2011 urban report 1.14

The 2011 Prime Urban Report

A Comprehensive Study of Boston’sResidential Market And Factors Which Impact Its

Viability

2

2011 Prime – Urban Report

DISCLOSURE: While diligent attempts are made to ensure the accuracy of this report, the authors assume no liability for any errors or omissions. Anyone relying on the information contained in this report should take all steps necessary to verify it for themselves.

Welcome to

The 2011 Prime Urban ReportThomas Skahen, Co-Founder and PartnerJanice Dumont, Co-Founder and Partner

We are proud to release our 2011 Prime Urban Report. We hope the report and topics are of interest to developers, architects, investors, brokers, and other real estate industry professionals. Our intent was to drill down and look at Massachusetts, Boston, and specific residential developments currently under construction in the Boston marketplace.

We hope you enjoy the 2011 Prime Urban Report and look forward to any comments or feedback you may have.

http://www.facebook.com/#!/pages/Littleton-MA/PrimeTime-Communities/428613020000?ref=tsClick to Become a Fan

Join The Conversation! PrimeTime is now on Facebook!

http://www.facebook.com/%23!/pages/Littleton-MA/PrimeTime-Communities/428613020000?ref=ts

3

Why We Put This Report TogetherPrimeTime Communities – PASSION

Many developers ask us why we undertake such a large research project such as The Prime - Urban Report. The answer, although sometimes a little too simple, is passion. The Prime - Urban Report, and its sisters, The Prime – Suburban Report and The Prime - 50 Plus Report, take an outstanding amount of time and dedication to produce. Our team and contributors share our passion for the development industry and its future. We hope that our efforts help developers in their search for the best consultants, the best sales teams, and the best creative campaigns. All resulting in successful future developments and the prosperity of our economy.


4


Contents

Assessing the Massachusetts Urban Market

Part I. Residential Review

Part II. Boston Community Profiles

Part III. PrimeTime Overview

5


Residential ReviewWhat Goes Up?Thomas Skahen, Co-Founder and PartnerPrimeTime Communities

You know the song. “What goes up must come down, Spinning wheel got to go round,

Talking ‘bout your troubles it's a crying sin,

Ride a painted pony let the spinning wheel spin.”

(Blood, Sweat, and Tears - 1969)

From a Boston new construction sales perspective we went up in 2006 , came down in 2007 and 2008, and spun our wheels in 2009. That’s what it feels like anyway. 2010 will be the beginning of the going up again!

In Massachusetts, single family home sales rose from 34,546 to 36,288 and condominium sales continued to slide down from 15,608 to 15,321 from 2008 to 2009. For Boston, sales declined from 3,002 in 2008 to 2,482 in 2009. This was the fifth year of declines for the Boston condominium market.

Single family homes and condominium sales median prices continued to slide down from $310,000 to $290,000 for single family homes and $274,000 to $252,000 for condominium homes for the time period of 2008 to 2009. For Boston, median sales prices actually decreased from $733,000 in 2008 to $602,000 in 2009. For the same time period average sales prices in Boston went from $475,000 to $446,000 and have appeared to level off.

Average days on market for Massachusetts single family homes and condominiums increased

from 136 to 129 and 140 to 133 respectively. This downward trend is an indication that it may start getting easier to sell a home. For Boston, average days on market increased slightly from 91 in 2009 to 105 in 2009. Will lack of supply create demand?

In Massachusetts, single family and condominium permits dropped from 4,764 to 4,094 and 3,994 to 2,053 respectively from 2008 to 2009. In 2005 permits were 14,000 and 10,000 for single family homes and condominiums. In 2008 the permits were 513 and 2009 is projected to be only even less. This is significantly lower than the last six years that we analyzed.

Listings continue to drop from the 2007 peak in Massachusetts from 20,122 to 17,350 for single family homes and 9,131 to 7,589 from 2008 to 2009 respectively. For Boston, listings have leveled off from 1,064 to 1,044 for 2008 and 2009. Another positive indicator that will eventually drive sales back up because of the lack of supply.

Overall, 2009 proved to be similar to 2008 in terms of price and sales declines. The real estate market has worked hard over the last two plus years to correct itself. As it relates to supply within the real estate market we’ve seen significant drops in inventory or listings and increases in average days on market to sell a home. Both positive indicators that will eventually move prices and sales up. We do need a rebound in employment before we will see a significant upturn in the real estate market. New condo developments in Boston that have clearly established market pricing and good end loan financing packages in place will realize a significant improvement in sales absorption in 2010.

REPLACE ARTICLE

6


Massachusetts MLS Sales

Massachusetts MLS Average Selling Prices

Massachusetts MLSAverage Days on Market

Single family homes and

condominium sales declined

in 2010.

The average sale price of

condominiums and single

family homes saw its first

real increase in 2010 since

2006.

The ADOM continued to

decline for its second

straight year for both single

family homes and

condominiums.

Source: MLS Property Information Network, Inc.





7


2010 Massachusetts MLS Sales by Month

Massachusetts MLS Average Selling Price by Month

Massachusetts Average Price Shift

Single family homes and

condominium sales declined

sharply in July and continued

to dip slightly until December.

The average sale price of

condominiums and single

family homes peaks in July

of 2010.

Single Family homes under

$500k saw 6% drop in sales,

while homes $500k and

above saw at 16% increase

in sales.



Source: MLS Property Information Network, Inc. Source: MLS Property Information Network, Inc.



8


Massachusetts Monthly Absorption Trends

Residential PermitsMassachusetts

Massachusetts MLSActive Listings

Homes absorbed slightly

below 2000 sales a month at

the beginning of 2010 and

peaked near 5200 sales in

June.

Then number of residential

permits being issued in

Massachusetts has declined

steadily since 2005, as

builders are scaling back

projects.

There are more single family

homes and condominiums

on the market in 2010,

ending the two year decline

in inventory.

Dat

a N

ot A

vaila

ble

Source: U.S. Bureau of Census, Division of Manufacturing and Construction


Dat

a N

ot A

vaila

ble

SOURCE: Massachusetts Association of Realtors


9


New Condo Communities - BostonThomas Skahen, Co-Founder and PartnerPrimeTime Communities

The stats highlighted above for Massachusetts and Boston were obtained from Multiple Listing Services , LINK, Mass. Association of Realtors, and U.S. Bureau of Census.

