The Boston Condo Blog

FP3 Seaport District Condos Slow to Sell

2008-11-21T04:11:27Z

When Berkeley Investments Inc., local restaurateur Barbara Lynch, and Mayor Thomas Menino broke ground at the mixed-use FP3 condo development on Friday, April 20, 2007, the project was heralded as the new luxury baseline in the Fort Point Channel. More than a year and a half later, the development is now a reality, but the 92 residential loft-style condos are not moving off the market.

In July of 2008, a Berkeley employee was quoted in Banker & Tradesman saying that 38 units were Under Agreement poised to close when the certificate of occupancy was issued later in the summer (see Brokers: Fort Point Condo Project Too Pricey for Neighborhood 100 KB PDF), yet, fast forward to today, and a very different reality exists with the certificate of occupancy indeed in place, but only 9 units have sold, and 2 are Under Agreement.

The pertinent condo sales statistics at FP3 include:

Number of Listings Sold: 9
Percentage of Building Sold: 9.8%
Average Sale Price: $610,436
Median Sale Price: $541,000
Average Price per Square Foot: $659
Average Days on Market: 120

The popular restaurateur Barbara Lynch has opened the much hyped Sportello restaurant on the ground floor of FP3, alongside her new lounge, simply called Drink. The presence of Lynch onsite has been one of the cornerstones of marketing for FP3 developers, both for the condo development itself, and the overall neighborhood, but condo sales in the building have not been able to keep pace with the opening of Lynch’s new posh attractions.

Local real estate broker, Elad Bushari of Bushari Group Real Estate says that he is a fan of the area,”the location is great, close to the Financial District, the red line and great restaurants. The top floors are amazing, big windows, outdoor space, and great views.” However, Bushari cites price in accounting for the significant difference in sales velocity between FP3 and more popular condo developments such as 285 Columbus Lofts that are approaching sold out status in a much shorter sales cycle with,”I think that it has a lot to do with the developer’s flexibility on prices, most of the feedback I received from my buyers is that it’s just too expensive; the area is going to be great but it’s not there yet.”

While the price points, and lack of price reductions, may be keeping potential new Buyers at bay, current residents have reason to smile. Berkeley Investments has yet to cut prices to the point where current residents are stuck with negative equity in their units, an unfortunate reality for some Bostonians who buy early at new luxury condo developments. It’s a balancing act to try and buy the specific unit that you desire in a new condo development early in the preconstruction sales cycle, but at the same time, avoid buying in too early so as to avoid (oftentimes inevitable) developer price reductions on future unsold units that will ultimately bring palatable building price points below preconstruction levels.

“I don’t think they need to do much more. Their marketing looks pretty good to me, I don’t know their traffic, but they are noticeable, at least in the brokers community,” states Bushari.

Heading into the winter months, there are currently two units (210, 217) Under Agreement at FP3 Boston, both units at the lower end of the price scale in the building with a studio and a one-bedroom listed at $349,000 and $449,000 respectively.

Recently Sold Condos at 360 Newbury

2008-11-20T22:26:24Z

Since it was converted in 2005 to a luxury loft-style condo development, 360 Newbury in Boston’s Back Bay has been coveted as a true urban oasis. On the southeast corner of Newbury Street and Massachusetts Avenue (above Best Buy), the 360 Newbury development greets residents with a sleek concierge-served lobby off of a Newbury Street entrance, and condos boast downtown skyline views, and high-end finishes and fixtures.

In 2008, there have been two 360 Newbury condos that have sold, and there is currently one on the market for sale. Average price per square foot for the units that sold in the building was approximately $767. Unit 405, a 1,342 square foot two-bedroom two-bathroom unit sold for $1,125,000 after 47 days on the market, and unit 603, an 847 square foot one-bedroom one-bathroom condo sold for $590,000 after 52 days on the market. Neither of the units came with a parking space.

Turning to the present, unit 508, a 1,141 square foot one-bedroom two-bathroom unit is listed at $885,000 ($776 per square foot), and has been on the market for 21 days now.

Boston Condos for Sale with Concierge Services

2008-11-10T15:15:19Z

The presence of an in-house concierge in a condo development typically signifies high-end living, and Boston is not running short on luxury downtown condo developments. For the first time, we bring you a comprehensive list of downtown Boston condos for sale with concierge services (alphabetical order):

