Boston Real Estate Observer, Author at Boston

Construction at Harbor Towers Increases Boston Waterfront Apartment Rentals

April 13, 2009 By Boston Real Estate Observer

With most of the heavy lifting of a 2007-2009 systems renovation project completed, Harbor Towers has become a haven for Boston Waterfront rental apartments. Whether it was the cost of the special condo fee assessments, the state of the real estate market, or a mixture of both, there is no doubt that more condos are available for rent at Harbor Towers now than ever before.

According to MLS PIN only 7 condos were rented in 2006, in 2007 that number was pushed up to 19, and in 2008 to 25. While these numbers are imperfect -not all rentals are listed on or trade through the MLS – they are indicative of a trend that has followed the most extensive HVAC renovation any Boston condo development has seen.

Currently, there are 25 rental apartments on the market at Harbor Towers. Apart from the two large penthouse units available for $10,000 and $11,000 per month – most units are 1 or 2 bedrooms and range between $1,700 and $4,500. The units are most closely comparable to those at Emerson and Longfellow Place at the West End Apartments in that they generally offer parquet floors, galley kitchens and lots of space. However, at Harbor Towers every unit has its own personal touches added to it by unit owners – some have granite counters or an open kitchen. What brings most renters and buyers to Harbor Towers are the panoramic views of the Harbor and the city from two of Boston’s tallest residential buildings. The Harbor-side pool certainly adds to the appeal for renters, and with the additional supply of available units, the prices have become more affordable.

Filed Under: Boston Rentals Tagged With: Harbor Towers

Fannie Guidelines Drive Boston Condo Auction Activity

April 8, 2009 By Boston Real Estate Observer

New Fannie Mae condo guidelines present a new significant hurdle to sales for Boston condo developers. In the face of these hurdles and with increasingly less patient lenders it is likely that the Boston area will see more condo auctions in 2009. The Wall Street Journal reports a summary of the changes:

“The government-backed mortgage-finance company stopped guaranteeing mortgages in condo buildings where fewer than 70% of the units have been sold, up from 51%. In addition, the company won’t back loans for sales in buildings where 15% of current owners are delinquent on association fees or where more than 10% of units are owned by a single-entity…The new policy became effective March 1, and most lenders have started to implement Fannie’s guidelines.”

In my business I work mainly with lenders and attorneys. Except in cases where developers have failed (often repeatedly) to reach the prescribed milestones, lenders to this point have been very generous with extensions and have been inclined to work with developers through slower than expected sales. Lately, as pressure has been mounting, I’m hearing about a lot less patience. Until this fall it was easy to be optimistic that something would happen and sales would improve in a relatively short time but the fact is that today most of the people I’m talking to are now expecting a longer down cycle than they may have previously.

After just two short months we’ll be able to assess the spring market and whether or not its made a significant impact on inventory. While there are some positive signs in the residential market, many lenders will be unable or unwilling to extend construction loans without some concrete evidence of forward motion. If Fannie’s new rules stifle that motion over these next two months, you can count on a spate of condo auctions through the second half of the year.

Filed Under: Boston Condo Auctions

Economics Trumps Boston Foreclosure “Deals”

April 6, 2009 By Boston Real Estate Observer

Over 900,000 USA households are in the foreclosure process, up 71% from a year ago, according to a survey by the Mortgage Bankers Association. That pan-USA figure represents 2.04% of all mortgages in the USA, the highest rate in the report’s quarterly, 36-year history. What does that mean for those looking to buy downtown Boston real estate, especially a foreclosure “deal”? Not much.

Ultimately, USA foreclosure statistics have little applicability to downtown Boston for two reasons, the first revolves around the fact that the number of foreclosures in downtown Boston is quite low, and second, simple supply and demand economic forces in the city center prevent any foreclosure pricing “deal” opportunities – these forces erode any price point differentials between market and foreclosure prices. Foreclosed homes stay at their foreclosure list prices because of supply gluts, and the economics of Boston’s real estate market prevent the surges in supply of “cheap” homes to support the market dynamics that are being seen in the hardest hit housing markets in the USA.

