Census Pulling Out All Stops

A local real estate broker was recently contacted by a census worker to solicit entry into a local South Boston condo development, 321 West Second Street, in an effort to wrap up census work in the neighborhood. The tactic, noted in italics below, of contacting local real estate brokers to drive completion of census work appears to be on the rise.

“I am with the US Census Department and I need to conduct interviews at 321 West Second Street. Specifically at units 7, 10, 11, 12, 13 & 16. Can you please contact me with either a time I could gain access to the building to complete these interviews, phone numbers where I could contact these residents or if you could please confirm if these units were not occupied on April 1st that would be most appreciated.

To confirm this information is accurate, below is a contact number for the local census office and the information for Unit 7.

Phone: 617-848-3262
LCO: 2118
Case ID: 32-11297 7152 401 71
OP: 032
CLD: 0703
AA: 32-2206
Map Spot: 0004
Block: 13189

Thank you

Nathan Clifford”

The census is slated to add more than 1.4 million new jobs to the federal payroll, making it the largest peacetime government jobs program ever, according to the Census Bureau. Some 140,000 people were hired in 2009, while the bulk of these temporary workers are being brought out board during 2010, an effort that provides a timely boost for what appears to be a positively trending US economy.

MA Announces Energy Star Great Exchange Program

Recently, Mass Save announced details on the “Great Appliance Exchange Program”. If you recall, I first mentioned this program in an energy upgrade article in January (see Upgrade Energy Efficiency with Government Money). The program is funded by the Federal American Recovery and Reinvestment Act, but individual States are allowed to make their own rules and guidelines for administration of the allocated funds. Massachusetts has scheduled their program as an exchange, allowing for households to replace older and inefficient dishwashers, refrigerators, freezers, and clothes washers with new energy star rated models – rebates will be $250, $200, $175, and $50 respectively.

The program will only apply to approved appliances, so please consult the list below to make sure that your purchase will be eligible. To participate in the program you must:

  1. Make a reservation at www.masssave.com
  2. Purchase a qualifying appliance (see refrigerators, dishwashers, freezers, and clothes-washers)
  3. Submit your completed rebate form with a copy of a current electric bill, sales receipt, and delivery documentation confirming replacement of old appliance.

Please note that the online reservation portal will not be open until Earth Day, April 22nd, but it is a limited program so be sure to sign up as soon as possible! If you plan on purchasing more than one appliance, multiple reservations are required, but you can use the same rebate form to claim all appliances.

Unfortunately, not all manufactures and models of Energy Star appliances are covered in the exchange program, but there is still help out there. NStar, Western Mass Electric, Unitil, Caple Light and National Grid are all offering up to $50 in mail in rebates on Energy Star qualified Refrigerators and Freezers. To obtain this rebate please go to www.myenergystar.com and print the main in rebate.

With these two fantastic programs and the estimated hundreds of dollars you can save per year with Energy Star appliances over older traditional models, now is the time to step up and make the move to more efficient appliances.

Overall Boston Property Taxes Up in 2010

Property tax rates in Boston reversed their downward trend for fiscal year 2010, moving from a 2009 tax rate of $10.63 per $1,000 of assessed value, up to $11.88 per $1,000 of assessed value.

On the whole, assessed values have remained either stable or decreased slightly in many neighborhoods, but with the approximate 12% increase in the tax rate, many homeowners will face larger property tax bills during fiscal year 2010.

Residents who maintain their Boston home as a primary residence will continue to qualify for a residential exemption.  The fiscal year 2010 residential exemption subtracts $125,090 from a property’s assessed value, saving qualified homeowners $1,486.07 on their tax bill.

For an example of how to calculate taxes for your condo, as well as a historical look at tax rates in Boston, visit our newly updated Boston property taxes article.

Bobby Quinn Becomes Contributor to Boston Real Estate Observer

Ecobroker certified, and currently with the Boston Brokerage Group, Bobby Quinn joins the Boston Real Estate Observer as a regular contributor.

With a special interest and expertise in green building and condo developments in the environmentally friendly space, Quinn is considered a “utility agent”, and does a little bit of everything, most recently taking over the property management division of the Boston Brokerage Group.  Quinn also has experience in Financial Services and real estate syndication.

The Boston Real Estate Observer continues to identify thought leaders and experts, such as Quinn, in various real estate related fields who serve as regular contributors to the publication in an effort to bring readers a comprehensive content portfolio. For more information on becoming a regular contributor to the Boston Real Estate Observer, contact us using the link at the top of this page.

