Just to clear up any confusion there might be in comparisons to pricing at the Cosmopolitan and the Park Avenue West Tower. I have gotten several calls and emails recently asking me how the pricing at the Cosmopolitan compares to the pricing at the new 30 story Park Avenue West Tower adjacent to the downtown Nordstrom building. The fact is, that while there is going to be 15 floors of residences at the new Park Avenue building, they will not be condos for purchase. They will be units that are higher end rentals and not for sale!
Since my first post about the Cosmopolitan I have gotten many calls and emails from people to discuss the Cosmopolitan and the pricing. What is interesting is that a number of buyers are trying to justify the pricing with comments such as…but it will be new and have all new appliances! Here is what I often tell them. “If you want new appliances, by a resale condo in a nice building like The Metropolitan, put $30,000 to $50,000 into a nice kitchen remodel and you will still be way ahead of the game compared to paying extremely excessive prices at the Cosmopolitan!”
Since my last update on the Cosmopolitan… not much has changed.
If you can recall my first post where I wrote about the euphoria of the new project and the normal sales of a new project when the developer sold 33 units during the grand opening. A couple weeks later I said the total sales were at 36 (December 11th). As of today, sales at the Cosmopolitan are at 40. From our last writing they have sold an additional 3 of the 1 bedroom garden units. These were units that were selling in the high $300,000 to the $400,000 range. (also priced in the $550 to $575 per sq. foot range. ) Most of the units that sold during the euphoric grand opening period were the smaller 2 bedroom units on the NE corner which sold out units #717 to #1817. The price range for these units was $769,500 to $918,000. The price per sq. ft for these units went from $575 to an excessive $680 for unit #1817. In my opinion, units #717 to #1317 in the $575 to $600 range is not unreasonable… still high, but not totally out of line. . 70% of the original units sold in the grand opening were in the $550 to $620 price per sq. ft. range. The low hanging fruit is now gone!
I am still sticking to my belief that this project is way overpriced! They have sold very few of the 1 bedroom units other than the popular Garden units. They still have not sold anything above the 21st floor with one exception, unit #2315, priced at $1,773,000 (crazy $1,000 per sq. ft!) I am still a little baffled as to why 8 to 9 buyers paid between $800 to $1000 a sq. ft. Again, was it the excitement of a new building,? Was it that they did not have representation from an outside broker to explain to them the severity of the high price per square foot they were paying? While it is certainly not my intention to bash this project, because I was as excited about it as anyone, the fact is that it is just very much overpriced. I believe it everyone’s right to make a reasonable profit from their hard work. But when I see excessive numbers in several areas that benefit the developer beyond a normal number, that is when I have a problem. Overcharging buyers by a considerable amount over the current market, again, the developer can pocket additional excessive profits. What happens to those buyers who are buying a unit for $650 to $1200 a square foot, and then realize a year after they move in they need to sell their unit for whatever reason. These buyers will be hammered in the resale market! Why? Because they paid $650 to $1200 a square foot in a market that should be $450 to $850!
What is my hope on this project? While I personally never wish bad on anyone, I do hope that sales remain as slow as they have been and maybe get worse. This will force the developer to drop their prices to REASONABLE numbers so that buyers don’t get punished when they become sellers in 2-5 years! In addition, my hope is that they will also go back to everyone that has made a purchase and additionally drop their prices as well. Again, I said the low hanging fruit is gone for the most part and sales will only get tougher for the developer moving forward as they try to sell a ton of units in the $700 to $1200 sq. ft. price range.
Buyers…ask yourself this one question. Should you be paying more for a condo than a similar project in Seattle? And remember, this project in Seattle is only 60% sold after a year and a half and has the benefit of Amazon as a nearby job force to support it! In addition Seattle is just priced much higher than Portland in general!
I am adding the graphic below again because I believe it tells a story pretty well!
If you still have an interest in making a purchase at the Cosmopolitan, please give me a call and we can discuss what may be the best values within the building because there are some units that have better value than others. Call Brad Golik at 503-896-8856.
Cosmopolitan on the Park
Since my last post on The Cosmopolitan, my tune on the project has changed dramatically! Why is this?
