83 West Brookline Condo Development Market Update

While Unit 2 at 83 West Brookline is currently under agreement and no longer on the market, two (2) condos do remain for sale at this South End property. The 2 bedroom 1.5 bath penthouse and the 2 bedroom 1.5 bath parlor level duplex are still available and priced aggressively. The duplex has undergone an $80,000.00 price reduction. After coming to market with a list price of $695,000, the condo is currently being offered at $615,000. In terms of price per square foot, this unit is $541.85/square foot. The penthouse has also undergone a price drop; from $765,000 to $699,000 ($583.96/square foot). With both units dipping below the $600/square foot threshold, it is anticipated that these units will come under agreement rather quickly.

If you are interested in scheduling a showing, please contact me at sg@stuartstjames.com.

The penthouse kitchen at 83 West Brookline Street features granite counter tops, lots of natural light, stainless steel appliances and gorgeous white cabinets that complete the space.

The view from the living room of the South End penthouse unit boasts the iconic Prudential Center tower.

3 of 6 skylights in the cathedral ceiling flood the penthouse unit with natural light.

The bathroom finishes at 83 West Brookline Street include subway tiles, wood framed mirrors, and trendy vanities.

A view of the kitchen in the 1 bedroom unit at 83 West Brookline, complete with a washer/dryer combination unit – a must have in the South End.

The garden and parlor level duplex, which is a 2 bedroom 2 bathroom condo, features a bright and open kitchen complete with prep island.

The first of the 3 units is a 1,135 square foot duplex spanning the parlor and garden levels of the building. 2 Bedrooms and 1.5 baths, the condo has crown molding, in unit washer/dryer, and oak floors throughout, as does each of AJM Group, Inc.’s offerings at 83 West Brookline.  Located on the second floor is a rather charming 1 bedroom, 1 bath unit consisting of 557 square feet. An ideal starter home for a young professional, the condo boasts the same finishes as its larger counterparts.  The penthouse duplex; however, steals the show. With views of the Pru and Boston’s Financial District, this 2 bed, 1.5 bath 1,197 square foot duplex is gorgeous. It would make an ideal home for a young couple or a pair of empty nesters.

These units are not yet on the market as the developer intends to list them late second quarter 2011. However, for more information or to arrange a sneak peak, contact me at sg@stuartstjames.com.

This parcel has gone though many variations of planning stages and the site that was once an active parking lot is now going to be one of the newest condo buildings in the South End; let’s examine the history. During the 70’s-90’s this parcel was all but forgotten about and as urban decay set in it became just another neglected piece of property in the gritty South End. Then about 10 years ago, the land was put up for sale and subsequently purchased by a group of developers looking to build 4 or 5 more row houses in a continuation of the surrounding buildings along Mass Ave. After the purchase, the developers had plans drawn up and went through the city’s tenuous approval process and spent several years getting their project green lighted. After completing this process in 2002, the developers decided to sell the project with plans and permits in hand to Urbanica development, the same developers that completed the 24 unit luxury condo project known as D4 the former division 4 police station in the South End. Urbanica, however decided that the time was not right in 2002 and that the approved design was too bland. For the project to be a success, construction would have to wait until a radically different project could be drawn up and then approved. A new concept nearly doubled the number of units to a total of 40 and the design changed from a bow front brick façade building that would seamlessly blend into the neighborhood to a modern green building with a glass and masonry façade that will significantly stand out against the back drop of brick row houses.

The revised project is now being branded as “six9one residences” , consists of 40 total units with a mix of studios, one bedrooms, two bedrooms and penthouses. Pricing varies, drastically across the inventory, and of the 10 units on the market, 8 are one bedrooms with an average size of 675 square feet and an average price of $385,000 or $570 square foot. The penthouses top out at $975,000 for nearly 2,000 square feet. All of the pre-construction units include deeded parking with the option to purchase an additional space. The condo fees are a bit higher than those of the surrounding condos in a typical brownstone, but the fees at six9one residences include heat, hot water, gas, a/c, elevator maintenance and security, all items that are rarely included in the budget of a brownstone.

With the surrounding condo market in a bit of limbo, it will be interesting to see how this aggressive pricing plays out. Are buyers willing to pay top dollar for brand new trendy units on Mass Ave? Will these units sell before completion or will buyers demand a finished product before jumping in?

Unit 307 at Atelier 505 was listed for sale on September 8, 2009 for $1,750,000, and 20 days later, a price adjustment of $45,000 has taken place.  The interesting note is that the price adjustment is up, not down, and the condo is now listed at $1,795,000.  The condo boasts 1,810 square feet ($992 per square foot), 2+ bedrooms 2.5 bathrooms, floor to ceiling windows, and 2 deeded garage parking spaces in the onsite underground garage.

