A $70 Million Back Bay House - Seriously?
"News of the mystery listing comes on the heels of two Commonwealth Avenue homes that were recently listed for nearly $30 million each."
The Batterymarch Insider
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A $70 Million Back Bay House - Seriously?
We’d love to share the details of this $70 million house, but apparently it’s too big to talk about. The mysterious listing appeared in “Top Agent Network,” which is kind of the dark web of non-MLS real estate listings. The cryptic listing goes like this:
“Wide Back Bay brownstone w/garage. Proof of funds and signed NDA required for more information. $60 - $70 Million”
Like everything in residential real estate, there are no secrets, and we’ll be bringing you all the juicy details of this property in a later edition. News of the mystery listing comes on the heels of two Commonwealth Avenue homes that were recently listed for nearly $30 million each. These aspirational asking prices are driven by one off-market transaction. Not surprisingly, the details of that transaction are cloaked in secrecy.
We’re aways skeptical when brokers point to one non-MLS transaction and attempt to make the case that the market has reset higher. One or two outlier transactions don’t make a trend, but sellers and their agents aren’t shy about reaching for the high-water mark.
We thought that we’d highlight what you can get for $10 million plus in the Back Bay single family market.
First, a little context to put things in perspective. MLS records indicate that the highest price ever paid for a Back Bay single family home stands $13 million (197 Marlborough Street, $1,716/sf in November of 2017) and the highest price per square foot record stands at $2,297/sf (126 Marlborough Street, see below). In recent years, there have been a few non-MLS transactions, including the secret transaction noted above, around the same price level.
It should also be noted that while there are always about a half a dozen or more single family houses offered for sale in the Back Bay at any given time, according to MLS records, in the past 12 months exactly zero have sold in Back Bay proper. So, if you’re tempted to bag one of these white elephants, keep in mind that this market is highly illiquid.
130 Commonwealth Avenue - A Perfect House for Ozzy Osbourne – Offered at $29.5 Million
10,022 Square Feet | 6 Bedroom | Property Tax $156,218
Our social media feeds were overflowing with puff piece headlines – the “most expensive house in the city of Boston” hits the market. Unfortunately for the listing broker, social media editors don’t buy $30 million houses. As we see it, getting that kind of money for this place will be like pushing rocks uphill.
The house, and the neighboring house at 128 Commonwealth, were under common ownership at one point and in the early 1900s the owner had the original 1880s drab brownstone facades replaced with limestone in the Beaux-Arts style. Behind the updated facades, the houses retained much of their original interiors.
The current owner opted for what can be best described as “postmodern goth” theme. Intricate hand carved moldings have been painted black to match the high gloss black floors. For a splash of color, the second-floor parlor, which previously featured oversized book-matched wood paneling, is now bright turquoise (we’re told that the original wood panels have been preserved).
Ensuring that you start your day off with a solid dose of the “dark arts,” the mosaic tile floor of the master bath shower sports a skull motif. This would be the ideal house for the likes of Ozzy Osbourne, but the aesthetic has extremely limited (if any) appeal to the typical Bostonian. In our opinion, the house is hideous, and fixing it will be frightfully expensive.
One deal killer for many people is the fact that the property doesn’t have a garage. For $30 million you’ll be parking your cars outside in the rear alley. This is a tough alley, shared with many Newbury Street restaurants and their smelly dumpsters.
We may end up eating humble pie on this one, but we see the asking price of nearly $3,000/sf as an unrealistic pipedream. The house last traded nine years ago for $11.6 million ($1,157/sf); we’d peg fair market value well south of $20 million.
130 Commonwealth Avenue is offered by Gibson Sotheby’s
129 Commonwealth Avenue – Pick me! – Offered at $27 Million
9,624 Square Feet | 6 Bedroom | Property Tax $115,094
When your neighbors across the street are asking $29.5 million for their house (see 130 Commonwealth Ave.), why wouldn’t you also stick your snout in that trough? That seems to be the drill over at 129 Commonwealth where this 9,624 square foot, 6-bedroom house just hit the market for a cool $27 million.
The best way we can describe this house is, in a word, boring. It’s the opposite of 130 Commonwealth. The house just screams plain vanilla. Perhaps the most interesting feature is the enormous double fireplace formal dining room that seats 14.
Like many Back Bay houses, at one point the entrance to the house was lowered to street level. There were some practical reasons to lower the entrance, but the net effect is that you enter via the modest lower level, not the grand parlor level. It’s safe to say that when you’re laying out this kind of money, you probably want to feel like you’re entering a $27 million house.
Like its counterpart across the street (130 Commonwealth), the new owners here will clearly be updating to shake that 1990ish mother-in-law vibe. We’d caution buyers that the cost to properly renovate these massive houses is outrageously high and can take years.
Given the choice, we’d take 129 over 130 Commonwealth in a heartbeat. While 130 wins on curb appeal, we’d opt for the sunny side of the street and wouldn’t want to deal with commercial activity in our rear alley. We think that $2,805/sf is ridiculous. We’d peg fair market value well below $20 Million.
129 Commonwealth Avenue is offered by Campion & Company
279 Marlborough Street – Custom Building – It’s Different! – Offered at $18.75 Million
6,990 Square Feet | 4 Bedroom | Property Tax $83,859
279 Marlborough is a proper high-end custom home. The renovation of this 6,990 square foot, 4-bedroom house was completed in 2019 and the property looks to be impeccably maintained.
Unlike spec-built homes where developers routinely cut corners, custom built properties are built to the exacting specifications of the end user. The seller here didn’t spare any expense and that’s evident to the trained eye.