Several things actually. First and foremost is pricing!!! This project is almost like a tale of two cities. You have the city of $600 a square foot and then the city of insane pricing of $700 to 1199 a square foot!
When I wrote my first post on this project it was directly after the Cosmopolitan had their grand opening. After the first week and a half they had 32 sales, which is pretty typical with the euphoria of any new project. As of Monday morning of this week….they are at just 33 sales!
Let me start with my main issue and that is their pricing… It is higher than the new building Insignia in Seattle! Seattle’s condo prices have always been higher than Portland’s and I know that condo market very well up there. The first tower of this dual tower project is only 60% sold after a year and a half of marketing. This is a building that offers stunning Elliot Bay views. Speaking to my fellow www.Condo10.com friend and condo specialist Jim Stroupe of the Stroupe Group, he said the downtown condo market in Seattle is being driven by Amazon (a downtown headquartered company) that will be bringing in over 50,000 jobs to the downtown area. My point here? Isignia has not been a huge sellout ( only 60% of tower 1), even with the awesome amenities being offered (see tour below) and the downtown job force. In addition, many of the sales at Insignia have been Chinese investors, something we don’t have a lot of in Portland.
The Cosmopolitans pricing up to about the sixteen floors for two bedroom units is very high in my opinion, but above the sixteenth floor it just gets ridiculous! When Insignia, which I believe will be a superior building, is selling for $700 to $800 a sq. ft and The Cosmopolitan jumps to over $800 a square foot for the NE 19th floor unit, something is wrong! On the SE corner units the pricing is at $1,507,000 for unit #2015. This is $850 a sq. foot! And it quickly jumps to over 900 a sq. ft. Pricing from the 19th floor jumps $88,000 per floor! Crazy!
For comparison sake, if you go back a year and a half and look at Portland’s best, most expensive condo sales, you only have 2 condos that sold in the $800 a sq. ft. range and one of those was the penthouse at 937 which was $805 sq. ft. The penthouse PH3 at The Metropolitan sold for $690 sq. ft.! Most of the top 20 sales were in the $500 to $700 range…and these are some of the best units in some of the best buildings like The Metropolitan, The Casey, 937 and The Henry!
My second issue with this project is the marketing of the project itself. I believe it has been very thrown together and not very well thought out. The developers have not been overly agent friendly (they are paying buyers agents 1% less than Insignia is paying the agents in Seattle) They have not presented this project in the most professional manner. They currently do not even have a website up and running that shows buyers what they are getting for their overpriced units. Going back to Insignia (who has hired the Mark Company to do their marketing) they show buyers in many ways what they are getting, from aerial views from each floor to a video like tour http://www.insigniabybosa.com/#/tour . These are things that should be done before you start selling a multi million dollar project! I would be much more inclined to drop down $1,500,000 if I could get a visualization like this instead of just a few samples in a showroom. Once again Hoyt has chosen to use their in house sales force. In addition, they are forcing buyers to get pre-approved with an individual at Wells Fargo… who, as I understand, happens to be married to the Sales manager at The Cosmopolitan… no conflict of interest here?
What am I doing with my clients? If they are looking at units in the $500 to $600 a sq. ft. range I think that is marginally ok to make a purchase because if the market runs up, they will eventually be at market price…a risk though. Anything that is above $700 a sq. ft… I will be telling them to wait or I will find a unit at The Metropolitan,937, The Casey or one of the other very nice buildings in town. Here is a thought. Instead of paying $1,950,000 for a 1773 sq. ft. non -penthouse unit at the Cosmopolitan, you could spend $1,700,000 for a penthouse at the Waterfront Pearl that has great water views and night city light views and 3300 sq. ft.! One more thing to add here. The developer is asking $3,757,000 and $3,883,000 for the 2 penthouses with amazing 28th floor views. If you remember a while back, the penthouse at The Westerly that was priced $1,000,000 less, had the most spectacular views in the city (4 mountain and city view) and it didn’t sell at that price!
Bottom line….In my opinion, this building is way overpriced and I will be telling my clients…and others to wait. They will have to bring their prices way down! For those who have already put down earnest money, I feel bad because there are no escape clauses in the Hoyt Street in-house contracts that allow for them to bail if the developer reduces prices. I especially feel for those 6 buyers out of 33 who paid $800 to $1000 a sq. ft. With any luck if the developer does reduce prices maybe, just maybe if they have a heart, will reduce your prices as well!
