A recent Institute for Policy Studies report offers a decidedly negative view of both the city’s luxury residential market and the homebuyers who support it. The study’s argument that the luxury buildings are populated by faceless corporate entities and international buyers seeking to park their money ignores a larger and exceptionally positive outcome for the city. (Full disclosure: As the principal of a full-service residential and commercial real estate brokerage firm in the Boston market, I represent many real estate owners and developers.)
First, the burgeoning community of luxury condos in Boston is, in economic terms, a net positive for the city — providing significant tax dollars and job opportunities. Contrary to the study’s one-sided viewpoint, luxury development in Boston provides new residential opportunities for those who are looking to move into the city.
In addition, the report seems to view ownership by international buyers as an inherently nefarious undertaking, calling one tower a “classic wealth storage” property. The study’s authors seem to have a decidedly dim view of international real estate transactions — perhaps based on data from other markets such as New York City and Miami, which have experienced an influx of problematic transactions and slow city reaction.
Boston is on the world stage for many respectable reasons — education, medical, life science, technology, and finance. As such, the Boston real estate market has and always will attract local investors, as well as equity from throughout the United States and around the globe.
I’ve worked with many types of investors and home buyers throughout my more than 20 years of working in Boston real estate. My experience is that the majority of the international buyers in Boston are connected to Boston in a variety of positive ways. They buy a home here because their child is attending a Boston university, or they want to be near our world-class medical care, or they are relocating to here for a well-paying job in the tech, medical, life science, or financial services fields.
One of the study’s primary negative data points is that 64 percent of luxury condo owners in the sample do not claim their residential exemption, which the study calls “a clear indication that the condo owners are not using their units as their primary residence.” However, this point is superfluous. The requirements to obtain the exemption are time consuming and unwieldy for an annual exemption that amounts to only a few hundred dollars for most homeowners. As such, many people who purchase luxury units will not spend the time on something with such a small benefit.
Instead of depending on subsidies and rent control like other cities, Boston’s affordable housing policies create a virtuous cycle wherein the more projects that are approved, the more affordable units are delivered — thereby creating a robust workforce with the buying power to fill them. Moreover, every new residential development increases Boston’s property tax base – which helps the city become socioeconomically appealing to all – thereby attracting more and more residents.
While decrying projects like Millennium Tower in Downtown Crossing, the study ignores the fact that annual real estate taxes generated from Millennium Tower singlehandedly exceeds $12.6 million — equal to paying the annual salaries for 303 teachers or 168 police or 136 firefighters. Yet the number of police and fire calls to this building was four and the number of children using public schools is de minimis.
Thrilled to read about the stunning, luxury homes The Archer Residences Beacon Hill in Boston Common Magazine’s October issue. Turn to page 70 for Marni Katz’s article “Great adaptations” to learn about The Archer’s beautiful interiors, finishes, and amenities, and message me if you are interested in touring the one-of-a-kind sales center in Beacon Hill.
BOSTON, MA (August 8, 2018) – Boston Realty Advisors (BRA), the number one independently owned real estate advisory and brokerage firm in Massachusetts, announced today its expansion into Nantucket, MA. BRA has named its newest division – Nantucket Realty Advisors – a full service brokerage, assisting home buyers and sellers, along with assisting clients with vacation rentals.
The state-of-the-art office is located at 15 North Beach and will be managed by sixth generation Nantucketer, Angel Conrad Frazier. Ms. Frazier has more than twenty years of experience working with buyers and sellers on the island. She said, “I have a native responsibility to preserve the DNA of Nantucket.” Mrs. Frazier continued, “The Island and its residents have perpetually maintained a sophisticated mix of class, respect and discretion – a rare combination that my new partners at Nantucket Realty Advisors genuinely exude.” Angel will be joined by some of the most seasoned professionals from Boston Realty Advisors, including Jason Weissman, William Catlin, Tana Weissman and Janice Dumont.
To comprehend BRA’s expansion into Nantucket, it helps to appreciate who Boston Realty Advisors is off the island. BRA is an established real estate thought leader throughout New England. A few notable and relevant highlights include marketing Pier 4 Luxury Condominiums in Boston’s Seaport, a world class development by Tishman Speyer and the management of office and retail leasing at Faneuil Hall Marketplace for Ashkenazy Acquisition Corporation. BRA additionally collaborates with elite clients such as Jamestown, AIG and The Davis Companies. Furthermore, BRA’s investment sales division has completed over $1B in middle market transactions in the last five years.
