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Real estate developer Michael Greenberg’s group, Makowsky Ringel Greenberg, has been able to maintain successful operations during the economic downturn by drastically lowering prices for housing.

The Memphis developmentpany Makowsky Ringel Greenberg made a strategic plan for creating The Laurels condominiums,mitted to it, secured financing and had it substantially built when the uh-oh moment struck CEO Michael Greenberg in October 2008.

Watching the stock market plummet and hearing the bailout talk, Greenberg recalled, “I remember saying to my wife, ‘This is bad.”’

The roof was already keeping dry the 40-home, four-story building at the northeast corner of Central and Highland. The first luxury units would be ready for sale in just nine months.

And all of a sudden, the real estate world as we knew it disappeared.

“Once you start, it’s a train leaving the station. You can’t stop,” Greenberg said of the $13.2 million project.

Makowsky Ringel Greenberg set prices it felt befit the upscale amenities when The Laurels opened in summer 2009: lush landscaping, controlled-access, covered parking, pool in a central terrace, artwork, storage lockers, dog park, guest parking, balconies, nine-foot ceilings, huge walk-in closets, solid wood cabinets, granite countertops, stainless steel appliances.

For instance, thepany originally asked $375,000 for a two-bedroom, 2.5-bath unit and $470,000 for a three bedroom, 3.5-bath condo.

By the end of 2009, only two units had sold, and one of those was unoccupied.

“Almostpletely empty,” said Allison Beldick, sales director for The Marketing Directors, the Atlanta-based, new-home marketing firm Makowsky Ringel Greenberg turned to for help.

The first thing Marketing Directors did was assign a Ph.D. market analyst to dissect Memphis real estate.

“We needed toe up with new pricing and a strategy and bring life to The Laurels,” Beldick said.

The analyst looked at far more thanps withpetition such as The Lexington condos near the Racquet Club. She evaluated the entire market, taking into consideration Memphis has never had a “strong velocity” of condo sales in general.

Marketing Directors plugged that info, plus the sales pacing goals of Makowsky Ringel Greenberg, into a pricing model.

In 2010, The Laurels cut prices substantially, dropping that two-bedroom unit from $375,000 to $279,900 and the three-bedroom condo from $470,000 to $367,900.

The strategy worked pretty well, resulting in the sale of 12 more units in 2010.

But Makowsky Ringel Greenberg wanted to pick the pace up for 2011, and called Marketing Directors back in. The firm responded with the “deal-and-the-steal” campaign that started in early February.

The strategy was to slash the price of five selected units so low that there’d be no negotiating on those. They were the “steals.”

The “steals” not only sold, they created more traffic, more prospects looking. Some who came to look at the “steals” ended up buying one of the other units because they preferred another paint color or finish, Beldick said.

So far in 2009, another nine condos have sold.

“And we have an appointment (today) and another Saturday to write two more contracts,” she said.

Among the new residents of The Laurels is Mary Sharp and her husband, Jerry.

Price played a role in their purchase in March, but the choice was mainly about lifestyle, she said.

“We did think the condos were a good value at the reduced price which made selling our existing home at a reduced price, because of the market downturn, more palatable,” Mary Sharp said. “Our final decision was based on abination of sale opportunity, value, lifestyle and location.”

Demand has risen enough that Makowsky Ringel Greenberg now plans minor price increases.

But it has no illusions of turning a profit on The Laurels, Greenberg said, adding, “We are selling for significantly less than we got in it.”

While many other developers have either been forced into foreclosure or just walked away, Makowsky Ringel Greenberg decided not to give up, to protect both its reputation and the investments of The Laurels residents.

“Do you sit there and try to wait it out, which the bank would never let you do anyway,” Greenberg said. “Or do you do what you’ve got to do to move it and get people in the building?”

Those values impress Crye-Leike real estate broker Bill Malone, who not only sells condos but lives in one in the Parkway House.

“I would take my hat off to anyone who chooses to step up to the plate rather than walk away and let it go back to the bank,” Malone said.

Makowsky Ringel Greenberg

What: Owns, manages, builds and develops properties, primarily apartments. Its 30-plus apartmentmunities include Champion Hills at Windyke, The Westbury and Champion Hills at Stonebridge.

Executive team: Michael Greenberg, CEO; Jim Ringel, chief operating officer; Gary Makowsky, chief development officer; Gary Lubin, vice president formercial leasing and management; and Justin Lubin, vice president ofmercial leasing and management

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