210 South Street (Leather District)
285 Columbus Lofts (Back Bay)
360 Newbury (Back Bay)
44 Prince Street (North End)
45 Province (Midtown)
75 Clarendon Street (South End)
Albert A. Pope Building (Back Bay)
Atelier 505 (South End)
Battery Wharf (Waterfront)
Boston W Hotel & Condos (Midtown)
Broadluxe (Financial District)
Burroughs Wharf (Waterfront)
Channel Center (Seaport District)
Charles River Park (West End)
Constellation Wharf (Charlestown )
Court Square Press (South Boston)
D4 Police Station (South End)
Dockside Place Condominiums (Seaport District)
Flagship Wharf (Charlestown)
Folio Boston (Financial District)
Four Seasons Place (Back Bay)
FP3 Condos (Seaport District)
Fulton Court (Waterfront)
Greenway Place (Financial District)
Harbor Towers (Waterfront)
Heritage on the Garden (Back Bay)
Intercontinental Residences (Waterfront)
Lewis Wharf (Waterfront)
Macallen Building (South Boston)
Mandarin Oriental (Back Bay)
One Charles (Back Bay)
Parkside (Midtown)
Parris Landing (Charlestown)
Penmark Condos (South End)
Ritz Carlton Towers (Midtown)
Rowes Wharf (Waterfront)
Strada 234 (North End)
The Belvedere (Back Bay)
The Bryant on Columbus (South End)
The Charlesview (Back Bay)
The Clarendon Back Bay (Back Bay)
The Grandview Boston (Midtown)
The Mariner (Waterfront)
The Metropolitan (Chinatown)
Tremont on the Common (Midtown)
Trinity Place (Back Bay)
Wilkes Passage (South End)
Zero Marlborough (Back Bay)

This list complements another information-based article published recently about move-in ready condo developments (see Move-in Ready Luxury Condo Developments). For more information about luxury Boston real estate options with in-house concierge services, contact us using the link at the top of this page.

First Resale at D4 Condos

2008-11-04T21:52:07Z

After opening to the public in late 2007, the D4 Police Station redevelopment in the heart of the South End now boasts its first true resale unit. The 25-unit boutique Philippe Starck building is almost sold out, with currently one developer unit remaining for sale.

The resale unit is number 11, listed at $729,000 ($914 per square foot), it is a 798 square foot one-bedroom one-bathroom condo with a small outdoor terrace and a tandem garage parking space in the below grade onsite parking garage. Condo fees of approximately $651 include heat, hot water, gas, water, sewer, master insurance, security / concierge, elevator, exterior maintenance, landscaping, and snow removal. Unit 11 is on the second floor of the four D4 condo development, on the north side, overlooking the one-way Gray Street.

Unit 11 offers essentially all the upgrades you could get in the development, including outdoor space, marble bath and kitchen, high end appliances, and parking, however, the difference in price per square foot of the unit compared to the remaining developer corner unit (number 13, a two-bedroom two-bathroom 1,426 square foot unit priced at $835,000 ($586 per square foot)) is significant. Also, there’s steep competition in the area given the recent price reductions at 285 Columbus Lofts, where an eighth floor one-bedroom one-bathroom 753 square foot unit is priced at $615,500 ($817).

While D4’s first true resale condo (number 11) is superb (see pictures below), given the plethora of luxury condos in the South End available for sale, it may not be priced competitively to sell, time well tell.

South End Market Slows Down, Well…Maybe

2008-11-04T14:50:55Z

We’ve received some questions lately specific to the South End condo market, most notably, how are things going? The main claim that we have been hearing on the street is that the market has “slowed down” and also that “prices are falling”. Speaking with local real estate experts who specialize in the downtown Boston real estate market can be helpful, but viewpoints can oftentimes be swayed by current personal success and business level, so that’s why it’s a good idea to take a look at the cold hard facts and draw conclusions straight from there.

We’ve tried to take an objective look at things by focusing on the past three months of data (i.e. August to October) in each of the past five years. Any impact from the significant financial issues that many US investment banks have played a part in creating, and are experiencing, and the fallout that these actions are creating for the remainder of the country will most notably be felt in later months of this year (from a real estate perspective), bearing in mind that most of the units that closed in October of this year, were Under Agreement some 30 - 45 days before their closing date. That said, while the analysis that we are about to walk through represents a data-driven look at the South End market, it may not be entirely “current”, as there are natural lag times built into looking at real estate information, much like any national economic report.

Note that all information has been pulled from the Boston MLS.

South End Condo Sales Statistics

The first thing we will look at is the number of units that sold year over year. With this particular statistic, the number of condos that sold in the South End in 2008 (135) during the time period we analyzed decreased by approximately 25% from numbers the neighborhood pushed during the same period in 2007 (181) - a definite slow down. The 2008 number is slightly below the 5 year average (149).

South End Median & Average Home Prices

The only other “negative” statistic is median home price, which decreased approximately 3.6% from $555,000 in 2007 to $535,000 in 2008. A median home price decrease was countered by a slight 1% increase in average sold price. Keep in mind why we look at both median and average prices - when looking at housing statistics, be careful not to only focus on averages, also consider median values (the number in the middle of your data set), because averages can be pulled significantly one way or the other with only a small number of outlying data points.

South End Available Condos for Sale (Inventory)

The other notable statistic, from a significant change perspective, is inventory (i.e. how many condos are available for sale at any given time). 2008 inventory levels have decreased approximately 14% from what we saw in 2007 during the same period, and 2008 inventory is the lowest the city has seen since 2004. Combined with an average days on market of approximately 80 (which is a steady decrease since five year highs in 2006), and you have characteristics of what some might call a Seller’s market.

Selling price to original listing price ratios have stayed very strong for South End condos over the past 5 years, currently at 96%, with a five year average of 97%. As well, the million dollar + market has stayed stable over the past 3 years since a significant jump in the number of million dollar homes took place in 2006.

