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.

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.

Situated in the heart of Boston’s Financial District, the Broadluxe loft-style condo development is, after several months, now down to its final two developer units. The final two units, both studios, and essentially the same floor plan, are approximately 540 square feet, have the same finishes that other units in the building contain, including granite countertops, exposed brick and beam, washer / dryer hookup, and extra storage in the basement.

The two units, 4F and 5F, are both listed at $299,000, however, this price comes on the heels of several price reductions in an effort to move the last of the remaining inventory off the books of owner Apex, Inc. (a subsidiary of TD Banknorth).  The developer has appraisals in hand for the units at approximately $340,000, and are being aggressive about closing out the remaining two studio lofts.

• 544 square foot studio - 4F Floorplan
• 539 square foot studio - 5F Floorplan

Condo fees for these units are approximately $320 per month, and include hot water, water, sewer, master insurance, security (including concierge Monday through Friday), elevator, exterior maintenance, snow removal, refuse removal.  For more information, use the contact us link at the top of this page.

A six to seven minute south bearing Red Line T ride from Downtown Crossing will put you near the front door of perhaps one of the hippest condo developments to take shape in Boston (Dorchester) in some time.  Cleverly called DNA Lofts, the 59 unit loft-style condo development molds the old and the new with class and style.

The old is a three-story brick building constructed in 1929 that provides the historic anchor for the property, originally serving as a printing press factory for the Meisel Press Manufacturing Company. The new is two separate four-story buildings that flank the Meisel building, all sharing a roof line, melding the old and the new, something that has been seen with such downtown projects as FP3 Boston where the character and history of older buildings is maintained, built upon, and enhanced. The 3-building DNA Lofts complex is centered around a beautifully landscaped north-facing courtyard, which will serve as the main entrance to the development

Loft-style condos will range in price from $245,000 to $599,000, and in size from 577 to 1,648 square feet, with the average unit boasting approximately 1,000 square feet.  Building A is the original Meisel building and contains 36 units with polished concrete floors. Building B, the west building, will house 11 units, and Building C, on the east side, has 21 units and will house the common roofdeck area. Lofts in Building C are presented to Buyers as a blank canvas, with the ability to build a unique space from a plethora of design options.

That is ultimately where DNA Lofts got its name.  It’s the idea, the concept, of customization in making your living space your own - truly stamping a home with your personal DNA.

The development boasts 30 different floorplans, with 80% of units accompanied by outdoor space. All residents will have access to a large north-facing common roof deck that offers views of Boston’s downtown skyline. While there is no concierge onsite, all units will be outfitted with in-home vision-phone annunciators.  In addition to a large outdoor parking lot, DNA Lofts will offer  17 indoor parking spaces with direct elevator access - each loft will be accompanied by at least one parking space, be that indoors or out. All units offer washer / dryer hookups.  Buyers have an abundance of choice with these condos, for instance, there are several different countertop choices, including White Sands and Quartz Reflections by CaesarStone and Genesis by Han Stone (one of their darker stones). Kitchen appliances are GE stainless steel, and HOA fees will be kept reasonably low at approximately $0.40 per square foot.

DNA Lofts is backed by a well-recognized team that has gone to great lengths in creating an appealing condo development that sets a new standard for loft living just south of Boston.

• Developer: RaiCoh Partners, LLC
• Architect: The Architectural Team, Inc (TAT)
• Landscape Architect: Brian DeVellis of RaiCoh Partners LLC
• General Contractor: Green Builders, Inc.
• Listing Agency: Coldwell Banker
• Interior Design: Gregor Cann, Cann Design

We see a lot of condo developments, so it’s important to highlight some of the subtle differences that make DNA Lofts stand out from others in Boston, and especially other recent Dorchester developments. Proximity to the city is a key selling point, you’re removed from the core of the city so you’ll get more bang for your buck, but you’re a $7 cab ride to the northern part of the South End and steps from the JFK U Mass T-Stop that will put you at Downtown Crossing quickly - it’s a subtle difference from other developments that are farther removed from downtown Boston.  DNA Lofts is part of an established neighborhood with local restaurants such as The Avenue Grill and Sugar Bowl.  Ceiling heights range from 10 to 16 feet, true loft style spaces with a mix of exposed brick and beam and “finished” units, along with high-end finishes and unique design features.  The development is served by two elevator banks, which provide another subtle feature to residents in that you avoid the endless Las Vegas hotel hallway effect that you see in other condo developments that are 50+ units in size - living spaces feel more intimate and unique because of this.