In the past six months (according to MLSPin, one of Boston’s two MLS systems), of the 296 units that sold in the South End, there have been 17 condos that have sold for prices higher than the original listing price.  Condos such as unit 317 at Wilkes Passage sold for $31,000 over its original asking price on August 28, 2009, or unit 3 at 116 W Concord Street sold for $10,000 above the original asking price on September 24, 2009.  This adds to the 13 units that sold for full original listing price during that same time period.  There are, nonetheless, instances that go in the opposite direction, including 437 Columbus Avenue unit 4, which labored on the market for 262 days and closed $89,000 below its original asking price.  Clearly, being priced “right” out of the gate is a clear predictor in a unit moving quickly and at or above its original asking price, as the units that sold for at or above original listing prices over the past six months had an average days on market of 21, compared with an average of 76 for those that sold for anything less than full asking price.

Perhaps part of the allure to an auction format that South End / Back Bay residents will soon see when the Bryant condos are auctioned on October 17th is that the units will inherently be priced “right”, not arbitrarily, but by the uninhibited economic forces of the market.

On August 7, 2009, unit 511, a 780 square foot loft closed at a purchase price of $325,000.  Unit 511 was one of the 35 units sold at the 1850 auction, with a price per square foot of $417, well below the average price per square foot sales price of $582 in the South End during 2009.  Fast forward just over one month, and unit 511 is now listed as a resale in the 1850, and represents the first flip in the building, pre or post auction.

Coupled with the presence of a deeded onsite parking space, sold at a flat $35,000 each during the auction, unit 511 represents a quick flip of an auction property without the large profit expectations some flippers had following the last downtown Boston condo auction at the Broadluxe (see Flip That Condo at Broadluxe).

Annual turnover at Atelier 505 is relatively low compared to similarly sized condo developments in Boston.  In 2008, there were 5 units that sold in the building, with an average sales price of $1,084,600 ($847 per square foot) and an average days on market of 74.

Earlier this week, unit 807 was listed for sale at Atelier, and it represents the first listing of 2009 at the South End luxury development.  Unit 807 is an upper floor 2-bedroom 2.5-bathroom condo listed for $1,495,000.  The unit boasts approximately 1,395 square feet ($1,072 per square foot), floor to ceiling windows, a private balcony space, multiple interior upgrades, a climate controlled storage unit, and one deeded garage parking space in the direct elevator access garage.

Unit 807 adds to the other condo for sale in the building, unit 606, which is an oversized 691 square foot studio unit with a sleeping alcove that was listed for sale in August 2008 and has an asking price of $649,000 ($939 per square foot).

The unit is well equipped, with some additional upgrades, including a Bosch washer / dryer, custom Hunter Douglas blinds, custom closet system, small private terrace, and one garage parking space.  The Seller is offering six months of condo fees as an incentive to purchase, which equates to a $1,455 credit at the closing table.

Perhaps the one negative aspect to the south-facing unit (see floorplan 147 KB PDF) is that it overlooks the adjacent gas station.  The building itself is elevator-served, has a large common roofdeck, and there are still plans on the table to do a second phase of the development sometime in the future.

According the Boston MLS, on February 2, 2009, unit 509, a 1,889 square foot two-bedroom two-bathroom unit sold for full (original) asking price of $1,050,000.  That’s approximately $556 a square foot, and is in line with the $563 per per square foot seen for the four units in the building that sold over the past 3 months.  However, a year on year comparison shows that average price per square foot at Wilkes Passage has gone down.

For the same three month period in 2007-2008, there were again four units that sold at Wilkes Passage, however, a year ago, the average price per square foot was approximately $636, a 13% decrease year on year for the South End condo development.  Two of the four units (in both years) were luxury $1 million+ units, and based on a recent article (see Downtown Boston Market Slows in Piecemeal), the luxury market has seen slowdowns in the past year versus appreciation seen in the under $1 million market.

There are currently three condos for sale at Wilkes Passage, priced from $429,000 (790 square foot one-bedroom) to $775,000 (1,459 square foot one-bedroom), with an average price per square foot of $514. Additionally, there are multiple deeded garage parking spaces for sale in Wilkes’ underground parking garage.

Selling prices at the 1850 South End have stayed relatively close to their original list prices, with only a small handful of the units being sold for less than list price, pushing up the sales to list price ratio to near 100%. Summary sales statistics at 1850, where units started going Under Agreement in early 2008, include the following.

Units Sold: 21 of 60
Average Sales Price: $351,395
Median Sales Price: $369,000
Average Price per Square Foot: $447

Sales to list price ratios, specifically at new developments, should be taken with a grain of salt, however,”pricing of a new development is more an art than a science,” says John Keith, a local real estate agent. “Unlike other new developments where all the units were listed for sale (in the MLS), here they are wisely releasing them over time, apparently being able to keep the building looking attractive from a price perspective.”

The Boston MLS currently shows lofts at the 1850 listed from $329,000 for 732 square feet to $565,000 for 1,148 square feet.  There is a parking lot adjacent to the building where spots are being made available for sale separately at $39,000 each.