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September 29, 2014
1) 2301 Cherry St– The condos are selling at a pace I haven’t seen in a decade at Rivers Edge. Major assessments are helping and you just can’t find these values in 19103 with parking in a doorman building.
2)1352 South St. Condos– Began a new marketing campaign earlier this year. When that is over and the building sells out- I would look for prices to spike as the current $/sf is very competitive.
3) Low Rise Condos in 19107 – The overall lack of inventory and “DOM” (days on market) for this set shows a trend for potential future growth. One key is proximity to Jefferson Medical.
4) The Rittenhouse Hotel and Condominiums – Recent sales have primarily been original condition units which have artificially set the bar at a low point in terms of resale prices. Once that inventory gets soaked up- Prices are going to jump in the building in my estimation. The competition just isn’t there for such a fine building on the Square.
5) Center City One Condos– 1326 Spruce St. The lines have already started- buyers looking for a two bedroom two bath unit here will compete with each other for the next unit to appear. A new benchmark will be set…that is pretty clear to anyone who has kept their eye on the Center City condo market. I mean…even a blind man knows when the sun is shining 🙂
Oh, and of course 1706 Rittenhouse!
Tags: Center City condo, center city philadelphia condo, condominiums, condos in Philadelphia
September 15, 2014
Listen, I get it…everyone’s favorite punching bag is his or her condo board. Often maligned, and more often than not, the criticism is not just or warranted. It is a thankless job- just be happy someone is doing it, and doing it for free. Here is what I would make sure is happening in order to preserve my value as a Center City condo owner, and member of the association, just in case. These are huge. You might want to take notes:
1) Make Sure The Building Stays At Least say 66% Owner Occupied
by restricting an over abundance of rentals. 75% is even better.
2) Make Sure The Building is FHA Approved- this is easy and shouldn’t be overlooked. I am amazed when I see how many condos around town AREN’T FHA approved…(FHA approved condos really open up the building to first time buyers who may not have the usual 10% down or more needed to buy a condo).
3) Put 10% of monthly condo fees into a reserve for improvements beyond
just the day to day and month to month expenditures.
4) Make Sure the Building is being maintained. Do not hesitate to spend. Spending on cleanliness of the building will provide your best return. Think…exterior paint, hallways, foyer, etc., especially for smaller associations.
Visual presentation is HUGE for resale.
5) Larger associations should have a website that highlights the building, amenities, and give as much info as possible to the buying public. They have nothing to hide…so highlight the information for perspective buyers. Take a look at Society Hill Towers website…a great example.
Value retention is an elusive trait in the hands of amateurs. And I am not aware of any qualifications needed to sit on a condo board- beyond basic ownership in a given building. Most associations around town do a fairly good job, but some fall prey to the pitfalls that can lead to a fairly rapid decline in condominium values in specific buildings. Best to keep your eye on the signs that may point to a downward spiral in condo values within your building. The above list is written as a guide, one that it may be advantageous to follow. I am not suggesting that your values are going to spiral if one of these points is ignored…rather a combo
of events can lead to downward values.
Here is what I have seen in simplified terms:
Condo board runs amok of rules that keeps the building easy to finance (FANNIE MAE WARRANT-ABLE). New buyers have to then put 30% down or more to buy. This cuts the resale market in MANY buildings. Units then don’t sell, sellers start to compete with each other, prices fall, and more owners begin to rent their condo out. This downward spiral is difficult to reverse. By having a board aware of these pitfalls, your building should easily be able to remain warrantable and easy to finance. And IF your building has a fair share of condos that might sell under $420,000 then there is NO excuse for the building not being FHA approved.
So here is the moral of this story:
It is indeed your money- You paid for the condo, and that investment is just that- an investment. You should be standing up and saying something if you see your board veering off the course of a clear path to value and value retention.
Invite me to your next condo board meeting-
I’ll give them the “what for”
Or if you are a board member of your association,
give me a call and let’s chat about how you can
implement some of these guidelines if you like…
Tags: Center City Real Estate, condos in Philadelphia, philadelphia
August 25, 2014
-Dranoff is holding a VIP Realtor Sneak Peek on 9/3/15
for his new condos in Fitler Square named “One Riverside”
to be built at 25th and Locust.Watch these condos fly off the shelf
~
-The Hopkinson House is getting ready to do some pretty
heavy cosmetic changes to its lobby starting any month now
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-Center City One Condos at 1326 Spruce continues to beautify
its premises with the completion of hallways- And are giving
owners the option of changing out their windows- fabulous!