The intent of The 2010 Prime Urban Report is to uncover at a micro level what is really going on with new construction condominium communities in Boston for residential and commercial developers, institutional investors, banks, buyers, and others associated with the Boston real estate industry. The approach includes utilizing MLS, Link, Book and Deed, and developer review to determine the most accurate sales data. As we did last year, we have focused on actual sales per multiple sources to uncover the real yearly and monthly absorption (sales) trends within the Boston market. We’ve been tracking new construction in Boston for three years now and have created an index to show exactly what’s going on with Boston new construction sales pace and how it compares to each of the developments.

We looked at the largest and most prominent new residential communities currently under construction in Boston and this is what we found:

Our study included 14 new construction residential communities consisting of 1,202 total

units with 635 sold or 53 percent. Of the 635 units sold, 83 were affordable and 551 were market rate sales. This leaves us with only 567 new construction homes remaining in inventoryas of year end 2009. This is down from 626 new construction inventory homes in 2008 and is a 9 .5 percent drop. If the Boston market monthly sales absorption per community increased to a more normal 3.0 sales per month for the 14 new construction communities or 36 per month in total, the 567 remaining units would be depleted in 15 months. As we pointed out last year, Boston new construction supply is extremely low. We will see a significant price increase in new construction inventory over the next few years as this inventory quickly diminishes and the job market begins to pick up. So what does our urban new construction index tell us? For the 14 new construction communities we looked at, we determined that there were 149 sales in 2009 . On average each of the communities sold 1.00 units per month (absorption). In 2008 the average was 1.2. The highest was 3.3 and the lowest was .2. The decline represents a 14 percent drop in the monthly sales rate.

Developers have dropped prices, inventory is diminishing, and new construction home sales are still on the decline.

We love to look at what’s working and why. The two highest absorption rates in Boston were The 1850 and The Bryant on Columbus with 3.3 and

REPLACE ARTICLE

10


1.9 sales per month respectively in 2009. Both were properties that were auctioned for all the right reasons. The strategy was to let buyers set the new market value for the homes because, quite simply, developers don’t set value in this current real estate market.

At The 1850, it was the seller’s strategy to close out the property via an auction. Approximately 39 homes sold in 2009, mostly due to the auction.

At The Bryant, the sellers utilized the auction strategy to reset the prices. Their approach was to put 10 of the 50 total units up for auction, have the buyer market reset prices, and sell the remaining inventory conventionally. They sold all 10 of the luxury homes with relatively good price points and continue to sell homes post auction.

The same strategy was even more successful in the suburbs. The Nouvelle at Natick seller sold 50 of the 214 homes at auction, reset the prices for the remaining inventory, and achieved a 6.2 sales rate in 2009. Post auction, 31 additional units were sold (with 8 more under agreement) making Nouvelle the fastest selling community in Massachusetts.

The auction strategy for a close out or a reset in pricing works. It drives huge traffic to the site that otherwise would not have visited. The buyer market just “gets” this process. Even if they don’t “get it” they understand pricing and will buy a well positioned and reasonably priced home.

11


Boston Sales

Boston Median Selling Price

Boston SalesAverage Days on Market

Sales volume continues to

decline.

Both the median and

average price of a home

sold in Boston declined in

2009.

The ADOM increased in

2009.

Source: Link Boston

Source: Link Boston

SOURCE: Link Boston

SOURCE: Link Boston

SOURCE: Link Boston

2010 Data comes from Link year end report. Ready to drop in.

12


Boston Listings

The number of listings has

remained relatively flat

compared to 2008.

Residential PermitsBoston

No

t Ava

ilab

le

Source: U.S. Bureau of Census, Division of Manufacturing and Construction

Dat

a N

ot A

vaila

ble

Source: Link Boston

Q4 2101 comes from LINK

13


Boston Sales Comparison by Number of Bedrooms

Boston Sales Comparison by Square Feet

Source: Link Boston

Source: Link Boston

Source: Link Boston

Comes from Links 2010 Year End Report

Comes from Links 2010 Year End Report

14


Lifetime Sales Summary – New Construction

Source: Based on public records as of 1.1.2011

• Definitions: 1. Market rate homes refers to homes sold at full market value without subsidization from public sector entities such as local governments, HUD, etc.; 2. Start dates are based on the earliest known MLS or LINK Boston listing date; 3. “Sold” refers to homes sales that were recorded at the Registry of Deeds and have a sale date of 12/31/20010 or earlier.

Community Total Units Percentage Sold, Lifetime

AffordableMarket Rate

Sales Total Sales Remaining InventorySales

The Intercontinental 130 100% 0 130 130 0

700 Harrison Lofts 84 100% 46 38 84 0

The Macallen Building 143 67% 17 79 96 47

FP3 92 75% 9 60 69 23

Battery Wharf 104 71% 0 74 74 30

The Penmark 60 90% 0 54 54 6

W Boston 123 24% 0 30 30 93

Allele 48 83% 5 35 40 8

The Bryant on Columbus 50 90% 0 45 45 5

The Clarendon* 103 44% 0 45 45 58

45 Province 138 19% 0 26 26 112

Penny Saving Condominiums 23 74% 1 16 17 6

Total 1,098 70% 78 632 710 388

15


Top Performers

The Clarendon – 2010 Absorption 3.3Address List Price Original Price Selling Price Percent Change SF Beds Baths $/SF

