Tulsa condominium builder Never Fail Jr. feels his counterparts are missing a vast market of 51 million young Americans who need affordable, entry-level housing.
To meet the market, Fail says he has gone the way of the automobile industry.
As the auto industry went from Cadillac to compact, Fail adapted his product from apartment to condominium, and his first Oklahoma City effort went on sale Friday.
Quail Springs Condomimums, a 550-unit project just northeast of Quail Springs Mall at Memorial and Pennsylvania, range in price per unit from $36,500 to $61,500.
The first phase, which went on sale Friday, consist of 216 units, with sizes varying from 620 square feet to 1,250 square feet. The remaining units will be marketed early next spring.
The project is a venture of Never Fail Builders Inc. and Frontier Financial Services Inc., a subsidiary of Frontier Federal Savings and Loan Association. Fail said he is the largest builder of condominium units in the state.
Similar ventures in Tulsa have met with success, and Fail said he hopes to expand his Oklahoma City effort to 500 to 600 condominium units a year in this market.
A customer can move into a unit two to four weeks after selection.
"I liken our product to the change in the auto industry," Fail said. "The big Cadillacs, giant gas guzzlers, got invaded by Datsuns.
They are smaller, but they get you there."
A big selling point for the Quail Springs project are unit amenities, Fail said.
Each unit has a self-cleaning oven, 17-foot refrigerator with ice-maker, dishwasher and disposal and a whirpool tub.
Financing used for unit purchases is the 30-year, fixed rate FHA/VA loans. The interest rate is 12 percent. A 3 percent down payment of the loan total is required.
The unit footage and approximate price are as follows: b one-bedroom, 620 square feet, $36,500 b one bedroom, 760 square feet, $43,500 b one bedroom/loft unit, 820 square feet, $44,500 b two bedroom/two bath, 1,080 square feet, $56,000 b two bedroom/two and a half bath, 1,250 square feet, $61,500. Fail said his prices reflect a cost of $52 to $55 price per square foot, which he said is $10 to $15 lower than the cost experienced by any other condo builder in town.
The Tulsa builder said he can offer these prices and unit amenities due to his volume of construction.
An increase in material costs will force the units on his next project to reflect a $3,000 to $4,000 increase in price, Fail said.
Similarly, a condominium buyer can expect a $3,000 to $5,000 annual appreciation on his or her unit, Fail said, making a condominium a stepping stone to an unattached home.
In one case, a unit owner used two-years of appreciation to sell his condominium and make the downpayment for a house, Fail said.
The 30-acre project will feature $100,000 in landscaping, with covered parking for the resident and a guest. Every unit has a private entrance and a fenced yard, which must be maintained by the resident.
A clubhouse and adult/family pools are offered, with smaller pools dotting the project area.
Approximately 25 to 30 percent of the Quail Springs project will be aimed at the working woman, said Fail. The 620-square-foot unit will be ideal for the single working woman, like a nurse at nearby Mercy Hospital, Fail said.
Each unit can be fitted with a $270 security system, which can be connected to all windows and doors. BIOG: NAME:Archive ID: 95807