A majority of the units at New Boston Ventures’ 31-unit Boulevard condo development have been reserved since presales began in January.
If Boston’s luxury condominium market was defined in 2016 by the ultra-luxurious Millennium Tower’s debut, 2017 is characterized by construction of lower-profile mid-rises offering relative price bargains in the $1,000 to $1,400 per square foot range.
Such projects, according to brokers and developers, hit a sweet spot that’s in demand by a reliably deep pool of buyers as reflected in strong presales. Former suburbanites are rediscovering city living in emerging 24-7 neighborhoods from North Station to lower South End. And residents of older Boston condo buildings are upgrading to never-lived-in units at new complexes with the latest sought-after amenities.
Construction crews began pouring concrete foundations last week at developer New Boston Ventures’ $59 million Boulevard condo tower, scheduled for completion in spring 2018. Since January, 60 percent of the 31 units have been placed under reservation, said Shannon McNamara, a broker with Boston-based Campion & Co., with average prices of $1,400 per foot.
“It’s truly one of the best prices for new construction with parking: the new definition of affordable luxury,” McNamara said.
In South End, the next phase of National Development’s Ink Block mixed-use complex is positioned to capture an even lower rung in pricing. More than 50 percent of the 77-unit Siena building is pre-sold with average prices of $1,150 per square foot, not including parking, said Ted Tye, managing partner at National Development. Completion is scheduled for the first quarter of 2018.
Developer Related Beal’s 157-unit Lovejoy Wharf condos, set to begin occupancy this summer, is the only waterfront property opening in 2017, giving it a head start on Fallon Co.’s 50 Liberty and Tishman Speyer’s Pier 4 condos, set to hit the Seaport District in 2018. Lovejoy Wharf has no on-site parking, a gamble by the developers reflecting the proximity to North Station and a potential future commuter ferry to the Seaport District. Buyers also will have the option of securing parking at The Beverly, Related Beal’s complex across Causeway Street. Developers of in-fill projects on former parking lots such as the Boulevard and 10 Farnsworth in Fort Point are building automated parking systems to maximize the efficiency of small sites.
Gauging The Limits Of The High-End Market
Tishman Speyer’s Pier 4 condos and Carpenter & Co.’s Four Seasons Private Residences at One Dalton in Back Bay will test the depth of the high-end buyer poll upon completion in 2018.
While Millennium Partners’ marketing strategy included outreach to Asian buyers to help fill the 442-unit Downtown Crossing tower, Pier 4 is likely to attract mostly Greater Boston buyers, said Janice Dumont, CEO of Advisors Living.
Pier 4 recently opened a sales office at the end of the South Boston pier previously home to Anthony’s seafood restaurant, where a 1-acre public park will open upon completion of the condos and a 353,000-square-foot office building. Initial asking prices range from $2,000 to $4,000 per foot, a reflection of the complex’s resident services package and waterfront views on three sides.
Pier 4 and Fallon Co.’s 120-unit 50 Liberty tower at the Fan Pier stand to benefit from the Seaport District’s retail development boom, Dumont noted. That’s set to accelerate this summer with the opening of 250,000 square feet of shops and restaurants beneath the Benjamin and Via apartment towers.
“Our focus is on the building and the uniqueness of the location,” Dumont said. “People now see the Seaport as a vibrant, energetic neighborhood, so they’re migrating to be near the water and what’s happening down here.”
“Our primary focus for the initial sales cycle was to follow up with the extensive inquiry list for both buildings first, and given our focus on customer service, we knew we’d be working with the brokerage community to satisfy client needs at one point, and we’re at that phase now,” CEO Joe Fallon said in a statement.
With completion of the 61-story Four Seasons projected in late 2018, developer Carpenter and Co. is using designer interiors and art exhibits as a differentiator. British adviser Kate Chertavian will curate exhibits in residential common areas and the 215-room hotel on the lower levels.
Carpenter and Co. CEO Richard Friedman has indicated he’ll seek record-breaking prices for Boston in the slender tower overlooking Christian Science Plaza. Friedman told Bloomberg in April that one unit has been placed under agreement for $40 million, which would top last year’s $35 million sale price on the Millennium Tower’s penthouse.
The Four Seasons’ price structure will almost certainly require a substantial international buyer element, said Sue Hawkes, managing director of The Collaborative Cos.
“At the high end, there’s only so many local buyers that can afford or are willing to spend the price tag,” Hawkes said. “Therefore, we have needed to expand the market and Boston has been more inclusive in this cycle. There’s a level of recognition of Boston in the worldwide marketplace that’s astoundingly different than ever before.”
Editor’s note: This article originally included information about development at Pier 4 published in error; it has been removed. The article has also been updated to clarify that although there is no on-site parking at Lovejoy Wharf, parking for residents will be available at The Beverly.