For me personally, this is a tough situation because I believe with correct pricing I could easily sell $10,000,000 to $15,000,000 of this project and it would put me in a nice situation when the project closes in mid 2016. Instead, I would rather protect my clients best interest! I believe that if buyers held tough, over time the developer MUST reduce the prices to something in the realm of Portland condo pricing!
Brad Golik is a condominium specialist in Portland and has sold condos in both Portland and Seattle.
You can find him at http://www.LuxuryCondosofPortland.com
If there is one thing I have learned from writing a blog, it’s that you can’t please everybody! When I started writing my blog originally, the purpose was to give good, objective advice so that potential buyers and sellers could be assisted in making solid decisions when it came time for them to buy or to sell their Portland condominium. Over the last couple years I have gotten tremendous positive feedback and at times, not so positive feedback. Most of the negative feedback will come from someone in a building in which I made a comment that does not support a price of a listed unit in that building. ( after all, everybody would love for any unit to sell above it’s market price in their building) Earlier this year I wrote about a unit in the Casey that I thought was way overpriced. (and I am not going to mention the unit #) In my blog I mentioned that when a unit like this gets overpriced it will sit on the market with no traffic or offers. After some time the owners will drop the price $100,000 to try and get traffic. After dropping the price and still not getting traffic, the owners will drop it another $100,000. Well guess what has happened to this unit? The unit has had 2 price reductions of $100,000 each and still no sale. What has happened though is another unit in the building came onto the market that was correctly priced at $1,375,000 and it received an offer in 42 days and is currently pending. While this unit was 230 square feet smaller, and $124,000 less, it was also on the 15th floor looking due East…fantastic views! It was very fortunate for the listing agent of this unit that he was able to use the other unit on a lower floor to help sell his Casey listing!
If a buyer is out looking at condos and is a frequent reader of my blog, I feel they will be able to pick up some very valuable advice and be able to make a better informed purchase when the time is right. Again, my comments in my blog will not always make everyone happy but I think the majority will get much more of a positive experience than negative.
What looks good out there right now? Well it depends on your price point. There are still some pretty good deals being had over at Waterfront Pearl, in fact, last month they sold a considerable number of units in the higher price points. What about Penthouses? My favorite listing on the market right now is the penthouse unit #1405 at The Elizabeth…this is a fantastic unit! (and no…this is not one of my listings! ) With a recent price reduction of $100,000, I will say I was a little surprised that the penthouse unit over at Park Place sold first! That unit, originally priced at $1769,000, dropped it’s price to $1,650,000 and received an offer a month later. If you would like to schedule a time to view the beautiful penthouse unit at The Elizabeth, give me a call today and we can get it arranged.
If you are looking for a value in a luxury condo with great river views, you might want to check out unit #209 at Pacifica Tower. Because of the surrounding construction going on, this unit is priced under $600,000. You will not find anything like this unit in the Pearl for under $600,000. Not only does this unit have a spacious deck that looks out onto the Willamette River and has amazing bridge views, it also has a huge master suite…something very rare in condo living!
There are more units that are now starting to hit the market. If you are in the market for a new condo, give me a call and we can set up a tour of available units. If you are thinking about selling your condo, we truly believe we have some of the best, if not the best, condo marketing around and we would love to sit down and share with you how we are very different than the typical real estate agent out there!
Brad Golik is a Portland Condo Specialist!
Please visit: http://www.LuxuryCondosofPortland.com
Last week I wrote about two new Portland penthouses that came on the market. Today I toured the one priced at $1995,000 and I must say I was pretty impressed. This penthouse condo at The Elizabeth was stunning! While East facing, you would expect fantastic views of Mt. Hood, which this place delivers. Being in the NE corner of the building also gives you great views of Mt St. Helens and Mt. Adams. Back to the interior… this unit is only 300 square feet larger than the penthouse we wrote about last week (and $200,000 cheaper!) but the unit feels so much larger and less cramped. The layout of this Elizabeth Loft penthouse just flows very comfortably and while it is officially a two bed room unit, the owners of this penthouse are using the spacious second bedroom as a theatre room. This brings up my only negative of this wonderful penthouse….a 45 inch TV in the media room? Give me a 70 inch screen and this becomes a tough choice to say no to!
The owners of this penthouse obviously have very fine taste in their furnishings (which are for sale) which one almost has to look past when viewing this unit because it is so beautifully done. The first thing I noticed when I walked in is the elegant dining area with the crystal chandelier and then the wall of windows looking east to an amazing view. As you walk into the well appointed kitchen not only do you get those great views to the East, but also the mountains to the North.
For those buyers that need more bedrooms, the media room could easily be converted back to a second bedroom and in fact, a third bedroom/ Den could be added if needed. Of the current penthouses on the market right now, hands down, this unit is by far the one that impresses me the most.
If you are a buyer and would like to set up a tour of this beautiful penthouse, give me a call today. (I don’t believe this one will stay on the market too long!) We can also set up a tour of other available units so that you get a real good understanding of condos in this price point. If you are in need of more space, don’t overlook two available units at Waterfront Pearl. Two penthouse units at Waterfront Pearl offer over 3,000 square feet. One offers river views while the other has fantastic city views.
Brad Golik 503-896-8856
This week there were two new penthouse condos that came on the market. One was priced at $1,995,000 and the other at $2,200,000. Yesterday I toured the unit with the higher price. The agent is pushing the fact that it was named “Top 10 penthouses to die for” on MSN Real Estate… I however, was not as impressed. Let’s start with what is right with this beautiful unit. The architectural elements throughout this penthouse were very nice. Warm woods on the floors and ceiling gave a cozy feeling to the unit. But when paying over $2,000,000, cozy is maybe not the feeling I would want! Having three bedrooms and three parking spaces is a nice plus. The finishes in the bathrooms and kitchen were very nice. Now with what I did not like about this unit. I felt somewhat cramped in this 2,239 square foot unit. The main living area seemed very tight to me. While the kitchen was nice, it featured GE Monogram appliances instead of the typical higher end Sub Zero and Wolf appliances we are accustomed to seeing in this price point. The biggest disappointment was the outdoor living area. While the deck was a spacious 800+ square feet, it faces west directly into the 405 freeway noise! The freeway is only one block away. In addition, this is a mid rise building, and while yes it is a penthouse, you still have the neighbors next door at Avenue Lofts and Irving Street Lofts looking down onto your deck so not much privacy. At $2,200,000, my expectations in this price would be something more like the PH3 that sold at the Metropolitan last year for $2,240,000. That penthouse had 3,245 square feet and a massive deck that was pretty much on top of the world with total privacy in one of Portland’s most desirable buildings!
The other unit that came on the market was priced at $1,995,000 and away from the freeways in the heart of the Pearl District. Slightly larger with 2,550 square feet, this unit just lives much larger. While the deck space is smaller than the other penthouse, it still has plenty of space with 628 square feet with 3 mountain views and a much quieter location so that you would actually use your deck! This unit is in one of my favorite loft style buildings… The Elizabeth!
If you would like to tour either of these Portland penthouse units or any other luxury condominiums in Portland, give me a call and we can set up a tour and take a look at some of Portland’s most beautiful condominiums. If you are looking to buy a condo in Portland, OR., why not work with Portland’s condo specialist!
Brad Golik 503-896-8856
Brad Golik of Windermere Northwest and LuxuryCondosofPortland.com has distinguished himself in the field of (luxury) condominiums and townhomes sales by earning the prestigious Certified Condominum Specialist® designation. This national designation is given to select real estate agents who have demonstrated the specialized education, market knowledge, competence and experience in successfully and effectively listing and selling condominiums, townhomes, and other forms of common interest developments (CID).
The certification and designation are offered by the Council of Condominium Specialists® which is the national, premier independent authority in assisting real estate professionals in providing high quality service and superior market expertise to the buyers and sellers of condominiums and townhomes (CIDs).
Brad Golik is the first real estate agent in Oregon to receive the Certified Condominum Specialist® designation!
The designation indicates the recipient real estate agent has worked diligently to complete essential real estate training and has met specific performance standards to demonstrate expertise in their local condominium/townhome (CID) market to provide the high quality real estate services his clients deserve. Real estate sales are a complex and challenging field to begin with,” said Candy Peak, Director of the Council of Condominium Specialists®, “but selling a property that is in a common interest development (CID), which involves both an individual and shared ownership in real estate, such as a condominium, townhome, planned development or any other property that is part of a homeowners association, requires an agent with the specialized real estate knowledge and expertise to professionally navigate a buyer or seller through the intricate path of common interest development ownership and sales.
“My commitment is to provide outstanding service to my clients,” said Golik, and “the Certified Condominium Specialist® designation ads additional benefits for my ability to meet the needs of condominium and townhouse buyers and sellers in my area. My membership in the Council of Condominum Specialists® Network also provides me with the marketing tools and networking capabilities that bring added benefits to my clients.”
For current information on condominium and townhome sales in your neighborhood and to receive a market evaluation on your property, contact Brad Golik at 503-896-8856 or through email at firstname.lastname@example.org . You can also visit http://www.LuxuryCondosofPortland.com
Today I saw a listing come on the market that prompted me to write in my blog on the topic of working with a specialist. The listing was a condo in the Pearl District that came on the market priced at $1,699,901. (901?) Well the 901 is not the issue…interesting, but not the issue. The issue is the crazy price! This is a floor plan I know very well. It is also a floor plan that has MANY comps to support the pricing and where it should be. The o2 stack in this particular building has had 2 sales in the last year and 3 recent pendings. I currently have some buyer’s coming into town that will be looking in the $1,000,000 price range and this could be a perfect unit for them… except for one thing, the price! I called and spoke with the listing agent to see if there was a typo on the pricing ( yes, I really did!) He said to me that the pricing is correct. I asked him how he came up with the pricing on this unit. He told me that a unit (#1002) just went pending at $1,999,000 (and finally sold for $1,837,000) Well this is an 02 stack but it is also over 500 sq. ft. larger with many additional amenities to it. The agent had 5 very good comps to use and selected the one that doesn’t make any sense! The 02 units with the exact same floor plan as this particular unit sold for: #202…6 floors lower…$825,000, #602…2 floors lower…$899,000. 2 of the same units also just went pending (perfect comps!!!) #302 went pending priced at $925,000 and unit #502 went pending priced at $975,000. Now something can be said that the high priced unit is on a higher floor and looks over the apartment building next door, certainly worth an extra $100,000 over unit #502. I did question the agents reasoning on his pricing and mentioned that I would probably not show it to my out of town clients because it was so overpriced. His comment to me “That’s fine”. Really? When a property is so overpriced, reasonable negotiations are often very hard to come by, either the seller is not realistic or the seller’s agent has given the seller unreasonable expectations and then the seller won’t move off of their price. Well the topic of this blog post was “Working with a specialist”. The agent in this case is not a condo specialist and is in fact an agent from Hillsboro. In his defense of pricing, he told me that he has priced plenty of properties! This may be the case but he has NOT priced many downtown condos. What is the problem that seller might have by not working with a specialist? Well in this case. This unit runs the risk that it will not get shown because of my reasoning above. When it doesn’t get shown over time, the price must come down. What will probably happen here is the agent will drop it $100,000, and it still won’t get shown so he will drop it another $100,000 and it still won’t get shown. At this point the listing starts to become stale and it loses all of it’s WOW factor. Eventually. The price will get down to where it should have been to start. At this time you will start to get the lowball offers because it has been on the market for so long and it ends up selling for well below where it should have sold if it where priced right from the beginning. This agent clearly does not understand pricing in the downtown condo market… much as I would not be an expert in pricing Hillsboro properties! In addition, because this agent doesn’t normally work with condo buyers, he doesn’t have the marketing in place that has been targeting condo buyers for any length of time. To me, this is a BIG reason to select a condo specialist to represent you in the sale of your condo or loft! If you are a buyer and would like to see this beautiful unit, my advice to you, be patient! The price will come down. Call me and I will fight for a price that is realistic and makes sense for both you and the seller. http://www.LuxuryCondosofPortland.com http://www.BradGolik.com
As a real estate agent, it always hurts to be interviewed for a listing and not get it. Today that happened to me on a condo that I know I could have done a great job of marketing on. The reason I did not get the listing over the other agent is that the seller was told by the other agent that because he had a few recent transactions in the sellers building, he knew the building better! It was certainly disappointing to hear that I did not get the listing for this reason. This is not the first time I have heard this from a seller as there are many agents that live in many of the high rise condos throughout Portland. In fact there are several agents living in the building mentioned above and those agents “Know” the building much more than the other agent does. The point I want to make here is that when selling a condo, knowing the building is NOT going to get the condo sold… good marketing will! I often tell sellers to search the internet like buyer’s do and see if those agents that “know” the building, show up anywhere? So if that agent says he knows the Atwater really well, search like a buyer would on that building. Go to Bing and search for “Atwater Place condominiums”, go to Google and search “Atwater Place amenities and HOA fees”. One thing I can tell you for certain is that those agents that say they know the building don’t show up on these searches…anywhere! Who does show up? Well, my websites show up on almost all of these searches. You will also find a couple of other agents that specialize with condos that show up on a regular basis as well.
The difference with my marketing is that my “Search Specific” websites show up and these are websites where I will be featuring YOUR listing and it shows up… and stands out in front of the buyer’s, which I call serious buyers that are searching for the above keywords we mentioned above. In my opinion, If I where a seller, I would much rather hire an agent that knows how to market the building and the condo, not someone that “knows” the building!
As we wind down the year and look back at the condo sales for November, one thing is for sure… it was a pretty good year in the condominium and loft markets! Sales for the month of November, however, were down 25% from the previous month were we had 63 sales in the area we cover, which includes the Pearl District, South Waterfront, Uptown and Downtown. These numbers are based on condo prices above $200,000.
Leading the way in November was the Waterfront Pearl which recorded 5 sales from $362,500 for a 1 bed/1 bath 1080 sq. ft unit to a 2 bed/2 bath unit with 1735 sq. ft that sold for $835,000. We had 2 condos that sold in the +$1,000,000 price range this month. The first was a penthouse condo at McKenzie Lofts which sold for $1,025,000. The second, a beautiful penthouse loft at Marshall Wells Lofts that sold for $1,515,000.
A question I get asked all the time is “Are there any deals out there?” The answer is YES! For the patient buyer, there are always condos that will get put on the market that are under priced. How is this possible you might ask. The condo market is very different the suburban residential markets. Many agents that are usually out in the suburbs don’t always have the best grasp of pricing for downtown condos. A good example of deals in the market can be seen by one of my clients recent purchase. My buyers made on offer on a loft in The Elizabeth, a building that has current litigation issues. With this problem comes the problem of financing, most banks will not finance these building so it becomes a cash only situation. Naturally, this takes many buyers out of the market and some listing agents will drop the price because of this. In my situation, my clients made an offer on a unit at the Elizabeth for $635,000. The appraisal on this unit came in at $690,000! A similar unit in the building on a lower floor is for sale at $678,000, and it only has 1 parking space.. Another was sold last month on a much lower floor. Unit #604 had less desirable views than my buyers Mt Hood view, only had 1 parking space and was virtually the same floor plan and it sold for $745,000. So, for my buyers, they were able to make a purchase at $635,000 on a unit that had 2 parking spaces, fantastic NE views, on a high floor and they paid well below the appraisal and the unit that sold this month! Yes, there are still deals in the market!
One thing to keep in mind is that while something may seem difficult, that is not always the case. There are actually a lot of all cash buyers in the market right now. In fact, 4 out of my last 5 closing have been cash buyers and they were all above $500,000.
If you are in the market to buy a condo or loft in the downtown area, please feel free to give me a call and we can get you started with a tour of the many available buildings such as The Meriwether in South Waterfront, Eliot Tower in downtown Portland or perhaps The Metropolitan or The Henry in The Pearl District. There are many great options and we would be thrilled to get you started in the search for your new home.
Also, if you have heard about the Pearl District’s newest high rise condominium project Park Central, feel free to give us a call to learn more about this fantastic new project!