The resolve to open an office in one of the world’s most recognized islands was supported by data and comprehensive research on Nantucket and the strength of the second home market. A downloadable snapshot of the analyzed data-set is available to the right this release.
Jason Weissman, CEO of Boston Realty Advisors said, “Nantucket is a logical expansion for our white glove residential brokerage platform.” He continued, “Our presence on Nantucket will create numerous synergies with our diverse client base; on and off the island.”
Nantucket Realty Advisors is co-hosting its grand opening party alongside N Magazine on Friday, August 10th – 6:00pm-8;00pm – at 21 Broad Hotel in Nantucket. Join Jason Weissman, CEO of Boston Realty Advisors, Bruce Percelay, Chairman and Publisher of N Magazine and the Nantucket Chamber of Commerce for cocktails and hors d’oeuvres to celebrate the essence of Nantucket and world-class service.
The Nantucket Realty Advisors inaugural celebration will help launch the busiest weekend on the island. The annual Boston Pops on Nantucket attracts over 46,500 visitors.
Manuel Davis, senior vice president with Advisors Living, is the property’s exclusive listing agent.
“The Archer Residences offers a unique blend of elegantly designed and spacious layouts, beautifully complemented by some of the finest finishes that I have encountered in today’s real estate market,” Davis said in a statement. “Given its Beacon Hill address, sense of community with 67 full-service homes, and modern amenities, including onsite underground valet garage spaces, discerning clients are acknowledging how rare and unique this opportunity is.”
The 67 units range in size from 1,200 square feet to 3,000 square feet, while the penthouse will span 6,000 square feet. Amenities include a kitchen-equipped roof deck, children’s playroom, pet spa and bicycle storage. The four-bedroom, four-bathroom penthouse, meanwhile, includes a 2,350-square-foot terrace, gas fireplace, infinity-edge jacuzzi, grilling stations and a fire pit.
On-site underground valet parking and 24-hour concierge service will be offered at the Archer Residences, a 67-unit condo building at 45 Temple St. in Beacon Hill slated for completion in late 2019.
Other building amenities include a fitness and wellness center; a club room with a private dining space; a playroom; a pet spa; a boardroom; and a 4,800-square-foot roof deck with views of downtown Boston. The roof deck features seating, a kitchen, and sustainable plantings.
The Archer Residences will offer one- to four-bedroom units priced from $1,500 to $2,500 per square foot, depending on the home, Manuel Davis, senior vice president of residential sales at Advisors Living, the property’s listing agent, wrote in an e-mail. The homes will range from about 1,100 to 3,500 square feet and will feature details like high ceilings of 10 to 15 feet and windows that are 7 to 11 feet in height. There are two styles of kitchens, and some will have walnut finishes, marble counters, and copper hardware.
The homes will be backlit with LED lights and include recessed lighting throughout, according to Davis. The homes will also come with CinemaFrame, which is a concealed home entertainment system, and surround sound.
The most exclusive suite in the building will be the Archer Penthouse. The 6,000-square foot, two-story unit will have four bedrooms, four full baths, two half baths, and a 2,350-square-foot terrace with a gas fireplace, an infinity-edge hot tub, grilling stations, and a fire pit.
The building’s lobby will be decorated with artwork curated by Boston Art and have a fireplace and a concierge desk with a bronze waterfall countertop. Materials used in the building’s common spaces and residences will also include polished copper, imported marble, white oak hardwood, custom limestone mosaic flooring, and curated lighting fixtures, paneling, and wall coverings.
“All the materials are sleek and timeless yet steeped in craft and tradition. They are truly a step above what you may encounter at other luxury properties,” John Day of LDa Architecture and Interiors, one of the companies involved in the development and design of the building, said in a statement.
What was once a neighborhood characterized by its affordable property values and family-run restaurants has transformed into a rapidly-developing market filled with million-dollar homes. In 2018, the average sale price in South Boston skyrocketed to $803,513, up 10% from 2017 and 86% from 2008. South Boston’s housing market is booming, with 55 transactions currently under agreement and average days-to-offer at just 20 days.
South Boston’s housing market is shifting out of reach for working-class adults and into the territory of elite young-professionals. Ten years ago, only 3% of the 419 condominiums sold were priced between $700,000 – $1,000,000. Almost all condos were selling under $699,000, with a huge portion under $349,000. Last year, 278 condos, or 45% of all inventory was listed within the 700,000-1,000,000 range. These exorbitant prices keep condominiums as a distant aspiration for young adults looking to establish themselves.