Top Stories of 2009

In 2009, the Boston Real Estate Observer continued to be one of the most popular real estate news sources in Boston.  We expanded news coverage beyond the residential market to include topics in commercial real estate, real estate law, rental markets, and lending markets in an effort to provide readers with a comprehensive view of the Boston market.  Additionally, we brought on five well known and respected real estate experts as contributors to the site to bring you news in their areas of expertise, and we look forward to the opportunity to bring on further contributors.  As we did in 2009, we plan to implement some innovative new ideas in 2010 to continue bringing readers robust and comprehensive coverage of the Boston real estate market.  Here are the top 10 most read articles from 2009:

  1. Boston Parking Spaces – our downtown Boston parking spots page continues to be a top destination for those who want to buy and/or sell a parking spot in Boston.
  2. The 1850 New South End Condo Development – along the southern border of the South End, a new loft-style condo development called the 1850 launched, we were one of the first to bring you exclusive photos and a comprehensive overview of the property.  The project then became one of a small handful of properties in downtown Boston that have been brought to the auction block over the past several years.
  3. 441 Stuart Street: What Happened? – Brecht Palombo provided in depth coverage of the foreclosure auction of a Back Bay building at 441 Stuart Street.
  4. Nouvelle at Natick Condo Auction – General Growth Properties placed a bet on creating a luxury condo living experience at the Natick Collection mall that backfired on them.  After declaring bankruptcy, the firm proceeded to try and sell off its position in the faltering condo development via an auction.
  5. The Clarendon Brings Unique Living to Back Bay – closings began at the ultra-luxury Clarendon Back Bay in December 2009, the building represents the only true high-rise living accommodations in the Back Bay.
  6. Disputing a Low Home Appraisal – with lending regulations changing in 2009, along with the underlying requirements around appraisals, this pointer to an informative article on how to dispute a low home appraisal was especially popular this year.
  7. Boston Property Taxes – many Bostonians saw a decrease in both their tax rate as well as assessed home value in 2009, which equates to a lower tax bill.  The residential exemption has decreased in value, perhaps an effort by the City to maintain their tax base.
  8. Nothing Standard About Standard Purchase and Sale Agreement – in addition to breaking news, the Boston Real Estate Observer features a swath of informative articles covering real estate basics, our article about the standard P&S agreement has gained significant popularity.
  9. Boston W Hotel and Condos – we’ve brought you coverage of the Boston W since project inception, providing some of the most exclusive photos and news about the development as it moved through construction to the hotel opening earlier this year and its most recent condo closings in December 2009.
  10. FP3 Seaport District Condos Slow to Sell – while the latest Seaport District condo development, FP3, began with an extremely slow sales velocity, it has picked up steam during 2009, with currently 35 units in the building recorded as sold (per LINK).

We look forward to another exciting year in Boston real estate, and a whole new set of top 10 articles in 2010.  Happy New Year!

Boston W Hotel to Open This Week

Later this week, on Thursday, October 29, 2009, a long awaited opening event will take place at the Boston W Hotel.  The opening, however, could be characterized as a “soft” opening versus a “grand” opening because there is still work to be done on the building.

The Hotel will open its doors, yet, the Bliss Spa, standard fare at the luxury W brand, as well as the signature bar and nightclub to be called Descent, are not scheduled to open until the spring of 2010.  Hotel management will hold an official “grand” opening event once those amenities are fully operational.

Sawyer Enterprises, the developer behind the Boston W Hotel, has not yet fully built out the signature spa and showcase lounge because it does not currently have $10.4 million in capital to go forward with the construction.  Sawyer is in negotiations with the City of Boston to obtain the additional financing to finish off the hotel, yet the City appears to be apprehensive to extend the financing because Sawyer’s collateral for the funds is the building itself, which has already been extended as collateral to other financiers.

The W will attempt to charge an average room rate of approximately $300 per night, a figure higher than other Boston luxury hotels are securing during times of peak demand.  The 123 luxury residential condos on the upper floors of the building are currently still scheduled for a phased opening in the late 2009 or early 2010 timeframe.

The Bryant: Why Auction, Why Now?

Touted as a boutique luxury condo development that offered more expansive floor plans than neighboring buildings, the Bryant Back Bay missed its stride with the buying market and has reverted to an auction event to generate new demand for the some 45 units remaining for sale in the building.

According to LINK (one of Boston’s two MLS systems), 5 unites at the Bryant Back Bay, a 50-unit high-end development on the border of the Back Bay and the South End, have been sold.  These units have an average sales price per square foot of $826, a figure significantly bolstered by the sale of a single penthouse unit at $1,479 per square foot.

