Design approval for Block 20 recently happened. For more information on this project, click Block 20 http://www.nextportland.com/2016/07/13/block-20-approved/#more-8144
Also, notice of pile driving went out recently!
So how will the timing be for the release of new condos at Block 20? I do not believe they will be as favorable as they were for the developers on The Cosmopolitan. If you remember reading on my blog, Hoyt Development had the perfect storm happen for them when they released their highly priced (a majority in the $600 to $1200 sq. ft. range) units. When the Cosmopolitan was released, inventory levels were at extremely low levels…non- existent almost! They were able to capture crazy pricing because buyers had no other options. That is not the case right now in our market. Today, like everyday, I brought up new condo listings. What was most interesting to see was that there were 11 price reductions! This is something we are starting to see everyday as things have slowed dramatically. So , moving forward, it will be a different environment for the developer.
I took a fair amount of abuse from the developers about my many comments about the Cosmopolitan, most were about pricing. Did they sell out the building at those high prices? Yes! (98%) sold. Good for them and their and their profits! (maybe not so good for the owners) If you recall, my biggest fear of selling a unit at The Cosmopolitan was worry for my clients that the market could slow down or turn around and what would happen to buyers who paid such a big premium when or if that happened… Guess what? That time is here! The market has slowed dramatically. (again, look at price reductions in the market) What will happen when Cosmopolitan buyers need to sell ( job relocation etc.)? Stay tuned. I do not believe it will be a good thing for the seller’s. Another consideration is the high number of apartments that have been built in the downtown area. I feel we must be reaching a point of saturation in the rental market. When this happens, rental rates go down. For the last several years, it has been cheaper to buy instead of renting with rental prices at $2.25 to $2.75 a sq. ft. When rental rates start dropping, you will have more potential buyers going the rental route than we had before. They will be happy to sit on the sideline and let the slowdown happen and be patient before buying.
What about the pricing at the new Block 20 development? One thing I know, construction prices ( concrete, steel, sheet rock) have continued to rise. Will we see prices touching $1000 to $1200 again? I don’t believe so. Much will also depend on the finishes of the building though. Will they compare to that of the Cosmopolitan and The Metropolitan or will they be a notch or two lower?
If you have questions about Block 20 or wish to be on a waiting list for info, please give me a call. If you think there may be some interest in the new project, keep this in mind. It will be important to work with a buyers agent not associated with the developer…remember, the buyers agent works for your benefit, not the developers!
Brad Golik is a condominium specialist with Pearl District Properties.
If you would like see any of Portland’s beautiful available condominiums, give Brad a call to set up a viewing tour.
503-896-8856 – firstname.lastname@example.org
A new penthouse off of Westover came on the market today priced at nearly $3,600,000! Here is one more attempt of someone trying to capture the $1,000 a square foot pricing of the new Cosmopolitan. As shown by other recent attempts in the insane pricing range! Just a couple of things I want to say about this listing. The condo, a 5th floor penthouse unit does have a spectacular view looking over the Pearl and the city of Portland. While a nice unit, it just had another 3600 sq. ft. neighbor that just sold at The Westerly for $2,850,000. The unit at the Westerly was a nice unit with two massive decks… clearly a big advantage over the newly listed unit! In addition, it took nearly 5 years for the Westerly penthouse to finally sell. While it can be argued that this new listing has nicer finishes and a better view than the new Cosmopolitan ( although you would never know from the photos!!!), this part of town just should not capture the prices of a true Pearl location. In my opinion, it is priced a little high.
The views, this is what potential buyers will be attracted to.
Now, this is a better example of how to sell someone’s views!
A real positive, a charger in the garage for a Tesla! I happen to know of one couple who made an offer on one of my penthouse listings in the past that this was a very important detail they wanted. With that said, a Tesla charger is not what will help sell this unit for over $3,000,000. Good photographs though would certainly help!
Brad Golik is a condominium specialist with Pearl District Properties and a founding member of Condo10. If you would like to view this newest Portland penthouse, call Brad Golik at 503-896-8856. “I know this market and will negotiate you the best possible price!”
