There is a new 27th floor listing on the market and get this… it’s not selling above $1,100 a square foot! If you may recall, when the Cosmopolitan had two of its 27th floor penthouses on the market they were priced at $1,059 and $1,192 a ft. There are not many 27th floor properties that come on the market, because there are not that many taller buildings, but when they do come on the market… the views are spectacular!
This week I listed unit #2701 at Fountain Plaza at KOIN Tower. The price for this spacious 3,834 square foot unit is $1,795,000. At this price we are talking about a price per square foot of $468. Less than half of the 27th floor units at the Cosmo! Now, it is true that the Cosmopolitan is the newest and shiniest condos on the market and people will pay a little bit of a premium for new. But to be able to pick up a 27th floor condo for a price per square foot less than a majority of the condos for sale in the Pearl is crazy!
While, as I mentioned, the Cosmopolitan is the new kid on the block, KOIN Tower was the grand dame! Fountain Plaza, which later gained the new name of KOIN Tower was built in 1984 and, at the time, was the “Cosmopolitan” of its generation. Many of the units have had extensive remodeling, and many units have not. I believe we are starting to see a transition in this building as many of the original buyers are no longer with us. Currently there are six units for sale at Fountain Plaza and several are being sold by the estates of the previous owners. With that said, I believe we will start seeing a younger generation move into Fountain Plaza.
Fountan Plaza / Koin Tower is building that gives you the feeling of being in an upscale building in New York. Its ziggurat –like profile and its attention getting blue crown are reminiscent of the Art Deco skyscrapers that were built on the east coast in the 1920’s. Dottie, the lead concierge of the building, in my opinion, is one of the best in the city! Much like the doorman you find in New York, Dottie and one of the other concierges on her team, Chuck, make it a point to get up and open the doors and greet the owners as they leave and arrive. She also makes a point to train all other concierges to do the same. She would never stand for just pushing a button to open the doors and not greeting guest at the door!
If you are in the market for a spectacular unit with amazing views…welcome to #2701 at Fountain Plaza! This 3,834 square foot unit features 4 bedrooms, 4 baths, a den and a spacious 19×10 foot gym. The kitchen can be expanded into the adjacent large 16 x 6 foot pantry. While this beautiful unit is “Move-in” ready, it also has a wonderful footprint and someone that wants to put their own stamp on it could easily do so. Think about this. If you bought this beautiful unit, did a $250,000 remodel to expand the kitchen, give it an open concept, and a luxurious master suite… you are still only into it for $533 a square foot, again, still less than half of the price at The Cosmopolitan!
As I said above, I believe this building will start to go through a transition. We are not seeing as many new condo towers being built like in years past. We very well may see more buyers who are cautious with their money, buy properties in buildings like Fountain Plaza, make them spectacular with all of the money they are saving and being at the forefront of a resurgence in some of the older buildings.
If you are in the market for a large unit with simply stunning views, give me a call!
Brad Golik is a condominium specialist at Pearl District Properties and LuxuryCondosofPortland.com
You can reach him at 503-896-8856 or by email at firstname.lastname@example.org
We have been hearing over and over again how hot the market has been. Well, that is changing! While normally this is a slower time of the year, what is happening now is a little bit of a surprise when you listen to the national news and hear how crazy the market is (Seattle, San Francisco).
If you have ever walked past my office (717 NW 11th) in the heart of the Pearl District, you have probably stopped to glance at all the listings featured in our display window. What has changed in the window since last week? PRICE REDUCTIONS! And many of them. Is the market tanking? No, I believe it is a combination of things starting with what is always a typically slow time from the week before July 4th to the beginning of the school year. The reductions are not so much a depreciating market but more of a whack on the head for listing agents that overpriced many units. Sometimes when inventory is low and things are slow, an agent will “buy a listing”. What does this mean? If an agent is competing with another, there are some who will give the seller an unrealistically high value in hopes that will be enough to sway the seller to choose them… a VERY bad practice, but I see it all of the time. In fact, I just lost a $975,000 listing partially for this very reason. (The other part was the agent told the seller that his firm is stronger internationally and that they could attract “Chinese buyers.”) This is so 2015! Those days are pretty much past and in reality, there have been very few Chinese investors buying in Portland. In addition, when you have a strong internet presence like I do, you get seen around the world. The whole thing about their firm being better internationally is really smoke and mirrors!
Back to price reductions, here are a few examples:
In the Casey, a one bedroom unit on the 8th floor was originally listed at $729,000. Now a year and five price reductions later it is priced at $619,000…and it still has not sold.
A penthouse at the John Ross originally priced at $2,350,000 was just reduced $355,000 to $1,995,000.
Several units at Fountain Plaza have had huge reductions. One unit went from $2,295,000 to $1,895,000. Another went from $1,995,000 to $1,695,000 and a third went from $1,350,000 to $999,000 with none of them selling yet. What is moving in this market? While it is taking longer, the units that are priced correctly, or at least somewhat reasonably priced, are still being sold.
Here is a great example of what I have mean. A penthouse just came on the market today in downtown Portland for $3,250,000. I had shown this unit about four years ago when it was priced at $2,200,000. (It had been on the market for 5-6 years) Back then I told my buyers they should not pay more than 1.6-1.7 million for this unit. My reasoning was the neighborhood was deteriorating, it was an inferior building compared to a neighboring building (The Eliot) that has much higher quality finishes, the highest sale in that building in the last 3 years was $760,000, it had the two slowest elevators in the city… and this was a big one, there was no garbage chute! I do not often make guarantees, but this is one I am comfortable in predicting, “You will see some big price reductions on this unit moving forward!”
And on top of that, if you have read my blog you have heard me mention that if you want to try to capture a premium over the market value of a unit then you MUST have very good marketing and dare I say it… professional photos at the very least! And no, this $3,250,000 listing, if you can even believe it, does not have them!
Brad Golik is a luxury condominium specialist in Portland, Or. If you are in the market to make a purchase of a Portland penthouse or luxury condominium, call Brad today!