Earlier this week, two of the six units that represent the Seaport District condo development in MLSpin, one of Boston’s two MLS systems, were lowered in price by approximately 6%.  Unit 203, a 659 square foot condo representative of the studio units in the building was lowered to $329,000, and unit 218, a 1,183 square foot unit was reduced to $549,000.  These latest price movements bring some units on the lower floors of the development into the $400 price per square foot range.

FP3 has held its certificate of occupancy since late 2008, and Buyers are able to immediately move into units upon purchase.  According to LINK, Boston’s second MLS system, 21 of the 92 units in the building have been sold (23%).

Average Sales Price: $455,547
Median Sales Price: $426,640
Average $/SF: $472

The spike in sales may have been attributed to several price adjustments that took place in the April 2009 timeframe  Furthermore, the increase in average sales prices and price per square foot in the face of price reductions can mainly be attributed to previous statistics being heavily influenced by the recording of affordable housing sales in the building.

LINK, one of Boston’s two MLS systems, shows that 20 units have sold at FP3 Boston, which represents approximately 22% of the building.  In addition to FP3, there are approximately 10 other condos for sale in the Seaport District, priced from $589,000 to $3,100,000 in Channel Center, Fort Point Place, and Dockside Place, all of which are loft-style condo buildings.

On the market-rate front, list prices were lowered on several units this week.  For instance, unit 311, an 850 square foot one-bedroom one-bathroom was reduced from $489,000 to $449,000, unit 205, a 1,031 square foot one-bedroom two-bathroom unit was reduced from $599,000 to $499,000, and unit 215, a 1,382 square foot two-bedroom two-bathroom unit was reduced from $719,000 to $699,000.  According to LINK, 16 of the 92 loft-style condos at FP3 have sold (17%).

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 currently 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 – FP3 condo fees
do include concierge services.

Currently, there are six (6) listings available at Channel Center (see currently available listings 8 MB PDF), ranging in square footage from 1,489 to 2,323, and in price from $549K to $1.325 million. Regardless of which address you have at the development, you’re in for a loft feel (high ceilings, flowing and oftentimes open, floorplans), what changes will be the style of the loft feel from true exposed brick and beam architecture, to a more modern look with drywall versus the brick.

Channel Center offers concierge service, and gives you a chance to get in on an area of the city that is poised to see significant development. For more information about available units at Channel Center, or to list your loft for sale, please contact us using the link at the top of this page.

Unit 203 is a 868 square foot one-bedroom one-bathroom loft that boasts exposed brick and beams, and excellent views of downtown Boston over the Fort Point Channel. Listed at $499,000 ($574 per square foot), this Boston loft comes with a $366/month HOA fee, which includes extra storage. No parking is included.

For more information, please contact us.

FP3 is a Congress Street condo development that includes the renovation of two existing buildings, the construction of a third infill building, and the creation of three upper-level floors set back from the street – all to create 90+ high-end loft-style condos.

Let’s start with the photo immediate below, which provides a good survey, seen from the northwestern end of Congress Street, looking back down towards the new convention center – immediately in the foreground is the fire house, the green mesh to the right of that is the new building being constructed, and the two buildings adjacent to the green meshing are the structures being renovated, thus making up the three building FP3 condo development.

The below two photos provide you slightly different angles of the construction, and most importantly, give a glimpse into the three-floor structure that is being constructed on top of the buildings, which will be set back from the street – these are the floors that will house outdoor terraces (see related story FP3 Boston Condos with Outdoor Terraces). For more information on FP3 Boston, please contact us.

• A one-bedroom unit with 764 square foot of indoor living space and 265 square feet of outdoor space starting at $699,000
• A one-bedroom unit with 783 square feet of indoor living space and 237 square feet of outdoor space for $749,000
• A one-bedroom plus study unit with 969 square feet of indoor living space and 150 square feet of outdoor space for $779,000
• A two-bedroom penthouse unit with over 2,200 square feet of indoor living space and over 1,000 square feet of outdoor space for $1,999,999

FP3 will run water, gas, and electrical onto each terrace. For assistance in making a reservation on a unit at FP3, slated for a June 2008 completion, please contact us.

This unit has some of the classic features that a discerning loft buyer is seeking:

• Multiple exposures
• Channel Center Penthouse floor – dual entrances
• 21 foot ceilings and 18 foot windows
• Gas fireplace in the living room and master bedroom
• Master bath features a glass enclosed shower and a large soaking tub
• Gourmet kitchen
• Elevator and concierge building
• Two (2) garage parking spaces

As we’ve shared with clients, Channel Center, as well as Fort Point Place at 21 Wormwood Street, continue to have at least one or two solid listings that hit the market each month. If you are looking to move into the Seaport District to get in front of the investment wave, this may be your opportunity. Channel Center currently has 11 units on the market, contact us for details on the penthouse featured here, or any of the other units.

See all listings at the Channel Center condo development: Channel Center Listings (11.9 MB PDF).

According to John Keith, around 2004, the Channel Center condominiums at 25-35 Channel Street opened. They did pretty well with sales (although a couple of units stayed on the market, for years). There were two buildings – a converted loft building and a brand-new, modern-looking one, next door. Many of the units in the new building were duplexes with great 20-foot high ceilings. The original developer, Beacon Capital Partners, had grand plans to redesign the entire street, currently made up of a mixture of low-rise industrial and office buildings (with a smattering of artist space, spaced intermittently along the street). They bailed out, last year. The residential sales market cooled (although prices did not), so they decided to pocket their profit and move on.

As reported on August 15, 2007, Commonwealth Center Holdings VAF secured $67 million, and is taking on the second phase of the 1.6 million square foot Channel Center project originally conceived by Beacon Capital Partners, rehabbing the remainder of the area with new housing, office, and retail. Work will commence immediately on renovating three brick buildings lining A Street known as 10, 20, and 30 Channel Center.

As mentioned, there are currently 10 available units (click on link to see listing details for all 10), and what we like about Channel Center in the Fort Point Channel area is the projected $67 million project that will lead to the completion of what was started back in 2004. What does this mean for current residents and potential buyers? Short to medium-term (as well as long-term) gains in equity.

Given the amount of development, money, infrastructure, and attention that the Seaport District is getting these days, this can only lead to positive things as it relates to condo and loft values.

Contact us for more information on any of the Channel Center units, as well as anything else across the city. We have access to every condo in Boston, and enjoy representing buyers.

The below photos were taken of 35 Channel Center Unit 301, which is now priced at $879,000 after a $20,000 price reduction.