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).

With Bruce Willis filming his new movie called Surrogates outside, the Langham Hotel adjacent to Post Office Square played host to the much anticipated Broadluxe auction. The staff at Tranzon Auction Properties had run a very professional ship leading up to the auction, and they did not disappoint on the big day. At approximately 10:15 am in the morning, the auction got underway in front of a 100+ person capacity crowd, with the first several units selling at minimum bid prices. As more popular floorplans were introduced to the crowd, prices began to rise as high as $39,000 over minimum bid pricing.

Some of the interesting data points from the auction are as follows:

• Number of units sold: 29 out of 44 units were sold (66%)
• Average Sales Price per Square Foot: $494
• Neither of the two (finished) duplexes sold
• Neither of the two (unfinished) penthouse units sold

15 units do remain for sale (see auction details 118 KB PDF, those not highlighted in gray are still available), and they will eventually be listed in the Boston MLS. Note that on Tuesday, June 24, 2008, updated pricing was released for remaining units. For more information about submitting a post-auction offer on one of the remaining units, please contact us.

There have been several condo auctions over the past 5 years in Boston, most notably the Folio auction that took place in 2006. In May 2008, bidders were poised to make a run for remaining units at the Modern South End as it was scheduled to hit the auction block May 19, 2008 (see Modern South End Auction). However, as you may know, the actual auction event for the Modern South End units was canceled, due to what people say was “early demand”, yet, units (re)hit the MLS following the (canceled) auction, with the same listing agent as before the auction (whether the latter was the right thing to do could be the subject of another blog post). So what kind of impact does this have on this weekend’s upcoming Broadluxe auction, or more importantly, why can the Broadluxe auction be different than that of the Modern South End? To answer crisply, location.

The Financial District, historically, has not been known for residential living options, regardless of demand for such housing. It has only been in the past several years that Boston’s Financial District has seen a surge in demand for, and a corresponding limited amount of, residential condominium options. Broad Street in particular is developing into a popular day and evening (i.e. residential living), hotspot, with the addition of three condo developments (Folio, 65 Broad Street Lofts, and now Broadluxe), as well as a handful of restaurants and bars. Being only steps to the Waterfront, and the Rose Kennedy Greenway, and a stone’s throw from many office workers’ desks, Broadluxe offers a location of convenience.

Furthermore, the Modern South End is actually argued to be in Roxbury, rather than the South End, while Broadluxe finds itself in the heart of the Financial District, and has been the center of attention (or at least in the back of people’s minds during the property’s hiatus) for some time – we’ve fielded roughly 300 inquiries on the property in the past year alone, perhaps because we stayed close to the property when interest from other media outlets waned. When downtown Boston condo auctions are a possibility, interest on many fronts surges.

We’ve assembled a very robust set of support materials for the clients we are representing in the Broadluxe auction (for instance, a comprehensive comparable market analysis that lays out the subtle differences between Broadluxe and other comparable properties, and quantitative analysis that makes it simple to draw comparisons, compiled information that you won’t find anywhere else). There is still time to begin working with us, simply use the contact us link at the top of this page. Regardless of what happens this Saturday at the Broadluxe auction, more residential living options in this area of the city will only serve to brighten the community.

The exclusive photos below offer a look at unfinished penthouse shell unit 9B at Broadluxe, as well as the commanding view from its large deck.

We’ve received literally hundreds of inquiries over the past year regarding Broadluxe in Boston’s Financial District, and the time has finally come to announce the condo auction details. Tranzon, an auction company that will represent the seller, TD Banknorth, will be auctioning 44 individual condos ranging in size from 539± to 1,887± square feet at Broadluxe in the heart of the Financial District of Boston.

The auction will be held on Saturday, June 21, 2008 at 10:00am at the Langham Hotel, located at 250 Franklin Street, Boston, MA 02110.

We are providing Buyer representation at no cost to you (i.e. leveraging our services versus “going it alone” does not impact your purchase price). Allow us to setup property previews, guide you with comparable market analysis so you know how to bid, and serve as a sounding board for downtown Boston condo expertise. Contact us for further details on next steps.

Tranzon is requiring a deposit amount of $20,000 per unit or $50,000 for 3 or more units, in cash or certified check, to bid. Deposits will be increased to 10% of purchase prices (TBD) within 5 days of auction close. Deposits will be held by Tranzon during the auction, and the intention is that the Purchase & Sale Agreement will be signed at the auction should you win a unit.

