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Though these developers are taking deposits and closinton units, data indicate sales are still considerably off in the five Philadelphia neighborhoodx that saw the most condo For example, Rittenhouse Square condo sales fell 61 percent in the firsft quarter compared with the comparable period last year when 18 unita were sold, according to ’sw HomExpert Market Report. Washington Square sales were off by 75 percen in thefirst quarter, the latesg for which data are available. In prices are also down. “Condos are sellingt better in 2009 than in 2008 but they are selling forlowet prices,” said Allan Domb of Allan Domb Real a condo developer and real estate agent.
Domb has two projectse — Parc Rittenhouse and the Warwicok — close to finally being completelysold out. The that was driving the real estate marketf to unsustainable prices is startinhg tocorrect itself, Domb said. “Prices are more and I don’t see us skyrocketing back up,” he “I think we’ve settled in a new, healthy market.” Though market including lack of demandand financing, temporarily killed a plan to construcrt a Waldorf-Astoria condo-hotel tower at 1441 Chestnur St.
, a handful of projects are under way and ringing in Condos at the newlyg built Residences at the Ritz Carlton across from City Hall are seeint brisk activity, said Craig Spencer of , one of the developmentf partners in the “Relatively speaking, we’re doing incrediblgy well,” Spencer said. “Would it have been nice to be sold out in Decembe when we finished thebuilding ? Yes, but that’s not realistic in this market.” Of the building’ss 270 units, about 80 have been closed on and eighr new contracts were signed so far this he said. Prices are holding, too.
It was Arden’zs strategy to price unit s lower in the beginning to sparmk sales and then gradually increase prices asunits sold. Condoas have so far sold for between $500,000 and more than $3 “We’re not making particular price adjustments,” Spencee said. “That’s not to say we won’t negotiatse with people, but if someone walks in wantinb a 10 to 15 percent we saythanks but. … We have the time necessarty to sell this buildingvery methodically.” Spencerd has a five-year horizon to sell the units basedd on his financing arrangements. The partnership didn’t have to immediatel pay off a construction loan once the building was he said.
Of the 110 condow at Two Liberty Place, 60 have been sold, said Richarde Oller, chairman of Madison Parke, a marketinyg and lifestyle management firm retained by thecondp developer. “For this it’s terrific,” Oller said. “Everyone wouled like to develop a residential projecty and sell out instantly and we long for the days wheres you put up tents and peoplsline up. It’s not this market.” Buyers are more cautious and discerningg and that has made the sale process take Oller said. At 10 Rittenhouse a 130-unit high-rise under construction, condoe have sold for up to $1,400 a square said Roger Friedman ofARC Wheeler.
“Salese are a little slow but they are very he said. “The whole marketplace is slow we all know Roughly 60 percent of the condos have been boughtt with closings scheduled to begin this October and run throughnext April. The a conversion off Washington Square, has 10 out of 56 units said David Mercuris, senior vice president of developmentat . “Thse advantage we have is we are completely built outand we’re not a 300-unit complex,” Mercurisw said. “It’s a much more manageable Of thoseremaining units, three are penthousews with a starting price around $3.2 million and Mercurix doesn’t intend to cut prices.
“It’s holding its he said. Another Rittenhouse Squard luxury project, 1706 Rittenhouse, broke ground in September. Each condo is a single floor inthe 31-story building. Pricesx range from $4 million to $6 milliobn with the exception ofa two-story penthouse that went for $12.5 million. “The project is half which is amazing,” said Paula Celletti-Baron, vice presidenty of sales. “I have more activity and prospects rightt now than I have had in the history of the The building is being developed by and The boostr in traffic comes aftere a lull that startedin Celletti-Baron said.
“I think there was a lot of fear in the markeft and in the last six to eighf weeks a lot of that fearis subsiding.” A modeol condo will be completed by which Celletti-Baron thinks will enticw those who need to “feel, see and finished space to finally buy. One of the roadblockd that developers are running into are buyerswho have, for example, Main Line homes they want to sell beforde putting a deposit on new unit. “Whaf they are going to get for their current property has gone down andthey don’ know how long it will take to Celletti-Baron said. “That’s a concern they didn’tg have before.
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