The custom features are extensive and the mechanical systems (e.g., HVAC, home automation, etc.) look to be state of the art. The garage has an elaborate lift system and comfortably accommodates two cars. At just under 7,000 square feet, we think this is the ideal sized luxury Back Bay home.
If you find the aesthetic appealing, this should be on your short list. The trick to buying someone else’s custom built home is to avoid getting into a situation where you will make extensive changes. These properties sell at premiums and if you’re going to make meaningful changes, it may not make sense.
The property has been on the market since October. It was originally offered $21 million. After two price cuts, it’s now offered at $18.75 million or $2,682/sf. Given the quality of the renovation and what it would cost today to replicate the house, the asking price isn’t terribly unreasonable, but we’d be more comfortable closer to $15 million.
279 Marlborough Street is offered by Luxury Residential Group
292 Marlborough Street – Nice House, No Elevator – Offered at $12.95 Million
5,691 Square Feet | 5 Bedroom | Property Tax $73,627
292 Marlborough is another example of a good quality custom building, although we don’t think that the finishes here are on the same level as 279 Marlborough. Most notably there isn’t an elevator, and the parking is outside in the rear alley.
Some people may prefer not having an elevator as they take up a lot of floor area, and they can be a headache to maintain. However, living in a 23-foot-wide house spread over five floors, you will feel like a mountain goat by the end of the day. Case in point, the kitchen is on the ground level, while the formal dining room is in the basement. This is not the house where you would expect to gracefully “age in place.”
One thing we found annoying about the house is the excessive use of ultra-high gloss paint. We don’t have a problem with high gloss paint, but those finishes can accentuate imperfections in the underlying surface. To our eye, it looked like the surfaces weren’t properly prepared before the paint was applied. This may seem picky, but when you’re buying a $13 million house, you should be very picky – it won’t be cheap to fix.
This is a very nice house and for the most part the renovation looks to be well executed. The current asking price equates to roughly $2,275/sf. We see fair market value closer to $2,000/sf (on a good day) which implies a price around $11 million.
292 Marlborough Street is offered by Campion & Company
126 Marlborough Street – Developer’s Special – Offered at $12 Million
4,788 Square Feet | 4 Bedroom | Property Tax $69,634
126 Marlborough is a great Back Bay location, and the house has a nice two car garage. That about sums up the positives.
The developer did a full renovation of the property, but in our view the finishes are underwhelming. We’d say the developer got lucky when a buyer came along and paid $11 million ($2,297/sf) before it really hit the market.
According to MLS records, this sale still holds the record (by a wide margin) for the highest price per square foot for a Back Bay single family house. In our view, the buyer paid an astronomical price for a mediocre property. Note, there have been some off market transactions reportedly at higher prices.
The house sits on a lot that is just over 17 feet wide and is situated on the less desirable side of the street. The fact that the property lingered on the market for nearly a year before the developer bought it speaks volumes. It should also be noted that the current owner put the property up for sale less than two years after purchasing it – always a red flag in our book.
We commented on the house when it first sold (see The Perfect House for Willy Wonka!) so we won’t rehash all the details here. The takeaway is that this is a spec-built house and shouldn’t be confused with custom building – it’s a totally different product. Buyers should also take note that this project was undertaken during peak covid supply shortages.
In our previous note, we highlighted the Willie Wonka “glass elevator” which appears to be plastic – not glass. After recently seeing it in person, it’s even worse than we originally thought.
While this house would be a pass for us, we’d peg fair market value closer to $1,700/sf, or around the $8 million mark.
126 Marlborough Street is offered by Gibson Sotheby’s
1 Fairfield Street – Side Street Developer Grade Flip – Offered at $10.95 Million
5,700 Square Feet | 6 Bedroom | Property Tax $39,950
1 Fairfield has been kicking around the market for years. The property was bought by a developer back in early 2020. After unsuccessfully trying to flip it as-is, ultimately the developer undertook a comprehensive renovation, and the result is reasonably appealing.
At thirty feet wide and with high ceilings, the house has a spacious feel and gets good natural light. There is an elevator with stops on each floor, and an accessory apartment in the basement. There are two parking spaces in the rear alley and the price includes a third garage parking spot located at the rear of 290 Beacon Street, about two blocks away.
The finishes are ok for a spec-built house, but nothing to write home about. As renovated, the house was originally offered at $12 million with no takers – even after the developer threw in the garage parking spot which cost $385,000. The price was recently cut by 8.75% to $10.95 million ($1,921/sf).
Four years is a lot of time for a developer to tie up capital. We smell a motivated seller. It’s generally accepted that houses on Back Bay side streets trade at discounts and we think that’s somewhat reflected in the price. We’d be more comfortable under $10 million, and we would sell the third garage parking spot.
1 Fairfield Street is offered by Gibson Sotheby’s
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About Batterymarch Group LLC – Batterymarch Group is an independent full service real estate brokerage and advisory firm focused on the downtown Boston high-end residential market. We represent both sellers and buyers with a sharp focus on valuation. We also offer sub-advisory and owner’s representation services to financial institutions, family offices, and trustees.
About Andrew Haigney – A 25-year Wall Street veteran, Andrew held senior positions at leading global investment banking institutions where he routinely valued and negotiated complex securities transactions on behalf of institutional clients. Andrew has been an outspoken advocate of a universal fiduciary standard. In founding Batterymarch Group, Andrew brings that same discipline and passion to real estate brokerage.