The Portland Condo Blog

Posts tagged “The Cosmopolitan

The $7,000,000 Portland Penthouse!

Cosmopolitan2715

A couple of days ago, Portland’s only $7,000,000 penthouse condo came on the market (actually $6,995,000)  This penthouse is on the 27th floor of the 28 story Cosmopolitan. The current owners bought 2 units pre-construction and designed it into one stunning unit that has almost 360 degree views.

What I like about this  beautiful Portland penthouse: I like the different feel of this condo from every other luxury condo on the market. While very white and somewhat sterile at first glance, I could see beautiful paintings and colorful glass artwork fill this unit  with  additional color.  The other thing I really like about this unit is the floor to ceiling windows that are everywhere around you…a very stark difference to what you will find in the new penthouse units at the new Vista!

What I don’t like about this unit: There is really not much to not like about this condo. If there was one thing, I would say the fact that it is not a top floor penthouse hurts it just a little. Penthouse buyer’s…especially those buying the most expensive in town tend to like to be on the top!

So, what about the $6,995,000 price tag? This puts it at $1626 a sq. ft. Obviously a very high number for Portland. Let’s compare it though to other penthouse units in Portland. At $4,700,000 the penthouse at the Metropolitan comes in at $1344 a sq. ft. maybe a little high only in that the interior is very traditional and buyer specific. Now let’s compare to those over at the Vista. No comparison! At $1222 a sq. ft., the Vista penthouses do not come close to what you are getting at The Cosmopolitan. First of all, as you have heard me compare before, the windows at Cosmo are much more desirable (floor to ceiling all around) compared to the limited windows at Vista. Also, as I have mentioned before, the Vista penthouses are very linear and views are more limited to the east and west. #2715 at Cosmopolitan is very open in it’s floor plan and especially sets itself apart in the tremendous amount of natural light. Combine that with the 3 mountain views and far superior city light views at night. In addition, you are  6 floors higher! Now will this get it’s lofty $1626? This is hard to say. While this unit is totally custom with the finest in finishes, nobody wants to be the first to pay a new record price. In the end, I could see the final sales price be somewhere between $6,250,000 and $6,500,000 which puts it in the $1453 to $1511. At these numbers, I would consider it to be a value if you are comparing it  to Vista at $1222…which I still believe to be high for what you are getting. Again, those units have been sitting for a long time now, unsold at those prices.

Will it sell for $6,995,000? It very possibly could as there are those out there that don’t necessarily want the best value…they want the best!

See more of this penthouse at : http://www.PortlandPenthouse.com and click on Feature Penthouse 2.

If you would like to view this condo, give me a call at 503-896-8856. There are a few requirements to view so call me to discuss

 


Why are the Vista penthouses not selling?

This is question I have gotten several times in just the last week. In fact, I get questions about Vista frequently.

Three words…Priced too high!

When The Cosmopolitan went on the market, it was a very different market. Buyers were paying a premium, and they knew it! They were hoping at the time that the hot market would continue and that the values would catch up to the the prices they paid. They were lucky because that is what happened. Today, not the case! The condo market has slowed a ton. Last month, of all listings in the Pearl, over 50% of those listings had to reduce their price. Days on market for higher end condos is now over 100 days!  For many penthouses that have been on the market, we have seen multiple price reductions…not just one!

So, when I say that the Vista penthouse units are priced too high, I would like to support my comments. When The Cosmopolitan came on the market, I was very critical about the new building. The fact was that while I did like many things about the new building, I just had issues with the pricing.  With the Vista, I believe that some of the lower priced units are in line with the current market. The penthouse units are a whole different story.  For one, they are not like the cosmo penthouse units and do not deserve similar pricing. They are very linear and do not offer the floor to ceiling windows and views that you find in The Cosmopolitan. This is a big one because this is something buyers really like. In addition, look at the floor plans below. There is a stark difference between the amount of windows in The Cosmo compared to that of the Vista. In my opinion, this is why they are not selling! Also, the developers are asking 27th and 28th floor prices (The Cosmopolitan) for 19, 20 and 21st story units. I must say, I got a little giggle each time I saw the adds for Vista that asked “Ever wonder what the views are like from the Penthouse? My immediate thought was … ya, like the views from the 21st Floor at the Cosmopolitan that were priced at $875 a square foot…not over $1250 a foot! And to be honest, I do not believe that the Vista penthouse views are as good as the 19th – 21st floors at The Cosmopolitan.

The below floor plan is from the Penthouse #2815 at The Cosmopolitan. It offers panoramic views to the east with Mt. Hood and to the south with stunning city views!

