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The 2011 Prime Urban Report
A Comprehensive Study of Boston’sResidential Market And Factors Which Impact Its
Viability
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2011 Prime – Urban Report
DISCLOSURE: While diligent attempts are made to ensure the accuracy of this report, the authors assume no liability for any errors or omissions. Anyone relying on the information contained in this report should take all steps necessary to verify it for themselves.
Welcome to
The 2011 Prime Urban ReportThomas Skahen, Co-Founder and PartnerJanice Dumont, Co-Founder and Partner
We are proud to release our 2011 Prime Urban Report. We hope the report and topics are of interest to developers, architects, investors, brokers, and other real estate industry professionals. Our intent was to drill down and look at Massachusetts, Boston, and specific residential developments currently under construction in the Boston marketplace.
We hope you enjoy the 2011 Prime Urban Report and look forward to any comments or feedback you may have.
http://www.facebook.com/#!/pages/Littleton-MA/PrimeTime-Communities/428613020000?ref=tsClick to Become a Fan
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Why We Put This Report TogetherPrimeTime Communities – PASSION
Many developers ask us why we undertake such a large research project such as The Prime - Urban Report. The answer, although sometimes a little too simple, is passion. The Prime - Urban Report, and its sisters, The Prime – Suburban Report and The Prime - 50 Plus Report, take an outstanding amount of time and dedication to produce. Our team and contributors share our passion for the development industry and its future. We hope that our efforts help developers in their search for the best consultants, the best sales teams, and the best creative campaigns. All resulting in successful future developments and the prosperity of our economy.
2011 Prime – Urban Report
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2010 Prime – Urban Report
Contents
Assessing the Massachusetts Urban Market
Part I. Residential Review
Part II. Boston Community Profiles
Part III. PrimeTime Overview
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2011 Prime – Urban Report
Residential ReviewWhat Goes Up?Thomas Skahen, Co-Founder and PartnerPrimeTime Communities
You know the song. “What goes up must come down, Spinning wheel got to go round,
Talking ‘bout your troubles it's a crying sin,
Ride a painted pony let the spinning wheel spin.”
(Blood, Sweat, and Tears - 1969)
From a Boston new construction sales perspective we went up in 2006 , came down in 2007 and 2008, and spun our wheels in 2009. That’s what it feels like anyway. 2010 will be the beginning of the going up again!
In Massachusetts, single family home sales rose from 34,546 to 36,288 and condominium sales continued to slide down from 15,608 to 15,321 from 2008 to 2009. For Boston, sales declined from 3,002 in 2008 to 2,482 in 2009. This was the fifth year of declines for the Boston condominium market.
Single family homes and condominium sales median prices continued to slide down from $310,000 to $290,000 for single family homes and $274,000 to $252,000 for condominium homes for the time period of 2008 to 2009. For Boston, median sales prices actually decreased from $733,000 in 2008 to $602,000 in 2009. For the same time period average sales prices in Boston went from $475,000 to $446,000 and have appeared to level off.
Average days on market for Massachusetts single family homes and condominiums increased
from 136 to 129 and 140 to 133 respectively. This downward trend is an indication that it may start getting easier to sell a home. For Boston, average days on market increased slightly from 91 in 2009 to 105 in 2009. Will lack of supply create demand?
In Massachusetts, single family and condominium permits dropped from 4,764 to 4,094 and 3,994 to 2,053 respectively from 2008 to 2009. In 2005 permits were 14,000 and 10,000 for single family homes and condominiums. In 2008 the permits were 513 and 2009 is projected to be only even less. This is significantly lower than the last six years that we analyzed.
Listings continue to drop from the 2007 peak in Massachusetts from 20,122 to 17,350 for single family homes and 9,131 to 7,589 from 2008 to 2009 respectively. For Boston, listings have leveled off from 1,064 to 1,044 for 2008 and 2009. Another positive indicator that will eventually drive sales back up because of the lack of supply.
Overall, 2009 proved to be similar to 2008 in terms of price and sales declines. The real estate market has worked hard over the last two plus years to correct itself. As it relates to supply within the real estate market we’ve seen significant drops in inventory or listings and increases in average days on market to sell a home. Both positive indicators that will eventually move prices and sales up. We do need a rebound in employment before we will see a significant upturn in the real estate market. New condo developments in Boston that have clearly established market pricing and good end loan financing packages in place will realize a significant improvement in sales absorption in 2010.
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2011 Prime – Urban Report
Massachusetts MLS Sales
Massachusetts MLS Average Selling Prices
Massachusetts MLSAverage Days on Market
Single family homes and
condominium sales declined
in 2010.
The average sale price of
condominiums and single
family homes saw its first
real increase in 2010 since
2006.
The ADOM continued to
decline for its second
straight year for both single
family homes and
condominiums.
Source: MLS Property Information Network, Inc.
Source: MLS Property Information Network, Inc.
Source: MLS Property Information Network, Inc.
Source: MLS Property Information Network, Inc.
Source: MLS Property Information Network, Inc.
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2011 Prime – Urban Report
2010 Massachusetts MLS Sales by Month
Massachusetts MLS Average Selling Price by Month
Massachusetts Average Price Shift
Single family homes and
condominium sales declined
sharply in July and continued
to dip slightly until December.
The average sale price of
condominiums and single
family homes peaks in July
of 2010.
Single Family homes under
$500k saw 6% drop in sales,
while homes $500k and
above saw at 16% increase
in sales.
Source: MLS Property Information Network, Inc.
Source: MLS Property Information Network, Inc.
Source: MLS Property Information Network, Inc. Source: MLS Property Information Network, Inc.
Source: MLS Property Information Network, Inc.
Source: MLS Property Information Network, Inc.
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2011 Prime – Urban Report
Massachusetts Monthly Absorption Trends
Residential PermitsMassachusetts
Massachusetts MLSActive Listings
Homes absorbed slightly
below 2000 sales a month at
the beginning of 2010 and
peaked near 5200 sales in
June.
Then number of residential
permits being issued in
Massachusetts has declined
steadily since 2005, as
builders are scaling back
projects.
There are more single family
homes and condominiums
on the market in 2010,
ending the two year decline
in inventory.
Dat
a N
ot A
vaila
ble
Source: U.S. Bureau of Census, Division of Manufacturing and Construction
Source: MLS Property Information Network, Inc.
Dat
a N
ot A
vaila
ble
SOURCE: Massachusetts Association of Realtors
Source: MLS Property Information Network, Inc.
