State Of The Union: March 2015: A building by building update
It has been a while since I painted some color building by building. That said, I wanted to run through the latest happenings and prospects of various buildings around Midtown and Buckhead. For the most part, the economics remain the same. There is no new supply to the condo market, and as the economy improves month by month incremental buyers continue to enter the demand side of the equation. Of course I say there is no new supply, and there really has not been any condo building of over 40 units built in the past 8 years, but there is one development finally coming to market. Since we were one of the top brokerages selling 1010 Midtown new constriction units, ATL Condo Deals has been invited to preview the Midtown Loews Residences which will be branded as The 1065 Peachtree development. This group of about 80 condos (I do not have the exact figure in front of me), consists of 2 and 3 bedroom units starting at around 2,000 square feet a unit. I suspect pricing to start in the $500/sq. ft. vicinity, but I suspect it could be even higher.
In general the condo market in both Midtown and Buckhead is roaring ahead. The Buckhead Atlanta development has brought new life to both the commercial and residential real estate markets and the increases in values coming out of Buckhead seems to now even be out pacing Midtown. Below are my current thoughts on a number of buildings that ATL Condo Deals does business in.
Midtown
Viewpoint
As one acquaintance (and fellow Viewpoint owner) said last week, there seems to be a lack of supply of units for sale. He called from NY, and was wondering if at this point it would be worth it for him to sell, even though he has a lease permit. As prices have climbed more and more investors are at least considering selling. Over the next few years, I suspect many of the long waitlists to lease at places like Viewpoint, Spire, Metropolis or Eclipse will shrink down from an estimated 4-5 years to 2-4 years as there will be greater churn in the investor units. Unlike last year where at one point in April there were I think 17 units listed for sale. It was a glut, much of it driven by fear of the proposed new development between 5th+6th and Peachtree. This year, as of today there are a few units pending sale, and only one home active a top floor large 3 bedroom Penthouse for 1.2 Million.
The are development plans for between 5th and 6th and Peachtree, but who knows when it will be developed. If you have a 16th floor unit at the Viewpoint, dead center of the building facing South will your view likely be blocked? Well, yes, yes it most likely will. In cities like NYC, Hong Kong of Chicago, prices don’t go down as the city is built up. Sure views get blocked but think of it as the Gas Stations along the interstate exit. The critical mass of two to three stations often brings incrementally more traffic then each station could get if spaced out individually. Viewpoint remains one of my top ideas in MIidtown. It remains one of the nicest, tallest, newest buildings, with a spacious lobby and large amenities package. Year to date with nearly 1 million in sales here, my clients (past current and future) continue to consult me for my opinions.
1 bedrooms are currently trading in the Mid $200k range, and 2 bedrooms are currently trading in the high $300k range, with 2 bedroom high floor corners easily listing north of $400k. The one bedroom plus dens which are roughly 800-870 sq. ft. remain one of my favorite ideas for the young professional who may need to move in a few years. In the mid to high $200k range these are great units with the added space someone may need over a smaller 1 bedroom. Once of my clients closed on unit 2508 a few weeks ago and loves it.
1010 Midtown
This building continues to lead the pack in Midtown pricing and appreciation. Being in the center of Midtown at 11th and Peachtree it has location and its sleek design still going for it. Currently the cheapest, and only, 1 bedroom is listed at $309,900. There are three high floor pending sale 1 bedrooms that were listed in the upper $200k range, near $300k. This building for a low floor 1 bedroom starts around $270k, higher floor 1 bedrooms, and those with the premium views down Peachtree easily list and sell for north of $300k. Two bedrooms of around 1200 square feet currently start in the mid $400k range, around $360-380 a foot.
1010 remains a prime destination for those moving from overseas, New York, or Los Angeles. Its modern finishes and features are on par with what you would find in other large cities and the maintenance fee per square foot is one of the cheapest in Midtown. The prospects for 1010 Midtown are as solid as ever.
Metropolis
This building is interesting. Prices are for sure up the past few years and it seems like there has only been one 2 bedroom listed over the past 3-4 months. It is now under contract. Over the past month a number of 7th-9th floor units in the North side building have come to market. There was a rather impressive case of water damage that happened. Seems all repairs have now happened to all units, but a number of owners have decided to sell. These are all around 700 square feet, and are like large alcove studio/small 1 bedroom (again no wall though) units. These units are all listed for between $174,900-$179,900 at least one of them includes a storage space as well. Storage spaces here are roughly worth $6000-8000.
I expect this “sale” on 1 bedrooms to be over by the end of Spring and for the building to further advance. Given this short term glut, smart buyers would be wise to pick the best unit and BUY.
Spire
This building is trending up with the market, there are currently 8 units pending sale. There are no 1 bedrooms for sale, and three 2 bedrooms in the low $400k range. Again, an utter lack of inventory for all of the scores of Georgia and incoming out of State Buyers. Viewpoint is a better play for two bedrooms at these pricing levels. Spire 1 bedrooms under $200k remain a great play.
Plaza Midtown
This building had a glut of 2 bedrooms for much of 2014. It held the prices down, and this is currently the last glass building in Midtown where you can still (for now) find a 2/2 in the low $300k range. Currently the 2/2 units range from $329,900 to $369,900, with one pending sale at $339,900. There is a 1 bedroom that was listed at $217k that is currently pending and another which is active and available at $226,900.
The new NCR corporate HQ, coupled with continued encroachment from Georgia Tech has this Western section of Midtown buzzing. Being able to pick up a 2/2 here for say $320-330k is a steal and those who act will be rewarded in the years to come.
Buckhead
Buckhead Grand
This building is “on sale” now. There are currently an overabundance of 2 bedroom units on the market and that has lead to four 2/2 units currently being priced at $289,900-$325,000. This a great building and to be able to secure a 2/2 for say under $320k is my best value in Buckhead. There are much more expensive high floor 2 and 3 bedroom units with far superior views and floorplans, but for the price, you simply cannot beat the value below $320k.
The two 1 bedroom listings at $179,900 (unapproved short sale=fake price) to $235,000 I am far less enthusiastic about.
Eclipse
Has always been one of, if not my top pick for building, location, crowd of people, ect. With Buckhead Atlanta now near complete next door the thesis remains in tact. There is a glut of 1 bedrooms, primarily on low floors that have come to market. Like 10 units! These are all priced $185-210k. Higher floors units are priced a little higher. A better value are the two 2 bedroom, roomate style floorplans listed $300-315k. I am not wild about both of these 2 bedroom floorplans since they are only 1000-1060 square feet, but one of them does have a great view and it is a corner unit.
Eclipse, has no where to go but up. Many 1 bedroom owners are currently seeking to cash out, but once that selling dissipates, I expect the next leg up for both 1 and 2 bedroom units.
Summary
Overall, prices will continue to move higher. Rents have increased so much that it continues to push more and more people into the Home Ownership market. The only immediate risk I see is if interests rates move up more then 1% above their current rats in a very short span of a few months. As always, our clients stay in the know with real time listing alerts and data. Email or call to set up your alerts today.