Building amenities include storage, ground level commercial space (restaurant and wine store), elevator, state of the art fire alarm and sprinkler system, concierge (more security level), and professional management. Condo fees will include maintenance, trash removal, professional management, concierge/security, and common area expenses/utilities.

Tranzon will follow 30-Day closings, sold in as-is condition, with no contingencies on the Broadluxe condo auction.

Much has been happening this week, the activity levels on multiple fronts (announcements, under agreement properties, website traffic, auctions, etc.) is truly starting to create a buzz around town. Here is some of the latest.

Auctions – yes, that’s plural, it looks like downtown Boston residents will see at least two auctions in the near future, both at the Modern South End and the Broadluxe. Stay tuned for more information as it becomes available (i.e. auction dates, etc.). Update: see Modern South End Boston Condo Auction.

285 Columbus Lofts – construction is flying along, as well as under agreement units. Occupancy is currently being targeted for mid May (this would be the first on time or ahead of schedule development in quite some time) and they are approximately 60% sold out at 285 Columbus Lofts – congratulations to Pat Cutter and the rest of the team there, fabulous property.

Parking Spaces – we just included a new Back Bay parking space for sale on our Boston Parking Spaces page – $90K for an inside tandem spot is pushing the envelope.

Macallen Building Video – the green Macallen condo development in what we call, northern South Boston, is getting some serious exposure from the Sundance Channel in a new feature film on the “greening of Southie”. Kudos to Pappas Properties for establishing green building as the new benchmark in Boston condos.

The Clarendon Back Bay – the ultra luxury Clarendon Back Bay began to install a huge plywood enclosure system from PERI Formwork Systems on the development. Soon the entire property will be covered in plywood so construction can continue behind it. Rumor is that large Boston Condo Guy ads will be displayed on the exterior of the plywood.

1330 Boylston Now Leasing – The new Fenway development is now leasing for August 1st occupancy. Contact the leasing team at 617 267 1330 for more information (look at that, catchy phone number, eh?).

Boston Marathon – not Robert Cheruiyot, but, John Keith. Congratulations go out to John for knocking out the tough course in a strong 3:45:29 finishing time, and for raising thousands of dollars for Community Servings in the process.

Some definite water cooler tidbits from the Boston Condo Blog. For more details, or for assistance in buying or selling a downtown Boston condo, please contact us using the link at the top of this page.

As you know, Broadluxe, a 44-unit condo development in the heart of the Financial District of Boston has gone through a roller coaster of a ride over the past several years. From full steam ahead to foreclosure (see Broadluxe Financial District Condo Update), and now, what looks like auction.

We spoke with our contacts at TD Banknorth (current owner of the entire development after it was foreclosed upon) regarding Broadluxe, and they have confirmed that construction is near completion, and units at 105 Broad Street will go to auction in the near future.

We’ll bring you more information here at the Boston Condo Blog as it becomes available.

For the most up to date condo auction information, see Broadluxe condo auction.

We are continuing to stay close to the Broadluxe development in Boston’s Financial District at 99-105 Broad Street as it moves closer to completion, and perhaps more importantly, available for sale.

TD Banknorth foreclosed on the property several months back, and they brought in Union Construction (a greater-Boston company) to finish off outstanding construction. As of Monday morning, TD Banknorth communicated to us that they were approximately 30 – 45 days out from construction completion. What remains up in the air are title issues that TD Banknorth absorbed when they foreclosed on the property.

Until TD Banknorth can work through the outstanding title issues with the title company, they are not in a position to convey individual units to Buyers (i.e. no units have been sold yet, and none will be until title issues can be cleared). At this point, there is no clear and concise answer as to when the title issues will be handled. TD Banknorth appeared excited that Boston Condo Guy has several interested Buyers, and wished they could convey units immediately.

If you have continued interest in the Broadluxe condo development, please contact us so that we can stay connected with you as things move closer to completion.

The redevelopment of the small six-story five-unit Financial District condo development at 65 Broad Street is now sold out. Unit 5, which was the model unit in the direct elevator access boutique development, received an Offer and is progressing through the purchase process. The lofts at 65 Broad Street went down a rather rocky road in closing out all of the available units, from being listed with multiple real estate brokerages, to even trying to take the units to auction. Some would say that none of the tactics really worked, however, originally pricing the units up in the $500K range did not get things started on the right foot.

Once all remaining units were knocked down to $399,000 each, traffic and showings picked up, and the last unit had multiple pursuers. Not surprising, given that the least expensive property on the market in the Financial District is $603,000 (a large one-bedroom at the Richmond Lofts development). The 65 Broad Street lofts were a relief in a neighborhood with little to no inventory under $600K, especially units with solid craftsmanship.