Cosmo2815

Now lets take a look at the Vista penthouse on the South side #2108 currently priced at $3,216,000 . It is very clear when you look at them side by side the difference in the amount of windows/walls.  Which is going to offer the better and more panoramic views…hands down it is Cosmopolitan #2815! In addition, #2815 is seven stories higher which adds tremendous value ( and if you remember, Hoyt put a premium of about $88,000 per floor above the 20th floor in the Cosmo).

Vista2815Wflorplan

Now lets take a look to the East. In most buildings, having an east view of Mt. Hood gets a premium. But, when your views are out of windows like shown below from Vista #2108…is it worth it?

2815EasternViews

Options! If you are in the market for a Portland penthouse, you have options. Unlike when the Cosmopolitan went on the market, a buyer has many more options then at that time. Back then, inventory was very low. In addition,  condos are staying on the market longer and we are seeing many price reductions. If you are thinking about a penthouse purchase in Portland, here are a few good options:

1st: Pinnacle #1403  $2,488,000 –  While you will be slightly lower being on the 14th floor, I believe your views are really much better. With #1403, you get true floor to ceiling windows with exceptional views to the south and the nighttime city lights. This unit was recently remodeled so you are getting everything brand new just as if you were buying at Vista! Like the Vista penthouses, this one offers 2600 square feet.

2nd: This is a penthouse that I like a lot… The Elizabeth #1502 $2,950,000  Another unit with many floor to ceiling windows looking to the West Hills and the city lights to the south. This 2-level penthouse has tons of character. With 3443 square feet, it is much larger than all six of the Vista penthouses and compares more closely to #2815 at The Cosmo which has 3131 square feet. This one has been on the market for awhile now after several price reductions… and you might be able to pick it up for an even lower price.

Elizabeth1502

3rd: While this Portland penthouse is not in The Pearl District, it does deserve mention… #1301 at The Strand $2,395,000 – This 13th floor penthouse offers spectacular river, marina and city light views! Offering 3220 square feet with walls of windows, this unit offers some of the best daytime and nighttime views! If you can put up with some “white noise” from the rooftop deck, it offers stunning views…see below!

StrandSplit

In closing, I just want to say I am a fan of any new condo building in the Pearl District or any other area of downtown Portland. With any luck we will get other developers looking at our great city with plans to build something that is uniquely Portland. As for Vista, sales have been much slower this time around. As I mentioned, there are some reasonable values at Vista…just not at the penthouse level! I do not believe that the designs, layouts and views are worthy of the $2,821,000 to $3,335,000 pricing.

Brad Golik is a condo specialist with Christie’s International Real Estate and LuxuryCondosofPortland.com You can reach him at 503-896-8856 or at pdxluxcondos@gmail.com

ccslogo_sm LuxLogoWhtW_Blk


Condo of the week…The Cosmopolitan!

This beautiful 28 story tower is the tallest condominium building in Portland’s Pearl District. To see available units in this building, call Brad Golik at 503-896-8856 or contact him at pdxluxcondos@gmail.com.


Luxury…at a value!

FPKOIN1

Yesterday I listed a condo at KOIN Towers Fountain Plaza. With the “New and Shiny” buildings we have recently seen, like The Cosmopolitan, it’s nice to be able to go back in time a bit and revisit buildings like KOIN Tower. At the end of last year I sold a unit at KOIN/Fountain Plaza on the 27th floor for $1,750,000. It was a large unit with spectacular views. My new listing, just one floor below, and again, it provides some of the best views in the city! This northwest corner unit offers sensational sunset views to the west, amazing Mt. St. Helens and Mt Adams views to the north and Willamette River views to the northwest. This 1950 square foot unit has wonderful open spaces…and those amazing views! The best part of all, at $929,000, you are getting this for under $500 a square foot! Now remember, 26th floor views at The Cosmopolitan went for over $1,100 a square foot! OK, now the KOIN Tower is NOT The Cosmopolitan, but it represents luxury at a good value!

I believe we are at the beginning of a major transition in the KOIN building. Many of the original owners are gone and a newer, more thrifty demographic is buying in. There are not many condo buildings being built right now (The Vista) and I can see moving forward, many buyers recognizing the potential and value in a building like KOIN Tower/Fountain Plaza.

While current owners at the KOIN have not really participated in the run up of prices the last 10 years, buyers today will find a high quality building with unmatched views and will benefit tremendously moving forward. The area around KOIN Tower is also improving with several hotels with new restaurants, and a high- end grocery store. I cannot really think of a better time to buy at KOIN/Fountain Plaza than right now. To set up a time to see unit #2604, give me a call and be ready to be wowed by some awesome views! If you would like to tour this fantastic unit, give me a call today!