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2011 Prime – Urban Report
New Condo Communities - BostonThomas Skahen, Co-Founder and PartnerPrimeTime Communities
The stats highlighted above for Massachusetts and Boston were obtained from Multiple Listing Services , LINK, Mass. Association of Realtors, and U.S. Bureau of Census.
The intent of The 2010 Prime Urban Report is to uncover at a micro level what is really going on with new construction condominium communities in Boston for residential and commercial developers, institutional investors, banks, buyers, and others associated with the Boston real estate industry. The approach includes utilizing MLS, Link, Book and Deed, and developer review to determine the most accurate sales data. As we did last year, we have focused on actual sales per multiple sources to uncover the real yearly and monthly absorption (sales) trends within the Boston market. We’ve been tracking new construction in Boston for three years now and have created an index to show exactly what’s going on with Boston new construction sales pace and how it compares to each of the developments.
We looked at the largest and most prominent new residential communities currently under construction in Boston and this is what we found:
Our study included 14 new construction residential communities consisting of 1,202 total
units with 635 sold or 53 percent. Of the 635 units sold, 83 were affordable and 551 were market rate sales. This leaves us with only 567 new construction homes remaining in inventoryas of year end 2009. This is down from 626 new construction inventory homes in 2008 and is a 9 .5 percent drop. If the Boston market monthly sales absorption per community increased to a more normal 3.0 sales per month for the 14 new construction communities or 36 per month in total, the 567 remaining units would be depleted in 15 months. As we pointed out last year, Boston new construction supply is extremely low. We will see a significant price increase in new construction inventory over the next few years as this inventory quickly diminishes and the job market begins to pick up. So what does our urban new construction index tell us? For the 14 new construction communities we looked at, we determined that there were 149 sales in 2009 . On average each of the communities sold 1.00 units per month (absorption). In 2008 the average was 1.2. The highest was 3.3 and the lowest was .2. The decline represents a 14 percent drop in the monthly sales rate.
Developers have dropped prices, inventory is diminishing, and new construction home sales are still on the decline.
We love to look at what’s working and why. The two highest absorption rates in Boston were The 1850 and The Bryant on Columbus with 3.3 and
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2011 Prime – Urban Report
1.9 sales per month respectively in 2009. Both were properties that were auctioned for all the right reasons. The strategy was to let buyers set the new market value for the homes because, quite simply, developers don’t set value in this current real estate market.
At The 1850, it was the seller’s strategy to close out the property via an auction. Approximately 39 homes sold in 2009, mostly due to the auction.
At The Bryant, the sellers utilized the auction strategy to reset the prices. Their approach was to put 10 of the 50 total units up for auction, have the buyer market reset prices, and sell the remaining inventory conventionally. They sold all 10 of the luxury homes with relatively good price points and continue to sell homes post auction.
The same strategy was even more successful in the suburbs. The Nouvelle at Natick seller sold 50 of the 214 homes at auction, reset the prices for the remaining inventory, and achieved a 6.2 sales rate in 2009. Post auction, 31 additional units were sold (with 8 more under agreement) making Nouvelle the fastest selling community in Massachusetts.
The auction strategy for a close out or a reset in pricing works. It drives huge traffic to the site that otherwise would not have visited. The buyer market just “gets” this process. Even if they don’t “get it” they understand pricing and will buy a well positioned and reasonably priced home.
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2011 Prime – Urban Report
Boston Sales
Boston Median Selling Price
Boston SalesAverage Days on Market
Sales volume continues to
decline.
Both the median and
average price of a home
sold in Boston declined in
2009.
The ADOM increased in
2009.
Source: Link Boston
Source: Link Boston
SOURCE: Link Boston
SOURCE: Link Boston
SOURCE: Link Boston
2010 Data comes from Link year end report. Ready to drop in.
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2011 Prime – Urban Report
Boston Listings
The number of listings has
remained relatively flat
compared to 2008.
Residential PermitsBoston
No
t Ava
ilab
le
Source: U.S. Bureau of Census, Division of Manufacturing and Construction
Dat
a N
ot A
vaila
ble
Source: Link Boston
Q4 2101 comes from LINK
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2011 Prime – Urban Report
Boston Sales Comparison by Number of Bedrooms
Boston Sales Comparison by Square Feet
Source: Link Boston
Source: Link Boston
Source: Link Boston
Comes from Links 2010 Year End Report
Comes from Links 2010 Year End Report
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2011 Prime – Urban Report
Lifetime Sales Summary – New Construction
Source: Based on public records as of 1.1.2011
• Definitions: 1. Market rate homes refers to homes sold at full market value without subsidization from public sector entities such as local governments, HUD, etc.; 2. Start dates are based on the earliest known MLS or LINK Boston listing date; 3. “Sold” refers to homes sales that were recorded at the Registry of Deeds and have a sale date of 12/31/20010 or earlier.
