The Portland Condo Blog

Posts tagged “Pearl District condos

New luxury listing… a taste of NY!

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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!

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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 pdxluxcondos@gmail.com


Using the same agent. “Dual Agency”

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One debate I often hear is whether a real estate agent should represent both sides of a transaction. The question lies on whom you represent. I have been in real estate for 13 years and have done transactions where I represented both sides. I have guidelines that I personally use when deciding whether or not I would feel comfortable in doing so. Here are the things I consider:

1) Is it a win-win situation for both parties? In other words, is the seller getting what they wanted or maybe a little bit more? Is the buyer happy with the price and it is reasonable?

2) Did the listing stay on the market long enough to give the sellers an indication of demand, or lack of?

3) Are there good comps that support the price that the buyer is paying? If not, and I am selling for a record price in the building, I would not touch dual agency with a 10-foot pole! This is where it gets very tricky. If I am a listing agent, and I am selling for a record price, and there are no comps that justify my pricing…I just hit a grand slam for my selling clients! If the buyer’s agent allowed their client to pay that amount, well let’s just say I don’t want to be THAT agent! Especially as a dual agent! NEVER! Now I will say there have been times where I represented clients that had so much money they just did not care about the price, they just wanted the condo. In that situation, you make sure that you document that conversation.

Regarding #3, this is where representation comes into play. As a dual agent whom do you represent? You should be representing buyer and seller equally. But how is this possible when you have a situation like above? If you are getting a record price for your sellers, and there are NO COMPS to support the price, how can you be the buyer’s agent and say “I did a good job for my clients”? The answer: You can’t!

If this same agent acted only as the buyer’s agent, you can bet that he would be hammering on the seller’s agent that the unit is at a record price and might be overpriced? Now, records are meant to be broken. So how much of a record price is it? Is it $10 to $30 a square foot more? That is reasonable. Is it $50 to $100 a sq. foot more? This is when you have real problems. For one, the property would most likely not appraise. But what if the buyer is paying cash and an appraisal is not required? Well then the buyer is really at risk. This is when they REALLY should have a separate agent. ( and for peace of mind, the cash buyer might still consider getting the property appraised).

In multiple-offer situations, if an agent is representing both sides, he or she better make sure that their buyer’s client is the best offer! If it is, the listing agent and the seller are making the final decision as to which offer to select. In this situation, there is no problems in representing both.

So bottom line: If both parties are happy and well educated on pricing, and there are good comps to support the purchase and sale, there are no problems.

On the flip side. If there is a big difference in price from the comps, especially if it is a record price in the building for the seller or huge discount for a buyer. This is when you need two agents fighting it out for their client’s best interest. I would never do dual agency in this situation!

Brad Golik is a luxury condo specialist with LuxuryCondosofPortland.com and Pearl District Properties in Portland, OR.  You can reach him at one of his websites including http://www.LuxuryCondosofPortland.com and www.PortlandPenthouse.com or by calling him at 503-896-8856


New penthouse listings

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Upcoming Penthouse listings

A short time ago I wrote about the possibility of a $6 million penthouse listing that might be coming on the market. The owner loves the unit and is waffling a little whether he should sell it or not. As of this time, the owner is still undecided so I will post more as I hear. If you are looking for a full-floor penthouse in this price range, contact me and I can fill you in on the details.

Today I am writing about another penthouse that will be coming on the market soon. I was originally interviewed to list the property but unfortunately, the owners did not like the numbers I explained to them . I will say, I am usually right more often than wrong on pricing a condo and for this unit, I feel my numbers were very accurate as I have sold 7 of the last 14 units in the building. Of more importance, I sold the unit directly below this unit less than a year ago. The floor plans are identical! The one coming to market is a penthouse unit, so you would pick up about 12 inches of ceiling height. The unit I listed sold was for $1.1 million, and sold for over asking price. The $525 per square foot sales price tied a record of another unit in the building I had sold. For the penthouse listing, I told the owners I was going to push for another record price for the building and gave them my number. They were not satisfied with the number and thought the number should be MUCH higher! Their reasoning was not unusual from what I hear from others…they thought their unit was much better than the unit I sold below theirs and they also thought their unit was way better than another unit that sold in the building for $1.35 million.