The clever and thoughtful packaging of this new development is paying off, with a reported 4 units already Under Agreement, and a sales pipeline with good velocity.  Targeted for a late 2008 completion, the sales center recently opened, and several model units allow Buyers to get a hands on feel for the product.  Contact us using the link at the top of this page for more information.

The Modern South End, a 25-unit condo development that opened in 2007 to residents, attempted to push the border of upscale South End living west of the Massachusetts Avenue border that currently separates the South End and Roxbury.  Developers attempted to fuse stylish (Dennis Duffy) design and contemporary living spaces, with quality finishes and amenities like a common roof deck and small parking garage at the 255 Northampton Street address. The outcome of the development’s success is perhaps different for different people, but it recently sold out, and developers are considering phase 2 of the project on the adjacent lot next door to the current site of the Modern.

The Modern gained solid sales velocity starting in September 2007, when 7 units (approximately 30% of the building) that went Under Agreement in the building’s preconstruction phase closed and residents moved in.  Through the winter months and early part of 2008, sales momentum slowed slightly, and the developer of the Modern partnered with Accelerated Marketing Partners, a spinoff of Boston-based The Collaborative Companies, to plan a condo auction to sell off the last 10 units on Sunday, May 18, 2008 at 1PM at the Colonnade Hotel in Boston’s Back Bay. The auction, however, was canceled several days before it was scheduled to take place - the developer commented that they received enough inquiries and early bid submittal interest (it was reported that 3 units went Under Agreement during this time), that they pulled plans to hold the actual auction event in an effort to save costs.  Instead, offers were solicited via a sealed bid process on the remaining units up through 7pm on Sunday May 18, 2008, at which time the developer reviewed all offers. Following this effort, the units that still remained for sale were repriced and eventually sold through a standard listing process by the same firm that represented the property before the auction happenings.  Some of the data points specific to the Modern sales effort are noted below.

• First closing was September 4, 2007
• Last closing was August 22, 2008
• Approximate average price per square foot was $466
• Sales value of $12 million +

At the top end of the price per square foot scale in the development ($670), the Skyhouse (unit 701) that sits atop the entire building boasting 1,341 square feet (the largest single unit) was the first unit to close at the Modern.  This is somewhat typical, that is, the premier unit in a development sells early - we’ve seen the same thing happen at places like Zero Marlborough and the Providence on Newbury to name several Back Bay examples.

Unit 503 was the last unit to close at the Modern on August 22, 2008, with an original list price of $699,000 and a final sales price of $575,000 - 1,330 square feet, equating to $432 per square foot. The largest single price drop (according to the Boston MLS) recorded during the building’s sales cycle was $168,000 for unit 601, a 1,040 square foot unit that was originally priced at $635,000, but sold for $467,000 (this was one of the final units to sell in the building).

Some residents of the Modern have been unhappy with the mix of units that ended up in the hands of renters, with the majority of the complaints surrounding noise from parties. However, the building was never touted as a rental development, and the significant majority of the units are owned by single individuals, rather than a contingent of developers and/or investors. According to the public record, there are only two multiple unit owners in the Modern - one owner has three separate units, while a different owner has two separate units.

An unfortunate site has been the graffiti that has marked the north side of the finished condo development.  Graffiti tags are splattered several feet from the front door entrance to the new condo development, and leave residents and neighbors frustrated, but not deterred from pushing forward with further development in this area west of Massachusetts Avenue.

Developers are in talks, and the banners are visible (see photo), regarding a second phase of the Modern.  The additional cost of adding underground parking to a development is significant, but the second phase of the Modern may be well served by having a full-size parking garage that can accommodate vehicles of all sizes (the small garage and system of car lifts in the current garage have deterred some Buyers from purchasing in the first phase of the Modern simply from a practicality standpoint).  While the existing development partially overlooks a rather busy gas station to the south, the proposed second phase of the development would not be burdened with this, and outdoor space that accompanies many units in the existing building would be more desirable in a new second phase.

In looking at the goals of the developers at the Modern South End, many of them were accomplished, and the overall project has pushed the boundaries of South End condo development west of Massachusetts Avenue, into Roxbury, and sets the tone for more bold and cutting edge design and development to enrich the city.

Not more than two months following the condo auction at Broadluxe in Boston’s Financial District, there are three resale units available for sale - all of which sold at the auction on June 21, 2008 to a single bidder. If you’re at all close to the Boston MLS, you may have even seen these units hit the market in July, however, they were removed because the auction bidder did not actually own the units at the time. Closings on auction units at Broadluxe began on July 28, 2008.

