Top 10 Articles of 2008

In 2008, the Boston Condo Blog grew into one of the most popular real estate news sources in Boston.  Some innovative new ideas are planned for 2009, but it’s worthwhile to take a look back at the most popular articles that generated reader interest in 2008. Here are the top 10 most read articles from 2008 here at the Boston Condo Blog.

  1. Boston W Hotel and Condos – we have put together some of the most exclusive photos and content surrounding the luxury Starwood brand hotel and resort that will launch in late 2009, going all the way back to the transition of the property from a parking lot to a large hole in the ground.
  2. Boston Parking Spaces – our downtown Boston parking spots page has become a top destination for those who want to buy and/or sell a parking spot in Boston.
  3. Banq Restaurant to Open at Penny Savings Bank – few restaurants in the city generated as much buzz as Banq did.  The historic Penny Savings Bank deep in the South End was completely renovated in 2007, and is now home to luxury condos, as well as commercial space, which includes a bank (how appropriate), and the new upscale Banq restaurant.
  4. The 1850 New South End Condo Development – along the southern border of the South End, a new loft-style condo development called the 1850 launched, we were one of the first to bring you exclusive photos and a comprehensive overview of the property.
  5. Broadluxe Condo Auction Results – we were the only news source that stayed with the Broadluxe condo development as it changed ownership hands through foreclosure, as well as pre and post auction.  With the last Purchase and Sale Agreement at Broadluxe was recently signed, (tentatively) marking the end of a successful, and rather short, sales cycle.
  6. Prices at Macallen Building – being the first green condo development in Boston, the Macallen Building has received a lot of attention even before its opening in the summer of 2007.  Approximately 50 units in the building remain unsold, and pricing at the development is of interest to many who want to call the green building home.
  7. 285 Columbus Lofts Buck Downtown Boston Trend – 285 Columbus Lofts, a new loft-style condo development at the northwest corner of Columbus Avenue and Clarendon Street surprised many with the sales velocity that the developer established in pre and post construction.  The development offers a combination of highly desirable amenities, in a superb location, and Buyers to notice.
  8. $100K Price Changes at D4 Condos – one of two historical landmark buildings in the South End (and the city for that matter) that have been converted into luxury condo developments, the Philippe Starck designed D4 Condos are approaching sold out status, but only after undergoing several price reductions.
  9. Nothing Standard About Standard Purchase and Sale Agreement – one of our guest bloggers, Rich Rosa, a real estate attorney in Massachusetts, put together an excellent article about one of the most important documents in the real estate transaction process, the Purchase and Sale Agreement.
  10. Warm Welcome from the Clarendon Back Bay – the sales staff for the Clarendon Back Bay, one of the city’s latest ultra luxury condo developments, hosted us immediately following the opening of the official sales center on Newbury Street.  Despite a slowing luxury market, the combination of amenities and location at the Clarendon continue to drive Buyer interest.

We look forward to another exciting year in Boston real estate, and a whole new set of top 10 articles in 2009.  Happy New Year!

DNA Lofts Maintain Momentum

After a relatively successful start out of the gate, DNA Lofts, the latest loft-style development to hit Dorchester, recently made the decision to lower unit prices to maintain momentum and sales velocity heading into 2009.

Prices at the 59-unit DNA Lofts development formerly ranged in price from $245,000 to $599,000, and have since been reduced to $207,000 to $591,000.  On the lower end of this scale are studio units, with excellent light, and on the higher end, expansive penthouse units with their own outdoor space.

The DNA Lofts development, where units include a parking space in the onsite garage or parking lot and a short walk to the Red Line, have been touted as an alternative to South End condos, especially new developments farther south in that neighborhood.

Lofts at 36 A Offer Unique Value

In the Summer of 2007, a hotbed of activity was happening surrounding the (Red Line) Broadway T-Stop in South Boston.  The Macallen Building had recently opened with fanfare as Boston’s first green building adjacent to the existing Court Square Press loft development, work was underway on the Allele, and a boutique development on the corner of A Street and W 4th Street called the Lofts at 36 A promised to offer something unique to its residents. In late 2008, 36 A is approaching sold out status, and residents and potential Buyers are enjoying the building.

Lofts at 36 A Exterior

36 A goes beyond the no frills exterior and posh interior finishes, and someone who knows this well is Beth Dailey, who has served as the Sales Director for the Lofts at 36 A since preconstruction.  Dailey is a prominent listing agent in South Boston, and speaks very knowledgeably about the 36 A property and the surrounding area.