Community Total Units Percentage Sold, Lifetime
AffordableMarket Rate
Sales Total Sales Remaining InventorySales
The Intercontinental 130 100% 0 130 130 0
700 Harrison Lofts 84 100% 46 38 84 0
The Macallen Building 143 67% 17 79 96 47
FP3 92 75% 9 60 69 23
Battery Wharf 104 71% 0 74 74 30
The Penmark 60 90% 0 54 54 6
W Boston 123 24% 0 30 30 93
Allele 48 83% 5 35 40 8
The Bryant on Columbus 50 90% 0 45 45 5
The Clarendon* 103 44% 0 45 45 58
45 Province 138 19% 0 26 26 112
Penny Saving Condominiums 23 74% 1 16 17 6
Total 1,098 70% 78 632 710 388
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2011 Prime – Urban Report
Top Performers
The Clarendon – 2010 Absorption 3.3Address List Price Original Price Selling Price Percent Change SF Beds Baths $/SF
Clarendon, The # 15K $910,000 $910,000 $780,000 -14.3% 850 1 1 $918Clarendon, The # 16A $1,200,000 $1,000,000 -16.7% 1171 2 2 $854Clarendon, The # 16C $1,360,000 $1,220,000 -10.3% 1213 2 2 $1,006Clarendon, The # 16G $760,000 $685,000 -9.9% 700 1 1 $979Clarendon, The # 16L $675,000 $675,000 $560,000 -17.0% 589 S 1 $951Clarendon, The # 17C $1,375,000 $1,225,000 -10.9% 1213 2 2 $1,010Clarendon, The # 17D $1,370,000 $1,100,000 -19.7% 1180 2 2 $932Clarendon, The # 17J $1,450,000 $1,315,000 -9.3% 1124 2 2 $1,170Clarendon, The # 17L $582,000 $582,000 0.0% 589 L 1 $988Clarendon, The # 18B $1,605,000 $1,525,000 -5.0% 1229 2 2 $1,241Clarendon, The # 18D $1,230,000 $1,060,000 -13.8% 1150 2 2 $922Clarendon, The # 18J $1,475,000 $1,335,000 -9.5% 1124 2 2 $1,188Clarendon, The # 19A $2,050,000 $2,000,000 -2.4% 1782 3 3 $1,122Clarendon, The # 19B $1,625,000 $1,625,000 $1,605,000 -1.2% 1372 2 2 $1,170Clarendon, The # 19C $1,050,000 $1,050,000 $900,000 -14.3% 1116 1+ 2 $806Clarendon, The # 19D $4,750,000 $4,750,000 0.0% 3506 4 4.5 $1,355Clarendon, The # 20B $1,635,000 $1,635,000 $1,635,000 0.0% 1371 2 2 $1,193Clarendon, The # 20C $1,060,000 $1,060,000 $940,000 -11.3% 1116 1+ 2 $842Clarendon, The # 20D $1,765,000 $1,765,000 $1,765,000 0.0% 1439 2 2.5 $1,227Clarendon, The # 21C $1,070,000 $950,000 -11.2% 1134 1+ 2 $838Clarendon, The # 21D $1,775,000 $1,775,000 $1,595,000 -10.1% 1525 2 2.5 $1,046Clarendon, The # 21E $2,600,000 $2,250,000 -13.5% 1857 3 3.5 $1,212Clarendon, The # 22C $1,080,000 $1,050,000 -2.8% 1134 1+ 2 $926Clarendon, The # 22E $2,625,000 $2,625,000 $2,400,000 -8.6% 1958 3 3.5 $1,226Clarendon, The # 23C $1,120,000 $1,090,000 -2.7% 1134 1+ 2 $961Clarendon, The # 23D $1,770,000 $1,770,000 $1,650,000 -6.8% 1502 2 2.5 $1,099Clarendon, The # 24D $1,780,000 $1,612,500 -9.4% 1525 2 2.5 $1,057Clarendon, The # 24E $2,675,000 $2,600,000 -2.8% 1957 3 1.5 $1,329Clarendon, The # 25A $3,800,000 $3,800,000 0.0% 2428 4 4.5 $1,565Clarendon, The # 26A $3,950,000 $3,950,000 $3,950,000 0.0% 2428 3 4.5 $1,627Clarendon, The # 26C $1,200,000 $1,150,000 -4.2% 1199 1+ 2 $959Clarendon, The # 28B $1,730,000 $1,730,000 $1,675,000 -3.2% 1372 2 2 $1,221Clarendon, The # 28D $490,000 $490,000 0.0% 1502 2 2.5 $326Clarendon, The # 28E $2,800,000 $2,800,000 0.0% 1758 3 3.5 $1,593Clarendon, The # 29E $3,200,000 $2,975,000 -7.0% 1958 3 3.5 $1,519Clarendon, The # 30A $2,600,000 $2,700,000 3.8% 1795 3 3 $1,504Clarendon, The # 30B $1,850,000 $1,750,000 -5.4% 1372 2 2 $1,276
Average $1,784,919 $1,714,167 $1,688,365 -6.7% 1442 $1,112
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
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2011 Prime – Urban Report
Top Performers
Address List Price Original Price Selling Price Percent Change SF Beds Baths $/SFFP3 # 611 $535,000 $535,000 $535,000 0.0% 753 1 1 $710FP3 # 511 $464,000 $469,000 $464,000 -1.1% 856 1 1 $542FP3 # 318 $570,000 $570,000 $570,000 0.0% 1131 2 2 $504FP3 # 613 $915,000 $915,000 $915,000 0.0% 1159 2 2 $789FP3 # 701 $1,220,000 $1,220,000 $1,220,000 0.0% 1438 2 2 $848FP3 # 601 $1,200,000 $1,200,000 $1,200,000 0.0% 1565 2 2 $767FP3 # 414 $395,000 $395,000 $395,000 0.0% 754 1+ 1 $524FP3 # 603 $680,000 $699,000 $680,000 -2.7% 960 1+ 2 $708FP3 # 507 $555,000 $555,000 $555,000 0.0% 995 1+ 2 $558FP3 # 307 $520,000 $520,000 $520,000 0.0% 1000 1+ 2 $520FP3 # 407 $535,000 $535,000 $535,000 0.0% 1005 1+ 2 $532FP3 # 305 $485,000 $499,000 $485,000 -2.8% 1019 1+ 2 $476FP3 # 405 $499,000 $499,000 $499,000 0.0% 1027 1+ 2 $486FP3 # 309 $575,000 $589,000 $575,000 -2.4% 1027 1+ 2 $560FP3 # 509 $600,000 $600,000 $600,000 0.0% 1039 1+ 2 $577FP3 # 409 $550,000 $550,000 $550,000 0.0% 1040 1+ 2 $529FP3 # 301 $585,000 $599,000 $585,000 -2.3% 1123 1+ 2 $521FP3 # 306 $295,000 $329,000 $295,000 -10.3% 584 S 1 $505FP3 # 206 $320,000 $320,000 $320,000 0.0% 586 S 1 $546FP3 # 506 $299,000 $299,000 $299,000 0.0% 590 S 1 $507FP3 # 406 $297,000 $299,000 $297,000 -0.7% 601 S 1 $494FP3 # 510 $365,000 $365,000 $365,000 0.0% 656 S 1 $556FP3 # 308 $355,000 $355,000 $355,000 0.0% 670 S 1 $530FP3 # 208 $329,000 $339,000 $329,000 -2.9% 671 S 1 $490FP3 # 204 $335,000 $339,000 $335,000 -1.2% 694 S 1 $483FP3 # 304 $352,000 $352,000 $352,000 0.0% 698 S 1 $504FP3 # 312 $359,000 $379,000 $359,000 -5.3% 707 S 1 $508FP3 # 212 $330,000 $330,000 $330,000 0.0% 710 S 1 $465FP3 # 412 $365,000 $365,000 $365,000 0.0% 717 S 1 $509FP3 # 516 $405,000 $405,000 $405,000 0.0% 790 S 1 $513
Average $509,633 $514,167 $509,633 -1.06% 886 $559
FP3 – 2010 Absorption 2.6
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
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2011 Prime – Urban Report
2010 Sales Summary – New Construction
NOTES: 1. Market rate sales are sales of homes sold at full market value without subsidization from public sector entities such as local governments, HUD, etc.; 2. "Absorption" measures the number of sales per month; 3. “Sales” refers to homes sales that were recorded by the Registry of Deeds by 12/31/2009;
Community Neighborhood 2008 Market Rate Sales
2008 Market Rate
Absorption2009 Market
Rate Sales2009 Market
Rate Absorption
2010 Market Rate Sales
2010 Market Rate
Absorption
The Bryant on Columbus - Auction 2010 Back Bay 0 0 23 1.9 22 1.8FP3 South Boston 9 0.8 20 1.7 31 2.645 Province Midtown 0 0 15 1.3 11 0.9Allele South Boston 9 0.8 14 1.2 13 1.1Battery Wharf Waterfront 5 0.4 8 0.7 16 1.3W Boston Back Bay 0 0 7 0.7 23 1.9The Intercontinental Waterfront 10 0.8 7 0.6 15 1.3The Clarendon Back Bay 0 0 6 0.5 39 3.3The Macallen Building South Boston 19 1.6 6 0.5 9 0.8700 Harrison South End 11 0.9 5 0.4 7 0.6The Penmark South End 16 1.3 4 0.3 13 1.1Penny Saving Condominiums South End 3 0.3 2 0.2 4 0.3Total Sales / Average Sales per Community 82 6.8 117 9.75 203 17Average Sales Absorption Per Community per Month 0.6 0.8
