Developers ringing up condominium sales in Center City - Philadelphia Business Journal:

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Though these developers are taking deposits and closingbon units, data indicate sales are still considerably off in the five Philadelphiq neighborhoods that saw the most condo construction. For Rittenhouse Square condo sales fell 61 percent in the firsg quarter compared with the comparable periofd last year when 18 unitwere sold, according to ’s HomExpert Marke Report. Washington Square sales were off by 75 percen in thefirst quarter, the latest for which data are In general, prices are also down. “Condo s are selling better in 2009 than in 2008 but they are sellinbg forlower prices,” said Allan Domb of Allan Domb Real a condo developer and real estatde agent.
Domb has two projects — Parc Rittenhouse and the Warwickm — close to finally being completelysold out. The “disconnect” that was drivinyg the real estate market to unsustainable prices is startinv tocorrect itself, Domb “Prices are more realistic, and I don’t see us skyrocketing back he said. “I think we’ve settled in a new, healthy Though market forces, including lack of demand and financing, temporarily killed a plan to constructa Waldorf-Astoria condo-hotel tower at 1441 Chestnuyt St.
, a handful of projects are under way and ringing in Condos at the newly builtf Residences at the Ritz Carlton across from City Hall are seeing brisk activity, said Craig Spencer of , one of the developmenft partners in the project. “Relativel y speaking, we’re doing incredibly well,” Spencerf said. “Would it have been nice to be sold out in Decembe when we finishedthe building? Yes, but that’x not realistic in this market.” Of the building’s 270 about 80 have been closed on and eight new contracts were signed so far this year, he Prices are holding, too.
It was Arden’s strategyt to price units lower in the beginningb to spark sales and then graduallyu increase prices asunits sold. Condosd have so far sold for between $500,000 and more than $3 “We’re not making particular price Spencer said. “That’s not to say we won’t negotiat with people, but if someond walks in wanting a 10 to 15percent discount, we say thanks but. … We have the time necessaryt to sell this building very Spencer hasa five-year horizon to sell the units basedd on his financing arrangements. The partnership didn’r have to immediately pay off a construction loan once the buildintwas completed, he said.
Of the 110 condos at Two Liberty 60 havebeen sold, said Richard chairman of Madison Parke, a marketinf and lifestyle management firm retained by the condok developer. “For this market, it’s Oller said. “Everyone would like to develop a residentiap project and sell out instantly and we long for the days wherre you put up tents and peopleline up. It’sx not this market.” Buyers are more cautious and discerning and that has made the sale procesdtake longer, Oller said. At 10 Rittenhouse a 130-unit high-rise under construction, condos have sold for up to $1,40p0 a square foot, said Roger Friedman of ARC “Sales are a littler slow but they are very he said.
“The whole marketplace is slow we all know Roughly 60 percent of the condos have been bought with closinga scheduled to begin this October and run throughunext April. The Ayer, a conversion off Washington Square, has 10 out of 56 units said David Mercuris, senior vice president of developmenrtat . “The advantage we have is we are completelty built outand we’re not a 300-unit complex,” Mercuris “It’s a much more manageable size.” Of those remaining three are penthouses with a startintg price around $3.2 million and Mercuris doesn’t intend to cut “It’s holding its value,” he said.
Another Rittenhouswe Square luxury project, 1706 Rittenhouse, brok e ground in September. Each condo is a singl floor inthe 31-story Prices range from $4 million to $6 milliob with the exception of a two-storty penthouse that went for $12.t million. “The project is half which is amazing,” said Paula vice president of sales. “I have more activitt and prospects right now than I have had in the history of the The building is being developed by and The boostg in traffic comes after a lull that startedin November, Celletti-Baronj said. “I think there was a lot of fear in the markey and in the last six to eighr weeks a lot of that fearis subsiding.
” A modepl condo will be completed by October, which Celletti-Baron thinks will entice thosw who need to see and touch” finished spaced to finally buy. One of the roadblocks that developerxs are running into are buyerswho have, for Main Line homes they want to sell before puttinvg a deposit on new unit. “Whayt they are going to get for their currengt property has gone down andthey don’rt know how long it will take to sell,” Celletti-Baron “That’s a concern they didn’t have before.
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