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-A plethora of small low rise condo buildings around Old City have sprung
up recently including 109-11 Church St. and 142 N. 2nd St- Nice infill
into a nicely established neighborhood.
~
-220 W. Rittenhouse – Once mentioned by Philly Mag as the least
attractive lobby on Rittenhouse Sq. is in the midst of adding
substantial visual appeal to its lobby area.
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-Resale values at Ten Rittenhouse have shown to be strong in terms of value growth
over the past 3-4 years since first becoming occupied
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-The Ritz-Carlton is selling like crazy. I mean really well….
~
-In my opinion, the most difficult segment in terms of little or no inventory
would be a two bedroom in 19103 under $600k. Hell, even
a really sweet one bedroom under $500k for that matter.
~
over the next year as sales have spiked as the building has been
assessing and upgrading. Bravo.
Tags: center city condos, Center City Real Estate, condos in Philadelphia, Philadelphia condominiums
August 18, 2014
Like haircuts and waist size, many things have a tendency to change over time. Here are some notable changes I have seen to the Center City condo market over the past 25 years- 1) The Disbursement of Wealth – In the mid 1980’s, if you had a million dollars to buy a condo, you landed on Rittenhouse Sq. and probably in 1820 or 1830 Rittenhouse. Today- your imagination and money can take you to far away exotic places like- Old City, Bella Vista, and the Loft District. Large high-end condos have spread around town to almost all neighborhoods.
2) The introduction of “High End Low-Rise/Brownstone” styled condos- The defeat of many a high end brownstones over the years was the lack of an elevator. Anyone looking to buy high end in a brownstone probably isn’t going to be fond of stairs. From 1030-2 Spruce (Knightsbridge Condos) to the lovely 1904 Spruce and 2138 Lombard, the high-end market is finding its way into groovy Brownstone and soft loft conversions- with elevators.
3) No trend in Co-op growth- No new ones since before the mid-1980’s. They fly well in NYC, but never really caught on here in town in terms of their growth in numbers. 1901 Walnut is the premier co-op building in town…a lovely pre-war on the north side of the square. Very handsome building…and I fail to see how the fact that it is a co-op has diminished its value.
4) Lower Than Expected Conversion Projects- Yes…we saw the Grande, The Ellington, The Phoenix and a smattering of other re-used office buildings. But with the inventory and location advantages some of these older places have- I am surprised we haven’t seen more conversions. I would look for more conversion projects in the next wave of construction.
5) Zeroing in on condos near Jefferson and U of Penn- The growth of small and large size condominium buildings around Jefferson Medical for example has proven to be one of the easiest, sure-fire ways for many condos to find buyers. Like shootin’ fish in a barrel. Ditto for U of Penn area. Builders are filling a market need, and there are some smart buys in both areas. Huge growth segment.
Mark Wade
Berkshire Hathaway Home Services
Fox & Roach
530 Walnut St. Suite 260
Philadelphia, Pa. 19106
Mark@CenterCity.com
Tags: center city condo for sale, condominiums, Philadelphia condo
August 11, 2014
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 Berkshire Hathaway Home Services Fox and Roach Realtors
Tags: brownstone condo in Philadelphia, condominiums, philadelphia
August 4, 2014
There is something to be said about model homes. I love them. I want to buy everyone I see. Brand spanking new model homes-versus-character laden, gorgeous, historic homes- which do I choose? The great thing about Philadelphia real estate is that there are fantastic properties at both ends of the spectrum.
While I am a veteran home flipper (my brother and I have bought, rehabbed, and resold 140+ Philadelphia condominiums and town homes) I have to admit I am intensely attracted to the pretty residential faces of model homes.
It really is an occupational hazard! I want to move every week. This is in spite of the fact that the Philadelphia loft condo I currently share with m other half has been featured on HGTV.
