Finance and Commerce reports on the status of Downtown Minneapolis' North Loop Condo Pipeline (Pipeline = industry-speak for planned and in-process projects):

The new, under-construction Twins stadium has been touted as a catalyst for new development. But so far, new development has been slow to take off in North Loop.

The previous wave of residential condo development has largely ground to a halt. And amid the bumpy economy, there isn’t much fresh development in the current pipeline around the ballpark, slated to open in the spring of 2010.

From the perspective of a developer, this not only bad news, but a sign of the times. It is simply too costly, too risky, or both, to launch any new projects right now.

And after the onset of the credit crunch last summer, just as for individual homeowners, financing new projects got tough:

right after late August [or] Labor Day, it was literally like a switch had been flipped and that market evaporated,” Minn said.

lenders making loans backed by commercial mortgage-backed securities (CMBS) loans drove much of commercial real estate financing in recent years, until the credit crunch hit last fall.

For the individual homeowners - mostly condo dwellers - in North Loop, this can be taken as a positive sign.  Though there is still some inventory overhang from completed projects with unsold units, and financing a condo has gotten markedly tougher, new supply will soon be limited to re-sales only, and should provide some pricing support and enhance their prospects for appreciation, even if a few years away.

We compiled the image above from this Sexton Property Listing, based on an anonymous tip:

So after reading the Strib article [on the Sexton] I went to the MLS to look at the history.

Turns out there is an active listing from one of the original owners that was foreclosed...I noticed in the details mention of “adult entertainment room”...indeed, the unit includes a lower level decked out in mirrors, couches and poles – a real business opportunity! Yikes!

Word to the wise: If you are going to install a sex room in your condo, be aware that a simple search of property tax records, or in this case a record of Sherrif's Foreclosures makes it easy to establish your identity as a known pervert. Not that we looked it up or anything.

And also:  This property is currently listed for $109,900.00 (reduced from $159,900.) Last recorded sales price?  $620,000.00.

That is a horse-choking $510,000.00+ loss for homecomings financial.

Bounty: Any agent who can come up with pictures of the AER (a feature that just begs for its own acronym) we'll run your next 3 open houses as posts, or get you some other similar publicity, right here on Behind The Mortgage.

Updated 3/14 8.30a: To include comments offered by representative of the Loop Calhoun.

From more than one reliable source, we have it that the Loop Calhoun condo project is in Foreclosure.  The foreclosing construction lender is M & I Bank, allegedly defaulting party is Mathwig Development.

Again, this is to be filed in the semi-substantiated rumor mill - anyone with more details feel free to share in the comments.

Now, just because a condo project is in foreclosure does not mean it is dead - in many cases the lender simply takes over the development, and continues to market the properties - In for a dime, in for a dollar as they say.  Sometimes a bank starts by replacing the sales team and other key players, but there are dozens of ways this can play out, and we don't have nearly enough information to make any representations as to exactly how this will unfold. See update below.

Now, in some cases, projects in foreclosure might represent an opportunity to get a better deal on a purchase - whether that is true here is another matter entirely. Again, see update below.

UPDATE 3/14 8:30 AM: Late yesterday, we were contacted by a representative of the Loop Calhoun Project who offered up some details.  Though they declined to be named or quoted, but we can confirm that they are closely affiliated with the project at a very high level. So here's the scoop:

• That the Loop Calhoun is in Foreclosure, and that event occured last Friday.
• The foreclosure itself was characterized as an administrative action to expedite the clearing of disputed mechanics liens on the project resulting from the ouster of the original General Contractor.
• That it is business as usual at the Loop - no changes to management, the sales team, etc. are in the works.
• The bank is happy, they are happy, and it is business-as-usual down there, and sales are relatively strong. In other words, if you are a vulture, don't plan on having Loop Calhoun as a carcass to pick on - they aren't conceding dollar one on price.

Feel free to share any details in the comments or via email, but be careful - these are peoples businesses and livelihoods we are talking about, so any comments that smack of axe-grinding, piling on, etc. won't be tolerated, but if you have verifiable information to share, please do so.