Clarendon, The # 15K $910,000 $910,000 $780,000 -14.3% 850 1 1 $918Clarendon, The # 16A $1,200,000 $1,000,000 -16.7% 1171 2 2 $854Clarendon, The # 16C $1,360,000 $1,220,000 -10.3% 1213 2 2 $1,006Clarendon, The # 16G $760,000 $685,000 -9.9% 700 1 1 $979Clarendon, The # 16L $675,000 $675,000 $560,000 -17.0% 589 S 1 $951Clarendon, The # 17C $1,375,000 $1,225,000 -10.9% 1213 2 2 $1,010Clarendon, The # 17D $1,370,000 $1,100,000 -19.7% 1180 2 2 $932Clarendon, The # 17J $1,450,000 $1,315,000 -9.3% 1124 2 2 $1,170Clarendon, The # 17L $582,000 $582,000 0.0% 589 L 1 $988Clarendon, The # 18B $1,605,000 $1,525,000 -5.0% 1229 2 2 $1,241Clarendon, The # 18D $1,230,000 $1,060,000 -13.8% 1150 2 2 $922Clarendon, The # 18J $1,475,000 $1,335,000 -9.5% 1124 2 2 $1,188Clarendon, The # 19A $2,050,000 $2,000,000 -2.4% 1782 3 3 $1,122Clarendon, The # 19B $1,625,000 $1,625,000 $1,605,000 -1.2% 1372 2 2 $1,170Clarendon, The # 19C $1,050,000 $1,050,000 $900,000 -14.3% 1116 1+ 2 $806Clarendon, The # 19D $4,750,000 $4,750,000 0.0% 3506 4 4.5 $1,355Clarendon, The # 20B $1,635,000 $1,635,000 $1,635,000 0.0% 1371 2 2 $1,193Clarendon, The # 20C $1,060,000 $1,060,000 $940,000 -11.3% 1116 1+ 2 $842Clarendon, The # 20D $1,765,000 $1,765,000 $1,765,000 0.0% 1439 2 2.5 $1,227Clarendon, The # 21C $1,070,000 $950,000 -11.2% 1134 1+ 2 $838Clarendon, The # 21D $1,775,000 $1,775,000 $1,595,000 -10.1% 1525 2 2.5 $1,046Clarendon, The # 21E $2,600,000 $2,250,000 -13.5% 1857 3 3.5 $1,212Clarendon, The # 22C $1,080,000 $1,050,000 -2.8% 1134 1+ 2 $926Clarendon, The # 22E $2,625,000 $2,625,000 $2,400,000 -8.6% 1958 3 3.5 $1,226Clarendon, The # 23C $1,120,000 $1,090,000 -2.7% 1134 1+ 2 $961Clarendon, The # 23D $1,770,000 $1,770,000 $1,650,000 -6.8% 1502 2 2.5 $1,099Clarendon, The # 24D $1,780,000 $1,612,500 -9.4% 1525 2 2.5 $1,057Clarendon, The # 24E $2,675,000 $2,600,000 -2.8% 1957 3 1.5 $1,329Clarendon, The # 25A $3,800,000 $3,800,000 0.0% 2428 4 4.5 $1,565Clarendon, The # 26A $3,950,000 $3,950,000 $3,950,000 0.0% 2428 3 4.5 $1,627Clarendon, The # 26C $1,200,000 $1,150,000 -4.2% 1199 1+ 2 $959Clarendon, The # 28B $1,730,000 $1,730,000 $1,675,000 -3.2% 1372 2 2 $1,221Clarendon, The # 28D $490,000 $490,000 0.0% 1502 2 2.5 $326Clarendon, The # 28E $2,800,000 $2,800,000 0.0% 1758 3 3.5 $1,593Clarendon, The # 29E $3,200,000 $2,975,000 -7.0% 1958 3 3.5 $1,519Clarendon, The # 30A $2,600,000 $2,700,000 3.8% 1795 3 3 $1,504Clarendon, The # 30B $1,850,000 $1,750,000 -5.4% 1372 2 2 $1,276

Average $1,784,919 $1,714,167 $1,688,365 -6.7% 1442 $1,112

Information based on MLSPIN data, Link Boston data, and public records as of 12/31/2010.

16


Top Performers

Address List Price Original Price Selling Price Percent Change SF Beds Baths $/SFFP3 # 611 $535,000 $535,000 $535,000 0.0% 753 1 1 $710FP3 # 511 $464,000 $469,000 $464,000 -1.1% 856 1 1 $542FP3 # 318 $570,000 $570,000 $570,000 0.0% 1131 2 2 $504FP3 # 613 $915,000 $915,000 $915,000 0.0% 1159 2 2 $789FP3 # 701 $1,220,000 $1,220,000 $1,220,000 0.0% 1438 2 2 $848FP3 # 601 $1,200,000 $1,200,000 $1,200,000 0.0% 1565 2 2 $767FP3 # 414 $395,000 $395,000 $395,000 0.0% 754 1+ 1 $524FP3 # 603 $680,000 $699,000 $680,000 -2.7% 960 1+ 2 $708FP3 # 507 $555,000 $555,000 $555,000 0.0% 995 1+ 2 $558FP3 # 307 $520,000 $520,000 $520,000 0.0% 1000 1+ 2 $520FP3 # 407 $535,000 $535,000 $535,000 0.0% 1005 1+ 2 $532FP3 # 305 $485,000 $499,000 $485,000 -2.8% 1019 1+ 2 $476FP3 # 405 $499,000 $499,000 $499,000 0.0% 1027 1+ 2 $486FP3 # 309 $575,000 $589,000 $575,000 -2.4% 1027 1+ 2 $560FP3 # 509 $600,000 $600,000 $600,000 0.0% 1039 1+ 2 $577FP3 # 409 $550,000 $550,000 $550,000 0.0% 1040 1+ 2 $529FP3 # 301 $585,000 $599,000 $585,000 -2.3% 1123 1+ 2 $521FP3 # 306 $295,000 $329,000 $295,000 -10.3% 584 S 1 $505FP3 # 206 $320,000 $320,000 $320,000 0.0% 586 S 1 $546FP3 # 506 $299,000 $299,000 $299,000 0.0% 590 S 1 $507FP3 # 406 $297,000 $299,000 $297,000 -0.7% 601 S 1 $494FP3 # 510 $365,000 $365,000 $365,000 0.0% 656 S 1 $556FP3 # 308 $355,000 $355,000 $355,000 0.0% 670 S 1 $530FP3 # 208 $329,000 $339,000 $329,000 -2.9% 671 S 1 $490FP3 # 204 $335,000 $339,000 $335,000 -1.2% 694 S 1 $483FP3 # 304 $352,000 $352,000 $352,000 0.0% 698 S 1 $504FP3 # 312 $359,000 $379,000 $359,000 -5.3% 707 S 1 $508FP3 # 212 $330,000 $330,000 $330,000 0.0% 710 S 1 $465FP3 # 412 $365,000 $365,000 $365,000 0.0% 717 S 1 $509FP3 # 516 $405,000 $405,000 $405,000 0.0% 790 S 1 $513

Average $509,633 $514,167 $509,633 -1.06% 886 $559

FP3 – 2010 Absorption 2.6


17


2010 Sales Summary – New Construction

NOTES: 1. Market rate sales are sales of homes sold at full market value without subsidization from public sector entities such as local governments, HUD, etc.; 2. "Absorption" measures the number of sales per month; 3. “Sales” refers to homes sales that were recorded by the Registry of Deeds by 12/31/2009;