One of the things about the Lofts at 36 A that residents are most excited about is the the low condo fees, which give you “everything you’d want in a building in the city without the expense of a concierge or gym passed on to unit owners,” says Dailey.  “People are choosing to buy a second parking space [in the building] because the condo fees are so low – they are purchasing a second vehicle with the extra money they save in condo fees.”

Proximity to the Mass Pike and 93, as well as being just 280 steps to the T are amenities that don’t go unnoticed by residents.  36 A truly shines when you turn to the inside of the building and begin to look at some of the finishes with which the developer outfitted the boutique development.  The developer was actually planning to move into the building with his wife, young daughter and pets, however, when his wife became pregnant with their second child, he needed a little more space.  The fact that the developer was going to call the building home is a blessing in disguise to residents, as the building was constructed with personal care.

Lofts at 36 A Concrete Floors

The building has been built with some of the latest advances in systems, and some of the sleekest finishes in Boston, for instance, the stained and scored concrete floors are by far the most unique and hip floors you will currently find in the city.  The quality of the (high velocity) systems have helped condo Buyers save on heating and cooling bills says Dailey, as “many residents have not even turned on their heat yet this season, sound deadening insulation, and staggered stud 2 x 6 construction between units, and concrete between floors,” all assist in making the most efficient use out of the available square footage

The contemporary loft-style units at 36 A are all south facing, and offer curtain walls of glass.  All condo fees in the building are below $280 per month, and Buyers seem to appreciate the straightforward pricing that is inclusive of at least one parking space in the two-level garage parking (street level and a below grade level accessed via a car lift).  The building is built to be family and pet friendly, and has a bicycle and baby carriage area, and extra storage.

Lofts at 36 A Kitchen

Given the economic downturn that Boston is faced with, 36 A positions itself from a unique value perspective as “a small boutique building with very low condo fees and taxes relative to the other buildings in the neighborhood.  It’s brand new construction which limits the exposure to assessments and having to replace common area elements,” says Dailey.  The ground floor commercial space is uniquely controlled, and deemed a low impact commercial space (i.e. no restaurant or food use), and is currently occupied by a residential real estate brokerage. The common space that does exist in the building is decorated in a contemporary and subtle way, especially the elevator lobby, which is adorned with a commissioned piece of artwork by a resident in the building.

There are currently 6 units for sale at 36 A, ranging in price from $519,000 to $659,000, which includes at least one heated garage parking space, as well as access to a common roofdeck with expansive city views.

Lofts at 36 A Lobby Artwork

Lofts at 36 A Bathroom

Lofts at 36 A Roofdeck

Last P&S Signed at Broadluxe

As of Wednesday, the last Purchase and Sale Agreement (P&S) was signed at Broadluxe, (tentatively) bringing to a close original sales for all units in the 44-unit loft-style development.  66% of the property was sold at auction on June 21, 2008, and the remaining condos in the building were listed for sale following the auction, typically at higher price points than what was paid at the auction block.

There are currently 4 resale units in the building for sale, ranging in price from $429,000 to $999,000 – the $429K unit, a corner one-bedroom loft is the most reasonably priced from a price per square foot perspective.

We’ll take a more comprehensive look at this development, and the results of the auction and post-auction sales, in the near future.

Prices Slashed at Mandarin Oriental Boston Penthouses

News on December 2, 2008, of the first price reduction at the luxury Residences at the Mandarin Oriental Boston at 776 Boylston St Boston, MA 02199, was quickly followed by two additional price reductions, this time on the penthouse level.

Search the latest Mandarin Oriental Boston condos for sale and rent.

Unit PH1-C, a 5,100 square foot 3-bedroom 4.5-bathroom accompanied by 2 parking spaces was reduced on December 5, 2008, from $12,500,000 to $9,950,000.  The massive outdoor terrace and deck space (1,000 + square feet) of this unit, now priced at $1,951 per square foot, is much more in line with the average price per square foot of $1,970 for all current resale listings at the Mandarin.

Unit PH 1-D, a 2,000 square foot 2-bedroom 2.5-bathroom unit that is accompanied by 1 parking space was reduced on December 9, 2008, from $7,000,000 to $5,500,000.   Despite the large private roof deck boasting superb views, the $2,750 per square foot price tag is still grossly out of line with other price per square foot numbers in the 50-unit building.

While statistics have shown a luxury market slowdown hitting Boston, these price reductions simply bring units that were priced well above the curve back toward the average of currently available Boston Mandarin condos for sale.

Downtown Boston Market Slows in Piecemeal

In looking at November 2008 sales statistics for downtown Boston, the number of listings that sold in the month has decreased substantially from the same time period in 2007, while prices flashed various signals in different market segments, both up and down.