The five units at 65 Broad Street are very well done, with gleaming hardwoods, exposed brick and beams, luxury bathrooms, stainless steel kitchens with granite countertops, and high-end video-enabled intercom systems. Property inspections on the units have been quite clean. With Folio Boston and Broadluxe right down the street, 65 Broad Street is positioned well for gains in equity.

The only hope at the moment of getting into the development any time in the
near future would be to go after Unit 4, which is being held by the Developer
as a short term rental unit. The unit is not on the market for sale, but
strong offers would more than likely be considered. For more information,
please contact us.

Just when you thought that Broadluxe was down for the count, it has picked itself up, swept away the dust, and is moving towards a November 2007 completion. The Broadluxe condo development in Boston’s Financial District fell on hard times earlier this year when it was foreclosed upon by TD Banknorth, at which time the building went dormant.

We captured the below picture back in late May 2007, when you could hear crickets on the job site at 99-105 Broad Street.

Fast forward to the present, as TD Banknorth recently brought in Union Construction, a Boston-based company, to finish the buildout at the Broadluxe job site. According to sources at Union Construction, construction has resumed and TD Banknorth is paying their bills.

We’ve been on the job for about seven weeks now, and things are going perfectly. 34 units on floors two through six should be done in November,” says the job foreman from Union Construction.

We stopped by the job site, and despite not being let in because our hats were not hard enough, the guys at Union Construction were great. They spent some time talking with us about how the project has been going. Overall, they seem quite upbeat, and heads down on making units available for the November 2007 occupancy date.

The 10 units remaining on floors 7, 8, and 9 were to be left as open loft space, however, an architect has now been brought in to create plans in order to finish the units off. These latter 10 units are scheduled to be finished after the initial November 2007.

The Broadluxe Sales Office main phone number still goes unanswered, and Dana Wedge from TD Banknorth, did not return calls to provide the “owner” perspective. Should you be interested in Broadluxe, please contact us, we would be happy to keep you informed of the status and provide buyer representation in securing a reservation for a unit when TD Banknorth releases them to the market.

Broadluxe will round out the Financial District’s Broad Street, which already is home to Folio Boston and the 65 Broad Street Lofts.

The Wall Street Journal reported this weekend that in cities across the US, namely Miami, instances of foreclosure and condo development bankruptcy are increasing. The problems are emerging as some buyers who signed contracts to by new condos two to three years ago, when construction was just starting, seek ways to back out as they encounter trouble getting financing in the suddenly dicey mortgage market. Falling prices are forcing appraisals down, so banks aren’t willing to lend the full amounts that people committed to in the sale contract.

Boston appears to be bucking that trend slightly, or at least serving up a different flavor of the same end result. Consider that Bostonians continue to lay down large deposits on units in condo developments that are far off on the horizon, with what on the surface, appears to be little to no concern over obtaining financing when the occupancy date approaches, and final checks have to be written (take for instance the Mandarin Oriental, which is practically 100% sold, and will not open until June 2008, as well as 45 Province, which is on track for a 2009 completion, but is experiencing strong sales, and large deposits, thus far).

Where condo developments seem to be experiencing issues in Boston is not so much on the consumer financing end, or consumer demand for that matter, but on construction costs that have increased to levels that do not allow developers to turn a profit on making the project a reality. Take for instance, Columbus Center, which was approved years ago, but has not broken ground due to rising construction costs that erode project profit potential, the Broadluxe that is currently foreclosed upon by TD Banknorth for various construction cost related issues, the original Channel Center effort that saw a whole block purchased by a developer, only to see a small portion of the area developed, or perhaps most recently, the announcement that East Pier (Portside at Pier 1) in East Boston may flounder because developers anticipate not obtaining the profit levels for which they had hoped.

However, a broad brush stroke story on the state of the entire US provides little insight into the local market here in Boston. Despite the four above-mentioned condo development projects experiencing issues, be that temporary or permanent, construction still continues and will continue. Take for example The Clarendon and Russia Wharf (to name only two), both of which have recently broke ground on new construction in the Back Bay and on the Waterfront respectively.

With the little consistency that is seen (or unseen) in even the Boston market, it leads one to question whether the failure of certain condo development projects in the city are simply a result of particular developers seeking to take advantage of the demand from three to four years ago (the time when planing and permitting took place) , and a lack of planning and foresight to build proper safeguards into their projects.