Thursday, December 28, 2006

WaPo: $1M Condos built over a soup kitchen

Yesterday's Washington Post had an article about PN Hoffman's latest project, which involves building a 150-unit building on top of a church that runs a soup kitchen for the less fortunate among us. PN Hoffman is confident the building will sell ("I don't think I'm going to have any problem finding 140 families who want to call this building home," DeSantis [PN Hoffman's vice president of sales and marketing] said.)

While one can debate the likelihood of a buyer willing to plunk down $1M for a condo and deal with homeless folks hanging aroung the building, the article included an interesting statement:

Charles Klein, a managing broker in the District for the real estate firm Re/Max, said buyers will be interested if the "units are a knockout" and because they're downtown.

But Klein said so many condos are on the market that buyers have many choices. More than 18,000 condominium units are under construction, planned or proposed, according to the Washington DC Economic Partnership.

"You don't need the soup kitchen to make it a tough sell," Klein said. "It's a tough sell because it's a condo, and if there's anything we need less of now, it's condos. It's like overkill. There must be five years' worth of supply in the pipeline."

So here we are in a tough market for condos and PN Hoffman decides to roll the dice and, to make it even more exciting, adds a soup kitchen to the mix. They're daring or nuts, I don't know which.

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