Boston Real Estate Observer, Author at Boston

Boston Architects Win Design Award for Cape Cod Home

July 2, 2009 By Boston Real Estate Observer

Local (South) Boston architecture firm Ruhl Walker Architects, was recently honored with a Residential Architect Design Award (RADA) by Residential Architect Online. The merit award that Ruhl Walker Architects won is part of the 10th annual residential architect design awards, a competition that received more than 1,100 entries in 16 categories. Just 44 projects were recognized for honors, making RADA the most competitive residential architecture awards program in the country.

The winning design is for a 1,400 square foot modern home that was designed with the utmost respect for preservation of the surrounding land in Truro, MA on Cape Cod.

Residential Architect Online writes that Brad Walker, Principal at Ruhl Walker Architects, proposed renovating an 1820s house that sits on the inland edge of the lot as a primary residence, then building a retreat on the water. His design features a two-bedroom concrete base burrowed into the sand and topped by a glass pavilion. The long, narrow footprint barely disturbs the dunes’ regular shifting pattern, and existing dune trails link the old and new structures.

“We are still struggling with how best to leverage this project, partly because it is part of a conceptual effort, and due to circumstances beyond our control, will never be built,” says William Ruhl, Principal at Ruhl Walker Architects. The firm is currently exploring opportunities with interested parties to build the home on similar land elsewhere in the world.

This is not the first time that designs of the Boston architects have been awarded. Ruhl Walker Architects has designed multiple high-end lofts across the city, including lauded designs in Wilkes Passage and Channel Center. Their expertise spans across free-standing homes, condos and lofts, as well as commercial spaces.

Filed Under: Boston Architecture Tagged With: Ruhl Walker Architects

Buyers Prepare for 1850 Condo Auction

June 24, 2009 By Boston Real Estate Observer

Just over a year ago, Buyers and Investors had the opportunity to participate in the last downtown Boston condo auction at the Broadluxe (see Broadluxe Condo Auction Results). On Sunday, June 28th, those interested in purchasing downtown Boston real estate will again have a chance to do so at auction prices when the 1850, a 60-unit loft-style condo development in the South End, goes to auction.

High Level Auction Information

What: 35 condos at the 1850 Lofts
Minimum Bids: $175,000 for some units
Auction Date: Sunday, June 28, 2009 with check in at noon
Auction Location: Westin Boston Waterfront (map)
Prerequisites: Auction Registration Form & $5,000 cash equivalent

Registration is required to attend the auction and to become eligible to bid. Interested bidders are encouraged to tour the 1850 prior to the auction (tours are available daily starting at 1pm at 90 Wareham Street in the South End), and during the visit complete and return the Auction Registration Form, which will qualify you to bid. On auction day, all approved registered bidders must present a separate Cashier’s Check, Traveler’s Check, Certified Check or Money Order (“Cash Equivalent”) in the amount of $5,000 (Cash Equivalents should be made payable to yourself). Each bidder is also required to bring a blank personal check, which will be used to bring your total down payment to 5% of the winning bid price.

The auction has the potential to provide Buyers and Investors with a significant discount on price per square foot and average selling price in the South End. Over the past 3 and 6 months respectively, the South End has seen modest price improvements across average and median prices, as well as price per square foot at the neighborhood level – see information below.

Last 3 Months – South End
Number of Condos Sold: 158
Average Selling Price: $594,727
Median Selling Price: $513,750
Average Price per Square Foot: $575
Average Days on Market: 94

Last 6 Months – South End
Number of Condos Sold: 225
Average Selling Price: $584,875
Median Selling Price: $510,000
Average Price per Square Foot: $568
Average Days on Market: 100

Bear in mind that the 1850 is located in one of the most southern points in the South End, and therefore, this fact and others may need to be accounted for when trying to draw price comparisons. Contact your Buyer’s Agent for more information (note that a Buyer’s Agent must be present at the time of registration and first visit to the Auction Information Center in order to work with a Buyer).