1.4
Percent Change 33% 75%
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2011 Prime – Urban Report
“In 2008, new construction sales per month were 1.2 and dropped to 1.0 in 2009. If we extrapolate the communities
auctioned, the rate was .60 in 2009. With the drop in both new construction and re-sale inventory, price adjustments, and low interest rates, this sales rate should begin to trend up in 2010. Developers should continue to look for creative strategies to
accelerate existing inventory.”
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2011 Prime – Urban Report
Streetwalking Gone MainstreamAnthony Longo, Founder & CEO, CondoDomain.com
2009 was quite the interesting year in Boston real estate (not to mention nationwide). It was the year us techies have all been waiting for, however there are two sides to this story. Good News First: The once protected pool of information used for “decision making” in regards to real estate was finally released into our world-wide-web. While the National Association of Realtors spent years fighting against it, MLS data was never more easily accessible than in 2009. (MLS stands for Multiple Listing Service) This sprouted the birth of hundreds of web-based real estate companies all gunning to create valuable online tools leveraging the newly available MLS and social media systems. Enter web-savvy consumers who ate up these new tools and proved to be smarter homebuyers and sellers than ever seen before. Because of the accessibility to information that was once only granted internally to a licensed broker and/or salesperson, consumers now had real and objective city, neighborhood and even individual property data. They had easy access to available and sold listings comparables. They had access to price changes, days on market and even tax information.
Most importantly, they had access to this data in real-time just like the brokers did creating a “new type of sales process”.
Homebuyers and sellers have never been more prepared and knowledgeable. Savvy clients toured open houses with spreadsheets and printed notes for not just that property, but the five comparable properties down the street. 2009 was the year that consumers made the home buying and selling process more efficient and transparent. The Bad News: Not all data is created equally and not all buyers and sellers handled it responsibly. Unfortunately, real estate has many variables and some of them have nothing to do with a Microsoft Excel spreadsheet. We have seen, on countless occasions, buyers and sellers misuse or misinterpret data that brought the buying and selling process to a standstill. For example, if you compared home sales from 2008 to 2009 in downtown Boston you will see that decrease of 6% in overall transaction volume (3869 sales in 2009 vs 3636 units in 2008) and a decrease of 9% in average price ($452,918 in ’09 vs. $500,413 in ’08). One would generally assume they could get an 8-10% reduction of the listing price on anything in downtown Boston and that couldn’t be farther from the truth. Buyers and sellers must understand that value holds true on a very local and specific level in downtown metropolitans. While the West End and Fenway may have seen steeper declines in 2009, the South End saw an increase in average sales prices. Obviously, for bargain hunters– South End was not a place for them to be.
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The point I am trying to make is that it is an amazing feat that consumers now have access to detailed property information and there is no question it has made the process more efficient and, hopefully, more affordable at the same time. The necessity of a true “expert” real estate agent is still very much needed and important. The term “expert”, however, has been redefined over the past year because the average buyer has become smarter. Jessica Quirk, our top producer and one of Boston’s top real estate agents, spent 2009 closing more than 40 purchases and touring more than 500 properties in the Boston area. She knows value when she sees it and understands what makes the pricing in a particular neighborhood, street or even a building
fluctuate over time. She knows, better than
anyone, how powerful data can be and that, along with her overall real estate knowledge, is why she is one of the top agents in Boston.
Consumers are now armed with the information at their fingertips and this will only continue to grow in 2010 and beyond. With more and more home shoppers on the web and as we have expanded our web footprint (www.CondoDomain.com) we can really get our arms around search analytics. If our traffic patterns are any indication of what 2010 will look like, everyone should hold on tight. With inventory limited downtown we may see a booming spring, summer & fall.
Anthony Longo is Founder & CEO of CondoDomain.com. His email is [email protected].
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2011 Prime – Urban Report
Boston is fortunate in having in our city CBRE’s global chief economist, Ray Torto. When I asked for his prediction as to when our country will regain all jobs lost since the December, 2007 start of the recession, I immediately received his answer:
“Q1-2, 2013 with Boston one or two quarters ahead.”
The purpose of this article is to attach meaning to the recovery. As I will now describe, the recovery I believe will be unlike anything we have seen before.
Foundation for RecoveryThe foundation for recovery remains unchanged – job growth. It was jobs that grew after 1974-1976, 1981-1982, 1991-1992, 2001-2003 recessions and it will be jobs again in Q4 2012. That said, this time around there will be a strong overhang from the last 10 years.
That overhang will be the impact of excess spending in the United States. We are sitting with $12 trillion of debt. We are sitting with federal tax revenues that can cover only 2/3’s of the $4 trillion in operating costs.
“Stimulus” is a pet word. Just look at the stimulus that has taken place since 2000:*Huge supply of capital chasing real estate.*An economy going gang-buster from 2004 to the end of 2007.*Plentiful capital through the CMBS vehicle.