Video at:     Aerial KOIN Tower

Brad Golik is a condo specialist at LuxuryCondosofPortland.com and Total Property Resources, LLC. You can contact Brad at 503-896-8856 or at pdxluxcondos@gmail.com

Big5_PortalndCondominiums

 

 


Vista Condominiums

Vista North PearlVista_Portland

I have recently received a few emails asking why I have not written anything about the new Vista North Pearl. The answer, I guess, is that nothing seems to be too exciting about the project. And, not that it matters, but I have not had to deal with nasty emails from the sales manager at Hoyt Properties, who did not like my opinions on the Cosmopolitan!

So, what are the differences in the two projects? Well let’s start with the Cosmopolitan.   Contrary to what the sales manager said to me “I thought you hated this building!”, I NEVER said I did not like the project. What I DID say is that I did not like the pricing. (Great for the developer…not so great for the buyers). As it turned out, because of the low inventory levels at the time, they were able to capture those high prices. Again, the timing in the market was “perfect” for the developers. How about this time around with the Vista? Well, the market has changed and Hoyt will not have such an easy time selling units at excessive prices. As of the middle of last month, Vista had 95 units available (out of 153) or 38% of the units sold. Keep in mind, the Cosmopolitan was being marketed as the nicest condo building in town. Vista, from what everything I have heard, will be a notch below that of the Cosmopolitan in terms of finishes and the building as a whole.

Let’s start with the most popular corner, the SE corner, which was the first to sell out in the Cosmo. For comparison sake I will use units on the 14th floor. The Cosmo pricing for the SE corner on the 14th floor was $649 a square foot. The pricing for the Vista is 780. Now, a look at the NE corner 15th Floor (1517) in the Cosmopolitan was sold at $620 a square foot. The 15th floor unit at Vista (1506) is being offered at $750 a square foot. While the market eventually did catch up to the excessive prices at the Cosmopolitan, I don’t believe that the Vista prices should be selling at a premium like the Cosmopolitan. Units on the west side are pretty equally priced to that of the Cosmo.

Finally, let’s look at the penthouse units. At the Cosmopolitan, the range was from $950 a square foot to $1200 for the top floor 28th floor penthouses. For Vista, the range is $1052 to $1247. Let me repeat this one fact, the Cosmopolitan penthouses were being marketed as the best in the city in Portland’s most luxurious building! In addition, the top floor at the Vista it is only 21 stories. What is interesting here, if my memory serves me right, is that the units at the Cosmopolitan (floors 20 –28) were given a minimum premium of $88,000 per floor! At the time of this writing, I don’t believe that one of the six penthouse units at the Vista is pending. I cannot say that I am surprised. I would never pay anything close to what the penthouse units sold for at The Cosmopolitan. The Cosmopolitan is a superior, more elegant building (pitched as the nicest in the city) and there is no way prices at the Vista should compare! Again, this is just my opinion… or maybe not just my opinion. Ask any of the residents at the Cosmopolitan above the 21st floor and see what they say?

I am sure I will continue to get the cold shoulder from the developers’ sales manager…but am I wrong? I don’t believe so. Let me be clear. This is not personal but simply my professional opinion. As someone who understands condo pricing, I write about what I believe to be true and it might not always match the opinions of others, and that is OK!

There are things I like about the Vista. If you read my blog about the Cosmopolitan, one of the negatives noted was that many of the units had a very high ratio of hall space to usable space (many units were 12-14%) This is not the case with the Vista. Almost all the units are in the 4-8% range with the exception of the D4 Plan, the 08 stack) as it came in about 13%. In this case, you have a unit that is 1435 square feet and the unit has about 194 square feet of hallway space.

The Vista floor plans also provide MUCH more space to walk around the end of your bed in the master bedroom, a problem in many of the units at The Cosmopolitan. Another highlight of the Vista is its large deck spaces.

All in, I believe the Vista will be a nice building. As for the prices? The market will, in the end, determine the final prices. As of now, the lower units seem a little high and the penthouse units, I believe, are way too high.

If you are looking to buy at the Vista or would also like to look at other buildings, I am a condominium specialist and would be happy to show you available units. If you are thinking about selling in the near future, I encourage you to go to http://www.LuxuryCondosofPortland.com/marketing and learn a little about our approach to selling your condo!

Brad Golik is a condominium specialist with LuxuryCondosofPortland.com and Pearl District Properties. He can be reached at 503-896-8856 or at pdxluxcondos@gmail.com.

See aerial Drone footage of the Vista location within the Pearl District at http://www.VistaPortland.com


Head scratcher… say what?