The downtown Boston market slowed (in terms of number of units sold) year on year in November by approximately 34%, moving from 196 condos sold in 2007 to 130 in 2008.  The bulk of that percentage slowdown comes from a 59% drop in the number of $1 million + homes that were sold, versus a drop of 28% in the under $1 million market.  Various downtown neighborhoods have experienced a slowdown at different magnitudes, the South End for instance, has shown to be slowing less than the overall market (see South End Market Slows Down, Well…Maybe).

In the month of November, average and median prices of homes sold increased by 4% and 7% respectively in the under $1 million market year over year, while luxury homes over $1 million saw average and median prices decrease by 16% and 9% respectively.

Performance in the $1 million + market has impacted overall trends, however, it’s interesting to note that homes in this price range have accounted for only 10% – 17% of the overall November market of sold homes in 2007 and 2008.

First Price Reduction at Mandarin Oriental

After 49 days on the market, unit W-11A at the ultra luxury Mandarin Oriental is the first resale unit in the building to undergo a price reduction.  Originally listed at $5,570,000, the luxury 3,100+ square foot unit was reduced in price by $420,000 (7.5%) on December 2, 2008 to a new asking price of $5,150,000 ($1,620 per square foot), putting it well below the average price per square foot of $1,970 for current resale listings, but still above the $1,416 average price per square foot mark for the original set of sales in the building.

Unit 11A in the west building is a front-facing corner unit that boasts two bedrooms and an additional library / den space on the 11th floor. The unit boasts a terrace with views of the Charles River and Back Bay, along with direct elevator access, and two deeded garage parking spaces.  Monthly HOA fees for the unit are approximately $3,677.

Statistics for currently available Boston Mandarin Oriental condos:

  • Listings: 10
  • Average Price: $7,489,400
  • Median Price: $6,900,000
  • Minimum: $2,200,000
  • Maximum: $16,990,000
  • Average Price per Square Foot: $1,970
  • Average DOM: 103

Condos at the Mandarin are spread across its two east and west buildings along Boylston Street, above the street level commercial spaces, and the minimum $495 per night hotel rooms.

For more information on available condos for sale at the Mandarin, contact us using the link at the top of this page.

Boston Mandarin Oriental Condos (West Building)

Luxury Back Bay Penthouse Reactivated

The Back Bay is no stranger to ultra luxury real estate listings, and the penthouse unit at 294 Newbury Street (known as the Providence on Newbury) sets the luxury bar high overlooking Newbury Street shopping and dining.  If the seen and be-seen oasis of the Back Bay’s Newbury Street is right for you, the direct elevator access penthouse unit at the Providence offers high-end living both inside and outside, along with adjacent alley parking.

Originally listed for $5,000,000 on April 15, 2008, the penthouse unit stayed on the market for 132 days before being canceled on August 25, 2008.  At that point, the listing was put back into the Boston MLS system at a new price point of $3,995,000.  The condo appears to be on a month-to-month listing, as it has gone expired and reactivated on the 1st of October, November, and now, December.

294 Newbury Street Dining Room

We first toured this building in the height of construction in May 2007 (see Providence on Newbury Condos), and the building, and especially the penthouse, has come a long way in fulfilling the developer’s vision.  The hot tub, grill, and audio / video capabilities on the 70+ square foot outdoor deck overlooking Newbury Street caps this unit off.

However, the penthouse unit at 294 Newbury Street currently has some stiff competition in the Back Bay luxury condo market, with nine resale units available at the recently opened Mandarin Oriental.  In fact, on a price per square foot basis, the Providence on Newbury penthouse is more expensive than the three Mandarin Oriental condos under $5 million listed below.

  • E-10H 1,437 square feet 2bed 2bath $2,200,000 (1 parking space)
  • E-9F 2,557 square feet 2bed 2.5bath $2,554,000 (1 parking space)
  • E-11F 1,830 square feet 2bed 2bath $3,050,000 (1 parking space)

Choices abound in the Back Bay, and throughout the city for that matter, allowing buyers to be quite particular about what they purchase.  As it relates to the Providence on Newbury, if a boutique feel and easy access to shopping and dining is a must, as well as the hustle and bustle of downtown life, it’s worth your consideration.

294 Newbury Street Master Bath

700 Harrison Luxury Boston Rentals

In addition to the 8 current for sale listings at the 2007 700 Harrison condo development, some units in the building have turned to rentals to fill vacancies. Rather than let the newly constructed condos remain empty through typically a slow season for sales, Mitchell Properties LLC has opted to allow prospective tenants to sign 9-12 month leases with the option to sign a “lease to purchase contract” to contribute some of their rent towards a future purchase. Even if renters decide to stick with a standard lease, it gives the developer the ability to have positive cash flow until they can try out the luxury condo market again next year.