History of RecoveriesIf we study the history of past recoveries, they were created by sound, basic real estate economics. One new office job requires 250+ s/f of space. One new industrial job requires 500+ s/f of space. One new person can live in an apartment.
I saved Spaulding & Slye reports of the late 1970s and 1980s which tell an interesting story:*Office vacancy rates – 1.5% to 11%*Dramatic dwindling of first class supply*Significant pre-leasing*R&D/Industrial space – new active area*”A 4% annual growth rate will reduce vacancy to nearly zero.”
For the 1990s, when I shifted to the Whittier Partners Bottom Line Report, it mirrored readings from the 1970s and 1980s:*Steady economic growth*Build-to-suit construction*Renovation of older buildings becoming a source of supply
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2011 Prime – Urban Report
The Boston Commercial Real Estate Market After Recovery From the “Great Recession”Webster A. Collins, Executive Vice President/Partner of CB Richard Ellis New England
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In the 2000s, there is a different story:*A huge supply of capital chasing real estate*Mezz debt – the new wave*20% to 25% availability rates for office space*34.4 million s/f more office construction than jobs can support
Job growth, the cornerstone of the market, was forgotten.
ConclusionThe Boston market after recovery will become a far more balanced market. We will be the beneficiary of being one of only five 24-hour cities in the United States. At the same time, we like the rest of the United States, will suffer from bad political decisions.
Real estate over the next 10 years will be
risk/return driven. This time around, the tightened underwriting standards of the 1990s will not be loosened by a flood of capital.
Tightened controls will be placed on government. We have GDP of close to $13 trillion and $12 trillion of debt. A 1:1 ratio is unsustainable.
We have no choice but to cut the ratio of debt to GDP in half. As described at our 2010 CBRE kick-off meeting on January 6, 2010, we are in a heavy weight fight. We are 7-8 rounds into it with 7-8 rounds to go. If the stamina of 1776-1782 prevails, we will be the winners.
Webster A. Collins, MAI, CRE,FRICS is Executive Vice President/Partner within CB Richard Ellis/New England in their Valuation and Advisory Group, His email is [email protected].
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2011 Prime – Urban Report
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2011 Prime – Urban Report
Navigating Condo Project Approval There’s good news out there if you know where to lookChris A. Kulp, Regional Builder Sales Manager, Wells Fargo Home Mortgage
Without a doubt, when it comes to new construction/conversion condominium financing, confusion abounds for builders/developers, mortgage professionals, and borrowers alike: Why do I need to get a project approval? What does a project approval mean? If so, what kind of approval do I obtain? And what is a CPM, PERS, or HUD approval anyway? What is the right pre-sale number? What counts as a pre-sale? What about phasing? Does it make a difference if my project is a low-rise, mid-rise, or high-rise? These are some of the questions that are asked every day, and depending on whom you ask, answers may vary. But, there is good news on the horizon for condo developers and their ultimate customer – the home buyer. Earlier this year the Department of Housing and Urban Development (HUD), delivered some much needed relief to its condominium guidelines. Additionally, Fannie Mae (FNMA) has shown a willingness to review the individual merits of a condo project in its continuing efforts to help a successful project and accomplish its mission to provide home buyers with competitive home mortgage products.
First, let’s look at Fannie Mae’s different approval levels, and what they mean to the marketability and viability of a project. FNMA offers lenders two options to approve a project for financing. The first is known as Condo Project Manager or CPM. After a lender reviews the project and determines acceptability, information is submitted to an automated approval database with standardized questions. If a project doesn’t meet standardized Fannie Mae guidelines, especially with regard to pre-sale, budgeted reserves, or insurance coverage, it will not pass the CPM approval process. However, all is not lost. An additional option for FNMA is called Project Eligibility Review Service or PERS. This is the old 1028 process under which a complete package of material is forwarded directly to FNMA to underwrite. Fannie Mae may approve the project with specific conditions, or it may make recommendations on what needs to be changed so the project is acceptable for financing. In addition, Fannie Mae has started allowing developers to vertically sub-phase through the PERS approval process – or to market their buildings in phases. This means a high-rise developer may have the opportunity to more readily reach FNMA’s specified presale requirement within a group of floors, instead of having to put more than half of the units in a building under contract before being able to close on their first sale.
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24
2011 Prime – Urban Report
Developers, especially those with high-rise condo projects, have previously been told they couldn’t get their building approved for financing until they had a lot more purchase and sale agreements in place. They can now investigate sub-phasing their building to start closing units immediately. This strategy wasn’t previously widely known or even considered, so it provides an enhanced option.
In December, 2009 FHA lowered its pre-sale requirement to 30 percent of the units in a project or approved legal phase in which the builder or developer has gone through the necessary steps to get FHA project approval. And here too, time is of the essence as the lower pre-sale requirement is set to expire December 31, 2010 after which FHA's normal 50 percent pre-sale requirement will go into effect. In addition, HUD has made numerous additional changes to enhance its project approval requirements to help create a successful environment for condominium homeownership. The good news is that the agencies, Freddie Mac, Fannie Mae, and FHA, are committed to making financing available for condominium. While many developers have taken a swing at the ball and missed in the past, it’s definitely worth stepping up to the plate again. Discussing what options may be available or what changes or phasing possibilities exist with a professional in the lending industry can make all the difference in the viability and success of a condo project. Chris Kulp is Regional Builder Sales Manager for Wells Fargo Home Mortgage. His email is [email protected].
Major Boston Condo Communities
Building Profiles
45 Province Page 23
285 Columbus Lofts Page 24
700 Harrison Page 25
Allele Page 26
Battery Wharf Page 27
The Bryant Page 28
The Clarendon Page 29
FP3 Page 30
The Macallen Page 31
The Penmark Page 32
Penny Savings Bank Page 33
Residences at the Intercontinental Page 34
The 1850 Page 35
W Boston Page 36
25
2011 Prime – Urban Report
DEVELOPERNAME:WEBSITE:PHONE:
SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:ESTIMATED COMPLETION:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION - 2010:
FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
The Abbey Group
www.45province.com/developer617-236-8165
44 School St, Boston, MA 02108www.45province.com
617-742-0942
Midtown44 School St, Boston, MA 02108
Under ConstructionHigh Rise
3110/19/2006
Spring 2009Valet Garage
1383/7/2007
4619%
111.0
LuxuryWood, Marble
CustomQuartzite
Miele, Bosch, Sub ZeroNo
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSGreat location, fantastic city views Sample Units (Most Typical)ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): THREE BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
No
YesYesYesYesYesYesYes
Library, Lounge, Rooftop Garden
728 - 3,305$464 - $1,718
7057
1,1511.5
$889,000$772
19019
1,6152
$1,200,000$743
210521
1,9882
$2,248,000$1,125Information based on MLSPIN data, Link Boston data, and public
records as of 12/31/2010.