Community Neighborhood 2008 Market Rate Sales

2008 Market Rate

Absorption2009 Market

Rate Sales2009 Market

Rate Absorption

2010 Market Rate Sales

2010 Market Rate

Absorption

The Bryant on Columbus - Auction 2010 Back Bay 0 0 23 1.9 22 1.8FP3 South Boston 9 0.8 20 1.7 31 2.645 Province Midtown 0 0 15 1.3 11 0.9Allele South Boston 9 0.8 14 1.2 13 1.1Battery Wharf Waterfront 5 0.4 8 0.7 16 1.3W Boston Back Bay 0 0 7 0.7 23 1.9The Intercontinental Waterfront 10 0.8 7 0.6 15 1.3The Clarendon Back Bay 0 0 6 0.5 39 3.3The Macallen Building South Boston 19 1.6 6 0.5 9 0.8700 Harrison South End 11 0.9 5 0.4 7 0.6The Penmark South End 16 1.3 4 0.3 13 1.1Penny Saving Condominiums South End 3 0.3 2 0.2 4 0.3Total Sales / Average Sales per Community 82 6.8 117 9.75 203 17Average Sales Absorption Per Community per Month 0.6 0.8

1.4

Percent Change 33% 75%

18


“In 2008, new construction sales per month were 1.2 and dropped to 1.0 in 2009. If we extrapolate the communities

auctioned, the rate was .60 in 2009. With the drop in both new construction and re-sale inventory, price adjustments, and low interest rates, this sales rate should begin to trend up in 2010. Developers should continue to look for creative strategies to

accelerate existing inventory.”

19


Streetwalking Gone MainstreamAnthony Longo, Founder & CEO, CondoDomain.com

2009 was quite the interesting year in Boston real estate (not to mention nationwide). It was the year us techies have all been waiting for, however there are two sides to this story. Good News First: The once protected pool of information used for “decision making” in regards to real estate was finally released into our world-wide-web. While the National Association of Realtors spent years fighting against it, MLS data was never more easily accessible than in 2009. (MLS stands for Multiple Listing Service) This sprouted the birth of hundreds of web-based real estate companies all gunning to create valuable online tools leveraging the newly available MLS and social media systems. Enter web-savvy consumers who ate up these new tools and proved to be smarter homebuyers and sellers than ever seen before. Because of the accessibility to information that was once only granted internally to a licensed broker and/or salesperson, consumers now had real and objective city, neighborhood and even individual property data. They had easy access to available and sold listings comparables. They had access to price changes, days on market and even tax information.

Most importantly, they had access to this data in real-time just like the brokers did creating a “new type of sales process”.

Homebuyers and sellers have never been more prepared and knowledgeable. Savvy clients toured open houses with spreadsheets and printed notes for not just that property, but the five comparable properties down the street. 2009 was the year that consumers made the home buying and selling process more efficient and transparent. The Bad News: Not all data is created equally and not all buyers and sellers handled it responsibly. Unfortunately, real estate has many variables and some of them have nothing to do with a Microsoft Excel spreadsheet. We have seen, on countless occasions, buyers and sellers misuse or misinterpret data that brought the buying and selling process to a standstill. For example, if you compared home sales from 2008 to 2009 in downtown Boston you will see that decrease of 6% in overall transaction volume (3869 sales in 2009 vs 3636 units in 2008) and a decrease of 9% in average price ($452,918 in ’09 vs. $500,413 in ’08). One would generally assume they could get an 8-10% reduction of the listing price on anything in downtown Boston and that couldn’t be farther from the truth. Buyers and sellers must understand that value holds true on a very local and specific level in downtown metropolitans. While the West End and Fenway may have seen steeper declines in 2009, the South End saw an increase in average sales prices. Obviously, for bargain hunters– South End was not a place for them to be.

REPLACE ARTICLE

The point I am trying to make is that it is an amazing feat that consumers now have access to detailed property information and there is no question it has made the process more efficient and, hopefully, more affordable at the same time. The necessity of a true “expert” real estate agent is still very much needed and important. The term “expert”, however, has been redefined over the past year because the average buyer has become smarter. Jessica Quirk, our top producer and one of Boston’s top real estate agents, spent 2009 closing more than 40 purchases and touring more than 500 properties in the Boston area. She knows value when she sees it and understands what makes the pricing in a particular neighborhood, street or even a building

fluctuate over time. She knows, better than

anyone, how powerful data can be and that, along with her overall real estate knowledge, is why she is one of the top agents in Boston.

Consumers are now armed with the information at their fingertips and this will only continue to grow in 2010 and beyond. With more and more home shoppers on the web and as we have expanded our web footprint (www.CondoDomain.com) we can really get our arms around search analytics. If our traffic patterns are any indication of what 2010 will look like, everyone should hold on tight. With inventory limited downtown we may see a booming spring, summer & fall.

Anthony Longo is Founder & CEO of CondoDomain.com. His email is [email protected].

20


http://www.condodomain.com/

mailto:[email protected]

Boston is fortunate in having in our city CBRE’s global chief economist, Ray Torto. When I asked for his prediction as to when our country will regain all jobs lost since the December, 2007 start of the recession, I immediately received his answer:

“Q1-2, 2013 with Boston one or two quarters ahead.”

The purpose of this article is to attach meaning to the recovery. As I will now describe, the recovery I believe will be unlike anything we have seen before.

Foundation for RecoveryThe foundation for recovery remains unchanged – job growth. It was jobs that grew after 1974-1976, 1981-1982, 1991-1992, 2001-2003 recessions and it will be jobs again in Q4 2012. That said, this time around there will be a strong overhang from the last 10 years.

That overhang will be the impact of excess spending in the United States. We are sitting with $12 trillion of debt. We are sitting with federal tax revenues that can cover only 2/3’s of the $4 trillion in operating costs.

“Stimulus” is a pet word. Just look at the stimulus that has taken place since 2000:*Huge supply of capital chasing real estate.*An economy going gang-buster from 2004 to the end of 2007.*Plentiful capital through the CMBS vehicle.

History of RecoveriesIf we study the history of past recoveries, they were created by sound, basic real estate economics. One new office job requires 250+ s/f of space. One new industrial job requires 500+ s/f of space. One new person can live in an apartment.

I saved Spaulding & Slye reports of the late 1970s and 1980s which tell an interesting story:*Office vacancy rates – 1.5% to 11%*Dramatic dwindling of first class supply*Significant pre-leasing*R&D/Industrial space – new active area*”A 4% annual growth rate will reduce vacancy to nearly zero.”