We rehabbed our circa 1813 Old City condo (with three-car parking inside a really cool private gated courtyard) from scratch. We chose every material and item in it ourselves. Okay, we grossly overspent. But, we also won the 2005 Philadelphia Magazine’s Kitchen of the Year Contest.
But like a lot of you who love historic Philadelphia real estate, I also love model homes. I used to preach the mantra of “With a town the brought you Betsy Ross and Ben Franklin, historic homes sell-well!” And although I do throw that line out there to buyers from time to time, the truth is I’m a sucker for Philadelphia’s new construction model homes.
Am I a hypocrite? Should I not utter what I covet?
When you see what’s available in terms of model homes, you can’t help seeing the benefits of owning one of these properties.
I am telling you, give me a new construction ranch house, with a driveway, garage, patio, and 1/4 acre yard in Old City-And I am willing to bet that I would go directly into the intersection of Broad and Walnut Streets, and dance a bit… right there in the middle of the street. Honest.
Of course, that ranch house has to be “Model Home” gorgeous. You know, with all the latest designer furniture, wall coverings, hip features, new paint, etc.
It’s all about life style. Getting into a house or Philadelphia condominium that doesn’t require any work so you can sit back and enjoy your new property is a big bonus. I know I would love that type of lifestyle with all my heart. And never, ever, ever want to leave. That’s right, never.
Until, of course, the next time I was out showing a buyer a new construction penthouse condominium with gorgeous outside patios. Slowly but surely all closet doors are being slid open, rooms explored for the first time, kitchens ogled and bathrooms admired, that feeling will come over me again.
I’ll be struck with the itch to own one of the amazing model homes available on the Philadelphia real estate market. And you’ll find me back in the intersection of Broad and Walnut Streets doing my own crazy version of the model home dance.
Whether you want to buy a new construction or historic beauty, I can help you get the best price and terms. ( I can even help you choose between the two.) Give me a call today at 215-521-1523 pr drop me an email at Mark@centercity.com.
Tags: center city condos, condos in Philadelphia, Philadelphia condominiums
July 29, 2014
Remember the olden days when the Sunday paper would arrive and you would get out your red felt tipped marker, then circle the open houses you wanted to see?
That was so 1997….Those days are all but gone- having been replaced by the advances in internet marketing for condos. Additionally, more and more Center City Condos are forbidding agents to hold Open Houses- ever.
It is said in Real Estate circles that open houses are NOT for sellers- they are for agents trying to pick up buyers. To a degree, I agree. More so with the fact that videos, virtual tours, podcasts, blogs, multiple photos, etc are easily found with a quick Google search. And most Realtors’ websites can give you a lot more than you can learn at an open house- think neighborhood stats, crime reports, etc., not to mention the gossip and dirt you can pick up on your neighbor’s house. If someone is seriously in the market for a condo, they are going to view your listing if they are interested- Open House or not.
I usually find that Open Houses tend to cut down on the weekly traffic- the more people who see it at an open, the fewer weekly appointments one will find in terms of buyer traffic. And of course, we are all aware that Open Houses usually beget nosy neighbors, passersby, and the like. With overall traffic down on Open Houses over the past decade (in my experience)- how long before Open Houses will go the way of land lines and flip phones? Probably not long.
FYI-Center City Open Houses are usually ONE hour only- Get in, then get out. Suburban agents can spend 3-4 hours at one open house. How utterly boring. I think I’d rather drink bathwater than to sit in a house on a Sunday for four hours.
Tags: Center City condo, condos in Philadelphia, philadelphia realtor
July 21, 2014
Here are 10 things NOT to overlook…
1) Buyers today appreciate security, but is an alarm system necessary? Probably not. Try installing a “dropcam” styled camera inside the front door of each unit- And owners can get an instant email IF and WHEN someone enters their unit- day or night, even if owners are on the other side of the planet.
2) Recharging Stations- How about a little shelf by the front door of each unit that will recharge cell phones and devices by simply placing the devices on that shelf? Any buyer with a cell phone could get very excited about such a feature.
3) Pet Policies- I would suggest your building needs to be pet friendly- but not for tenants. Breed restrictions and size restrictions may also be in the overall best interest of the buying public.
