Boston Real Estate Observer, Author at Boston

South End Listing Prices Adjusted…Up

September 28, 2009 By Boston Real Estate Observer

In the face of a luxury condo auction less than four blocks away (see Bryant Back Bay to Auction 10 Luxury Condos), listing prices at the Atelier 505 building, the South End’s first large-scale luxury condo development, are actually being adjusted up, rather than down.

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.

Bryant Back Bay to Auction 10 Luxury Condos

September 22, 2009 By Boston Real Estate Observer

After multiple project occupancy delays, changes in listing brokerages, and amongst rumors swirling this past week, the Bryant Back Bay condo auction has been announced by Accelerated Marketing Partners. The auction event, slated for Saturday October 17th, will offer 10 luxury floor-through direct elevator access units with minimum bids starting at $1,075,000.

Similar to the recently announced Nouvelle at Natick auction (see Nouvelle at Natick Condo Auction), the Bryant Back Bay, a somewhat boutique 50-unit development, is currently advertising that only 10 of its some 45 available units will be brought to auction, in an effort to eventually kick-start market sales of other units, a tactic that has not yet been tested in the downtown Boston market.

The property is available for previews September 22 – October 16 (Monday to Sunday noon – 6 PM) onsite at 303 Columbus Avenue Boston, MA 02116.

The auction will take place on Saturday, October 17, 2009 at the The Colonnade Hotel located in the Back Bay at 120 Huntington Avenue Boston, MA 02116.

Filed Under: Boston Condo Auctions Tagged With: 02116 Boston Condos, Bryant on Columbus, Columbus Avenue Condos

Parking Spaces Gold Standard in Turbulent Times

September 21, 2009 By Boston Real Estate Observer

While the Boston real estate market has remained relatively resilient in the face of the US housing slump, there is a niche within the residential real estate market that most oftentimes flies completely under the radar of downward trends. Parking spaces. These small deeded pieces of land represent a viable option for investors who seek investment vehicles for available cash.

The acquisition of parking spaces in downtown Boston represents a risk-mitigated means by which to enter the real estate investment arena, and has the capability of producing a steady return on investment above and beyond what is available via common investment vehicles that are leveraged for both short and long term semi-liquid investments, such as certificates of deposit or money market accounts, which at present, are returning 2% per year at most.

Simply put, the supply of parking spaces in downtown Boston has not increased quickly enough to satisfy demand (see Snowed In? Garage Parking Spot Investment Looks Clear). The simple concept of supply and demand is tried and true. The investment numbers tell a positive story as well. Take a $50,000 parking space in the South End of Boston purchased with cash, assume monthly rental income of $225, a vacancy rate of 5%, and after accounting for HOA expenses, you have approximately a 5% pretax return on your equity investment.

Despite the downtown Boston residential market maintaining strength, there has been a host of both rumors and news stories about market activity, such as auctions, that inevitably create uncertainty and ambiguity in the market as it relates to value. In the face of that situation, deeded parking spaces, which are purchased in a very similar manner as to any other piece of real property, present the real estate investor a viable means by which to invest into the downtown Boston market, while at the same time not subjecting themselves to the same types of risks inherent with housing investments (see current list of Boston parking spaces for sale).

Filed Under: Real Estate Investing

First Resale Flip at 1850 Lofts

September 15, 2009 By Boston Real Estate Observer

With talk of the Nouvelle at Natick condo auction scheduled for October 4, 2009, the 1850 lofts auction that took place in late June 2009 almost seems like it is in the distant past (see Buyers Prepare for 1850 Condo Auction). It was June 28, 2009 when the 1850, a South End loft-style condo development, went to auction selling out the remaining 35 units in the building, and it was in August that units in the building actually closed.

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).

Filed Under: South End Condos Tagged With: 02118 Boston Condos, Boston Lofts, The 1850 Lofts

Boston Meet the Schools Fair

September 14, 2009 By Boston Real Estate Observer

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.

Filed Under: Boston

Nouvelle at Natick Condo Auction

September 10, 2009 By Boston Real Estate Observer

General Growth Properties, the developer of the 215-unit luxury Nouvelle at Natick condo development west of downtown Boston, has turned to Accelerated Marketing Partners to auction off 43 of the Nouvelle residences on October 4, 2009 in an effort to kick-start new sales and provide operating cash flow to the bankrupt mall operator.

Nouvelle at Natick opened in 2008, and has sold or gone under agreement on 37 of the 215 available units (17%). Minimum bids at auction will start at $160,000 (796 square foot 1 bedroom 1.5 bathroom), which is approximately 70 percent below the most recent asking prices. In preparation for the auction on October 4th, a daily open house up until October 3, 2009 will take place onsite at 10 Nouvelle Way, Natick, MA 01760.

While it has not been announced that the entire inventory of remaining condos at Nouvelle at Natick will be up for auction, the development joins Longwood Towers as the second large-scale condo development just outside Boston to go to the auction block in 2009. In downtown Boston, the 35 remaining lofts for sale at the South End’s 1850 condo development were auctioned in late June 2009 (see Buyers Prepare for 1850 Condo Auction).