For the 1990s, when I shifted to the Whittier Partners Bottom Line Report, it mirrored readings from the 1970s and 1980s:*Steady economic growth*Build-to-suit construction*Renovation of older buildings becoming a source of supply

21


The Boston Commercial Real Estate Market After Recovery From the “Great Recession”Webster A. Collins, Executive Vice President/Partner of CB Richard Ellis New England

REPLACE ARTICLE

In the 2000s, there is a different story:*A huge supply of capital chasing real estate*Mezz debt – the new wave*20% to 25% availability rates for office space*34.4 million s/f more office construction than jobs can support

Job growth, the cornerstone of the market, was forgotten.

ConclusionThe Boston market after recovery will become a far more balanced market. We will be the beneficiary of being one of only five 24-hour cities in the United States. At the same time, we like the rest of the United States, will suffer from bad political decisions.

Real estate over the next 10 years will be

risk/return driven. This time around, the tightened underwriting standards of the 1990s will not be loosened by a flood of capital.

Tightened controls will be placed on government. We have GDP of close to $13 trillion and $12 trillion of debt. A 1:1 ratio is unsustainable.

We have no choice but to cut the ratio of debt to GDP in half. As described at our 2010 CBRE kick-off meeting on January 6, 2010, we are in a heavy weight fight. We are 7-8 rounds into it with 7-8 rounds to go. If the stamina of 1776-1782 prevails, we will be the winners.

Webster A. Collins, MAI, CRE,FRICS is Executive Vice President/Partner within CB Richard Ellis/New England in their Valuation and Advisory Group, His email is [email protected].

22



23


Navigating Condo Project Approval There’s good news out there if you know where to lookChris A. Kulp, Regional Builder Sales Manager, Wells Fargo Home Mortgage

Without a doubt, when it comes to new construction/conversion condominium financing, confusion abounds for builders/developers, mortgage professionals, and borrowers alike: Why do I need to get a project approval? What does a project approval mean? If so, what kind of approval do I obtain? And what is a CPM, PERS, or HUD approval anyway? What is the right pre-sale number? What counts as a pre-sale? What about phasing? Does it make a difference if my project is a low-rise, mid-rise, or high-rise? These are some of the questions that are asked every day, and depending on whom you ask, answers may vary. But, there is good news on the horizon for condo developers and their ultimate customer – the home buyer. Earlier this year the Department of Housing and Urban Development (HUD), delivered some much needed relief to its condominium guidelines. Additionally, Fannie Mae (FNMA) has shown a willingness to review the individual merits of a condo project in its continuing efforts to help a successful project and accomplish its mission to provide home buyers with competitive home mortgage products.

First, let’s look at Fannie Mae’s different approval levels, and what they mean to the marketability and viability of a project. FNMA offers lenders two options to approve a project for financing. The first is known as Condo Project Manager or CPM. After a lender reviews the project and determines acceptability, information is submitted to an automated approval database with standardized questions. If a project doesn’t meet standardized Fannie Mae guidelines, especially with regard to pre-sale, budgeted reserves, or insurance coverage, it will not pass the CPM approval process. However, all is not lost. An additional option for FNMA is called Project Eligibility Review Service or PERS. This is the old 1028 process under which a complete package of material is forwarded directly to FNMA to underwrite. Fannie Mae may approve the project with specific conditions, or it may make recommendations on what needs to be changed so the project is acceptable for financing. In addition, Fannie Mae has started allowing developers to vertically sub-phase through the PERS approval process – or to market their buildings in phases. This means a high-rise developer may have the opportunity to more readily reach FNMA’s specified presale requirement within a group of floors, instead of having to put more than half of the units in a building under contract before being able to close on their first sale.

REPLACE ARTICLE

24


Developers, especially those with high-rise condo projects, have previously been told they couldn’t get their building approved for financing until they had a lot more purchase and sale agreements in place. They can now investigate sub-phasing their building to start closing units immediately. This strategy wasn’t previously widely known or even considered, so it provides an enhanced option.

In December, 2009 FHA lowered its pre-sale requirement to 30 percent of the units in a project or approved legal phase in which the builder or developer has gone through the necessary steps to get FHA project approval. And here too, time is of the essence as the lower pre-sale requirement is set to expire December 31, 2010 after which FHA's normal 50 percent pre-sale requirement will go into effect. In addition, HUD has made numerous additional changes to enhance its project approval requirements to help create a successful environment for condominium homeownership. The good news is that the agencies, Freddie Mac, Fannie Mae, and FHA, are committed to making financing available for condominium. While many developers have taken a swing at the ball and missed in the past, it’s definitely worth stepping up to the plate again. Discussing what options may be available or what changes or phasing possibilities exist with a professional in the lending industry can make all the difference in the viability and success of a condo project. Chris Kulp is Regional Builder Sales Manager for Wells Fargo Home Mortgage. His email is [email protected].


Major Boston Condo Communities

Building Profiles

45 Province Page 23

285 Columbus Lofts Page 24

700 Harrison

Allele Page 26

Battery Wharf Page 27

The Bryant Page 28

The Clarendon Page 29

FP3 Page 30

The Macallen Page 31

The Penmark Page 32

Penny Savings Bank Page 33

Residences at the Intercontinental Page 34

The 1850 Page 35

W Boston Page 36

25


DEVELOPERNAME:WEBSITE:PHONE:

SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:ESTIMATED COMPLETION:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION - 2010:

FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:

The Abbey Group

www.45province.com/developer617-236-8165

44 School St, Boston, MA 02108www.45province.com

617-742-0942

Midtown44 School St, Boston, MA 02108

Under ConstructionHigh Rise

3110/19/2006

Spring 2009Valet Garage

1383/7/2007

4619%

111.0

LuxuryWood, Marble

CustomQuartzite

Miele, Bosch, Sub ZeroNo

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSGreat location, fantastic city views Sample Units (Most Typical)ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): THREE BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

No

YesYesYesYesYesYesYes

Library, Lounge, Rooftop Garden

728 - 3,305$464 - $1,718

7057

1,1511.5

$889,000$772

19019

1,6152

$1,200,000$743

210521

1,9882

$2,248,000$1,125Information based on MLSPIN data, Link Boston data, and public

records as of 12/31/2010.

