Thursday, January 31, 2008

Condo Sales: Solo Piazza

Solo Piazza as described by this site:

DC real estate developer Furioso Development built - and won many accolades for - the Solo Piazza in 2002, when the area was just beginning to not feel like a crime scene in the making, a far cry from its current status as a hip, not inexpensive local. Designed by Bonstra Haresign, the exterior includes colored concrete unit masonry, aluminum framed glass bay windows, and projecting balconies to give dimension from any angle, with the rear of the building curving around an open courtyard with soaring bamboo. Interiors are clean and modern with a warm contemporary feel. Most units offer private balconies, and the building has one of the best roofdecks in the city. A short walk from the 14th Street retail strip, the building also sits across from a gas station and, even less pleasantly, the unsightly Park Princess.

What I want to know is whether this was the first building in DC to have that circular roof ornament that's now become de rigeur in local architecture circles. And when is that mechanic's lien placed in 2003 on several condos going to be taken care of?

Solo Piazza 1300 13th St NW, DC, 20005

Sales Through November 2007

The District has recorded 119 sales of Solo Piazza's 77 units through the end of November. The ownership and sales price for two units is unclear to me despite extensive research of the Recorder of Deed's database.

The table below details the average price, average price per square foot, average unit size, and the number of sale for each unit size at Solo Piazza.

The distribution of sales on a price per square foot basis is depicted below.

For example, 31 units sold for prices between $401-$500/sq ft.

Rental / Resale Activity

By my count, there have been 44 resale transactions since 2002. The table below shows the sales history of the five sold in 2007, each a resale. This building's appraisal data is available so I've been able to calculate price per square foot for each sale.

You may recall I began calculating each sale's CAGR to determine its return to the seller. For example, the first owner of unit #106 had a 33.02% CAGR on the sale made on 9/14/2004. That person received a much lower CAGR on the subsequent resale made on 8/10/2007.

Of course, the CAGR omits all transaction and carrying cost considerations.

When all sales / resales are reviewed since 2002, it's interesting to notice that average sales prices peaked in 2005/2006 and price per square foot peaked in 2005. Based on 2007's sales, prices are retreating to 2004 levels. A harbinger?

As of January 30, I find one unit advertised for rent, unit #804. It's a 2/2 available for $2900 / month.

Three are listed for sale:

  • MLS DC6600034 : Unit #801, listed for $839,000. A 2/2 advertised as 1482 sq ft, the list price is $566.13 / sq ft. According to the District, it was purchased in January 2004 for $704,000.
  • MLS DC6609188: Unit #707, listed for $634,000. It has 2/2 and 1004 sq ft per the listing. Using the District's data, the list price is $631.47 / sq ft. According to the District, it was purchased in September 2005 for $705,000.
  • MLS DC6549760: Unit #608, listed for $629,000. It has 2/2 and 1134 sq ft per the listing on Realtor.com, resulting in a list price of $554.67 / sq ft. According to the District, it was purchased in February 2002 for $477,000.
Given that 2007's sales averaged $519.40 / sq ft, one could conclude that these condos will have to be reduced to move.

2 comments:

waitinginDC said...

It is just completely mind-boggling to me that a 2-bedroom condo in DC commands between $600-800K. Totally absurd. You can buy two single family houses inside the Beltway for this money. Who are these people?

Anonymous said...

When you compare this building with other condo projects around Logan Circle, it does not seem overpriced. The quality of construction of Solo Piazza is superior to anything else in the area, and I have seen them all.