45 Province
2011 Prime – Urban Report
DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD- LIFETIME:ABSORPTION - LIFETIME:MARKET RATE RE-SALES - 2010MARKET RATE ABSORPTION – 2010
FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
Boston Residential Groupwww.bostonresidentialgroup.com
617-424-0775
285 Columbus Ave, Boston, MA 02116www.285columbuslofts.com
617-262-0091
Back Bay285 Columbus Ave, Boston, MA 02116
Construction CompleteMid Rise
8NA
5/14/2008Garage
6311/28/2007
37100%
632.5
1.1
High
Walnut, Carpet, PorcelainOak Veneer
Granite, MarbleJenn-Air, Bosch, Sub Zero
No
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSNear T-Stop, near Prudential Center. NOTES:285 Columbus closed the last home in June of 2009. This project had the highest absorption in 2008 out of all the property we studied.
No
YesNoNoNo
YesYesNo
Storage Units
753 - 1,578$630 - $897
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
285 Columbus
2011 Prime – Urban Report
DEVELOPERNAME:ADDRESS:PHONE:
SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION – LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION - 2010:
FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
Mitchell Properties
20 Park Plaza, Boston, MA 02116617-542-6500
679 Tremont Street, Boston, MA 02118www.700harrison.com
617-262-1504
South End700 Harrison Ave, Boston, MA 02118
Construction CompleteMid Rise
6NA
9/20/2007Garage
849/22/2005
63100%
841.3
70.6
LuxuryHardwood
WoodGranite
Stainless SteelYes
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTS Some great views. Very large windows. Sample Units TWO BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
NoNoNoNoNo
YesYesNo
661 - 1,500$457 - $901
401
41084
1$529,000
$488
4094
1,2451
$569,000$457
4156
1,2512
$599,000$479
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
700 Harrison
2011 Prime – Urban Report
DEVELOPERNAME:WEBSITE:PHONE:
SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION – LIFETIME:MARKET RATE SALES - 2009:MARKET RATE ABSORPTION – 2009:
FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:OTHER FEATURES:
Boston Built
NA617-327-6967
150 Dorchester St, South Boston, MA 02127www.alleleboston.com
617-777-4547
South Boston150 Dorchester Ave, S. Boston, MA 02127
Construction CompleteMid Rise
62007
7/15/2008Garage
489/28/2006
5156%
400.813
1.1
HighBamboo
DesignerGraniteBosch
NoPrivate Balconies
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSNear T Stop, Low Condominium Fees Sample Units (Most Typical)ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:LIST PRICE OF UNIT:PRICE PER (sq. ft.): ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
NoNoNoNoNo
YesNoNo
973 - 2,075$351 - $571
5075
1,1101
$499,000$450
6086
1,2561
$599,000 $477
5015
2,0752
$899,900 $433
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
Allele
2011 Prime – Urban Report
DEVELOPERNAME:
WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION - 2010:HOMES UNDER AGREEMENT: FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
Harold Theran Development Management Corp.
NA617-994-9090
344 Commercial St, Boston, MA 02109www.batterywharf.com
617-994-9090
Waterfront377-395 Commercial St, Boston, MA 02109
CompleteMid Rise
62005
4/9/2008Valet Garage
1046/23/2004
7856%
741
161.3
3
LuxuryWood, Marble
CustomCat's Eye Granite
Thermador, U-LineNo
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSAccess to Water Taxi, On Site Pet Service, Retail Space, Restaurants, Excellent Views Sample Units (Most Typical)ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): THREE BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
YesYesYesYesYesYesNoNo
Marina, Business Center
923 - 2,508
$703 - $1,669
34014
1,0721.5
$1,800,000$1,007
44034
1,6242.5
$1,642,500$1,011
34054
2,0483
$2,475,000$1,290Information based on MLSPIN data, Link Boston data, and public
records as of 12/31/2010.
Battery Wharf
2011 Prime – Urban Report
Wasserman Real Estate Capital, LLC
www.wrecapital.com401-274-5700
321 Columbus Ave, Boston, MA 02116www.bryantbackbay.com
617-267-0677
South End303 Columbus Ave, Boston, MA 02116
Under ConstructionMid Rise
102006
6/3/2009Valet Garage
5012/7/2006
4946%
45.922
1.8 1
LuxuryHardwood, Stone, Carpet
Custom MahoganyStone, Marble
VikingNo
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTS
50 units including 9 au pair suites, and 2 ground retail spaces.
Sample Units (Most Typical)TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): THREE BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): FOUR BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
NoYesNoNoNoNo
YesNo
Art Gallery in Lobby, Private Storage
756 - 2,776$755 - $1,467
803
81,793
2$1,780,000
$933
7027
1,9593
$1,750,000$893
3043
2,8104
$1,800,000$641
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION – 2010:HOMES UNDER AGREEMENT:
FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
The Bryant
2011 Prime – Urban Report
DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION – 2010:HOMES UNDER AGREEMENT:
FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
The Related Companies
www.related.com(212) 421-5333
14 Newbury Street, Boston, MA 02116www.theclarendonbackbay.com
617-267-4001
Back Bay400 Stuart St, Boston, MA
Under ConstructionHigh Rise
332007
NAGarage, Valet Parking
1044/7/2008
3343%
45 1.439
3.32
LuxuryHardwood, Marble, Carpet
CustomMarble, Polished Stone
High EndNo
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER:
UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSLEED certified. Also includes 178 apartment units. Sample Units (Most Typical)STUDIOUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): ONE PLUS BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
No
YesNo
YesYesNo
YesNo
Restaurant, Conference Room, Gourmet Market, Clarendon Clubroom w/ terrace
589 - 2,530$1,013 - $1,627
18L18
5891
$695,000 $1,180
19C19
1,1162
$1,050,000$941
21D21
1,5252.5
$1,775,000 $1,164
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
The Clarendon
2011 Prime – Urban Report
DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES- 2010:MARKET RATE ABSORPTION – 2010:HOMES UNDER AGREEMENT:
FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
Berkeley Investments, Inc.