45 Province


DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD- LIFETIME:ABSORPTION - LIFETIME:MARKET RATE RE-SALES - 2010MARKET RATE ABSORPTION – 2010


Boston Residential Groupwww.bostonresidentialgroup.com

617-424-0775

285 Columbus Ave, Boston, MA 02116www.285columbuslofts.com

617-262-0091

Back Bay285 Columbus Ave, Boston, MA 02116

Construction CompleteMid Rise

8NA

5/14/2008Garage

6311/28/2007

37100%

632.5

1.1

High

Walnut, Carpet, PorcelainOak Veneer

Granite, MarbleJenn-Air, Bosch, Sub Zero

No

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSNear T-Stop, near Prudential Center. NOTES:285 Columbus closed the last home in June of 2009. This project had the highest absorption in 2008 out of all the property we studied.

No

YesNoNoNo

YesYesNo

Storage Units

753 - 1,578$630 - $897


285 Columbus


DEVELOPERNAME:ADDRESS:PHONE:

SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION – LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION - 2010:


Mitchell Properties

20 Park Plaza, Boston, MA 02116617-542-6500

679 Tremont Street, Boston, MA 02118www.700harrison.com

617-262-1504

South End700 Harrison Ave, Boston, MA 02118


6NA

9/20/2007Garage

849/22/2005

63100%

841.3

70.6

LuxuryHardwood

WoodGranite

Stainless SteelYes

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTS Some great views. Very large windows. Sample Units TWO BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

NoNoNoNoNo

YesYesNo

661 - 1,500$457 - $901

401

41084

1$529,000

$488

4094

1,2451

$569,000$457

4156

1,2512

$599,000$479


700 Harrison


DEVELOPERNAME:WEBSITE:PHONE:

SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION – LIFETIME:MARKET RATE SALES - 2009:MARKET RATE ABSORPTION – 2009:

FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:OTHER FEATURES:

Boston Built

NA617-327-6967

150 Dorchester St, South Boston, MA 02127www.alleleboston.com

617-777-4547

South Boston150 Dorchester Ave, S. Boston, MA 02127


62007

7/15/2008Garage

489/28/2006

5156%

400.813

1.1

HighBamboo

DesignerGraniteBosch

NoPrivate Balconies

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSNear T Stop, Low Condominium Fees Sample Units (Most Typical)ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:LIST PRICE OF UNIT:PRICE PER (sq. ft.): ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

NoNoNoNoNo

YesNoNo

973 - 2,075$351 - $571

5075

1,1101

$499,000$450

6086

1,2561

$599,000 $477

5015

2,0752

$899,900 $433


Allele


DEVELOPERNAME:

WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION - 2010:HOMES UNDER AGREEMENT: FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:

Harold Theran Development Management Corp.

NA617-994-9090

344 Commercial St, Boston, MA 02109www.batterywharf.com

617-994-9090

Waterfront377-395 Commercial St, Boston, MA 02109

CompleteMid Rise

62005

4/9/2008Valet Garage

1046/23/2004

7856%

741

161.3

3

LuxuryWood, Marble

CustomCat's Eye Granite

Thermador, U-LineNo

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSAccess to Water Taxi, On Site Pet Service, Retail Space, Restaurants, Excellent Views Sample Units (Most Typical)ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): THREE BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

YesYesYesYesYesYesNoNo

Marina, Business Center

923 - 2,508

$703 - $1,669

34014

1,0721.5

$1,800,000$1,007

44034

1,6242.5

$1,642,500$1,011

34054

2,0483

$2,475,000$1,290Information based on MLSPIN data, Link Boston data, and public

records as of 12/31/2010.

Battery Wharf


Wasserman Real Estate Capital, LLC

www.wrecapital.com401-274-5700

321 Columbus Ave, Boston, MA 02116www.bryantbackbay.com

617-267-0677

South End303 Columbus Ave, Boston, MA 02116

Under ConstructionMid Rise

102006

6/3/2009Valet Garage

5012/7/2006

4946%

45.922

1.8 1

LuxuryHardwood, Stone, Carpet

Custom MahoganyStone, Marble

VikingNo

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTS

50 units including 9 au pair suites, and 2 ground retail spaces.

Sample Units (Most Typical)TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): THREE BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): FOUR BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

NoYesNoNoNoNo

YesNo

Art Gallery in Lobby, Private Storage

756 - 2,776$755 - $1,467

803

81,793

2$1,780,000

$933

7027

1,9593

$1,750,000$893

3043

2,8104

$1,800,000$641


DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION – 2010:HOMES UNDER AGREEMENT:


The Bryant


DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION – 2010:HOMES UNDER AGREEMENT:


The Related Companies

www.related.com(212) 421-5333

14 Newbury Street, Boston, MA 02116www.theclarendonbackbay.com

617-267-4001

Back Bay400 Stuart St, Boston, MA

Under ConstructionHigh Rise

332007

NAGarage, Valet Parking

1044/7/2008

3343%

45 1.439

3.32

LuxuryHardwood, Marble, Carpet

CustomMarble, Polished Stone

High EndNo

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER:

UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSLEED certified. Also includes 178 apartment units. Sample Units (Most Typical)STUDIOUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): ONE PLUS BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

No

YesNo

YesYesNo

YesNo

Restaurant, Conference Room, Gourmet Market, Clarendon Clubroom w/ terrace

589 - 2,530$1,013 - $1,627

18L18

5891

$695,000 $1,180

19C19

1,1162

$1,050,000$941

21D21

1,5252.5

$1,775,000 $1,164


The Clarendon


http://www.related.com/

http://www.theclarendonbackbay.com/

DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES- 2010:MARKET RATE ABSORPTION – 2010:HOMES UNDER AGREEMENT:


Berkeley Investments, Inc.

www.berkeleyinvestments.com617-439-0088

368 Congress St, Boston, MA 02210www.fp3boston.com

617-350-7410

Seaport346 Congress St, Boston, MA 02110

Under ConstructionMid Rise

810/1/20057/21/2008

None

722/5/2007

4896%

691.431

2.61

ModerateMaple, Tile, Porcelain

DesignerComposite

KitchenAid, Bosch, Fisher & PaykelNo

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSSPORTELLO , AFFILIATED RESTAURANT Sample Units (Most Typical)ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): ONE PLUS BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

No

YesNoNoNo

YesYesNo

629 - 1,919$502 - $998

5115

8651

$469,000$548

3093

1,0272

$589,000$574

3153

1,3742

$739,000$538


FP3


DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:DELIVERY DATEPARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION – 2010:HOMES UNDER AGREEMENT: FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:MEDIA ROOM:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSLEED Certified. Large roof top garden. Sample Units (Most Typical)ONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