A compilation of 2008 (January – October) Boston foreclosures by the Boston Globe shows that there was one foreclosure sale in downtown Boston during the first 10 months of 2008 – yes, many more outside the city center, but the downtown market demonstrates significant insulation to foreclosure pressure. The single unit was a Leather District loft-style condo that sold for $443 per square foot, more than $100 more per square foot than current high-end units at the newly renovated Beach Street Lofts are selling for.

Case in point for the economic forces of the downtown market on a bank-owned unit offered to the public was 10 Hanover Street unit 3, a one-bedroom one-bathroom 690 square foot condo in the North End. In June 2008, the condo hit the market for sale, and was listed at $274,900 ($395 per square foot), a very attractive price for the unit and the neighborhood. We worked with clients to move quickly on the property, despite this, there were over 20 offers on the unit, and it closed two months later for almost $100,000 more than the list price at $365,000 ($529 per square foot). In the end, the short sale property didn’t really end up offering the value for which Buyers were clamoring. In 2008, the average price per square foot in the North End was approximately $600. This example highlights that simply supply and demand in downtown Boston prevent foreclosure “deals” from occurring.

Unit 809 at the Ritz Carlton will be an interesting condo to follow to see if the theory checks out. Unit 809 is a 1+ bedroom 1.5 bathroom 1,357 square foot unit in the Ritz Carlton Millennium Towers that is a bank-owned property recently listed for sale at $679,900 ($501 per square foot), and represents almost a 50% discount on the average price per square foot in the building – granted, the average price per square foot is being inflated substantially by several other recently listed properties in the development, including Manny Ramirez’s Ritz Carlton condo. Unit 809 is being sold as is, and is competing against 8 other units that are priced under $700 per square foot, the others at “market prices”.

The economics of supply and demand in downtown Boston trumps any “deal” that a Buyer assumes can be had by finding a foreclosure. The first hurdle lies in the absolute number of foreclosures in the city center, there really are none, and when coupled with the supply and demand forces present in the city, the idea of a “deal” on a downtown Boston condo quickly becomes elusive.

Filed Under: Boston Condos

W Hotel Boston Condo Photos

March 31, 2009 By Boston Real Estate Observer

Exterior work at the Boston W Hotel & Condos mixed use development has shown great advances over the past several months, with the steel structure being topped off quite quickly. The glass and steel structure inserts a very unique feel to the area at the corners of Stuart and Tremont Streets (100 Stuart Street Boston, MA 02116 will be the development address), and continues on pace to be delivered to hotel guests and residents later this year. Reservations are currently being taken for units, for planning purposes, overall price points will be similar to new full-service luxury buildings such as the Intercontinental ($900+ per square foot) and the Clarendon Back Bay ($1,100+ per square foot). Condos at the W will begin on the 16th floor, and top out at the 28th floor penthouse. The approximate 235 hotel rooms will be on lower floors, garnering condo residents preferential city views. Floors 16 through 27 will house 9 to 10 units per floor, including an occasional 520 square foot studio unit, while the penthouse level will be home to 5 generously sized condos.

New exclusive photos of the Boston W development are below.

Filed Under: Theatre District Condos Tagged With: 02116 Boston Condos, Boston W Hotel Condos, Stuart Street Condos

Luxury Back Bay Boston Condos at Zero Marlborough

March 25, 2009 By Boston Real Estate Observer

After two years of (re)construction, closings at the luxury Zero Marlborough building began in September of 2008. Anticipation grew as the art deco 12-unit building was transformed into one of the latest boutique concierge buildings in the Back Bay, sitting in an ideal location at the corner of Arlington and Marlborough Streets, adjacent to the Public Garden. Quietly, Zero Marlborough has come very close in unseating the Mandarin Oriental for consistently driving the highest price per square foot values in the Back Bay (and the city for that matter) with closing prices averaging approximately $1,400 per square foot – the Mandarin, over the course of its 52 closings, has an average price per square foot of over $1,500.

Back Bay housing prices have stayed resilient over the past year, with average and median prices increasing substantially when looking at performance over the same 3 month period from 2008 to 2009

January 1, 2008 – March 25, 2008
Back Bay Condos Sold: 70
Back Bay Average Sales Price: $1,185,402
Back Bay Median Sales Price: $671,250
Back Bay Average Price per Square Foot: $793
Back Bay Average Days on Market: 107

January 1, 2009 – March 25, 2009
Back Bay Condos Sold: 47
Back Bay Average Sales Price: $1,334,491
Back Bay Median Sales Price: $781,000
Back Bay Average Price per Square Foot: $785
Back Bay Average Days on Market: 155

It’s interesting to note that these numbers are not inflated by ultra-luxury closings that would include Zero Marlborough or Back Bay Boston condos at the Mandarin Oriental, as there have been no closings for either of these two buildings during the first quarter of 2008 or 2009.