Today I am listing a beautiful penthouse at Pacifica Tower! Enjoy floor to ceiling windows in this corner unit. One of the best floor plans available at Pacifica Tower. Located in the NW corner of the building, this unit offers panoramic views of the Willamette River, Portland’s West Hills and the twinkling city lights. This home features two very large bedrooms and two decks!
If you are in the market for a condo in this price range, give me a call to set up a private showing of this fantastic penthouse.
Brad Golik is a condominium specialist with Pearl District Properties with a focus on the high end of the market. If you are looking to buy or sell, call Brad at 503-896-8856.
What about Redfin?
Redfin in truth is nothing new! Limited service companies are nothing new, and like many before them…you get what you pay for!
Before I give my 2 cents, here is a little blurb I thought I would show because it sums things up pretty good:
Ok, now my 2 cents!
One thing I do not care for is misleading advertising. When you bring up the Redfin homepage you will read text that states: “Redfin Agents sell homes for $4,300 more and charge only a 1.5% listing fee.” For one thing, the total listing fee is not 1.5% it is 4% (2.5 %to buyers agent + 1.5% listing agent) The next thing really burns me…$4,300 more. Are you kidding me? When I go against a Redfin agent, its like a shark in a busy public swimming area…you start licking your chops! Why? Because I know that usually the Redfin agent is not experienced, and usually VERY weak at negotiating. I believe you can ask the top 500 producing agents in town and you will get the same answer! They are NOT getting their clients more…but less!
Let me share a little with you about the Redfin system. Redfin corporate works their agents 60 to 70 hours a week. All of their agents are inexperienced agents when they hire them. The mid management of this company is weak at best as the redfin agents are not trained to be valuable assets to their clients. They underpay them and then as agents are with Redfin long enough, and gain experience, they leave to become a full service agent because they just don’t make the money to justify their time. I SEE IT ALL OF THE TIME!
Redfin agents are essentially order takers and are NOT hands on agents. The comments above are very typical. The facts about Redfin is that it is still a very large company that is still bleeding money to survive. I do not worry about them because real estate will always be a very hands on business that takes an agent that cares about his clients best interest. How can an agent negotiate for a buyer when he has not even seen the home ( and for that matter…any of the comps!) The answer…they don’t. So it is pretty crazy to state that you are getting your clients $4300 more!
Brad Golik is top producing condo specialist in Portland, Or. He is a co- founding member of Condo10.com . You can reach him at http://www.LuxuryCondosofPortland.com or by calling 503-896-8856. ( email@example.com)
Last night I listed a penthouse unit at The Elizabeth. If you are in the market for an amazing place in the heart of the Pearl District…check out the video: http://video214.com/play/7vdRuUinppTpWTplmLajfg/s/dark
For a private showing, please call Brad Golik at 503-896-8856
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
As The Cosmopolitan nears completion, the feedback is…?
As the Cosmopolitan nears completion, it reminds me of the night when the developer invited many top agents to get their input on what their condo buyer’s wanted in a new “Luxury” condo development. Here were some of the suggestions from agents that night: Bigger decks, high end finishes, spacious master suites, spacious feeling units, fireplaces, and my input…a small artificial grass “potty” area for pets on the mezzanine level so that owners did not have to go down to street level late at night. Now, lets take a look at how they did in these areas: High end finishes. Well this was a given considering the prices charged. But is everyone happy? The truth is, Pedini cabinets are very nice, but they are a little over contemporary for some. All in all, a decent job here! Bigger decks? Well, apparently after the meeting, the developers ran to the architects…and told them to do the total opposite! The deck space on a majority of these units is terrible! Add the exterior door swing and they become even smaller!
