Search Results for: spring condos

Bridges On The Park

Jude Galligan | June 23, 2009 |

For information and to preview Bridges On The Park contact Jude Galligan at 512-226-3414 or jude [@] downtownaustinblog.org.

view of downtown from 6th floor of east side of building

You might say Bridges On The Park has an identity crisis. Is it part of South Austin? Or, downtown Austin? Geographically it lies in what’s generally considered South Austin. By design and lifestyle it very closely resembles downtown. This makes for strange bed fellows as these two neighborhoods have been portrayed in the media as clashing in recent years over Austin’s growth.

Regardless of how the residents identify themselves, the setting is one of Austin’s most spectacular urban environments: Lady Bird Lake, running trails, Butler Park, pitch n’ put golf, trees, trains, Zach Scott theater, Barton Springs Rd, Zilker park is around the corner… the list goes on. Even the Taco Cabana next door is an Austin institution for anyone who went to high school here in the ’90s.

So, what’s the story with this place? I’m going to attempt to show you why, right now, this Bridges On The Park is one of the best real estate opportunities for downtown Austin buyers.

The raw info

Six stories.
105 units.
Full list of amenities: concierge, pool, fitness, etc.
Storage units.
Underground parking.
Aligned length-wise along Lamar Blvd.
Built by CLB Partners

The finish quality is high

CLB Partners is the same developer as the Austin City Lofts, which provides an example of CLB’s high quality construction and finish outs. Bridges On The Park takes on much of the same philosophy: copious amounts of Texas limestone, with metal and wood accents. The lobby, building decor, art work, and interior finishes are tastefully executed.

The bathrooms have a floating (I suppose cantilevered) cabinet design which allows lighting to come from below. Wherever possible a double vanity is used.

Historical Paggi House adjacent to Bridges On The park

Mixed Use

Pedestrian friendly retail on the ground floor, combined with the proximity to the parks and running trails make Bridges On The Park truly mixed use. The setting of the development surrounds the historical Paggi House.

The economy has been hard on this development

Completed in 2008, of the 105 units, 32 remain unsold [and one resident is furious about a new billboard]. Many buyers could not find mortgages when it came time to close. Originally prices were characteristic of 2007 at $400+per foot. Many new buyers are skeptical about prices that are still high compared to the deals which have been clearing the inventory downtown condos this past Spring.

The Opportunity

A marketing blitz earlier this year carried an opportunity for 20% off – a deal that generated roughly a dozen sales for CLB Partners. From the perspective of my clients, interest in Bridges On The park started to wane in April, as the anticipation for the Brazos Place auction grew and other developers began to negotiate attractive discounts.

The remaining 32 units are priced at an asking price of $324/ft on average. Like most buildings, each has its own micro-economy of views and floor plans. The east view towards the trees is priced at a premium to the west view over Lamar Blvd.

Summary

The market is buyer friendly and this is not CLB Partners’ first rodeo. I predict that Bridges on the Park will begin to discretely entertain offers in the neighborhood of $240 per foot, on average, or about 30% off of the asking price. [See update below] The data at Brazos Place and the Shore provide evidence that this program of discounting works to quickly sell units. Add to that the superior location of Bridges On The Park, and I expect there will be some very happy buyers over the next few weeks.

[UPDATE 09/08/2009 –
The most recent inventory I have from August 17th for Bridges On The Park shows:
min price per foot = $234
max price per foot = $312
average price per foot = $278
*numbers reflect discount]

Jude Galligan, Downtown Austin Realtor
512-226-3414
judegalligan [@] gmail.com

Complete Bridges On The Park photo set on Flickr!

The Downtown Austin Penthouse – Part One: Economics

Jude Galligan | June 12, 2009 |

The word “penthouse” is used frequently to describe the residence(s) on the top floor of a building. There is an undeniable air of exclusivity. Ceilings are generally higher and the views are typically the best in the building. For instance, a residence on floor 12 is easily substituted for a residence on floor 14, but a top floor unit has no substitute.