8 of the 12 units at Zero Marlborough have sold, the 4 that remain for sale are all 3,300+ square foot 3+ bedroom 3.5 bathroom units listed for sale between $4,669,000 and $4,765,000 (approximately $1,421 per square foot).

Filed Under: Back Bay Condos Tagged With: 02116 Boston Condos, Zero Marlborough

Boston Condo Hotels: Intercontinental

March 19, 2009 By Boston Real Estate Observer

Condo hotel developments, where a single development houses a hotel as well as condo residences, continue to leave their mark on the Boston skyline. Forerunners in the Boston condo hotel space include the residences at the Ritz Carlton, the Four Seasons, and Rowes Wharf, when in the 1980s, they brought five-star hotel living amenities to downtown residential condos in a tidy and sleek package. The Boston Intercontinental hit the scene in 2006 with 130 condos that sit above 424 contemporary hotel rooms, enclosed in modern shiny glass along Boston’s Waterfront, approximately 200 yards from the Fort Point Channel’s Boston Tea Party site.

Almost 90% of the Boston Intercontinental residences at 500 Atlantic Avenue have been sold since opening to residents in 2006, and a large handful of developer units, as well as some resales, are currently available for sale. Construction began on the Intercontinental in late 2004, when there was only a handful of condo hotel developments in Boston. Since that time, we’ve seen several more announced to the market and/or delivered, including, the Mandarin Oriental, Battery Wharf, and the Boston W Hotel. The Intercontinental boasts a unique location along the Fort Point Channel nestled up against the newly opened Greenway and the bustling Financial District – both the hotel and residences make for an excellent home base for business travelers and financial services workers respectively.

While some selective slowdowns have occurred in the Boston ultra luxury market, the Intercontinental has held a steady course, and has demonstrated signs of resiliency from a price per square foot perspective over the past 6 months. Over the past twelve months, 16 condos have sold at the Intercontinental:

Condos Sold (Past 12 Months): 16
Average Sales Price: $1,843,418
Median Sales Price: $1,597,000
Average Price per Square Foot: $922
Average Days on Market: 170

Over the past three months, units seem to be lingering longer on the market, but price per square foot in the building has edged up – this may be a function of the fact that the 3 units that did sell were some of the largest and most prestigious units in the building.

Condos Sold (Past 3 Months): 3
Average Sales Price: $2,978,333
Median Sales Price: $2,935,000
Average Price per Square Foot: $982
Average Days on Market: 290

Part of the approximate $1,000 price per square foot values that the Intercontinental is commanding is attributable to the level of service that residents enjoy. Luxury services include a 24-hour concierge, spa, fitness center, room service, pet-care, and valet parking – as a resident, many of these services are paid for on a continuing basis through monthly HOA fees that average approximately $1.28 per square foot.

There are currently 22 condos for sale at the Intercontinental, with the following statistics:

Condos for Sale: 22
Average Sales Price: $1,633,036
Median Sales Price: $1,175,000
Average Price per Square Foot: $971
Average Days on Market: 178

The least expensive condo for sale in the development is a 421 square foot studio priced at $369,900, and the most expensive currently is the 4,700+ square foot 4+ bedroom penthouse listed at $6.45 million. 8 of the 22 units for sale are under $1 million, while the remainder are over.

Filed Under: Waterfront Condos Tagged With: 02110 Boston Condos, Boston Intercontinental

Back Bay Open House on Marlborough Street

March 15, 2009 By Boston Real Estate Observer

If you’ve ever moved from the hustle and bustle of Newbury Street in the Back Bay towards the esplanade and the Charles River, you know that once you cross Commonwealth Avenue heading north, the pace of life and city sounds all tend to slow down. Essentially, that is Marlborough Street, a wide, one-way, tree-lined street in the heart of the Back Bay that puts you moments from everything the city has to offer, but also in a serene setting.