Spacious master suites. A majority of the master suites remind me of Waterfront Pearl. (and this is not a compliment!) Most masters at The Cosmopolitan have a width of 10 feet (and only one place the bed can go) So with a King bed and headboard/footboard you are looking at about 2.6 feet or less of space to walk around your bed! And remember people, as an example, the SW corner units (E4 Plans) are $1,000,000+ condos! Fireplaces…we are good here! Pet area on the Mezzanine level…not happening! And not saying it was a great idea just because it was my idea…but? And finally…and I want to spend some time here, spacious units. This is where I think there will be the biggest amount of disappointment amongst buyers when they move into their new units. (and from people I have spoken with that have seen the units, it seems to be pretty accurate.) The problem in a number of floor plans is the actual usable living space. In a number of units there is an excessive amount of hall space. To use an example, let’s go back to the E4 plan in the SW corner…or the 14 stack (1314,1214,etc..) This unit is a 2 bedroom unit with 1,592 square feet. If you calculate in the amount of hallway space in this unit, it equals about 225 sq. feet or approx. 14% of the total square footage… this is a lot! ( if you take away that amount it makes the actual living areas closer to 1,367 sq. ft.) At 14% it comes in a close second to the worst unit which is the 2 bedroom units on the NE corner (the D6 Plans or the 17 stack…1817,1717 etc.) these have approx. 14.5% of the square footage in hallways. Others in the building are the 15 stack in the SE corner below the 14th floor at 13.5%, the 12 Stack in the NW corner at 12%, and the best in terms of actual usable space is the 15 stack in the SE corner above the 13th floor as the number there represents only 7.3% (and remember, these are approximate numbers, not exact!) For a little perspective here, let’s look at the D6 plan (NE corner below 19th floor) At 1,350 square feet, if you loose about 200 square feet that puts you at 1,150 square feet. In the world a spaciousness in condos, 200 square feet of space is a lot of space.
So are there other buildings in town with hallways taking up livable space? Of course (but none that you ever paid $600 to $1200 a square foot for!) The point I am trying to make here is that if you walk into your new unit at The Cosmopolitan, and it feels a lot smaller than you were thinking it was going to be… depending on which floor plan you bought, this could be part of the reason.
Some of the other feedback that I have heard has to do with customer service, or from what I have heard on a number of occasions, the lack of. Have spoken with several that have not gotten great service in working on the design aspects of their purchase…even one who paid over several million! Hopefully there will be more people with positive comments than negative ones as we move closer to closings!
Today I lost a listing for being honest! One thing you will always get from me is my honest opinion. Whether it is my opinions that I write about in my blog, or my opinions in what it takes to get a condo sold for top dollar. The key words here are “TOP DOLLAR”. You have heard me say many times that “Any agent can sell your condo…but at what price?” To get the highest price in the sale of a condo, I have a pretty good feel for things that need to be done to get that top dollar. First and foremost… top notch marketing! Yes, even in a hot seller’s market it is important.
I mentioned that I lost a listing for being honest. This condo would have been priced in the 1.4M range. This particular condo had amazing river and bridge views. However, the furnishings (many antiques) were not the type that would “Wow” a buyer when they walked in the door. In fact, I believe the opposite affect would take place. I have often said, in the higher end of the market, buyers want the “Wow” affect when they walk in the door. This was a unit that had potential for a huge “Wow” factor that, with staging, I believe would have captured a very good price for the seller’s… if marketed correctly.
Telling sellers what they want to hear to get a listing is nothing new in our industry. I see it happen all of the time with agents that “Buy Listings”… in other words, they tell the seller it is worth more than what another agent said what it was worth because they know the seller will choose the agent with the higher price. Then, the condo stays on the market because it is priced too high and then the agent eventually beats up the sellers to drop the price ( the price the other agent had honestly told the seller’s) Then, because the unit becomes stale, the lowball offers begin to come in. My point here…be careful of agents that tell you what you want to hear. You should be more open to an agent that is honest and not just telling you what you want to hear just to get the listing. The listing above, well I believe the listing above will net the seller’s about $100,000 less than what it could get by staging and using good marketing. This is a lot of money! I felt so strongly about it in this case that I offered to pay for the staging.
The sellers made the comment to me that these were expensive antiques. One thing I have learned in this business is that the cost of something really has no relevance as to how it adds to the value of something. I have seen wallpaper, for example, where an owner spent a fortune and thought it was the most beautiful thing in the world… but everybody else hated it! In the unit above, I truly believe the sellers would net close to 100k more by staging this unit. In addition, the staging will help buyers focus on the beautiful unit…and take their eyes away from the kitchen! Remember the wallpaper above? Well the owners of this unit painted over the cabinets (DIY) in an un- attractive color that shows the wood grain through the paint. They also ripped out beautiful slab granite and replaced it with a inferior artificial product (blue speckled ) that is just not at the level expected for buyers in a unit like this in a building like this.