From an agents (and a buyers) standpoint, the $1.35 million unit had better river and bridge views. In addition, it had 650 square feet more, and it had a third bedroom. Yet the sellers of this penthouse thought theirs was better and the price should correspond to their thinking. Now the owners did have a couple upgrades in this unit that the others did not. Let’s look at these. The TV was hidden behind a mirror and appeared with the touch of a button…kind of cool in a James Bond kind of way. Another upgrade was a white wood-like tile floor that the sellers really liked. The problem here is that I believe that 90% of potential buyers would rip up the tile and replace with something else, so it’s not really an upgrade. So what are the true values of these “upgrades”? The James Bond hidden TV was probably $3,000 to $5,000. Other than these two things, the unit was essentially the same as the unit that I sold below for $1.1 million. What is the extra 12 inches of ceiling height worth to someone? $50,000? So now we have a premium of $55,000. I told the owners I could sell it for around $1,200,000, maybe a little more. That’s an additional 5% over the number of $1,1550,000. It was not enough!

Now, because I don’t have the listing, I would love to find the buyer because I do love the unit and it’s views, (the photo above is views from the unit)  but, at the right price for my client! I am not sure what price the listing agent will come out with, but I know it will be high. As your buyers agent, I will fight to get you a good price on this unit. If you are looking for a beautiful penthouse with amazing views, (The above photos are the views from this unit!) this could be the one!  But, only at the right price. I will work to negotiate a good price for you and I know this building better than anyone. If we can’t get you that price, walk away!

If you are looking for a great penthouse unit in Portland, give me a call at 503-896-8856

Brad Golik is a luxury condominium specialist at Pearl District Properties and LuxuryCondosofPortland.com.  You can reach him at pdxluxcondos@gmail.com or by phone at 503-896-8856.


Real Estate Photography

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Recently a friend came by my office and we began discussing real estate. This friend often reads my blog post, and in our conversation, he mentioned that I hammer on the issue of agents not using professional photos. He also said that he could not believe that there were that many agents who don’t use professional photos, knowing that it has been shown that great photos help sell homes faster and for more money. So, why not hire a professional photographer? It is hard to explain.

To prove my point, I asked my friend to pick any condo building in Portland. He looked at our inventory sheet and saw that Waterfront Pearl had more listings than other buildings, so I used that building as an example. In my opinion, EVERY listing should have great photos, especially higher-end listings. In this example I will use listings priced at $750,000 or higher. Currently at Waterfront Pearl there are 6 listings above $750,000 (they are priced from $798,000 to $1,049,000) Of these 6, only 2 of the 6 listings have used professional photography! Again people, these are $800,000+ condos for sale!

 To say that my friend was shocked is a huge understatement. His comment: “Why would someone hire an agent who does not care enough to do their best for their client?” Hmmm… where have I heard this before? Why would an agent not spend a few hundred dollars in an attempt to gain thousands more for the client? And if that agent is not spending money to do a nice job on the photos do you think they are going to spend money on doing a nice video, expensive print material or internet marketing? Probably not.

The National Association of Realtors has shown time and time again that homes listed with high-quality photos sell for more money. If you are an agent who doesn’t spend on professional photos, you might as well be telling your clients upfront that you just don’t care what their home sells for! Harsh? Maybe. True? You be the judge.

Brad Golik is a condominium specialist at LuxuryCondosofPortland.com and Pearl District Properties. If you would like to see any listed condo or loft, call Brad today at 503-896-8856.

 


The $6,000,000 penthouse condo?

6millviewThe $6,000,000 penthouse condo?

Will 2017 open the year with a $6,000,000 condo listing? And if so, which unit justifies a $6,000,000 price tag in Portland, OR.? In the last year we have seen the movement of several of Portland’s highest priced penthouse condos including the $3.8 Million penthouse condo at the new Cosmopolitan. Also, the most expensive sale of a condo in Portland, again at the Cosmopolitan, the combined 27th floor unit that sold for over $5,000,000!