These three Broadluxe flips have steep price increases from the prices paid at auction less than two months ago (unit number - price paid at auction / new list price):

• 5A - $482,500 / $688,500 ($635 per square foot)
• 7A - $375,000 / $750,000 ($739 per square foot)
• 8B - $595,000 / $1,075,000 ($809 per square foot)

Bear in mind that Broadluxe had two overarching unit types, finished units, and what were called shell units. The former are move in ready, while the latter need to be finished by the Buyer (i.e. unfinished concrete floors, sheet rock on the walls, and rough plumbing and electrical installed, that’s it).  Terms were written into the Purchase and Sale Agreement for the shell units that construction to finish the units needed to commence no later than 6 months following purchase, and finish no later than 18 months following purchase.

Unit 5A will remain as is, it’s a corner unit that came finished. Units 7A and 8B appear to have plans to be finished by the current owner (i.e. in addition to the price paid at auction, an investment will be made into finishing the unit to make it move in ready) . All in (including finishing units 7A and 8B), the current owner is attempting to make, as they say on the Flip This House TV show, an “expected profit” of at least $200K on each unit. 15 units remained for sale following the June auction, and most of those sold rather quickly in the month following the auction, but while post auction units have not been selling at (minimum bid) auction prices (i.e. they have been selling for more than auction minimum bid prices), tremendous value has still been available for most Buyers.

While the Broadluxe auction presented downtown Boston Buyers with one of the best bargains available in 2008, time will tell if such flips as the three described above will command anything close to their asking prices.

Following the successful Broadluxe condo auction on June 21, 2008, and multiple post-auction (accepted) offers, there are currently six (6) of the original 44 units left for sale. Details of what remains at the Broad Street Financial District development are below.

• 2F - $456,875 - 755 square foot studio
• 3G - $361,250 - 541 square foot studio
• 4F - $361,250 - 544 square foot studio
• 5F - $361,250 - 539 square foot studio
• 7C - $690,000 - 1,312 square foot duplex
• 7D - $640,000 - 1,220 square foot duplex

Note the reduced list prices on the duplex units (each with 2.5 baths). Contact us to discuss the property further and get a tour.

Note: As of July 23, 2008, the penthouse units (priced at $1,018,500 and $1,023,750) fell out of agreement, and are now available again.

So how’s the view from the common roofdeck at 285 Columbus Lofts? Stunning. But perhaps more exciting is what’s been happening inside at what is one of downtown Boston’s hottest new high-end properties. Pat Cutter and Elaine Dolley (the real estate salespersons representing the seller) have blazed a trail, selling 49 of 63 units in the loft-style development, positioning themselves to take a real run at selling out the entire building in less than one year (a rather unheard of feat for a building of its size and price point in the Boston market). The majority of the units that have sold at 285 Columbus Lofts sold in preconstruction, before doors ever opened to residents in May 2008.

Back to the roofdeck…the deck is situated in what seems to be an ideal spot, with the Hancock building towering behind you, the Financial District skyline to your left, and the South End front and center. Click on either of the two exclusive pictures to enlarge them. In terms of remaining units at the loft-style development, one-bedroom units are priced in the mid $500K to mid $600K range, while the least expensive two-bedrooms that remain are priced starting at $975K (on the Columbus Avenue side). For more information, feel free to contact us using the link at the top of this page.

Following the Broadluxe auction that took place on June 21, 2008, where 29 out of 44 units were sold (66%), unit prices were raised to be more in line with resale market prices for other Financial District condos. Some were surprised to see that prices were raised on units that did not sell at the auction, however, it came as no surprise, as Tranzon (the auction company representing the Seller) announced that prices would be raised following the completion of the auction.

It was on Tuesday, June 24, 2008, that the updated pricing was released. Since that time, interest in the Broadluxe has not dimmed, and according to sources, units 2E, 6G, and 7F have all gone Under Agreement, and interest and offers are in on other remaining units.

Before the auction began, we assembled an exclusive comparable market analysis for Buyers that we were representing. This analysis provided a comprehensive look at comparable Financial District properties and Boston condo developments - armed with this information, logical conclusions can be drawn about what price per square foot values are reasonable and realistic for Broadluxe, both before and after the auction. This information is still available for clients with which we have a Buyer representation agreement.

The exclusive photos below are of Broadluxe kitchens in units 2A and 2E respectively - cooking is gas, self-closing-drawers are in all units (except for shell units obviously), and many units offer the island you see in the first panoramic photo (click on the image to enlarge).