In the end, the sellers went with an agent that agreed with them and said what they wanted to hear. As a seller, do you want the most that you can get in the sale of your condo… or do you want to work with an agent that is being nice and says what you want to hear? The sellers choose an agent with inferior marketing to what I offer… and the truth is on this unit, to get top dollar, they are going to need great marketing!
I believe an agent should be nice… and tell you what you NEED to hear!
The Design Commission has approved the newest 14 story tower in The Pearl District. The Dianne, will be 153′ tall and house 102 residential (apartment) units…Yes, ANOTHER apartment building! The positive here, the developer, John Carroll of Carroll Investments, whose previous projects in the neighborhood include The Gregory Condos, The Edge Lofts, The Chown Pella Lofts, The Elizabeth Lofts and the McKenzie Lofts. His buildings offer a great sense of character… unlike what we are seeing with The Cosmopolitan and other Hoyt properties. For more info go to: http://www.nextportland.com/2015/11/04/the-diane-2/
Today, like I do on most Tuesday’s, I went to a few brokers’ open houses to look at some new listings. After viewing a new penthouse on the market, I stopped in at a nearby coffee shop. In the coffee shop were a group of real estate agents who had also gone to the same open house. These agents were not condo agents, I know because I did not recognize any of them! What I heard come out of the mouth was not surprising because they just do not understand the urban market. The penthouse that these agents were talking about was the new listing at the Crane building priced at $1,850,000. I heard on of the agents say that she has not seen any of the other penthouses in the Pearl but she thought this one was “Exceptional and priced very well!” The others with her nodded their heads in agreement. The first thought that came to my had was…REALLY?…Is this what they would say to potential buyers that they would show the unit to?
For what it is worth, here are my thoughts on this penthouse unit priced at $1,850,000. This unit was on the market one and a half years ago priced at $1,950,000 and it did not sell then. While this unit has very nice finishes, here are my reasons why I think it is priced too high. First…and most important, anything priced above $1,500,000 should not be a total fishbowl…and this unit is! Before when it was listed, you had neighbors from Avenue lofts and Irving Street lofts looking down into your 7th floor unit. Now, directly across the street to the west is a brand new office tower that takes away your views of the west hills, takes away a lot of natural daylight and also adds hundreds of office workers that can now look directly into your unit! There MUST be a discount on price for the huge lack of privacy!
Some of the other negatives of this unit are that it has low ceiling height and it is a pretty choppy floor plan which gives you the feel that it is smaller than its 2239 square feet. At 836 a square foot, a buyer should get way more for their money than what is offered here. In one of my recent posts I discussed the great buy my client got on a penthouse purchase at The Elizabeth. This unit closed at $2,200,000 (fully furnished) or $667 a square foot. This unit is far superior than the penthouse at the Crane building in many, many ways. It is a much higher floor, 14 as opposed to 7 so you are above most surrounding buildings and don’t have neighbors looking down on you (something most penthouse buyers NEVER want!) The floor plan at the Elizabeth was much more desirable. In addition, both units had equal deck space for outdoor living but at the Crane penthouse, the outdoor space is almost unusable because of the freeway noise that is only a block away! Even if my client would have gotten the Elizabeth penthouse at a higher price, say $2,500,000, the price per square foot would still have been much lower at $757 a foot. There is a huge difference in why the buyers at The Cosmopolitan are paying above $800 a square foot…that is the privacy that comes with being 25 floors or higher. Your odds of having another building going up next to you and blocking your views are much less, this is why buyers were willing to pay a premium. But, the Crane penthouse being only 7 floors up, there is no way it deserves the premium of pricing that it is at, especially with all of those new office workers looking down at you!. If I am the listing agent of this penthouse, I am hoping that one of those agents at the coffee shop brings a buyer and makes an offer… because, based on their comments, they truly don’t know any better!