BensonPenthouse

When writing a blog one must be knowledgeable about their subject material. The blogger must also put themselves out there when offering opinions and realize that they will not always be right. I often try to share my opinions on pricing and will be the first to admit when I am wrong. This would be the case regarding a comment I made in a post a few weeks ago. Just to clarify things, I was wrong on my guarantee, not my opinion of the price! At that time a new penthouse came on the market for $3,250,000. My comment was that this unit was way overpriced and I “guaranteed” we would see some price adjustments. Well we did not! And in fact, the unit is now pending.

After I made this comment, I checked with some friends in the business as to what they thought the pricing should be. Almost every one of them was thinking the same thing…or very close to it. The first comment was that it was Benson Tower, which is not really comparable to Portland’s nicer buildings such as The Cosmopolitan, The Metropolitan or The Casey, to name a few. Not one of those agents believed that it was worth more than $1000 per square foot. (about $2,600,00) let alone the $1257 per square foot listing price. For one, the neighborhood does not justify the pricing. It is not The Pearl District which always gets a bit of a premium. Second, that area of downtown has deteriorated the last few years. While this unit does feature fantastic outdoor space, the living room area is very small. One of the other issues that I also feel is important is the quality of the other units in a building. No other $1,000,000 + units have sold in the Benson Tower. Last week a 26th floor unit came on the market at $1,400,000, possibly trying to ride the high priced coattails of the penthouse. I believe this unit should be priced well below two of the units for sale at The Henry that are larger and priced below $1,300,000… probably closer to $1,000,000 at best. The point here is that it is easier to get a higher price when you have other units that support the upper end of the market. It’s tough when you don’t. The other issue, the “elephant in the room” is the homeless situation. No building has been affected more than Benson by the bottle drop a block away (maybe Elliot).  In my opinion, while most condos got decent appreciation over the last 4-5 years, because of the decrease in safety in this general area, owners at Benson won’t see that appreciation that others have seen.

Overpricing a unit can have negative effects on it’s sale. In the case of the penthouse priced at $3,250,000, I believe that the buyer may not have been educated enough on the Portland penthouse and luxury condo market. It is possible that the agent does not understand this area of the market as well. While we don’t know the offer was on this unit, what we do know is that if the buyer paid anything over $1000 per square foot…he or she paid way too much! There is absolutely no way any unit at Benson Tower should have pricing anywhere near some of the premier buildings in town. Remember, this is a building where the finishes are far below those of other buildings and you have to haul your garbage down the elevator. Not an ideal situation for someone that is spending $3,000,000! There are many top floor penthouses in town that deserve a premium price to others…this is not one of them!

This posting helps emphasize the importance of working with a specialist. You may have heard me say this before but it is very important. If you are buying farmland in Dundee or a waterfront home in Lake Oswego, it is important to deal with an agent who understands that market. While every agent will probably tell you they understand every market, the truth is, unless you are in it every day, it is difficult to do so. I believe that the days of a real estate agent trying to be all things to all people in all areas are gone. An agent who takes the time to learn a specific area of the market will be far more valuable to a buyer or seller and the example used above helps prove that fact.

Brad Golik is a condominium specialist with Pearl District Properties. Brad works with luxury condo buyers and sellers in Downtown Portland, South Waterfront and The Pearl District. If you are looking to buy or sell…work with a pro!

pdxluxcondos@gmail.com     503-896-8856     http://www.LuxuryCondososofPortland.com


Condo of the week…The Cosmopolitan!

The tallest condo building in the Pearl! Welcome to The Cosmopolitan. Breathtaking views are the highlight of the Pearl Districts newest condominium in the North end of the Pearl Distict.

 

Brad Golik is a condominium specialist with Pearl District Properties. Find him at http://www.LuxuryCondosofPortland.com and pdxluxcondos@gmail.com  – 503-896-8856


And then this happens!

13Floors

Just yesterday I was having a conversation with two other agents who do a fair number of condo sales. The topic of conversation was the market and the consensus was that it has definitely seen a slowdown in pricing. With the increase in inventory, we are noticing a slowdown in terms of appreciating prices. In some cases, the pricing could even be slightly less than what we have been experiencing for so long.

And then this happens! Just this morning, on the MLS, a penthouse unit at The Casey went from pending to sold. The unit never hit the market. The sold price, brace yourself, $4.5 million cash! Unit #1503, is a 3667 square foot condo that faces the West Hills. Consider these numbers for a moment. At $4.5 million, this is $1227 per square foot! Let’s compare this to the recent penthouse sales at The Cosmopolitan. Now keep in mind, for comparison sake I will use the penthouse units from the 27th and 28th floors at the Cosmo. The combined unit on the 27th floor sold for $5,441,294, or $1216 a square foot. The two top floor penthouses on the 28th floor sold for $1215 and $1225 a square foot. These units are 13 stories higher and have superior views of the Mt. Hood, Mt St. Helens, the city and the Willamette River.