In 2008, a $429,500 investment could get someone a new construction two-bedroom condominium with a private roof deck and other state-of-the-art amenities. For the same price in today’s market, buyers won’t even be able to find a single listing.
While the condominium market is certainly experiencing dramatic growth rates, it may be nearing a cooling point in price growth. For the first time since 2013, listing prices have surpassed the asking prices, indicating that there is less competition in bidding for these coveted condominiums. Given its proximity to the Seaport and the surplus of upcoming housing in Washington Village, South Boston will remain a highly demanded sub-market for young-professionals.
As prices continually to rise, it may seem unlikely one will be able to find a reasonable priced condominium for sale, but there are still affordable options out there. Like Charlestown, the average price per square foot is markedly more affordable when purchasing a 3-bedroom condominium. These three-bedroom spaces have nearly double the average living area when compared to one-bedroom listings, with the 24 active three-bedroom spaces having an average living area of 1,553 and the 12 one-bedroom listings having an average of 873.
The average listing price in Jamaica Plain in 2018 is $613,000, up 8% since last year. With just 35 listings on the market, and 42 under agreement in March (with the average days-to-offer at 10 days) Jamaica Plain has transitioned into a hotbed for families and young-professionals.
The average sale price in 2018 is over $633,000, but with the large spectrum of pricing, deals still exist.
In April, newly renovated 171 South Street Unit 2A sold for $293,000 – a steal for a studio with transit access. Within one week, the property had a cash buyer.
On the contrary, recently constructed 16 Rockview Street – Unit 16, sold for $1,450,000 in January. This was the most expensive transaction this year.
Today, the average price per square foot is $526, up 7% since 2017. Due to market constraints, average listing prices in June have soared$673,611, indicating the lack of available condos.
“This year, the average list price for a condominium in Charlestown is $750,010, with the average sale price reaching $765,383. In the past 6 years, sale prices have surpassed the average list prices by 2%, indicating the high demand for condos in this historic sub-market.
Since 2012, the average condominium sale price has increased by 62%, with the average number of sold condos priced over $1m increasing 13% y-o-y.
The average sold price per square-foot in 2018 has reached $742, with the average days to offer at just 23. Charlestown has pivoted into an attractable destination for several reasons:
Convenient access to Downtown Boston, Logan Airport and 93 North
More spacious unit layouts compared to those in similar sub-markets
Ease of parking and family friendly atmosphere
Today, the 18% closing difference between one and two-bedrooms suggest the rising demand for one-bedrooms, and ultimately how young-professionals are absorbing the existing supply. Given the larger unit sizes for two and three-bedrooms, Charlestown is a desirable location for transitioning families as well, by evidence of 3-bedrooms costing 18% less PSF than 1-bedrooms.”
Meet the Archer Residences, 67 very fancy units coming to Beacon Hill in the near future. The Archer’s penthouse, which is currently the most expensive home for sale in the city at a whopping $18 million, is poised to be architectural marvel when it’s completed. Both levels of the home are connected by a floating wood-and-steel staircase enclosed by glass—and the shiny glass accents don’t stop there. Floor-to-ceiling sliding glass doors in the main living area open directly to a rooftop terrace, where there’s a Jacuzzi and an infinity-edge pool.
Advisors Living is proud to announce the exclusive sales and marketing of The Archer Residences in Beacon Hill. The Archer Residences, a boutique collection of beautifully designed condominium homes, offers individualized details and a full-service concierge experience in Beacon Hill, one of Boston’s most desirable neighborhoods. From the magnificent roof terrace to the state-of-the-art fitness and wellness center, valet service, and exclusive indoor parking, The Archer Residences are designed to make life easier.
From The Archer Residences, many of Boston’s greatest attractions are just a short walk away. Feeling the team spirit? Enjoy the Celtics and the Bruins, two of America’s most successful and historic teams, at TD Garden. Or maybe you just want to take a relaxing stroll around the historic neighborhood? The Boston Public Garden, built in 1837, is a beautiful public park that offers boat rides around its swan-filled lagoon. Louisburg Square, a quiet, historic green near The Archer Residences, was once home to many famous 19th century figures, including architect Charles Bulfinch, painter John Singleton Copley, and author Louisa May Alcott.
The Archer Residences features 67 unique residences ranging in size from one to four bedrooms. Each residence has been thoughtfully designed, blending the historic character of Beacon Hill with an elegant hand-selection of materials and finishes.
Click here to schedule an appointment or call us today at 888-749-4805 to visit our sales center today at 20 Ashburton Place. We look forward to showing you what makes The Archer Residences the most exciting residential new construction project in Boston.