No

YesNoNo

YesYesYesYesYes

Community Car, Rooftop Garden

650 - 2,805$424 - $1,103

1114th855

1$499,900

$585

9069th

1,2792

$799,000$625

7117th

1,8642.5

$1,175,000$630

Pappas Enterpriseswww.papent.com

617-482-3394

141 Dorchester Ave , South Boston, MA 02127

www.themacallenbuilding.com617-482-3394

South Boston9 West Broadway, Boston, MA 02127

CompleteHigh Rise

144/26/2007

Garage

1431/5/2005

7268%

971.410.81

HighBamboo, Recycled Carpet

DesignerGranite, Crushed Quartz

BoschNo


Macallen Building


DEVELOPERNAME:

WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2010:MARKET RATE ABSORPTION - 2010:


Kenny Development Company

RF Walsh Companywww.rfwalsh.com

617-778-0900

21 Father Gilday St, Roxbury, MA 02118www.thepenmark.com

617-266-2808

South End21 Father Gilday St, Roxbury, MA 02118

CompleteLow Rise

52005

7/11/2006Garage

602/24/2005

7090%

540.813

1.1

HighWood, Bamboo, Marble

Maple / DesignerGranite / MarbleBosch, Jenn Air

No

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL:OTHER: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSNice brownstone neighborhood. Building has attractive historic character. Sample Units (Most Typical)TWO BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

No

YesNoNoNoNoNoNo

Extra Storage, Zip Car

747 - 2,482$508 - $709

4084

1,0522

$635,000 $604

1132

1,4972

$750,000 $501

4074

1,2912

$779,000$603


The Penmark


DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES - 2009:MARKET RATE ABSORPTION - 2009:HOMES UNDER AGREEMENT: FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:

Stonegate Group

www.stonegatellc.com508-655-1700

30 Union Park St, Boston, MA 02118www.pennysavingsbank.com

617-947-9089

South End30 Union Park St, Boston, MA 02118


5NA

3/19/2007Garage

233/9/2007

4670%

16.44

0.31

HighFinished Concrete, Walnut Hardwood

CherryQuartz Ceasarstone

VikingNo

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTS Mix of historic and modern architecture. Sample UnitsONE BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): LOFTUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

NoNoNoNoNoNo

YesNo

814 - 2,015$643 - $988

4044

1,2352

$995,000 $806

5065

8811.5

$699,000 $793


Penny Savings Condominiums


DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES – 2010:MARKET RATE ABSORPTION – 2010:


Extell Development Company

www.extelldev.com617-737-4440

500 Atlantic Ave, Boston, MA 02110www.residences-intercontinental.com

617-737-4663

Waterfront500 Atlantic Ave, Boston, MA 02110

Construction CompleteHigh Rise

22June, 200410/19/2006

Valet Garage

1308/11/2004

77100%

1301.715

1.3

LuxuryWood, Porcelain, Limestone Tile

CustomGranite

Wolf, Sub-Zero, AskoNo

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTS38 different floor plans. Waterfront homes, fantastic views, high quality and workmanship Sample Units (Most Typical)ONE BEDROOM PLUSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): FOUR BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

YesYesYesYesYesYesYesYes

421 – 4,752$563 - $1,374

21C

211,060

1.5$895,000

$844

16J16

1,4842.5

$1,095,000$738

21K21

4,7524.5

$6,450,000$1,357


Residences at the

Intercontinental


DEVELOPERNAME:WEBSITE:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:*SOLD OUTNo Sales in 2010 FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:OTHER FEATURES:

The Cresset Group

www.cressetgroup.com617-624-9100

90 Wareham St. Boston, MAwww.the1850.com

617-988-8008

South End90 Wareham St, Boston, MA 02118


5June, 20066/17/2008

Dedicated Surface Parking

602/28/2008

21100%

602.9

ModerateStained Sealed Concrete

MapleGranite

FrigidaireNo

Exposed Brick, Post and Beam

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSLoft style units. NOTES:Thirty five homes were sold at auction in June of 2009. All of the homes were closed on or before August 2009.

NoNoNoNoNo

YesNoNo

685 - 1,564$449 - $553


The 1850


DEVELOPERNAME:PHONE: SALES CENTERADDRESS:WEBSITE:PHONE: BUILDING INFORMATIONNEIGHBORHOOD:SITE LOCATION:STATUS:PROPERTY TYPE:TOTAL FLOORS:CONSTRUCTION START:DELIVERY DATE:PARKING TYPE: SALES INFORMATIONTOTAL UNITS:START DATE:MONTHS ON MARKET:PERCENTAGE SOLD:TOTAL UNITS SOLD - LIFETIME:ABSORPTION - LIFETIME:MARKET RATE SALES – 2010:MARKET RATE ABSORPTION – 2010:HOMES UNDER AGREEMENT: FINISHINGSQUALITY:FLOORING:CABINETS:COUNTERTOPS:APPLIANCES:FIREPLACES:

Sawyer Enterprises, Inc.

617-262-3600

110 Stuart St, Boston, MA 02116

www.100stuartstreet.com617-267-2228

Midtown

110 Stuart St, Boston, MA 02116Construction Near Complete

High Rise28

200712/21/2009

Valet

123

10/1/200826

24%30

1.22325

LuxuryHardwood, Marble

CustomGranite, MarbleLuxury / Wolfe

No

AMENITIESHOTEL SERVICES:CONCIERGE:SPA:VALET PARKING:FITNESS ROOM:MAIN FLOOR RETAIL:ROOFTOP TERRACE:POOL: UNIT PARTICULARSSIZE RANGE (sq.ft.):PRICE RANGE (Per sq. ft.): HIGHLIGHTSAffiliated with W Hotel. First class service. Travel Discounts. Sample Units (Most Typical)STUDIOUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): ONE PLUS BEDROOMUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.): TWO BEDROOMSUNIT NUMBER:FLOOR:SIZE (sq. ft.):BATHROOMS:PRICE OF UNIT:PRICE PER (sq. ft.):

YesYesYesYesYesYesYesYes

427 – 3,082$813 - $1,476

22I22

5121

$460,000 $898

16H16

1,0401.5

$750,000$721

17A17

1,4462

$1,195,000 $826


W Boston


40


“New condo developments in Boston that have clearly established market pricing

and good end loan financing packages in place

will realize a significant improvement in sales absorption in 2010.”