I will say, The Casey has always been one of my favorite buildings… but really? Is this unit worth nearly a million more than a 28th floor, true penthouse that is 13 floors higher? While the Casey unit does have around 400 square feet more space, (which does not really mean that much once you get over 3,000 square feet) the potential for having views blocked are much higher for a unit that is only 15 stories compared to a unit that is 28 stories. After all, one of the reasons people paid such a premium for these Cosmo units is the fact that the views will be protected much more by being that high up.

What is even more interesting is when we compare the sale of this unit to one that just recently sold at the Casey, unit #1602. This true penthouse unit one floor above has similar views. It has 3273 square feet and sold for $2.75million or $840 a square foot….WOW!

Contact Brad Golik at 503-896-8856 or at pdxluxcondos@gmail.com

Visit us at www.LuxuryCondosofPortland.com

horizLogo ccslogo_sm

See Cosmopolitan views here: http://www.luxurycondosofportland.com/thecosmopolitanportland


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


In all fairness…

nightmareatthecosmofollow

In all fairness…

 I recently wrote in my blog about some issues at The Cosmopolitan in Portland. My comments were not warmly met by the folks at Hoyt Street Properties. In all fairness, I was only stating things that I have heard about going on at The Cosmo.

I do not want to come across as being totally negative on the project so in an act of diplomacy, I thought I would try an experiment. I do not want to just publish negative comments on this project so I am asking owners for some support. I would love to hear from new owners at The Cosmopolitan other than my current sources. I would love for you to send me an email ( pdxluxcondos@gmail.com) and share your experience with the new building… good or bad! Please let me know your thoughts. If it has been a great experience so far, let me know. If it has not been a great experience, please let me know why.

Again, in an attempt to be fair in discussing condo issues in the city, I would love to get your feedback and in turn, I would love to share your responses.


Nightmare at The Cosmopolitan!

nightmareatthecosmo

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.


Block 20… The next condo tower in the Pearl.

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!

BGLuxMktLdr

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   –  pdxluxcondos@gmail.com

 


Good photos, good photos, good photos…

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!

WesterlyPenthouse1 WesterlyPenthouse2

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!”


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!

Atwater_Place_Penthouse

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!

625

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

 

 

 


Feedback on The Cosmopolitan!

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!

Cosmopolitan_Decks

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!


Who says it’s a “Seller’s” market?

Elizabeth_LoftWe have all heard recently how crazy the market is lately. We have heard that it is a Seller’s market and that there are no deals to be had. Wrong!

Yesterday, my client closed on the purchase of a beautiful new Penthouse condo at The Elizabeth. Originally priced at $3,299,000, my buyer closed on this unit at $2,200,000…FULLY FURNISHED, and the furnishings were stunning! After 10 months on the market, this penthouse was most recently priced at $2,995,000. I have been in this business a long time now and I must say, this has to be one of the best purchases I have seen… and this in a “Seller’s Market”!

One reason that I want to bring up this purchase is to talk about the importance of correct pricing when you put your home on the market. It is great to try and push the price a little in this market…but there is a very fine line! There are many penthouse units in the market that right now  are becoming stale because they were priced way over the market price. The Penthouse at The Elizabeth was one of them and you may recall my blog posting when that unit originally came on the market. If you did not read about it “Luxury Condos and Portland Penthouses” in November when I wrote about it…here is what I said:

“Topping the list is the largest of the penthouse units at the Cosmopolitan priced at $3,883,000. If I had to guess, this will be the first one to sell of the three penthouses that are in the $3,000,000 price range. The other two, the penthouse at the Casey priced at $3,499,000 and the penthouse at the Elizabeth priced at $3,298,900 are very overpriced in my opinion. ( so is the one at the Cosmopolitan…but it will eventually sell very close to its asking price). The other two are priced in the $1000 a square foot vicinity. This is way too high, in my opinion!”

Now I am not patting myself on the back for being right about the pricing… (because I was VERY wrong saying the Cosmo would have difficulties selling) The reason I point this out is to let seller’s know that when you overprice a unit, it will cost you more in the end because the unit becomes stale and lowball offers will start to come…much like our offer on The Elizabeth penthouse after it had been on the market for 10 months! If you are a buyer that is looking for a luxury condo or penthouse and would like to hear our negotiation strategy for this purchase, give me a call as I would love to assist you in finding a great unit! If you are an owner that is thinking about selling, I would love to sit down with you and share my marketing program with you. I truly believe that I have the best marketing program for condos in the + $500,000 market!