Bidders should be warned that a condo auction bypasses many of the contingencies that a Buyer is afforded during a “typical” real estate transaction. It should be noted that proper due diligence, including inspection of the property as well as other items standard in a transaction (including consultation with a real estate attorney) should still be conducted, however, these items need to be conducted ahead of the auction and by the Bidder. Bear in mind that a Purchase and Sale Agreement, typically signed after a fair amount of du diligence is done, will be signed on auction day by winning Bidders.

1031 Exchange Basics

June 24, 2009 By Boston Real Estate Observer

Savvy real estate investors know that the 1031 Exchange is an important tool that, when utilized properly, allows the investor to defer capital gains tax on property that is sold at a gain. So what is a 1031 Exchange? A 1031 Exchange is an exchange of one property (referred to as the “relinquished property”) for another like kind property (referred to as the “replacement property”) under the rules of Internal Revenue Code §1031. In a 1031 Exchange, the investor places the proceeds of a property sale in escrow with a “qualified intermediary.” These funds are then used to purchase the replacement property, and the investor does not pay tax on income gained from the sale of the relinquished property.

The requirements of a 1031 Exchange include: (i) the transaction must be an exchange through a qualified intermediary as opposed to a sale and purchase; (ii) the replacement property must be like kind to that of the relinquished property; (iii) the same taxpayer must dispose of the relinquished property and acquire the replacement property; (iv) both properties (i.e. the relinquished property and the replacement property) must be held for investment purposes or for use in the investor’s business; (v) to defer all tax the replacement property must be greater in value, equity, and debt than the replacement property; and (vi) replacement property must be properly identified pursuant to IRS §1031 within 45 days of the closing of the relinquished property.

While it has been established that a personal residence is not eligible for a 1031 Exchange as it would violate the requirement that the property be held for investment purposes, IRS Revenue Procedure No. 2008-16 has created a safe harbor for property held for productive use in a trade or business or for investment under Section 1031 even though the taxpayer occasionally uses the property for personal purposes. However, the property must meet certain qualifying use standards, which include, for both relinquished and replacement property, minimum requirements for length of ownership and days rented, as well as maximum requirements for days used for personal use. The other key aspect of the qualifying use standards is that the relinquished and replacement properties must be rented at fair market value.

Through proper planning and analysis, real estate investors can leverage the 1031 Exchange to their advantage. However, that analysis and the rules governing it can be quite complex. Therefore, please consult with your legal and tax advisors as you contemplate your next 1031 Exchange.

Filed Under: Real Estate Investing

CVS Replaces Restaurant at 285 Columbus Lofts

June 19, 2009 By Boston Real Estate Observer

285 Columbus Lofts on the border of the Back Bay and South End opened to much success, and despite the development recently selling out, the ground floor commercial space has remained vacant since the inception of the building. According to inside sources, the space remained empty as a suitable high-end restaurant was found. Adding such a restaurant to the ground floor of the development would put it on par with such developments as Trinity Place, the Albert A. Pope Building, Folio, and Allele. The residents of the building, and the local neighborhood are surprised to see that the pending restaurant signs have come down to make way for a CVS Pharmacy.

With the arrival of a new CVS Pharmacy, gone is the potential amenity of on demand gourmet meals for residents that accompanies condos with an onsite restaurant. However, there are some condo owners who would prefer not to have food, and everything that comes with having a restaurant below you, in the building. Certain condo developers purposefully construct buildings with the intention of not having food on the ground floor commercial space, take the Lofts at 36 A for instance, which intentionally limits the types of tenants that can occupy its ground floor commercial space.

Filed Under: Back Bay Condos Tagged With: 285 Columbus Lofts, Columbus Avenue Condos

Is Condo Auction Pace Quickening?

June 16, 2009 By Boston Real Estate Observer

It was almost a year ago to the day that Bostonians saw their last downtown condo auction take place at the Broadluxe on June 21, 2008. Prior to that, roughly two years had gone by since the last downtown Boston condo development auction at Folio was used to clear out inventory at the Financial District luxury development. And now, with the June 28, 2009 auction at the South End’s 1850 loft-style condo development taking place, this may be a sign that the large-scale condo auction market is heating up.

