The Batterymarch Insider
“The Batterymarch Insider” is a brief snapshot of our current market thinking and some highlights of what we see going on in the downtown Boston market. As always, our “terms of use” apply. We encourage you to subscribe.
In this issue:
Beacon Hill single family market comes to life
110 Stuart St. - Taking losses at the "W"
10 Otis Place, unit 4B - Outstanding flat of the Hill property
10 Walnut St., unit 3 - $6.2 million duplex - Well Bought
300 Boylston St., unit 905 - Great location, full price - Well Sold
What’s Catching Our Eye
Inventories, while still running high, declined this week with Back Bay condominium supply declining to 8.4 months vs 3.79 months a year ago. We caution that much of the decline is related to the seasonal effect of properties being taken off of the market as we come into the holiday season. The shadow inventory remains a concern for us. Should the market catch a bid on the heels of a Covid vaccine, it’s our sense that we’ll see plenty of supply popping out of the woodwork.
The Beacon Hill single family market came to life this week with 54 Pinckney and 71 Revere getting contracts, and 69 Joy has an accepted offer. Don’t fret if you’re eyeing a Beacon Hill single family because we also got three new listings: 81 Revere ($3,800,000), 78 Mount Vernon ($7,295,000), and 59 Mount Vernon ($7,495,000), bringing the total number of single families currently on the market to 22. They all seem a bit pricey to us, but 2021 could be shaping up to be the year of the urban single family.
If you haven’t seen it, we’d call your attention to our report this week where we dig into “days on market” and what buyers and sellers need to know. See the report here.
110 Stuart Street, units 20G, 20C, 18E – Breaking Price at the W
A hand full of condominium units at the W, a relatively new 122 unit high rise at 110 Stuart Street, are being offered at discounts to where the units previously sold. If living in a high rise with amazing views is your thing, there could be some pretty good deals at the W. The condominiums sit above the W Hotel which was reportedly used to house 200 Emerson College undergraduates this semester due to Covid crowding on their campus. Maybe dormitory life was getting too close to home for these sellers?
From a location perspective, 110 Stuart Street isn’t our cup of tea. We recently published a report "The Great Boston Building Boom" which looks at new developments in Boston where the marketing mantra is amenities and lifestyle over location. Prospective buyers in these new developments should take note of what’s going on at the W. Read report here.
10 Otis Place, unit 4B – A Proper Beacon Hill Apartment
Unit 4B at 10 Otis Place, a 2,400+ sf, 3 bed, 3.5 bath on the flat of Beacon Hill is being offered at $3,650,000 ($1,510/sf). We’re attracted to well proportioned 3 bedroom apartments with elevators, particularly when all of the living space is on one floor. This unit has the advantage of a fresh renovation, Charles River views, and parking at your doorstep.
So why has it been sitting for 107 days? Probably the price, combined with the fact that not everyone needs a 3 bedroom. This unit is being flipped by a developer who bought it in February of 2019 for $1,750,000. We looked at the unit for a client in 2019 and it was a time capsule to the building’s 1927 vintage - it needed everything, and it looks like it got it.
One word of caution to prospective buyers - this unit is being marketed as 2,418 sf, and the listing indicates that the square footage was measured by a licensed architect. City records indicate that the unit is 2,060 sf. Buyer due diligence is required.
10 Walnut Street, unit 3 – Well Bought
After 131 days on the market, unit 3 at 10 Walnut Street traded this week for $6,200,000, $1,964/sf (asking price $6,500,00). They say luxury real estate is all about light and air, and this penthouse duplex checks those boxes. With front and rear walkout outdoor space on the upper level, this unit has great views of both Back Bay and downtown.
We generally question valuation of developer flips, but this is a special property and the renovation appears to be well carried out. The private elevator is also a nice touch. We’re calling this one – Well Bought.
300 Boylston Street, unit 905 – Well Sold
Unit 905 (1,932 sf a 2 bedroom, 2 bathroom) at the Heritage on the Garden (300 Boylston, full service, 87 unit mid rise ) changed hands this week for $3,900,000, $2,019/sf (asking price $4,050,000) after 92 days on market. This location is about as good as it gets in Boston, we consider the stretch of Boylston Street between Arlington and Charles to be the Boston equivalent of New York’s Central Park South. This particular unit has great views of the Public Garden and Beacon Hill as well as a private terrace.
The audience for these full service buildings is limited. This unit’s $3,077 a month association fee is a bit on the steep side. The seller here bought the unit in 2013 for $2,800,000. Absent paint and carpeting, as far as we can tell the seller didn’t make many major improvements. We’re calling this one – Well Sold.