If you are a buyer in the luxury end of the market and possibly looking for a penthouse, please give me a call because I believe with the sale price of $2,200,000 at The Elizabeth, ( the most recent comp) the other units in the market that are priced at $2,000,000 or higher will be getting a pretty big dose of reality and need to adjust pricing or at least be willing to accept a realistic offer!

Brad Golik is a condominium specialist with LuxuryCondosofPortland.com and Pearl District Properties. He is also a founding member of Condo10.

If you are in the market to buy or sell a Portland condominium, give Brad a call today! 503-896-8856 or pdxluxcondos@gmail.com  http://www.LuxuryCondosofPortland.com

 


Getting your price when you sell!

As we start the new year, one thing remains the same…low inventory! As new listings come on the market, those searching for a new place to live will want to react fairly quickly as there are more buyers than there are condos for sale! If you are looking to sell, not a bad time to push price a little! Last night I went to an open house at The Waterfront Pearl. The listing was a beautiful 8th floor unit with sweeping views of the Willamette River. Stand at the windows in your living room and you feel like you are on top of the river! This unit, priced at $989,000, featured 1729 sf. As I viewed the condo, my first thought was that I wish I had a client with me as I felt it might be under priced at only $572 a sq. ft. While this building is not The Cosmopolitan or The Metropolitan and it will not command the same prices, I do believe this unit could get closer to the $636 per sq, ft. range which puts It closer to the $1,100,000 price tag. Compare this to 2 units left at Cosmopolitan. One is 1643 sq. ft. and priced at $1,559,000 ($953 sq. ft.). The other is 1363 sq. ft and priced at $1,197,000( $878 sq. ft.). Both of these units are on the 25th floor at the Cosmopolitan. While the Waterfront Pearl unit is not on the 25th floor and does not have 25th floor type views, It does have gorgeous river views and people rarely get tired of looking at the river traffic below your windows. To me it is kind of a wash in terms of views. So then, you have to ask yourself, are 25th floor views worth an extra $300 to $371 a sq. ft.? If you were to see the river views from the Waterfront Pearl unit, I believe your answer would be “No way!” . Those views were pretty stunning!

WPViews

If you are looking to sell your condominium in the near future, be aware of current inventory levels…this is so important. While comps will give you a good starting point, placing your condo in a side by side comparison with every condo in the price range is more important! Right now, for example, there are only 9 condos in the $900,000 to $1,100,000 price range and not 1 of those units competes well with the new Waterfront Pearl listing mentioned above! Does this strategy of pushing the price work? You bet it does! You may have to also sell the appraiser on your pricing, but a good agent should be able to justify his pricing. Another example of this strategy is the Cosmopolitan! The prices they attained happened for 1 reason and 1 reason only… no to low inventory!

Brad Golik is a condominium specialist with Pearl District Properties. You can call him for a free market analysis at 503-896-8856. Email: pdxluxcondos@gmail.com

** If you would like to view this new listing at Waterfront Pearl, give Brad a call (but you better hurry!)

http://www.LuxuryCondosofPortland.com

http://www.Condo10.com

 

 

 

 


Elizabeth Penthouse for Sale!

Yesterday I went and toured a number of  new listings in the Pearl. One of them was one that I had mentioned in a previous blog post, a penthouse listing in The Elizabeth. When I wrote about it the first day it came on the market, my comments were that it was way overpriced. This may have been a little premature now that I have seen it in person! At the time, I was basing it on the fact that it is a NW corner, not a SE or NE corner. The deck while reasonably spacious, looks into, not over 937. It is in The Elizabeth, not The Metropolitan, The Casey or the new Cosmopolitan. And finally, when I looked at the pictures of the unit, which were/are terrible, they did nothing to suggest that this was a $3, 299,000 listing! More on the photos later.

After viewing the unit I am changing my price opinion, if anybody cares. On a scale of priced rightfairly overpriced to way overpriced, I am adjusting my opinion to fairly overpriced from way overpriced.  Why the change? When you walk into this unit it is stunning! You get something that the unprofessional photos don’t give you, a little bit of the WOW factor. This is a big reason you may have heard me talk over and over about great pictures. The agents current photos do absolutely nothing in terms of me saying “Wow, I have to see this place!”

