That savvy earned Brett Alabama’s Executive of the Year title last month, an honor that recognizes key players in making tourism a strong economic force. Tourism contributed $9.3 billion to Alabama’s economy in 2007 and supported 170,000 jobs statewide.

Unlike other developments, many of which have filed for bankruptcy because of buyers who failed to close on contracts, Brett/Robinson requires cash from condo buyers up front. Buyers are required to pay 20 percent at contract signing and make four more equal payments during construction. Buyers who write a check for full price of a Brett/Robinson condo often receive discounts. This strategy keeps cash flowing throughout the construction process and keeps Brett/Robinson from having to rely on banks for large financing packages.

Phoenix West’s success is just one example of strong sales in a weak economy. The company recently closed sales of 204 condos in its Phoenix on the Bay II and Gulf-front Phoenix IX without a single buyer back-out. Only five condos in Phoenix West remain unsold, and sales are strong in the company’s 19th beachfront condominium project. The 32-story Phoenix West II, billed as the state’s largest building when construction is complete, is slated for completion in 2010.