A new listing this week hit the market on Marlborough Street, specifically, unit 1 at 347 Marlborough Street. The condo is a 605 square foot unit that is accompanied by one deeded tandem parking space, exceptional in-unit and common area storage, and a common washer and dryer that is close enough that you would think it was part of the unit itself. Listed at $499,000, there is an additional 120 square foot sun room that is not factored into the 605 square foot calculation, which brings the effective per square foot price to approximately $688.

Back Bay location on one of Boston’s most desirable streets! This garden-level home features hardwood floors, exposed brick, and a wood-burning stove. Unique 120 square foot sun room (not included in square footage calculation) floods the unit with light and serves as a great dining area. The galley kitchen offers ample storage and everything a modern cook needs. The spacious bedroom boasts large closets and great built-ins. Common laundry and one deeded tandem parking space included.

An open house will be held at 347 Marlborough Street unit 1 on Sunday, March 15, 2009 from 12:30 PM to 2:30 PM.

Filed Under: Boston Open Houses Tagged With: 02115 Boston Condos, Marlborough Street Condos

Are Mandarin Oriental Condos Selling?

March 5, 2009 By Boston Real Estate Observer

The luxury condos at Boston’s Mandarin Oriental sold out well before construction was complete, one of the first condo developments to pull off such a feat in the city. Once closings took place in the September / October 2008 timeframe, roughly 10% of the units in the building went up for resale, even before owners moved in. Approximately 20% of the building (11 units) is now for sale. Buyers seem to have a fair amount of choice, in terms of unit styles, location, and amount of finishing (some units are being delivered as shells), however, Sellers at the Mandarin Oriental aren’t seeing their product move that quickly.

Despite the overall lull in sales activity, unit 9H in the east building may be the forerunner for future sales, after being listed in late January 2009 for $2,600,000, it went Under Agreement last week. 9H would represent the first resale following project completion. The unit is a 2-bedroom 2.5-bathroom 1,906 square foot unit that includes one deeded garage parking space (valet). Condo fees for a unit like this are approximately $2,800 per month. Closing at or around the list price would maintain the $1,000+ price per square foot that has been seen at the Mandarin, one of a (growing) handful of condo developments in downtown Boston that commands a four digit price per square foot.

In addition to unit 9H, there are currently 10 condos for sale at the Mandarin, ranging in price from $2,554,000 to $16,990,000. Units at the ultra luxury development have been sitting on the market for an average of 163 days, with that average somewhat bloated by a listing that has been available since January 2008 (or approximately 420 days).

Why did unit 9H go Under Agreement while the others sit on the market? As always, it depends, but price surely had something to do with it. At $2,600,000, unit 9H is offered at approximately $1,364 per square foot, while the remaining condos for sale in the building have an average price per square foot of $1,846.

Filed Under: Back Bay Condos Tagged With: 02116 Boston Condos, Boylston Street Condos, Mandarin Oriental

Million Dollar Hiatus at Atelier Ends

March 3, 2009 By Boston Real Estate Observer

It has been over 7 months since Buyers have seen a “high-end” condo become available in the Atelier 505 condo development at the corner of Tremont and Dartmouth Streets in Boston’s South End. While the development is the forerunner of luxury in the South End with all units in the 103-unit development being high-end, it was back in early August 2008 when unit 408, a 1,504 square foot 2-bedroom 2.5-bathroom condo closed for $1,340,000 ($891 per square foot), which was the final $1 million + unit to close in the building in 2008.

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).

Filed Under: South End Condos Tagged With: 02116 Boston Condos, Atelier 505, Tremont Street Condos

Winter 2009 Boston Restaurant Week

February 26, 2009 By Boston Real Estate Observer

The Greater Boston Convention & Visitors Bureau recently announced details surrounding the Winter 2009 Boston Restaurant Week. During Restaurant Week Boston, diners enjoy prix-fixe $15.09 two-course Light Lunches, $20.09 three-course Lunches, and $33.09 three-course Dinners at restaurants throughout Boston, Cambridge, and the suburbs. The Winter 2009 dates include March 15 – 20 & March 22 – 27, 2009.

Price is per person and excludes beverage, tax and gratuity. View the restaurants by neighborhood for sample menus and online reservation links at the official OpenTable.com website.

Filed Under: Boston Restaurants