So, what about this $6,000,000 condo? And, which building is it in? Well if you have $6,000,000 to spend and want to get the early jump on viewing this unit before it hits the MLS, give me a call! While I can’t disclose what building it is in (at this moment) what I can say is that it does have some of the most spectacular views in the city… and here is a hint, it has one of the most spectacular views “of” the city! If you want a nice condo with similar amazing views, for $2,500,000 less, don’t overlook the beautiful penthouse unit at The Westerly. I have said many times, the view from this building does not just look into the city of Portland…it looks over the city of Portland! And with over 4,000 square feet, it is one of my current favorites on the market right now. As for the $3,500,000 price? It could be a little lower considering that it’s next door neighbor just sold for $2,850,000 last year.

One sign of good news in Portland high end condo sales is that the Penthouse unit at The Casey finally went pending after 1 and a half years on the market. If you recall, this unit came on the market at what I believed to be an excessive price of $3,499,000. I would be surprised if it got it’s most recent price of $2,995,000 as it has been priced there for over 5 months now.

If you are in the market for one of Portland’s finest condominiums, give me a call. Part of good negotiating is having a good understanding of pricing. Many agents make the critical error of making a lowball offer on something that is fairly priced or priced low and has supporting comps. However, when something is overpriced we will fight to get you the very best price. Even when something is fairly priced, if the agent listens to things that are said, sometimes that can lead to clues that help the buyer get a great deal! And by the way…if you want the jump on that $6,000,000 condo, give me a call!

Brad Golik is a luxury condo specialist in Portland, OR. If you would like to view any of Portland’s nicest condos, call Brad Golik at 503-896-8856 or email at pdxluxcondos@gmail.com


Nightmare at The Cosmopolitan!

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Ok, maybe the title is a little dramatic, but it is close to Halloween and scary things do catch our attention this time of year. So, what is going on at The Cosmopolitan? Well, it is not anything as terrible and scary as what is going on at Millennium Tower in San Francisco ( has sunk 16 inches and tilted 6 inches at the penthouse). What is happening at The Cosmopolitan is very frustrating though for residents who just paid a major premium to be owners there! Lets start with space. Many residents, after moving in their furnishings are just know realizing the space issues we had talked about in a previous blog post I had written. Problems with walking room around beds in many of the units is something I have heard about many times now. Ok, this probably is not the worst thing in the world and people will learn to deal with it. ( who would have thought you would just have to “deal” with anything after you just paid $900 a square foot!)

Most recently, especially after the “Big” storm, many residents complained about the loud whistling and howling noises. Very fitting around the Halloween season! What is going on with that? Anderson Construction has determined ( and we will find out if it is correct or not) that the loud noises are being caused by the backdraft dampers. From previous complaints, they were already adding gasketing material to the fresh air intakes and they will now be doing the same to the backdraft dampers. This repair will take an elaborate 2 point suspension scaffold on the exterior of the building. The scaffolding will initially be set up on the “16” stack of the building. Only time will tell if the issue is in fact what Anderson believes it to be. Either way, a huge disappointment for owners who just paid the highest price per foot ever for new construction in Portland.

Another problem… loud footsteps from above! Really? Several sources have said that footstep noise from above their units is excessive and surprising for a brand new and expensive building. One source said that the sales team had told them they would never hear footsteps with the modern construction techniques and gave assurances to that fact. My take… this is not a low rent apartment building! This is a building with MANY units selling for $1,000,000 or more and buyers paid huge premiums to the average market price to live here. To have such problems so early on is concerning.

Now the problem with space is one thing. It did not help that in the developers( Hoyt Properties) floor plans there are some pretty scaled down furnishings. ( I just double checked. I am curious… who can fit in the chair in the den that measure 1’ 6” wide? )

The other problems (noise issues) are a little more concerning. Hopefully Anderson is correct with the gasket fix and that problem will get solved in a timely matter. And from what I hear from residents, the repair issues are backed up and things are not happening as fast as they would like! As for the “Scary” footsteps from above… I just don’t know what to say!

Brad Golik is a condominium specialist with LuxuryCondosofPortland.com at Pearl District Properties. If you would like to tour any urban condos, just give Brad a call at 503-896-8856.


