Everyday I bring up the Portland condo list to see any new listings, see if anything has gone pending and to see if old listings have expired or were canceled. Sometimes what I see just makes me shake my head in disbelief. No question, this is a pretty hot market and I do see people paying more than they might normally do. And, while I do not believe we are at a peak yet, it is certainly not a time to let my buyer’s grossly overpay for a property either. Today, a new penthouse came on the market. This is a penthouse at Atwater Place in South Waterfront. The price is $2,700,000 and it is priced at $1000 a sq. ft., the same as what you are seeing at the brand new Cosmopolitan on the Park. Except that at the Cosmo, $1000 gets you up to the 27th floor in a brand new building!
Awhile back I wrote about three penthouse units that were priced in the $3,000,000 range. The first was the 3.8M penthouse at the Cosmo, which I thought would be the first to sell ( it just went Pending again this week). The first one to sell was actually the penthouse at The Elizabeth that was priced at $2,995,000. I represented the buyer on the purchase. You might have read in my blog “Who says it’s a seller’s market?” about the great price my buyer got for that unit… $2,200,000 fully furnished. The third one, and it’s still on the market, is at The Casey and still priced at $3,249,000.
I mention these three units because all three tried to push the $1000 ft barrier. I mentioned I thought the Cosmo would be the first to sell for a few reasons. First, it is a brand new building and brand new buildings always get a premium. Also, at 3.8M this is a property where the buyer can afford to “overpay” and are ok in doing so in order to have “The Best”. The penthouse at the Elizabeth was actually the first to sell and it sold for under $700 a ft.
In mentioning these three units, it helps clarify the pricing on the new Atwater Place penthouse. For one, it is not a new building…so no premium here. 2nd, it is not in The Pearl District…again, no premium here! (While I do like South Waterfront, the Pearl always gets a premium!) Also, keep this in mind, Unit #2403, a NE corner penthouse at Meriwether just went pending at $1,675,000 (598 sq. ft.). It was slightly larger and on a higher floor! At $1000 a sq. ft. the Atwater penthouse is just priced high. Sure, being a penthouse with great river views does justify a high price. (It does have outstanding outdoor living space) Will it sell? Sometimes there will be just the right buyer that loves the place, and the buyers agent usually sells homes in the suburbs and does not understand if a unit is priced high or not. The answer… you never know!
Another listing that was recently brought to me that is not in the MLS is one of the iconic townhomes on 11th in The Pearl. Before I mention this one…I want to show you a few of the comps first. Two units, with 2698 sq. ft. recently sold. One for $1,850,000 the other for $1,900,000. A third sold ( 2 units combined with 3888 sq. ft) for $2,425,000 , or $623 a sq. ft. The third had many high end custom finishes and was designed by the exceptional designer, Jefferey Lamb. Ok, drum roll please…. The new listing , #621 which is 2698 sq. ft… is priced at $2,600,000! Are you kidding me? When I questioned the agents pricing, he mentioned that all three of the comps were going through substantial remodeling. Ok, lets use the combined unit that sold for $2,425,000. Let’s say the new buyer decides he wants to put in an additional $400,000 in remodeling. This would still put this unit at $726 a sq. ft. , or $237 a sq. ft. less than #621 which is at an absurd $963 a ft!
Now you know why I just have to shake my head sometimes in the mornings while looking at new listings!
My purpose of writing about some of these overpriced units is not to beat up on them, but only to help educate buyers so that they don’t overpay for a unit. If you are a buyer in the market for a Portland condo, I know this market inside and out, especially the high end of the market. I would love to help you find your next dream condo so please, give me a call and we can begin to turn your dream of owning a luxury Portland condominium, into a reality…for the right price!
Brad Golik is a condominium specialist with Pearl District Properties. His area of focus is The Pearl District, South Waterfront and Downtown Portland. Brad is a founding member of Condo10 and an expert in internet marketing. You can reach him at 503-896-8856 or at firstname.lastname@example.org , www.LuxuryCondosofPortland.com
Oregon Health & Science University will pay $13.6 million for two more blocks in Portland’s South Waterfront.
The purchase of 4.5 acres of land from North Macadam Investors was finalized Thursday. The waterfront blocks 23 and 27 are vacant and east of OHSU’s Center for Health & Healing and adjacent to two parking lots owned by the health and research university. This is the land directly North of The Meriwether condominiums in South Waterfront.
OHSU said it doesn’t have any immediate plans for the land.
But eventually, it’s likely to be the site of new outpatient care buildings to replace older facilities on Marquam Hill.
My guess in the short term….PARKING!
More info here: http://www.ohsu.edu/xd/about/news_events/news/2012/05-03-ohsu-purchases-blocks-23.cfm
Spring is here!
Well, other than the weather that is. What did we see in the downtown condo markets including The Pearl District and condos in South Waterfront? What we are seeing is a continuation of the shrinking inventories and not much in the way of new units to replace those that have been sold. For April, we saw 42 sales ( priced above $200,000) an increase over a few of the previous months. Leading the charge was the higher end of the market with 19 sales over the $500,000 price point… nearly half of all sales. As mentioned in a previous post, we had several condos in the +$1,000,000 range that went pending. Of those, we had several that closed. The penthouse condo at The Pinnacle sold for a whopping -14.7% off of its original list price. More in line with the original list price, 2 condos at The Westerly both sold for $1,050,000 ( -7% and – 8.7%) still above the usual –2 to -5% we are used to seeing.
Where were most sales happening? The highest percentage of sales this month were condos in The Pearl Distict! Leading the way were new condos at Encore in Portland with 5 sales. Following Encore was 937 condominiums with 3 and several others with 2 sales each including condos at The Casey, The Pinnacle and then in NW Portland, The Westerly condominiums also had 2 sales. Down in the South Waterfront condo market, Atwater Place condominiums had 2 sales. Coming to an almost standstill The Meriwether. The Meriwether HOA litigation issue, has put many future listings on hold for the time in these two buildings.
Now that spring is here many of us are hoping for some sunshine, others…including myself, are hoping for new listings!
Here is our latest video!
Here is your chance to contribute to your neighborhood! On Saturday, October 22nd, clean up efforts for the Pearl District will begin at Peet’s coffee.
Thank you for your participation in the Pearl District Neighborhood Association’s Polish the Pearl event. For more information, please visit: