Sometime ago, in one of my blog post, I wrote about the fact that I will always deliver my honest opinion. Sometimes that does not make everyone happy. Sometime it might be a seller in a building with an overpriced unit in a building in which I might have made comments about. Others include developers such as those who are selling The Cosmopolitan. As we speak, The Cosmopolitan continues to sell units at prices I have said to be very inflated. I have gotten my fair share of nasty emails for some of my comments and that is ok…because, as I stated earlier, you will ALWAYS get my honest opinion and I will not buckle because of what others ( or their lawyers) have to say. I believe the reason the sales continue (about 60% sold) over there are simple, a lack of inventory in the market has made people nervous about being able to buy something so they jump in with both feet. When I work with buyer’s the one thing I will always tell them is to think about the resale of that unit in the future. For those buying at The Cosmopolitan, and are buying there because that is where they want to be and don’t care about the price, or resale. I would say to enjoy your unit and the building. It will be a great place to live! For those that have concerns about resale, especially in a changing market, hear me out! In previous blog post I have made comparisons to the Seattle market because I feel it is the most like ours, except more expensive. Inventory levels in Seattle are even worse than ours currently. For those of you who may have not been onboard with comparisons I have made in the past, let me SHOW you! For comparison sake, I will be comparing to Bellevue Towers. In my opinion, a slightly higher quality building in terms of amenities and views with quality of each being pretty close. Let’s compare: Now, for those of you that know The Cosmopolitan will be a nice building with nice amenities, here is what you get at Bellevue Towers. To me, these comparisons are pretty alarming. If the market turns ever so slightly in a downward trend, it will not be a good situation for owners. The reality of the Bellevue Towers pricing is that it is market pricing… not hype adjusted! And if you need more convincing on the higher end. Compare the Penthouse at The Cosmopolitan. 3236 Squre Feet , 28th Floor priced at $3,883,000. Now compare it to a PH on the 41st Floor of Bellevue Towers…click here to see what you get! http://www.realtor.com/realestateandhomes-detail/500-106th-Ave-NE-Unit-4105_Bellevue_WA_98004_M15387-66117?row=4 Wow! So let’s review. The penthouse in Portland is smaller (167 sq. ft.) has nice views but not the spectacular views that the Seattle penthouse has and…. it is priced $533,000 MORE! This is why I am concerned! Brad Golik of Pearl District Properties is a condominium specialist in the Pearl District, South Waterfront and Downtown. If you own a Pearl District condominium and would like to know the value of your condo in todays market, get a FREE market valuation at http://www.PearlDistrictCondominiums.com
If you have been reading my blog for any length of time, you have heard me discuss the pricing of The Cosmopolitan. Most of what I have said in the past blog post is that I have just felt the the pricing is way too high. Today what I want to talk about is the effects of this pricing.
Just short of a year ago, one of the iconic Pearl District brownstone style town homes along 11th sold for $1,390,000 or $515 a square foot. Now keep in mind these town homes don’t come on the market that often so the buyer of that unit did pay a premium to get it. Now fast forward almost a year later. The next door neighbor of this unit just put their home on the market. The square footage of the unit was an identical 2698 feet. These neighbors put their home on the market for $1,899,000 or $703 a square foot. Not only did they put their home on the market, they got 2 offers within the first 2 days it was on the market! A year ago it would have been thought that $703 a foot was insane for these units. What has changed things that makes these units jump 36% in under a year? I would call it “The Cosmopolitan Effect!” What do I mean by this? When the Cosmopolitan came to market, it brought unheard of prices for this area. Now with $700 a square foot being almost a starter unit at the Cosmo, and with prices reaching all the way up to $1,200 a square foot, $703 a sq. ft. for one of the Pearl Districts most recognized set of homes almost makes it seem under-priced! Why not pay $703 a sq. ft.? It’s only 58% of what they are trying to get at the Cosmopolitan!
Remember that buyer that “overpaid” or paid a premium of $1,390,000 for their town home? Well thanks to the developers at Hoyt Street Properties, they are laughing all the way to the bank with their 36% return!
Part of the high prices we are seeing is no doubt coming partially from our very low inventory. The other part, no question, is coming from the effects of the Cosmopolitan pricing, or as I like to call it, “The Cosmopolitan Effect!”
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
The Westerly penthouse #1402 went on the market today priced at $2,950,000. This penthouse condo, that I believe is one of the finest in the city, is one of two penthouses at the Westerly. #1402 is the best with beautiful south, southeast and full on eastern views. So, is this penthouse condo worth $2,950,000? Probably not, after all…who pays list in this market? With 3662 square feet and simply amazing views, I think that true value is about $200,000 off. If we compare this penthouse to others that are currently on the market, hands down for me…this is the one! Would I pay $2,950,000 for it? Again, let’s compare: A recent sale of a former CEO’s penthouse was priced at $2,850,000 and sold for $2,600,00 ( a price that i think should have been lower). There are several penthouse units available at Eliot Tower priced at $2,400,000 and $2,375,000. While very nice units, and decent views, these penthouses don’t have outdoor living spaces. Unit #1402 at The Westerly has 2 huge decks that will be ideal for entertaining! Benson Tower has unit #2701 on the market at $2,450,000. With only 2920 square feet it is, in my opinion, way overpriced! Over at Encore, two penthouse condos remain on the market priced at $2,020,500 and $1,780,000. How do they compare? Easy answer here…they don’t! That brings us to the penthouse at the Envoy. It was recently withdrawn from the market after it’s most recent price reduction down to $2,995,000. This penthouse has languished on the market for two years now priced between $3,750,000 to $3,450,000 until it’s recent reduction to $2,995,000. Part of the problem with this beautiful penthouse is that it was way overpriced from the get go! What does it have to offer over the Westerly penthouse? Well it does have a massive deck. But the views do not compare and after all, with over 1200 feet of deck space, the Westerly penthouse offers more than enough outdoor living area! The current owner of #1402 bought this unit just about two years ago for $2,222,000 and has added some fantastic amenities to the unit.( $738,000 worth?… No, but that is why you can hire me to negotiate a deal for you!) With that said, the owners of #1401 paid $2,400,000 for a little more square footage but an inferior view. Rumor has it that the current owners have spent a small fortune upgrading the unit so this certainly has not hurt the neighborhood values!
If you are in the market for a Portland penthouse condominium, give me a call. Unit #1402 at The Westerly is one of my favorites and I would be happy to show it to you. Again, I want to take this time to say that if you plan on buying a luxury condominium, it is important that you work with a condominium specialist! Let me negotiate on YOUR behalf.
See Photos Here: http://www.thewesterlycondominium.com