www.berkeleyinvestments.com617-439-0088
368 Congress St, Boston, MA 02210www.fp3boston.com
617-350-7410
Seaport346 Congress St, Boston, MA 02110
Under ConstructionMid Rise
810/1/20057/21/2008
None
722/5/2007
4896%
691.431
2.61
ModerateMaple, Tile, Porcelain
DesignerComposite
KitchenAid, Bosch, Fisher & PaykelNo
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSSPORTELLO , AFFILIATED RESTAURANT Sample Units (Most Typical)ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): ONE PLUS BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
No
YesNoNoNo
YesYesNo
629 - 1,919$502 - $998
5115
8651
$469,000$548
3093
1,0272
$589,000$574
3153
1,3742
$739,000$538
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
FP3
2011 Prime – Urban Report
DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:DELIVERY DATEPARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION – 2010:HOMES UNDER AGREEMENT: FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:MEDIA ROOM:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSLEED Certified. Large roof top garden. Sample Units (Most Typical)ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
No
YesNoNo
YesYesYesYesYes
Community Car, Rooftop Garden
650 - 2,805$424 - $1,103
1114th855
1$499,900
$585
9069th
1,2792
$799,000$625
7117th
1,8642.5
$1,175,000$630
Pappas Enterpriseswww.papent.com
617-482-3394
141 Dorchester Ave , South Boston, MA 02127
www.themacallenbuilding.com617-482-3394
South Boston9 West Broadway, Boston, MA 02127
CompleteHigh Rise
144/26/2007
Garage
1431/5/2005
7268%
971.410.81
HighBamboo, Recycled Carpet
DesignerGranite, Crushed Quartz
BoschNo
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
Macallen Building
2011 Prime – Urban Report
DEVELOPERNAME:
WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION - 2010:
FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
Kenny Development Company
RF Walsh Companywww.rfwalsh.com
617-778-0900
21 Father Gilday St, Roxbury, MA 02118www.thepenmark.com
617-266-2808
South End21 Father Gilday St, Roxbury, MA 02118
CompleteLow Rise
52005
7/11/2006Garage
602/24/2005
7090%
540.813
1.1
HighWood, Bamboo, Marble
Maple / DesignerGranite / MarbleBosch, Jenn Air
No
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSNice brownstone neighborhood. Building has attractive historic character. Sample Units (Most Typical)TWO BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
No
YesNoNoNoNoNoNo
Extra Storage, Zip Car
747 - 2,482$508 - $709
4084
1,0522
$635,000 $604
1132
1,4972
$750,000 $501
4074
1,2912
$779,000$603
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
The Penmark
2011 Prime – Urban Report
DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2009:MARKET RATE ABSORPTION - 2009:HOMES UNDER AGREEMENT: FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
Stonegate Group
www.stonegatellc.com508-655-1700
30 Union Park St, Boston, MA 02118www.pennysavingsbank.com
617-947-9089
South End30 Union Park St, Boston, MA 02118
Construction CompleteMid Rise
5NA
3/19/2007Garage
233/9/2007
4670%
16.44
0.31
HighFinished Concrete, Walnut Hardwood
CherryQuartz Ceasarstone
VikingNo
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTS Mix of historic and modern architecture. Sample UnitsONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): LOFTUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
NoNoNoNoNoNo
YesNo
814 - 2,015$643 - $988
4044
1,2352
$995,000 $806
5065
8811.5
$699,000 $793
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
Penny Savings Condominiums
2011 Prime – Urban Report
DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES – 2010:MARKET RATE ABSORPTION – 2010:
FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
Extell Development Company
www.extelldev.com617-737-4440
500 Atlantic Ave, Boston, MA 02110www.residences-intercontinental.com
617-737-4663
Waterfront500 Atlantic Ave, Boston, MA 02110
Construction CompleteHigh Rise
22June, 200410/19/2006
Valet Garage
1308/11/2004
77100%
1301.715
1.3
LuxuryWood, Porcelain, Limestone Tile
CustomGranite
Wolf, Sub-Zero, AskoNo
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTS38 different floor plans. Waterfront homes, fantastic views, high quality and workmanship Sample Units (Most Typical)ONE BEDROOM PLUSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): FOUR BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
YesYesYesYesYesYesYesYes
421 – 4,752$563 - $1,374
21C
211,060
1.5$895,000
$844
16J16
1,4842.5
$1,095,000$738
21K21
4,7524.5
$6,450,000$1,357
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
Residences at the
Intercontinental
2011 Prime – Urban Report
DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:*SOLD OUTNo Sales in 2010 FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:OTHER FEATURES:
The Cresset Group
www.cressetgroup.com617-624-9100
90 Wareham St. Boston, MAwww.the1850.com
617-988-8008
South End90 Wareham St, Boston, MA 02118
Construction CompleteMid Rise
5June, 20066/17/2008
Dedicated Surface Parking
602/28/2008
21100%
602.9
ModerateStained Sealed Concrete
MapleGranite
FrigidaireNo
Exposed Brick, Post and Beam
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSLoft style units. NOTES:Thirty five homes were sold at auction in June of 2009. All of the homes were closed on or before August 2009.
NoNoNoNoNo
YesNoNo
685 - 1,564$449 - $553
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
The 1850
2011 Prime – Urban Report
DEVELOPERNAME:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES – 2010:MARKET RATE ABSORPTION – 2010:HOMES UNDER AGREEMENT: FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:
Sawyer Enterprises, Inc.
617-262-3600
110 Stuart St, Boston, MA 02116
www.100stuartstreet.com617-267-2228
Midtown
110 Stuart St, Boston, MA 02116Construction Near Complete
High Rise28
200712/21/2009
Valet
123
10/1/200826
24%30
1.22325
LuxuryHardwood, Marble
CustomGranite, MarbleLuxury / Wolfe
No
AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSAffiliated with W Hotel. First class service. Travel Discounts. Sample Units (Most Typical)STUDIOUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): ONE PLUS BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):
YesYesYesYesYesYesYesYes
427 – 3,082$813 - $1,476
22I22
5121
$460,000 $898
16H16
1,0401.5
$750,000$721
17A17
1,4462
$1,195,000 $826
Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.
W Boston
2011 Prime – Urban Report
40
2011 Prime – Urban Report
“New condo developments in Boston that have clearly established market pricing
and good end loan financing packages in place
will realize a significant improvement in sales absorption in 2010.”