4) Two Month Capital Contribution- New buyers need to add to the “kitty”…very common and a great way to jump start the reserves. This practice is now standard in Center City Condos around town.
5) Virtual Doorman- Looking to keep condo fees in check? Try a virtual doorman- Activity can be monitored offsite but still give the sense of security to the condo owners. Many newer buildings are going this route to save on condo fees.
6) Electric Automobiles Plug In Bays. One day soon, this will be a must for all new buildings. And don’t forget to save at least one parking spot for car sharing purposes. Bike sharing might not be a bad idea on your property as well.
7) Be as Transparent As Possible- Post the true sale prices of each unit- not just asking prices. Shove the info into the faces of potential buyers. They will without a doubt appreciate your candor and transparency. Shady is not going to work for you…trust me on that one.
8) Don’t Forget The WOW Factor- Let’s face it, unless you are buying at the Ritz Carlton, or some other “A” building, chances are the finishes and model units are not going to as appealing as they possibly can be. Change that. I am begging you….Nothing sells better than stunning visual finishes! Get a little crazy because no other developer will dare to do so…
9) Parking- Important for larger units, but if the location is fairly central, will probably not be important to studio, one bedroom, or even smaller two bedroom condos.
10) Make Sure Your Sales Office Is Realtor Friendly-
Offer free parking, allow Realtors easy access without the mandatory one hour tour. Scrap the stupid rules and long info forms buyers and agents must fill out that most . NOTHING CAN KILL SALES FASTER than pissing off the Real Estate Community.
Want to learn more about how to make your
new condos fly off the shelf?
Let’s chat…..
Tags: Center City condo, Philadelphia condo, philadelphia realtor
July 14, 2014
I am often asked by condo owners to offer tips on getting their condo to “Show Well”. Here are the 3 quick easy tips for maximizing the showing ability of your Philadelphia condominium:
1) Go to Ikea, and buy a floor to ceiling curtain and hang it from ceiling height, in front of your bathtub. This is not going to take the place of your shower curtain, it is simply going to add some dramatic effect to the bathroom. It is quick, cheap, and has a powerful punch in terms of the emotional appeal of your Center City condo.
2) Paint an accent wall. Preferably, one that is opposite the entryway to any given room. I like to see fireplace walls accented in somewhat neutral, yet enticing colors too. Like a chalky blue, or green. Painting an accent wall will give a hint of flavor to a room, without overpowering the room with massive color.
3) Replace the knobs on the doors and drawers in your kitchen and bathroom. And don’t buy the 99 cents knobs either. Go to Pottery Barn, or Restoration Hardware, and spend a few dollars. Believe me when I tell you, they will help even a somewhat tired kitchen look a bit refreshed.
That’s it. Three quick easy steps for maximizing the interior “curb appeal” to your Center City Condo!
Mark Wade
www.CenterCityCondos.com
Berkshire Hathaway Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106
Tags: Center City condo, philadelphia, philadelphia realtor
July 7, 2014
Here are a few things that you may not have known are pretty standard in condo docs in Center City:
1) Almost all associations charge 2 months capital contribution- means you pay 2 months condo fees to the association- not the owner, but the association- Helps build the kitty.
2) You better check the pet policy- A few years back a young woman bought a Philadelphia condo at Locust Point, then had to sell because she ignored the pet policy- her dog was too big. And she of course wasn’t parting with the dog, so she parted with the condo.
3) Rental Restrictions- Becoming more and more common in condo docs and their rules and regs- which can be a huge value-preserving tool for the association.
4) Future Assessments- Will tell you if any assessments have been approved for the future. Not “discussing assessments” but real approved assessments. There is a difference.
5) The Budget- This is a biggie. You may want to see how much $$ is on hand for future improvements- should correspond to building size and age. New buildings have little reserve- and often, they don’t need them- there is no differed maintenance beyond cosmetic often.
In the state of PA., you have 5 days or 15 days to review your condo docs depending upon the type of Center City condo you are buying- used or new.
Mark Wade
Berkshire Hathaway Home Services Fox & Roach Realtors
Mark@CenterCity.com 215.521.1523
Tags: Center City condo, condominiums, Philadelphia condo
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