Elizabeth Penthouse

Now the reality of the pricing. While this unit is stunning when you walk in, part of the wow factor comes from some of the owners furnishings and their sense of style, which is very nice! But, once you take away all of the beautiful furnishings, it would be hard for anyone to walk in and envision a $3,000,000 price tag. (which is $300,000 less then asking) At $3,000,000, you are looking at $909 a square foot. $900 a square foot puts you on about the 24th floor of the new Cosmopolitan. The 14th floor at the Cosmopolitan comes in around $650 a square foot. Now obviously, you would not price the Elizabeth penthouse in the $650 a square foot range because it is a penthouse, so there is a premium to factor in. Now, rumor has it that the seller’s of the The Elizabeth penthouse are selling because they bought two units to combine on the 23rd floor of the Cosmopolitan, which sells for about $850 a square foot! So, they were willing to pay more to be on a higher floor? Why do you pay more to be on a higher floor? The two biggest reasons are that you get better views and the second is that the chances of your views getting blocked by a new building are much lower. The chances of getting your views blocked at The Elizabeth at some point in time are very real because it is only on the 14th floor. Does it deserve a price per square foot of $1,000? No way! Does it deserve $850? If I am the buyers agent, I would be pushing for something in the $800 to $850 range in today’s market.

If I were the listing agent and trying to maximize my clients value, I would be giving them the very best marketing available so that they could try to achieve  a premium price over the true market value! This starts with GREAT PHOTOS and great marketing that give the listing the wow factor before a buyer ever walks in the door. Photos that make the buyer say “Wow, I have to see this place!”

If you would like to view this penthouse unit or any other unit, call Brad Golik today to set up a tour. Brad is a condo specialist doing business in the Pearl District, Downtown and South Waterfront. If you are thinking about listing your condominium, call Brad and see why he believes that great marketing can play a big roll in the price you get when you sell your Portland condominium!


Believe me when I say it is priced high!

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: Bellevue Towers vs The Cosmopolitan Cosmopolitan 28th Floor Top Floor at Cosmopolitan 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. Top Floor Penthouse 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


Prices are rising!

Pearl District prices are rising fast! To get the TRUE value of your condo instantly for FREE, go to:

http://PearlDistrictPrices.com

Portland Condominiums


Inventory rules…and an update at The Cosmopolitan!

Inventory has been very tight recently but the last two weeks we have seen an upsurge in new listings, hopefully a sign of what is to come. Traditionally, the spring is when we start to see an increase in listings. Never has this been more needed than in this current market. In our last blog post we mentioned that the sales, while slow, at The Cosmopolitan have benefited from the lack of inventory. While those units will not close until the summer of 2016, people fear they will not be able to purchase what they want and feel the need to make an offer at The Cosmopolitan. Right or wrong, this is what I feel is happening. Buyers feel that while The Cosmopolitan may be overpriced, as we have stated many times, they feel like there may not be units come on the market between now and the summer of 2016. For current seller’s, this is a huge advantage in capturing a premium in the sale of their units. Recently I showed a unit before it was even on the market. This unit was on the 15th floor of the Metropolitan and priced at $1,200,000. The seller got an offer before it went on the market. Because of the lack of inventory, and the very high prices at the Cosmopolitan, the seller was able to get $637 a sq. ft. This was a large unit at 1881 sq. ft. To get this size of a unit at The Cosmopolitan you would need to spend $1,600,000 for 1773 sq. ft. I think the buyers of that unit got a very good deal. As for an update of sales at the Cosmopolitan, they are currently at 59 sales or 39% of the building sold. One of the new sales was finally above the 21st floor. This is only the 2nd unit that has sold above the 21st floor to date which is not surprising when you consider the prices ( these 2 units sold for $875 and $1,000 a sq. ft) For comparison, I will be listing a unit in another high end building, above the 21st floor for about 595 a sq. ft. Brad Golik Condo Specialist One thing to keep an eye on at The Cosmopolitan is to see if they get any offers on the penthouses or junior penthouses. Many times, buyers of penthouse units may buy a unit even when they know it may be overpriced. Sometimes it may be that these buyers have enough money that they can overlook the price to get what they want. This has not happened yet at The Cosmopolitan. If the general public see’s that someone is buying those units and paying $1000 to $1200 a sq. ft, it somehow makes them feel justified to pay $800 to $1000 a sq. ft. To date, the project has had several of these units go pending and then go back on the market. Perhaps it is the realization that they were about to pay $400 to $600 a sq. ft. more than the average of all of the Million dollar condos that sold in 2014 ( $579) Again, these were the best of the best in Portland! If and when the Cosmopolitan does sell one or two of the of the eight junior penthouse and penthouse units it may add to peoples confidence to put down an offer on the units on the 20th to 25th floors. Right or wrong!


Sales at the Cosmopolitan…Slow, but being helped by the market.

When I first started writing in a blog I searched out some experts to see what they said in terms of building a good base of readers. Here is what they said: “To grow a blog and add readership the most important thing you can do is be truthful and honest in your writing. When you do this you will gain a following of people that will trust what you have to say and come to you for solid advice.”