41
PrimeTime Communities is a research, marketing, and sales company which provides services to developers of new home condominium communities. In 2004, Tom Skahen, whose early career focused in the areas of real estate acquisition, development, marketing, and management, and Janice Dumont, an award-winning expert in the field of new construction design, marketing, and sales, combined their skills and created PrimeTime Communities and its “Concept to Community” approach to service developers.
PrimeTime Communities’ commitment is to building the name of the developer and designing the ultimate living experience for the homeowner.
Welcome to PrimeTime CommunitiesFrom Concept to Community
2010 Prime – Urban Report
What We Do & How We Do ItServices Provided
Research & Consulting
We at PrimeTime Communities believe that a thoroughly and properly researched property is a cornerstone to a successful project. Our skilled and knowledgeable team can identify the advantages and disadvantages of a location and determine a strategy to maximize its potential. This strategy will establish the most feasible and profitable approach for the developer’s benefit.
In addition to reviewing the marketability of the project, the PrimeTime team will review floor plans, building design, amenities, and pricing to ensure that the final product will appeal to and meet the needs of the buyers within the targeted niche market.
Marketing & Design
The showcasing of a product can intensely impact its success. A product that has been properly positioned should highlight the features that create its uniqueness and set it apart from all others. These features are what will drive a buyer to NEED to purchase this property. The PrimeTime team’s project specific marketing materials, including name and graphic identity, websites, brochures, direct mail pieces, and marketing and sales centers, are designed to catch the eye and interest buyers.
Whether it’s online, in their hands, or at the sales center, our marketing materials are designed to make buyers feel comfortable and confident in moving forward with their purchases.
Sales Management
PrimeTime Communities’ sales teams are made up of real estate professionals capable and committed to delivering results. These sales professionals are dedicated to a specific community through the call center, pre-marketing, and on-site sales phases. Through their PrimeTime training they have developed skills in lead management, interpersonal relationships, and sales management which ultimately results in an efficient and effective sales process.
42
Developer
2011 Prime – Urban Report
Janice DumontPartner
Janice Dumont leads the sales and marketing
team at PrimeTime Communities and uses her
creative abilities to develop new and unique
strategies for the properties we represent.
These strategies emphasize spectacular
design and staging, eye-catching advertising,
and positive buyer/seller communications.
Janice has received industry-wide recognition
for her work and has been a guest speaker for
both the National Association of Home Builders
and the Builders Association of Greater
Boston. She has been awarded the NAHB
Gold Award for National Salesperson of the
Year, the Gold Prism Award as Salesperson of
the Year, and the national Sales & Marketing
Council’s Silver Award for Salesperson of the
Year.
Janice’s professionalism and skill lead the
PrimeTime creative and sales teams to the
highest levels of achievement and client
satisfaction.
43
2011 Prime – Urban Report
Thomas SkahenPartner
Tom Skahen has 20 years of experience in real
estate acquisition, development, marketing and
management. He began his career in 1990
acquiring, managing, and selling multi-family
properties. In 1995 Tom was hired by Ernst and
Young as a management consultant responsible
for real estate advisory, mergers, and acquisitions.
In 1998 he joined real estate company Epoch SL
as Director of Business Development. Tom has
performed over 250 real estate market feasibility
studies.
Tom ‘s interest in the real estate field has led him
to take on leadership roles in numerous related
associations including the National Association of
Home Builders (NAHB), The Builders Association
of Greater Boston (BAGB), and the New England
50+ Housing Council, which he founded and of
which he is a past chairperson. Tom has spoken
at conferences for the NAHB and BAGB and was
selected the 2004 Rookie of the Year for BAGB.
At PrimeTime, Tom oversees the day to day
operations as well as the consulting, strategy, and
brokerage aspects. He is a licensed real estate
broker in the states of Massachusetts,
Connecticut, New Hampshire, Rhode Island, and
Maine.
44
2010 Prime – Urban Report
PrimeTime Communities - Awards
Best of 50+ Housing Awards2008 Gold Award
Active Adult Housing: Overall Community –(up to 200 Homes)
Adams Farm, Shrewsbury, MA
2008 Gold Award
Active Adult Housing: Clubhouse Interior Design – (up to 6,000 square feet)
Adams Farm, Shrewsbury, MA
2008 Silver Award
Active Adult Housing: Attached Home Design – For Sale Attached, over 2400 square feet
Adams Farm, Shrewsbury, MA
45
Builders Association of Greater Boston (BAGB)
Prism Awards (Prestigious Results in Sales & Marketing)
2007 Gold AwardBest Attached HomeAdams Farm, Shrewsbury, MA 2007 Gold AwardBest Interior MerchandisingAdams Farm, Shrewsbury, MA
National Sales & Marketing Council AwardsGold AwardNational Salesperson of the YearJanice Dumont Silver AwardSalesperson of the YearJanice Dumont
The National Association of Home Builders (NAHB)
Salesperson of the YearJanice Dumont BAGB Association Awards2005 Rookie of the YearThomas C. Skahen
2011 Prime – Urban Report
PrimeTime Communities - Awards
Home Builders & Remodelers Assoc. of NH (HBRANH)
Cornerstone Awards2007 Gold Award
Best Active Adult Community
Adams Farm, Shrewsbury, MA
2007 Silver Award
Best Model Merchandising Adams Farm, Shrewsbury, MA
46
50 Plus New England Housing Council
Best of 50+ New England Housing Awards2008 Gold AwardBest Small Clubhouse Interior DesignAdams Farm, Shrewsbury, MA 2008 Gold AwardBest Attached Home Design 1,401 to 2,200 sf.Heritage Woods, Lynnfield, MA
2008 Silver AwardBest Model Home Merchandising Over 2,200 sf.Ocean Meadow, West Newbury, MA 2008 Silver AwardBest Attached Home Design Up to 1,400 sf.Heron Crest, Mansfield, MA
2011 Prime – Urban Report
47
2011 Prime – Urban Report
ADDITIONAL PRIME REPORTS
48
2011 Prime – Urban Report
CONTRIBUTORS2011 Prime Report
Director of Research – Dan Hussey
Editorial Board – Tom Skahen, Janice
Dumont, and Barbara Olofson
Article Contributors –
Anthony Longo,
Webster A. Collins,
Chris A. Kulp
Coming Soonhttp://www.primetimecommunities.com/Real_Estate_Market/AA2009ReportFINAL.pdf
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119 Russell Street, Suite 16Littleton, Massachusetts 01460
Phone: 978.952.6495 Fax: 978.952.6497www.PrimeTimeCommunities.com [email protected]
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