Filed Under: Boston Condo Auctions Tagged With: Nouvelle at Natick

The Clarendon Brings Unique Living to Back Bay

September 9, 2009 By Boston Real Estate Observer

If the Boston W Hotel construction site has done anything for the Boston skyline, it has shown Bostonians how quickly a 25+ story tower can be constructed, and the Clarendon Back Bay, a 33-story structure adjacent to the John Hancock Tower has been no exception to a speedy ascent. Approximately 2 years ago, the Clarendon construction site was simply a large hole in the ground, and to see it today in its almost completed facade is a testament to the innovative construction techniques, including construction both up and down at the same time, used on the job site (see Clarendon Back Bay Plywood Siding).

The building, essentially the first and only large-scale tower condo development in the Back Bay, has come a long way since late 2007 and the early stages of construction (for early construction site photos, see The Clarendon Back Bay Says Me Too!, or look even further back with additional photos, see Clarendon Back Bay Condos Looking Up).

Similar to, but taking a slightly different tact than, the Mandarin Oriental and the Boston W, which both have luxury hotel rooms on their lower floors, the Clarendon Back Bay will have luxury rental apartments (a rental development called One Back Bay) on the first 14 floors of the building. Accessed via a separate entrance on the Clarendon Street side of the development. Apartments in the building will boast similar but separate amenities to the for-sale condos above and carry monthly rental prices of $2,695 for a studio to $7,500 for a two-bedroom two-bathroom.

The for-sale luxury condominiums (commonly known as the Clarendon Back Bay) has its separate entrance and lobby on the Stuart Street side of the building, specifically at 400 Stuart Street. Both Boston MLS systems show units continuing to go under agreement at the luxury condo development, which will be housed on the upper floors of the building – thus, sales at the Clarendon appear strong. Listings have been consistently advertised at an average of approximately $1,200 per square foot with listing prices ranging from $695,000 to over $4,000,000.

Post 390, the “urban tavern” restaurant which will anchor the corner of the building is currently slated to open in 22 days. The name is a play on the address (390 Stuart Street) and the Back Bay Post Office that once stood on the site. The restaurant, from the owners of Grill 23 & Bar and Harvest, will bring some additional interest and traffic to the building before the building above Post 390 receive occupancy.

Combined with the Back Bay Orange Line transit station (providing T, Commuter Rail, Amtrak, local bus, and regional bus (Mega Bus for instance)) just one block away, the Clarendon Back Bay development brings together a host of living options and amenities in a single package.

Filed Under: Back Bay Condos Tagged With: 02116 Boston Condos, Clarendon Back Bay, Stuart Street Condos

Condo Super Lien Bill

September 8, 2009 By Boston Real Estate Observer

In 1992, the Massachusetts legislature provided condominium associations (more commonly known as HOAs) throughout the Commonwealth with a powerful tool, the so called “Condo Super Lien Bill” (M.G.L. c. 183A § 6). Under this law, condominium associations can enforce a lien against condo owners who fail to pay their condo fees. The lien for these unpaid condo fees, as well as attorney’s fees and the cost of collection, have priority over the first mortgage. In order to achieve priority; however, the statute requires that the owner and first mortgagee (i.e. the bank/lender) be provided with a notice once the fees are 60 days delinquent. This first notice is commonly referred to as the 60 Day Notice. A second notice, known as the 30 Day Notice, is then required 30 days prior to filing the lien foreclosure action. The 30 Day Notice is sent only to the lender. Should the unit owner and lender fail to pay the outstanding condo fees, the court may order a lien enforcement sale of the unit. The buyer at the lien enforcement sale would take the condo free of the first mortgage. Clearly lenders will want to avoid this situation and so most every mortgage includes a provision allowing the lender to pay outstanding condo fees on behalf of the unit owner.

In the typical case, when all is said and done the condominium association has collected the outstanding fees, the lender has protected its interest (in the real property) by paying the outstanding fees, and the offending unit owner is left having to repay his lender the condo fees as well as any collection costs and attorney’s fees.

If you are a condominium association in need of assistance with respect to outstanding condo fees, please consult with a Boston real estate attorney before beginning the process to ensure that the statutory requirements of the Condo Super Lien Bill are met.

Filed Under: Real Estate Law

Open Houses Scarce over Holiday Weekend

September 6, 2009 By Boston Real Estate Observer

On a typical weekend in downtown Boston, Buyers have, on average, anywhere from 200 to 500 open houses to choose from. With the Labor Day holiday weekend in full swing, Bostonians have a scarce 18 open houses to visit this weekend.

Half of the 18 open houses taking place this weekend are in the South End., most notably at 10 Dwight Street, which is a recently renovated three-unit development in the heart of the South End. Units are priced from $369,000 for a 474 square foot one-bedroom to $680,000 for a 1,050 square foot two-bedroom with outdoor patio space. Units 1 and 2 feature the same fit and finishes, while unit 3 (the penthouse two-bedroom) offers a unique look with sloped ceilings and dormer windows and is priced at $665,000.

10 Dwight Street in the South End will be held open on Sunday, September 6, 2009 from 1:00 PM to 2:00 PM.

Filed Under: Boston Open Houses Tagged With: 02118 Boston Condos

Columbus & Clarendon CVS Opens

September 5, 2009 By Boston Real Estate Observer

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.

Filed Under: Boston Tagged With: 285 Columbus Lofts