While the sheer number of for sale condos sold in Boston’s South End has decreased quite markedly from 2007 during the 3 month period we analyzed, median prices in the South End have stayed relatively steady and average prices have increased slightly. Inventory levels have decreased and Sellers are getting very close to the prices that their homes are being listed for (the original price itself, not after price reductions, if any). Regardless of the reasons behind Sellers listing their condos for sale, we’re not seeing evidence of “fire sales”, perhaps a testament to the quality of the South End as a neighborhood, and a destination for those who call Boston home. And while the market (when speaking about the number of condos being sold) has indeed slowed, the surrounding statistics paint a picture of a currently stable neighborhood.

Least Expensive Macallen Building Listing

2008-11-02T02:19:58Z

According to the Boston MLS, there are currently 11 units for sale at the South Boston green Macallen Building. The development, and the process that made the Gold LEED certified building a reality, was featured in a documentary film called the Greening of Southie - for those that live in the development, and for those interested in potentially living in the development, the film is an eye-opening experience to the painstaking process that went into the LEED certification effort.

The 11 condos for sale at Macallen currently have an average listing price per square foot of approximately $614. Unit 206, an open floor plan south-facing one-bedroom 801 square foot unit is currently listed at $448,800 ($560 per square foot), and represents the least expensive one-bedroom Macallen condo.

The Macallen Building represents concierge luxury living in a convenient location, with easy access to downtown via the Red Line across the street, and the city’s highways in close proximity. For more information, please use the contact us link at the top of this page.

Condos for Sale in Ritz Carlton Boston

2008-10-29T14:31:49Z

In March of this year, we noticed that the inventory of available Ritz Carlton condos was growing (see Ritz Carlton Flush with Available Condos), and since that time, there has been approximately 28 units at the two building development that have either gone Under Agreement or have Sold. Today, the inventory level of condos for sale in the Ritz Carlton Boston is now sitting at 23 units, priced from $540,000 to $4,250,000.

All current Ritz Carlton Boston Listings: Ritz Carlton Condos (1.9 MB PDF)

For more information on the Ritz Carlton Boston condos, or any other luxury downtown development, please contact us using the link at the top of this page.

South End Concord Baptist Church Redevelopment

2008-10-29T13:05:06Z

The BRA recently held a Small Project Review of the proposed redevelopment of 199 West Brookline Street (Concord Baptist Church). At the meeting, Peter Zagorianakos, the proposed developer, presented updated plans of the project. Highlights include:

9 market rate condominiums
Parking in basement accessed via an elevator off Warren Ave at the location of the existing double doors. The opening will be widened to 8′-3″ and new mahogany double leaf doors will be installed.
Original roof lines will be recreated, excepting the addition of two small dormers and skylights. To achieve this, current roof structure will be removed and replaced with a new structure.
North and south walls will also have to be largely rebuilt with the stated intention of recreating the original brick detail.
4 sets of non-operable windows are proposed for the West Canton Street side

Attendees at the project review expressed concern about vehicle access off Warren Ave. Concerns centered on noise and safety of pedestrians. The developer stated that an audible alarm announcing cars leaving the elevator is not a requirement. He offered the possibility of mirrors to allow drivers leaving the elevator to see pedestrians on the sidewalk. Kristin Kara of the BRA stated that the City’s traffic department will review the project design. The developer also indicated that, for a number of reasons, access to the garage from the alley is no longer under consideration.

Concern was also expressed about potential construction impacts. The developer estimated construction would last approximately 18 months, during which time he will need to lease several on-street parking spaces on Warren Ave from the city, a common practice. HVAC equipment will be on the roof, only partially visible from the street.

Some that have been connected to the progress of this proposed development state that the updated plans represent movement on the part of Zagorianakos toward a project that preserves the architecture of the existing church and is one the neighborhood can support.

Plans may be reviewed at the Office of the Secretary of the BRA, Room 910, Boston City Hall between 9:00 AM and 5:00 PM, Monday through Friday except legal holidays. The phone number of Boston’s Planning and Economic Development Office is 617-722-4300.

Dorchester Loft with Extras

2008-10-26T12:29:16Z

the annual Dorchester Open Studios event is being held this weekend at various locations (see the Dorchester Arts Collaborative for more details) throughout the neighborhood. If the art draws you in, a stop into unit 202 at 950 Dorchester Avenue could also inspire you. Unit 202 is part of an intimate recent new redevelopment that houses 13 condos, 12 of which are owner occupied.

Currently listed for sale at $399,000, unit 202 offers 1,207 square feet, a true loft feel with exposed brick and beam and polished concrete floors. The large open living space is splashed with light from the 8 foot windows, which go well with the 13 foot ceilings. Upgrades in the unit include concrete countertops, custom cabinets, high-end appliances, and a large private deck that spans the entire length of the unit. Parking, and extra storage, are included. Condo fees are $184 per month, and include water, sewer, and master insurance.

An open house will take place at this Dorchester loft on Sunday, October 26, 2008 from 12:00 PM to 1:15 PM. For more information, contact us by using the link at the top of this page.

Broadluxe Lofts - Studio 5F

2008-10-23T12:51:35Z

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