On paper, the development has a tremendous amount going for itself.  From a convenient and desirable location to direct elevator access floor-through units.  When construction began in October 2006, the building generated a significant amount of anticipation for sprawling three, and sometimes four, bedroom condos in a new construction Back Bay / South End building.  Yet there were a number of factors that ultimately impacted the Bryant’s ability to drive sales velocity.

The Bryant is a ground-up new construction building, and not unexpectantly, the development pushed out the scheduled occupancy date five times, and in the end, missed its mark of opening by over a year.  Buyers, rightfully so, are hesitant to buy in earlier to a new development, oftentimes signing a purchase and sale agreement months before construction completes, however, if the occupancy date is continuously pushed out, Buyers become even more hesitant to place reservations in a building, tying up personal capital in deposits of anywhere from 5-10% of a unit’s purchase price.  One of the most notable concerns from Buyers was the proximity of the Bryant to the 131 Dartmouth building, and the potential impact it could have on views and light in the Bryant.  If you fast forward to the present, while 131 Dartmouth is immediately visible outside of the Bryant’s bedroom windows, 131 Dartmouth tapers away from the Bryant, and especially in the summer months, this spacing allows light to pour into the back half of units.  Nonetheless, Buyers weren’t able to gain this knowledge first-hand because a model unit was not developed inside the building until late in the Bryant’s sales cycle.  In lieu of a true model unit, potential Buyers visited the sales center adjacent to the Bryant to see a sample kitchen and bath, but unfortunately, could not get a true feel for lighting and flow of an actual unit in the building.

During the latter half of 2007, another luxury condo development, 285 Columbus Lofts, began construction (or more accurately, began redevelopment).  Unfortunately for the Bryant, 285 Columbus Lofts was two doors down the street, and while the two buildings differ on some levels, the property represented direct competition for the Bryant at a lower price point.  It was during the latter half of 2007 and early part of 2008 when the Bryant made its biggest slips.  While the Bryant began pushing out its occupancy date from Spring 2008 to August 2008, 285 Columbus Lofts actually moved their occupancy date up, from June 2008 to May 2008.  And the key here was that 285 Columbus Lofts delivered on their prediction.  This was the first condo development to be delivered on time or ahead of schedule in quite some time.  Price points at 285 Columbus Lofts were lower, and the development was quickly approaching sold out status when it opened its doors to residents in late May 2008.  Nothing should be taken away from 285 Columbus Lofts launching so quickly, and finishing ahead of schedule, but as it relates to the Bryant, 285 Columbus Lofts did have a leg up on the competition by doing a gut rehab project versus a ground up new building construction.

In the spring of 2009, the Bryant was rebranded from the ‘Bryant on Columbus’ to the ‘Bryant Back Bay’, and in conjunction with that, the developers, Vornado Realty Trust and Wasserman Real Estate Capital LLC, switched listing brokerages from Otis & Ahearn to Campion & Company.  The renaming of the development attempted to drive deeper association with the prestige of the Back Bay versus any connotations the development carried sitting on the border of the Back Bay and the South End.  Despite 3 additional units going under agreement relatively quickly following these changes, the shifts still left 90% of the building sitting vacant, and the developers decided to leverage an entirely different strategy to generate cash flow and take out existing debt, an auction.

Accelerated Marketing Partners, led by Jon Gollinger, announced on September 22, 2009 that they would take 10 of the available 45 units from the Bryant Back Bay and auction them off to the highest bidder during an October 17, 2009 auction event.  Gollinger’s thoughts are that rather than drag out the normal listing process, it’s much more effective to sell a bunch of units at once, figure out what the market is willing to pay, and then coordinate prices on any remaining units in the building.  This tactic, of auctioning only a small pool of remaining units in a building followed by trying to sell remaining units post-auction at auction prices (auction pricing without the auction) is a tactic that has been relatively effective for Nouvelle at Natick.  The Nouvelle development recently auctioned off 43 units, and in a week’s time, has sold 17 additional units at prices established at the auction (see Nouvelle at Natick Condo Auction Results).

There will be seven 3-bedroom units and three two-bedroom units auctioned at the Bryant on October 17th, with minimum bid prices ranging from $1,075,000 to $1,475,000 ($476 to $811 per square foot). The appraised value of the Bryant Back Bay condos will be left to lenders, but Buyers can look at average sales price per square foot for the past 6 months in the Back Bay of $746 and the South End of $577 as a very high-level starting point.