With this in mind, I have always tried to be honest in my comments. This does not always please everyone. But the truth is that you will NEVER please everyone. Recently I got a letter from the sales manager of the Cosmopolitan, a new high rise condo project in the Pearl District. This was a pretty nasty email that voiced her displeasure with my comments on the Cosmopolitan project. In her email she stated that a couple of my comments were rude. Let me address this. First, I have never made a negative comment on the project itself other than the pricing of the units. I happen to love the project and feel it is needed.

What she may be alluding to is the “fact” that I was not happy that the developer was requiring buyers to be pre-approved through a specific lender at Wells Fargo. I mentioned that ( and they fail to mention) this lender happened to be the husband of this sales manager. I don’t believe this was rude on my part, only trying to disclose to the general public something that I believe they should have disclosed upfront.
CosmopolitanCondominiums Now back to business! Here is the latest update on the Cosmopolitan ( and for what it is worth, I have had many request for these continued updates). Currently the building is 33% sold. Not much of a change from my last post. In my last post I mentioned that there were 46 units sold, today they are at 49 units sold. In other words, only 16 units have sold since after the grand opening. As mentioned before, there is still only 1 unit above the 21st floor that sold for a whopping 900 a sq. ft. I was told that 2 of the junior penthouse units went pending…those sales have not happened and all of the junior penthouse and penthouse units are still available ( for those of you inclined to pay an astronomical $969 to $1,641 a square foot price.)

As I mentioned before, with most of the low hanging fruit taken…ie. Units that were priced closest to reality to the market, sales I believe, will become harder to come by for the developer. With a current absorbtion rate that could slow down even more, I believe it could take the developer 18 months to 2 years to sell out this project. With that said, I don’t believe the developer can afford to do this and in my opinion, as stated before, I believe they will be forced to drop the prices on this beautiful new high rise. Part of the reason that they have had the sales they have had at this point I believe is because of the low inventory in our market. Some buyers do not want to wait for new resale units to come to market. Keep in mind, the Cosmopolitan will not be completed until mid 2016 so the inventory levels we are seeing now can change dramatically over that period of time.

And while the high prices at the Cosmopolitan may help sellers get a higher price when selling their condo in this current market, buyers will still be better off buying resale and updating after their purchase. With sellers seeing this effect on pricing, it might push them to put their condo on the market sooner than later. If this happens, it could help with the low inventory situation we are now seeing. For buyer’s, the excitement of living in a new beautiful building like the Cosmopolitan can be pretty tempting. Again going back to the fact that in 2014, the top 30 condos priced at $1,000,000 and higher averaged a price per square foot of $579. These were the “Best of the Best” in Portland. Do you think it is prudent to pay amounts at the Cosmopolitan that are $200 to $1000 a square foot higher?


Cosmopolitan vs Park Avenue West Tower

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!

Park Avenue West


2014 Condo review!

As we settle into 2015, let’s take a look back at 2014. For the state of Oregon, prices were up about 7% for the year. In the condo market, in the main downtown, Pearl and South Waterfront areas, the number of sales were down to 755 sales compared to 2013’s   978 condo and town home sales.

Oregon7%

In the Pearl district, a new building began to take shape ( see: Overpriced Cosmopolitan ) and is the first new project, other than apartments, to take place in a long time. The biggest surprise of 2014 in my mind has to be the interest rates. If you can recall, last year all of the experts were calling for much higher interest rates for the coming year with most predicting 5% to 5.5% by the end of the year. The facts…. Rates on the 30 yr closed at 3.875% for the year end. As you may have heard me in the past when I mentioned that you could replace all of the economist with all the weatherman in the world , nobody would ever know! Well “they” were way off this last year! The next chart shows you the projected appreciation for the next several years. As you can see, they were off a little in their 2014 appreciation projections!

 

 

FutureAppreciation

 

While condo sales were down for 2014, luxury condos priced $1,000,000 and higher were up for the year with a 25% increase in the number of sales over 2013. While the number of sales for 2015 is expected to be higher, the appreciation is predicted to slow to the normal 3 to 5% range. Which building had the most sales in 2014? Well this was an easy one…Waterfront Pearl led all buildings with sales as they continued to convert the building back to ownership condos from rentals. Encore came in second as that building finally sold out it’s new construction project.

What should we expect from 2015? Stay tuned and check back here often to be updated in the Portland condo market!

If you have plans to buy or sell a condo in 2015, remember it pays to work with a condo specialist! Call Brad Golik and let him assist you with all of your condo needs!
Brad Golik
Certified Condominium Specialist
http://www.LuxuryCondosofPortland.com

503-896-8856