Brecht recently stated that there may be a chance for increased auction activity over the next 24-36 months (see 441 Stuart Street: What Happened?), and it appears that prediction is coming true in the form of another residential downtown Boston real estate auction now with the 1850.

The 1850 is a condo development that has been developed over the past several years, gone through a name change (formerly known as SoHa Lofts), has been marketed for sale for well over a year, and open to residents in mid-2008. Both the Folio and Broadluxe auctions were successful in quickly clearing remaining inventory and paying off creditors, and the 1850, while some would argue has a less desirable location, is positioned to be on the same trajectory.

Filed Under: Boston Condo Auctions Tagged With: 1850, Boston Lofts, Broadluxe

True Back Bay Lofts

June 4, 2009 By Boston Real Estate Observer

We oftentimes get questions from condo buyers about what loft style condo options there are in the Back Bay. Boston’s Back Bay is considered one of the most premier and desirable neighborhoods to call home, and historical rowhouses and ornate townhomes dominate the tree lined streets. That said, finding a trendy loft-style condo in the heart of the Back Bay is naturally difficult.

Buyers won’t be able to find a classic exposed brick and beam loft-style condo in the Back Bay, it’s just not really an option. What condo buyers do have access to is 360 Newbury, which represents probably the most modern and contemporary living option in the Back Bay, and gets you the closest to Back Bay lofts. From the entrance (picture below), and up through the elevator ride to the units with big windows and big views, 360 Newbury exudes the hip, slightly edgy, but luxurious feel of loft-style living.

Turnover in the 54-unit building is relatively low, however, there are currently four units available for sale at 360 Newbury, two one-bedroom units and two two-bedroom units, ranging in size from 869 to 1,626 square feet, and in price from $699,000 to $1,599,000.

Filed Under: Back Bay Condos Tagged With: 360 Newbury, Boston Lofts

Willing to Sell Your Condo at Auction?

May 28, 2009 By Boston Real Estate Observer

Over the past calendar year, there has been one condo auction that has taken place in Boston, at Broadluxe in June of 2008, and one just outside Boston, at Longwood Towers in April of 2009.

These condo auctions were brought to market on behalf of institutional investors, those who owned the entire development. Public auction as a selling mechanism has yet to take hold with individual condo owners, but is this a concept that will gain further momentum?

Crowdsourcing, the act of taking a task traditionally performed by an individual employee or contractor, and outsourcing it to an undefined, generally large group of people or community in the form of an open call, is a concept that has gained significant momentum over the past several years. Especially in the wake of Threadless, a company that allows the general public to design and vote on what t-shirts the company produces and sells (and which, by they way, consistently sell out). Is the concept of letting the consumer decide something that can transcend the housing market, via an auction?

Voice your opinion on whether you think such an auction concept has merit in the Boston condo market.

Would you sell your condo via a public auction?

If you could control the timing and minimum bid how likely would you be to use an online auction service to sell your property?

Filed Under: Boston Condo Auctions

Eco Friendly Lighting Helps Condo Owners Save

May 22, 2009 By Boston Real Estate Observer

Whether you believe in global warming or not, there is no mistaking the fact that humans make an impact on the Earth. In an effort to maintain a healthy planet, it’s imperative that we take steps now to help preserve our environment for future generations. Though there are many ways this can be achieved, it’s best to start off small with simple steps to help reduce our carbon footprint, conserve energy, and lower utility bills. One of the easiest ways to make these things happen is by making small changes to your condo through the use of eco friendly home lighting.

There are a number of benefits to utilizing eco friendly lighting, and it’s rather simple to get started. The easiest method is to replace standard light bulbs with Compact Fluorescent Lights or CFL’s – these are the light bulbs featuring a distinctive swirly design. Not only do CFL bulbs last up to 10 times longer than standard bulbs, but they also use roughly 25% less energy. Over time, CFLs can lead to a sizeable reduction in monthly electric bills – reducing energy consumption cuts down on the amount of fossil fuels, coal, and natural gasses used to power homes.