New Penthouse Listing

 

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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.

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Atwater Place Penthouse

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!

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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!

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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 pdxluxcondos@gmail.com ,  www.LuxuryCondosofPortland.com

 

 

 


How does The Cosmopolitan compare?

Just like many days, I start my day at Starbucks getting a cup of coffee and checking emails. Yesterday, while in Starbucks trying to warm up, I was speaking on the phone with a client about the current condo market. A very nice lady sitting next to me had heard a few things I was saying to my client and when I got off my phone she had many questions for me. No matter where you go, people always seem to like to talk real estate! This person, who I will call Sue, had many questions but the one she seemed to have the most interest in where my thoughts on the new Cosmopolitan. I did start the conversation with her explaining that I have discussed this project many times here on my blog, and it has not always been favorable. She explained to me that she was one of buyers that have now pushed the project to 88% sold. But she was insistent that I give her my honest opinion…so I did! I did start the conversation saying it was a nice building that I believe residents will enjoy for sometime. She asked me about the pricing and I explained to her my take on the pricing. When I explained that I thought it was fairly overpriced she agreed with me and then went on to explain why she bought. The current unit she was in had it’s views blocked by a new building and she wanted something with a view. She said she had been waiting for a view unit to come on the market but got tired of waiting. This is why she said she decided to pay a higher price than she felt comfortable with. I believe this is the exact situation that most of the Cosmopolitan buyers ran into. They wanted something in a nicer building and nothing was coming on the market! They did not have many options and decided to pay a higher price instead of waiting. After discussing the pricing of the building, Sue then asked me what I thought about the building. Being a future owner, I wanted to be somewhat polite and gave her somewhat of a sugar coated answer. She saw right through my answers, looked me in the eyes and said “What do you really think?” So, I told her!

I told her that early on in the design process the developer had called on many of the top condo agents to give some feedback on the project and to make suggestions as to what they thought our clients would like, which at the time I thought was a smart thing to do. There were some very good suggestions that agents made, most were not implemented. For example, large decks. This is something all condo buyers would like to have. The final build out is nearing the end and one thing I will say, VERY small decks for a majority of the owners! Other simple things were suggested. One of my suggestions, which I had seen in buildings in Seattle and Denver, was a small area on the Mezzanine level where owners could take their dogs for a walk, and do their business. This so that owners don’t have to go down to street level and worry about safety later at night. Again, it didn’t happen. Other agents had suggested a better variety of cabinetry. While Pedini is nice, it’s not for everyone. So instead of variety, the future owners were offered super contemporary with a choice of light, medium and dark! This was something Sue said she struggled with. To me, it did not seem that the developers listened to the agents much. While I was hoping for something very special, to me it is just like The Metropolitan, just a little taller. Now don’t get me wrong, I love The Metropolitan! In fact, architecturally,  I like the exterior look of The Metropolitan much more. But for the prices being paid, I was hoping for more. For something pretty special. For these $800 to $1200 a square foot prices, I was hoping for a building with more amenities like those in the Insignia in Seattle, Lumina in San Francisco , Bellevue Towers in Bellevue,WA. Or Spire in Denver. ( http://www.insigniabybosa.com/#/tour , http://luminasf.com/amenities/ ,
http://bellevuetowers.com/#building , http://www.spiredenver.com/amenities/ )
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Now, some of these nice amenities come with a price, higher HOA fees. Part of the problem with most of our buildings is that we do not build high enough. While 28 stories at The Cosmopolitan is a good start, it is still not enough to spread the cost of amenities like those at the above mentioned buildings. When you have a building that is closer to 40 stories, it is much easier to spread the cost among more owners. When I toured Spire in Denver, CO (41 stories), I was blown away by the fantastic amenities…and then I was really blown away when I saw the owners were paying about half of what typical owners in Portland’s nicer buildings were paying for their HOA fees. While there are many people that are opposed to building higher, it is what makes the most sense if people want nicer amenities and also keeping their monthly cost lower. Imagine if you will, in the location of the current Centennial Mills, a beautiful waterfront condo building much like that of Bellevue towers. Two 40 story towers that offer the most amazing views, and to be right on the river! Sit on your large deck and take in views of Mt. Hood and the Willamette River. Between the two towers, you have a spacious, park like mezzanine level where you sit by an outdoor fire sipping wine and watching ships pass by! In the summer months, you join your neighbors at the outdoor theatre to watch movies. Perhaps you are a little more active and wish to go swim laps in the indoor pool and then relax afterward in the steam room or sauna.