Given the legacy of the Bryant Back Bay project, an auction to at least kick start sales velocity for remaining units in the development appears to be the next logical option in the sales process, especially in light of success that the auction sales format has had on other downtown Boston, and metro-Boston, properties.

Boston Meet the Schools Fair

In an effort to help students and their families decide where to attend school in the Boston area, the Charlestown Mothers Association (CMA) is organizing the 2nd annual Meet the Schools Fair on September 30, 2009 from 6 PM – 8 PM.  Charlestown, and greater Boston area, families have a host of choices between public, independent, and parochial schools, and while visiting schools is an important part of the school selection process, learning about them from a representative in the comfort of your own community is additionally helpful.  It was this thinking that prompted the CMA to organize and host the first Meet the Schools Fair last year.

“We thought it would be really helpful for Charlestown families to be able to get initial information about a school and learn about their options under one roof. It is also a great way for the school representatives to meet us, experience our neighborhood, and see the number of families committed to Charlestown” said CMA member and School Fair oordinator Leslie Sullivan.

Last year’s fair drew attendance that prompted the CMA to move to a larger venue this year to give school representatives and families more room to exchange information.  This year, in addition to school representatives, a representative from the Massachusetts Education Financial Authority will be on hand to discuss the UFund, a college savings plan. Additionally, CMA is attempting to secure attendance of a representative from the School Committee to speak with residents about the public school process including topics such as the lottery system, walk zones, waiting lists, etc.

The public is invited to meet representatives from over 30 schools including:

  • The Advent School
  • Beacon Hill Nursery School
  • Boston Children’s School
  • Boston College High School
  • Boston Latin School
  • Boston University Academy
  • Buckingham Browne & Nichols
  • Cambridge Friends School
  • Charlestown Nursery School
  • Child Focus Center
  • Dexter and Southfield School
  • Fayerweather Street School
  • The Good Shepherd School
  • Harvard-Kent Elementary School
  • International School of Boston
  • John Eliot K-8 School
  • John Winthrop School
  • The Kennedy Center
  • Kingsley Montessori School
  • The Learning Project
  • Milton Academy
  • Mount Alvernia Academy
  • Mount Saint Joseph Academy
  • The Park School
  • Park Street School/Park Street Kids
  • Pine Village Preschool
  • The Rivers School
  • Roxbury Latin School
  • Saint Clement School
  • Saint Raphael School
  • Shady Hill School
  • Spruce Street Nursery School

For a complete list of schools attending, please visit the Charlestown Mothers Association website.

The Meet the Schools Fair will take place at the Knight of Columbus Hall, 85 West School Street in Charlestown on Wednesday, September 30, 2009 from 6 PM – 8 PM.

Columbus & Clarendon CVS Opens

Residents of 285 Columbus Lofts, as well as those near the new Back Bay / South End condo development, were anticipating the arrival of a high-end restaurant in the ground floor commercial space at 285 Columbus Avenue, but were surprised to see a significant course correction earlier this year when it was announced that a CVS would occupy the space (see CVS Replaces Restaurant at 285 Columbus Lofts).

The CVS at the northwest corner of Columbus Avenue and Clarendon Street has opened its doors to both its upstairs neighbors and surrounding residents. Store hours for the new 285 Columbus Avenue CVS are 7:00 AM – 10:00 PM, while the Pharmacy is open Monday to Friday 8:00 AM to 10:00 PM, and Saturday to Sunday 8:00 AM to 8:00 PM.

South End CVS

CVS Columbus & Clarendon

285 Columbus Avenue CVS

Boston Real Estate Observer Poised to Launch

In a continued effort to drive towards providing deeper and wider coverage of the Boston real estate market, the Boston Condo Blog will soon be rebranded and remissioned into the Boston Real Estate Observer. 

The goal of the Boston Real Estate Observer is to serve as a comprehensive and exclusive news source for Boston real estate. The mission and focus of the site will begin to slowly expand from simply residential real estate sales coverage to also include commercial real estate, lending and capital markets, rentals, condo developer news, the auction field, and real estate law.

Our focus on providing quality content will remain unchanged, and we are bringing additional contributors into the fold who specialize in unique niches of the real estate market in an effort to both maintain that focus on quality and provide the depth of coverage that our readers have come to expect.

We thank you for your continued readership.  In the short term, you will begin to see that the look and feel of the website will remain relatively the same, but with an updated logo (below) and new URL.

boston-real-estate-observer