700 Harrison

The opportunity for renters in a lease to buy situation is compelling. With rents starting at $1,950 for a 1,081 square foot two-bedroom two-bathroom unit on the fourth floor, renters can live in luxury with floor to ceiling walls of glass, sweeping skyline views, open and contemporary kitchens, laundry in unit, as well as beautifully architect-designed baths, all for an affordable price.

To put this in perspective, the average rent for a two-bedroom unt in the South End is approximately $2,600, and will most likely not compare in size or finishes to what is being offered at 700 Harrison. For instance, a comparable rental unit at 216 West Springfield Street, which was recently rented for $2,500, had only one bathroom and 610 square feet of living space. A high-end contemporary option for South End renters, Church Park, which is located at 221 Massachusetts Avenue boasts between 954 and 1,275 square feet of living in their two-bedroom two-bathroom apartments for $2,950-$3,800 depending on the size and view.

700 Harrison Lobby

The only downside is that at such an attractive price point and in such a great location, 700 Harrison condo rentals are moving fast. Since last week, four units were rented after being on the market for only three days. There are still two-bedroom units available for $2,200-$2,300 with immediate occupancy.

– Jay Alberino is the Founder & CEO of Eleven Park Realty, and has recently launched myCityApartment, a guide to houses and apartments for rent in Boston, Brookline, and Cambridge.

FP3 Seaport District Condos Slow to Sell

When Berkeley Investments Inc., local restaurateur Barbara Lynch, and Mayor Thomas Menino broke ground at the mixed-use FP3 condo development on Friday, April 20, 2007, the project was heralded as the new luxury baseline in the Fort Point Channel.  More than a year and a half later, the development is now a reality, but the 92 residential loft-style condos are not moving off the market.

In July of 2008, a Berkeley employee was quoted in Banker & Tradesman saying that 38 units were Under Agreement poised to close when the certificate of occupancy was issued later in the summer (see Brokers: Fort Point Condo Project Too Pricey for Neighborhood 100 KB PDF), yet, fast forward to today, and a very different reality exists with the certificate of occupancy indeed in place, but only 9 units have sold, and 2 are Under Agreement.

The pertinent condo sales statistics at FP3 currently include:

  • Number of Listings Sold: 9
  • Percentage of Building Sold: 9.8%
  • Average Sale Price: $610,436
  • Median Sale Price: $541,000
  • Average Price per Square Foot: $659
  • Average Days on Market: 120

FP3 Boston Condos

The popular restaurateur Barbara Lynch has opened the much hyped Sportello restaurant on the ground floor of FP3, alongside her new lounge, simply called Drink. The presence of Lynch onsite has been one of the cornerstones of marketing for FP3 developers, both for the condo development itself, and the overall neighborhood, but condo sales in the building have not been able to keep pace with the opening of Lynch’s new posh attractions.

Local real estate broker, Elad Bushari of Bushari Group Real Estate says that he is a fan of the area,”the location is great, close to the Financial District, the red line and great restaurants. The top floors are amazing, big windows, outdoor space, and great views.” However, Bushari cites price in accounting for the significant difference in sales velocity between FP3 and more popular condo developments such as 285 Columbus Lofts that are approaching sold out status in a much shorter sales cycle with,”I think that it has a lot to do with the developer’s flexibility on prices, most of the feedback I received from my buyers is that it’s just too expensive; the area is going to be great but it’s not there yet.”

While the price points, and lack of price reductions, may be keeping potential new Buyers at bay, current residents have reason to smile. Berkeley Investments has yet to cut prices to the point where current residents are stuck with negative equity in their units, an unfortunate reality for some Bostonians who buy early at new luxury condo developments. It’s a balancing act to try and buy the specific unit that you desire in a new condo development early in the preconstruction sales cycle, but at the same time, avoid buying in too early so as to avoid (oftentimes inevitable) developer price reductions on future unsold units that will ultimately bring palatable building price points below preconstruction levels.

“I don’t think they need to do much more. Their marketing looks pretty good to me, I don’t know their traffic, but they are noticeable, at least in the brokers community,” states Bushari.

Heading into the winter months, there are currently two units (210, 217) Under Agreement at FP3 Boston, both units at the lower end of the price scale in the building with a studio and a one-bedroom listed at  $349,000 and $449,000 respectively – FP3 condo fees
do include concierge services.

FP3 Boston Lofts Lobby