Philadelphia Real Estate Blog

5 Things I know about Old City Philadelphia…

I lived in the neighborhood for 18 years- and I know of what I speak…

1) Old City is very “So-Ho” in nature- lots of people walking on the street, shopping and simply strolling around. It is really kinda’ groovy

2) Old City has but about two dozen single family homes- and a few thousand condos

3) BridgeView Place, The Wireworks, and the The Castings Condos are exceedingly similar-all built by the same developer and all offer similarly priced and sized condos. If you are condo shopping and see one building- you should see all 3 of these buildings

4) There is a “sweet spot” in Old City in terms of where most folks will ask to live- Which is east of 4th street, and north of say Market Street

5) Old city has it’s own Special Service district- uniformed folks who sweep the street and provide tourists with directions and a sense of comfort. A special tax is included for many Old City condo purchases, but a small price to pay for piece of mind.

Mark Wade

www.CenterCityCondos.com

WTF? Two Months Capital Contribution Buyers Have To Pay… Define: Two Months of Condo Fees A Buyer Must Fork Over When Buying a Condo In the old days- say 20 years ago, a Capital Contribution was a very rare line item paid by a buyer to reimburse the seller for the the contribution he or she originally made to the condo association when they first bought into any given building. Today, this fee is nearly universal in Center City, but it not longer goes to the seller- It goes to the condominium association. I think this is a great idea… You see, the more your building sells, the more money that the condo association is getting to put into their bank account. No longer does the seller get this money. The money goes to the association, and helps build the funds that will one day be needed to say, replace the roof, or do some kind of ongoing upkeep, maintenance, or repairs. I think the strength of any given condo association, and their ability to maintain a building without the need for a Special Assessment, is a function of how much money they have to fix and keep up the building- without having to go to the owners and ask them to pay a special assessment to address upkeep. So yes…if you are going to buy a condo in Center City Philadelphia, plan on having to pay two months condo fees upfront (this is in addition to the month fees you have to pay every single month) to the condo association. This fee will be on your settlement sheet, and is due the day you go to settle on your condo. Everyone pays it….so don’t think you are being singled out. And the money is not going to line someone else’s pocket- You are basically paying the condo association in which you are now a member. So cough it up…. Mark Wade www.CenterCityCondos.com

The Way I see it…

How Neighborhoods in Center City came to be (East of Broad St)

In the 1960’s the city wanted to revitalize Society Hill. They did indeed with the addition
of Society Hill Towers, and the surrounding area. Many vacant homes were sold for $1 as
long as you promised to fix them up and make them livable.
As Society Hill become popular and pricey, folks started to take their money, their lives, and
the rehabbing skills to Queen Village (QV)….though Queen Village was never as vacant and run down as Society Hill had become. But none-the-less, to QV they went.
Then in the late 1990’s, it became apparent the QV was becoming pricey, and availability of
run-down started homes become scarce, and folks then began to see the value and beauty of
Bella Vista. Back in the day, you couldn’t find a Bella Vista home for over $500,000- that kind of money was reserved for (first) Society Hill, then Queen Village.
Finally, as Bella Vista began to be known as a destination, folks started to move west into
Hawthorne (west of 11th street, east of Broad). Now Hawthorne boasts some nice houses
and some fine Hawthorne lofts.
And that is the migration of folks east of Broad Street since the 1960’s – the way I see it.

Mark Wade
www.CenterCityCondos.com

     ATTENTION DEVELOPERS….

Converting a Brownstone to Condos in Center City?

As the market begins to heat up, so does the demand for smaller associations like brownstone styled condos that tend to have lower condo fees, and a hint more character than say a high rise may possess. Here are a few hints a developer may want to keep in mind:

1) Make sure to carpet the common areas. No one wants to hear the owner of say unit 2R clomp his or her way through the halls with their high heels. Keep noise to a minimum in common areas- hardwood floor and or tile is not appropriate. Carpet these areas. Please.

2) Think about splitting your water bills up- meter each unit separately. Many buyers may be part timers or weekend city warriors, and may benefit from not having to pay for water that they don’t use on a daily basis.

3) If the city allows, and you have space in the basement, put up two by fours and chicken wire storage units. And buy a dehumidifier for the association. The minimal cost will pay for itself in terms of marketability.

4) Common Area paint should be done in a low gloss finish. And spend a few extra dollars on front door security and hallway lighting. Again, a small cost, but huge in the minds of many Center City brownstone styled condo buyers.

5) When you are done building the condos, take a step back, and put in another $2500 into each unit in terms of groovy paint, wallpaper, and lighting. You will no doubt be able to recoup every penny of that visual investment (and them some) and the condos will sell quicker. Much quicker.

Remember, your competition is going to be at least a decade or two old- so modern up to date cosmetics are exceedingly important for marketability. I find that what kills a developer in terms of profitability, is the time it takes to market a condo. A vacant condo is simply just p*ssing money down a drain.  I would suggest there is a fine line between over-improving, and hitting the market just right- in terms of pricing and your final product. Need some more advice?

Call me, Let’s chat. Mark Wade

215.521.1523 / 215.627.6005           www.CenterCityCondos.com          Prudential Fox and Roach Realtors