Once actual light bulbs have been switched out, focus can be shifted to light fixtures themselves. Modern lighting fixtures that feature the Energy Star seal of approval have been extensively tested and certified as environmentally friendly. Energy Star is a government-backed program helping businesses and individuals protect the environment through superior energy efficiency. You can find the Energy Star logo on a wide variety of products, many of which are home light fixtures. When a product like a lamp, pendant, or overhead light features the Energy Star logo, the product meets all the requirements set forth by the EPA and the US Department of Energy. Today many Realtors use the presence of Energy Star products as a major selling point in the context of a green home. Condo buyers are focusing more heavily on environmentally friendly amenities and they also know that more efficient products in the home equates to lower energy bills and more money in their (and potential buyer’s) pockets.

Eco friendly lighting initiatives play a big part in Boston’s green building projects. The addition of eco friendly light fixtures is one of the many steps taken to help produce new energy efficient homes for today’s marketplace. The Macallen Building, for instance, has used a vast array of green practices in the design and development of 140 high-end environmentally friendly condos. While lighting is but a small part in the overall scheme of the eco friendly home, it is certainly an important part of the city’s goal of building towards a brighter future.

Filed Under: Boston Condos

Boston Homebuyer Tax Credit

May 19, 2009 By Boston Real Estate Observer

Through the home buyer tax credit of the American Recovery and Reinvestment Act, an $8,000.00 tax credit is available for first-time home buyers on a primary residence purchased during calendar year 2009. While much has been written about the benefits of the credit, the following is intended to provide a high-level snapshot of the program’s requirements:

• A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years prior to the day of the 2009 purchase.

• The amount of credit is determined by: (i) the purchase price (credit = 10% of purchase price); and (ii) the buyer’s income level (individual buyers with an income of $75,000.00 or less and couples with a combined income of $150,000.00 or less are eligible for the full tax credit).

• The credit is then phased between $75,000.01 and $95,000.00 for single taxpayers and $150,000.01 and $170,000.00 for married couples filing a joint tax return.

• The credit does not have to be repaid provided buyer occupies the home for 3 years or more.

• The credit is a “refundable credit” – if the purchaser’s total tax liability in the given year is less than $8,000.00, the IRS will send a refund for the balance (If, for example, the purchaser’s total tax liability = $7,000.00, the purchaser would receive a check for $1,000.00)

• A 2009 purchase may be claimed on the purchaser’s 2009 return or in the alternative, the purchase may be treated as if it occurred on December 31, 2008 thereby giving the purchaser the option of filing an amended 2008 tax return (see Form 1040X at www.irs.gov).

Filed Under: Buyer Advice

Bryant Back Bay Open House

May 13, 2009 By Boston Real Estate Observer

After several delays in opening, the Bryant (formerly the Bryant on Columbus and now called the Bryant Back Bay) is poised for closings to begin next week. The luxury development played host on Tuesday evening to a swath of real estate agents, many of whom were getting their first look at the development.

The Bryant boasts many of the amenities that have become nearly ubiquitous for high-end condo developments in downtown Boston, in one of the premier locations in the city (offering both neighborhood South End feel and easy access to Back Bay and Midtown). The questions, and more importantly, their answers, that are on the minds of most include:

Between 15 and 20 percent of the building has been sold
South End views really open up starting on the 8th floor (see panoramic view below taken from the 8th floor)
The back of the units (where the master bedrooms are situated) are much farther away from 131 Dartmouth than originally anticipated.
Lower floor units do receive substantial amounts of light

The most notable concern from buyers has been the proximity of the Bryant to 131 Dartmouth, and it’s impact on the building. 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, light pours into the back of units.

The Bryant Back Bay has a resident manager Katherine Collins, who will serve as concierge during the day, and Tillinger’s Concierge will handle the post after 4pm and on weekends. Barkan Management is providing management services. Soon to come amenities will include a fitness center with a massage room, a spa and state of the art equipment. For a limited time, Buyers will receive a single one-year membership at Equinox Fitness Club, located around the corner at 131 Dartmouth.

With direct elevator access to units and parking, a highly desirable location supported by excellent nearby dining and nightlife, the Bryant is a stellar addition to the South End / Back Bay border.

Filed Under: Back Bay Condos Tagged With: 02116 Boston Condos, Bryant on Columbus, Columbus Avenue Condos