 

Ok, back to reality! Big, usable decks would have been a good start!

Brad Golik is a condominium specialist with Pearl District Properties. If you would like to tour some of Portland’s luxury condominium buildings, call Brad at 503-896-8856 or visit http://www.LuxuryCondosofPortland.com

Portland Condo Specialist

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Prices in the Market Today

When you write in a blog, sometimes you will make statements that are right and other times you may be wrong. This is the risk that you make when you put yourself out there. At times I will mention that I think a unit that comes on the market might be overpriced, underpriced or priced just right. In the case of the new Cosmopolitan, the market has spoken! From the very beginning, I have said that I felt the Cosmopolitan was overpriced. Was I wrong? Well, the Cosmo is now about 85% sold out. The market has absorbed those high prices, prices that I mentioned were higher than Seattle’s Insignia development. How could I be so wrong? For the developer, Hoyt Street Properties, their timing was the perfect storm, in a good way. Not only did interest rates not go up as many have feared, they actually went down. The biggest reason the developer was able to capture these high prices… LACK of INVENTORY. This is where I was dead wrong in predicting what would happen in the market. I don’t believe anybody would have guessed we would have continued with the low inventory that we have continued to have.

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Typically, as prices rise, owners who were underwater begin to see some equity and sell as prices begin to go up. This time around, it has not happened! This was the perfect storm for Hoyt. In regards to pricing, it really is the market that determines the price. Because buyers had no other options, they were forced to pay the high prices at The Cosmopolitan. In doing so, the developer never had to reduce prices like I thought they were going to need to do. So was I wrong in my saying they were priced too high? I am sticking to my guns in terms of my opinion on pricing. Again, I don’t determine prices nor does the developer, it is the market. Is Portland ready for $1000 a square foot prices? I still don’t believe so. Several agents have tried pricing a couple nice penthouses in town at the $1000 a ft. level and they are not selling. The real determination of pricing will come when these units go into the resale market. This has been my biggest fear in not wanting to put my clients in this building. While some are certainly willing to take that risk, it is hard to determine what the market will do between now and then. What I do believe though, is if the market were to turn around, I believe it will be very difficult to get the $800 to $1200 a sq. ft that the buyers paid. When things aren’t shiny and new it is more difficult. Will the extra height of the building justify those prices then? I am not so sure. The new Overton apartment building, which is slated for 26 floors, takes away some of the theory of not getting views blocked by being in a 28 story tower.

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So was I wrong on pricing? Like I said, the market has spoken and the developer has won! However, somebody asked me the other day if my parents moved up from San Diego, would I sell them a unit there? My answer… NO!  I would do exactly what I said was an option early on. I would rather find them a nice unit at The Metropolitan, Park Place, The Henry or The Casey at $600 to $800 a sq. ft and have them put $100,000 to $150,000 into it. That way they would have the dream kitchen they want (which is not ultra contemporary) and they could do some other things to make it exactly how they want it. They could have a unit that I believe would far exceed, in terms of finishes and design, what they would be getting at the Cosmopolitan. And not that the ultra contemporary finishes at the Cosmopolitan are not nice, Pedini cabinets, your only choice, are just not for everybody’s taste.

To finish up I want to add just one thing. Everybody that is buying at The Cosmopolitan is not just buying an investment, they are buying their new home that they plan on living in for many years. So for those people who don’t have plans or need to sell anytime soon, they will be living in a very nice building in a very nice part of the Pearl District.  They will be in a building that offers many nice views and a building near several close by parks…it will be a nice place to call home!

Brad Golik is a condominium specialist with Pearl District Properties. I you are thinking about listing your Portland condominium, give Brad a call and learn about Portland’s best condo marketing program.
503-896-8856  l  WWW.LuxuryCondosofPortland.com