41

PrimeTime Communities is a research, marketing, and sales company which provides services to developers of new home condominium communities. In 2004, Tom Skahen, whose early career focused in the areas of real estate acquisition, development, marketing, and management, and Janice Dumont, an award-winning expert in the field of new construction design, marketing, and sales, combined their skills and created PrimeTime Communities and its “Concept to Community” approach to service developers.

PrimeTime Communities’ commitment is to building the name of the developer and designing the ultimate living experience for the homeowner.

Welcome to PrimeTime CommunitiesFrom Concept to Community


What We Do & How We Do ItServices Provided

Research & Consulting

We at PrimeTime Communities believe that a thoroughly and properly researched property is a cornerstone to a successful project. Our skilled and knowledgeable team can identify the advantages and disadvantages of a location and determine a strategy to maximize its potential. This strategy will establish the most feasible and profitable approach for the developer’s benefit.

In addition to reviewing the marketability of the project, the PrimeTime team will review floor plans, building design, amenities, and pricing to ensure that the final product will appeal to and meet the needs of the buyers within the targeted niche market.

Marketing & Design

The showcasing of a product can intensely impact its success. A product that has been properly positioned should highlight the features that create its uniqueness and set it apart from all others. These features are what will drive a buyer to NEED to purchase this property. The PrimeTime team’s project specific marketing materials, including name and graphic identity, websites, brochures, direct mail pieces, and marketing and sales centers, are designed to catch the eye and interest buyers.

Whether it’s online, in their hands, or at the sales center, our marketing materials are designed to make buyers feel comfortable and confident in moving forward with their purchases.

Sales Management

PrimeTime Communities’ sales teams are made up of real estate professionals capable and committed to delivering results. These sales professionals are dedicated to a specific community through the call center, pre-marketing, and on-site sales phases. Through their PrimeTime training they have developed skills in lead management, interpersonal relationships, and sales management which ultimately results in an efficient and effective sales process.

42

Developer


Janice DumontPartner

Janice Dumont leads the sales and marketing

team at PrimeTime Communities and uses her

creative abilities to develop new and unique

strategies for the properties we represent.

These strategies emphasize spectacular

design and staging, eye-catching advertising,

and positive buyer/seller communications.

Janice has received industry-wide recognition

for her work and has been a guest speaker for

both the National Association of Home Builders

and the Builders Association of Greater

Boston. She has been awarded the NAHB

Gold Award for National Salesperson of the

Year, the Gold Prism Award as Salesperson of

the Year, and the national Sales & Marketing

Council’s Silver Award for Salesperson of the

Year.

Janice’s professionalism and skill lead the

PrimeTime creative and sales teams to the

highest levels of achievement and client

satisfaction.

43


Thomas SkahenPartner

Tom Skahen has 20 years of experience in real

estate acquisition, development, marketing and

management. He began his career in 1990

acquiring, managing, and selling multi-family

properties. In 1995 Tom was hired by Ernst and

Young as a management consultant responsible

for real estate advisory, mergers, and acquisitions.

In 1998 he joined real estate company Epoch SL

as Director of Business Development. Tom has

performed over 250 real estate market feasibility

studies.

Tom ‘s interest in the real estate field has led him

to take on leadership roles in numerous related

associations including the National Association of

Home Builders (NAHB), The Builders Association

of Greater Boston (BAGB), and the New England

50+ Housing Council, which he founded and of

which he is a past chairperson. Tom has spoken

at conferences for the NAHB and BAGB and was

selected the 2004 Rookie of the Year for BAGB.

At PrimeTime, Tom oversees the day to day

operations as well as the consulting, strategy, and

brokerage aspects. He is a licensed real estate

broker in the states of Massachusetts,

Connecticut, New Hampshire, Rhode Island, and

Maine.

44


PrimeTime Communities - Awards

Best of 50+ Housing Awards2008 Gold Award

Active Adult Housing: Overall Community –(up to 200 Homes)

Adams Farm, Shrewsbury, MA

2008 Gold Award

Active Adult Housing: Clubhouse Interior Design – (up to 6,000 square feet)


2008 Silver Award

Active Adult Housing: Attached Home Design – For Sale Attached, over 2400 square feet


45

Builders Association of Greater Boston (BAGB)

Prism Awards (Prestigious Results in Sales & Marketing)

2007 Gold AwardBest Attached HomeAdams Farm, Shrewsbury, MA 2007 Gold AwardBest Interior MerchandisingAdams Farm, Shrewsbury, MA

National Sales & Marketing Council AwardsGold AwardNational Salesperson of the YearJanice Dumont Silver AwardSalesperson of the YearJanice Dumont

The National Association of Home Builders (NAHB)

Salesperson of the YearJanice Dumont BAGB Association Awards2005 Rookie of the YearThomas C. Skahen


PrimeTime Communities - Awards

Home Builders & Remodelers Assoc. of NH (HBRANH)

Cornerstone Awards2007 Gold Award

Best Active Adult Community


2007 Silver Award

Best Model Merchandising Adams Farm, Shrewsbury, MA

46

50 Plus New England Housing Council

Best of 50+ New England Housing Awards2008 Gold AwardBest Small Clubhouse Interior DesignAdams Farm, Shrewsbury, MA 2008 Gold AwardBest Attached Home Design 1,401 to 2,200 sf.Heritage Woods, Lynnfield, MA

2008 Silver AwardBest Model Home Merchandising Over 2,200 sf.Ocean Meadow, West Newbury, MA 2008 Silver AwardBest Attached Home Design Up to 1,400 sf.Heron Crest, Mansfield, MA


47


ADDITIONAL PRIME REPORTS

48


CONTRIBUTORS2011 Prime Report

Director of Research – Dan Hussey

Editorial Board – Tom Skahen, Janice

Dumont, and Barbara Olofson

Article Contributors –

Anthony Longo,

Webster A. Collins,

Chris A. Kulp

Coming Soonhttp://www.primetimecommunities.com/Real_Estate_Market/AA2009ReportFINAL.pdf

Click Here

Join The Conversation! PrimeTime is now on Facebook!

119 Russell Street, Suite 16Littleton, Massachusetts 01460

Phone: 978.952.6495 Fax: 978.952.6497www.PrimeTimeCommunities.com [email protected]

http://www.facebook.com/#!/pages/Littleton-MA/PrimeTime-Communities/428613020000?ref=tsClick to Become a Fan

http://www.primetimecommunities.com/


http://www.facebook.com/%23!/pages/Littleton-MA/PrimeTime-Communities/428613020000?ref=ts

2011 urban report 1.14

Documents

Transcript of 2011 urban report 1.14