Economics:

In a rational market, scarcity bolsters prices. In the market for condominiums, it would stand to reason that top floor units should trade at a higher price per foot. But this isn’t always the case depending on the unit-mix of the building. Feedback from my clients indicate that in downtown Austin condos, residences with good views of the city or lake are more desirable to a penthouse residence without a good view in the same building, all other things being equal.

We can use Milago as a case-study. Milago has a deep transaction data set which we can study. Also, Milago’s alignment is such that the west side of the building with views of the city and lake are priced a premium to units across the hall which have views to the east. For example, in the summer of 2007 at Milago condos, nearly identical 1bd/1ba units across the hall from each other sold at $330/ft and $272/ft, the former with a view the later without a view.

Conversely, when comparing two identical floor plans, if one of those residences is on the penthouse level, the penthouse would be more desirable. By extension, the penthouse should be more expensive. Again, looking at Milago to find a good example of the penthouse premium, in the spring of 2007 nearly identical 1bd/1ba units (one being a penthouse), neither having the generally desirable city and lake view, sold at $370/ft and $329/ft.

How about two nearly identical floor plans, both on the penthouse level, one with a city and lake view, and one without? Milago PH12 sold in 2007 for $421/ft. Across the hallway PH11, without the city and lake view, sold in 2007 for $339/ft.

Take the results of recent Brazos Place auction – the penthouse unit sold at $352/ft or 25% higher than the average auction price of $282/ft. A counter example can be found at the Austin City Lofts. In 2008 a two-story top floor unit sold for $282/ft, but the residences averaged $343/ft! At the Brown Building in 2008 a top floor unit sold for $424/ft while the building averaged $357/ft.

Summary:

In a market where the substitute goods are very heterogeneous and sellers’ motivations differ, the challenge is how to extract from the data a rule-of-thumb for pricing the penthouse residences in downtown Austin condos. We have data from Milago indicating that a penthouse residence with a view of the city and lake is priced 25% higher than the same residence without the view. We have data from Brazos Place indicating a 25% premium for the penthouse over the average unit. We can also see from the Austin City Lofts example that sellers’ motivations are significant factor in pricing the penthouse residence. I will be following up with specific building-by-building look at downtown Austin penthouses.

Jude Galligan, Downtown Austin Realtor
judegalligan [@] gmail.com
512-226-3414

Downtown Austin By The Numbers: How many dwellings?

Jude Galligan | November 14, 2008 |

This is the first in a series of three articles aimed at uncovering the number of residences in Downtown Austin. So, how many dwellings are there? This seems like a simple question, doesn’t it? I’ve never been able to get a satisfying answer – one that doesn’t try to determine the number of residents using a multiplier, is not rounded up or down, and that clearly indicates what is currently being lived in or is ready for occupancy (not under construction).

You may ask, “why don’t you just search Google?” Well, I did. I searched Google for “how many dwellings are in Downtown Austin”. I used other iterations and synonyms of those search terms and could not find a satisfying answer. Much of the data available is old and/or disparate. The last U.S. Census was in 2000. The next is in 2010. Because I am your loyal Downtown Austin Realtor (plug!), I am uniquely suited to discover and share with you my count, building by building, of the number of Downtown Austin condos and apartments.

The official Downtown Austin Blog count of Downtown Austin dwellings after the jump.

The Monarch is going mental (and rental)

Jude Galligan | December 24, 2007 |

“ZOM Inc. has again changed its mind about whether units in the currently-under-construction Monarch should be rented or sold. You may recall that The Monarch was initially announced as rental apartments, but switched to for-sale condos two months ago. The timing on that decision wasn’t great – Austin’s housing inventory has been piling up in the last few months

About twenty percent of The Monarch’s units were sold between then and now, but that wasn’t enough for ZOM, so they cancelled those contracts and plan to rent the entire building. Construction is expected to be completed next spring.” source: austinist.com