Tuesday, April 15, 2008

Condo Sales: 1010 Mass

Some of you may recall my asking several times last year why the District wasn't recording any sales for Ten Ten Mass [1010 Massachusetts Ave NW, DC, 20001] since it looked like construction had finished. Was this an ominous sign for the building and the market as a whole? No! Several of you emailed me / posted comments saying that many units had closed and that all was well. Right you were. Eventually, the District added the building's sales to its real property sales database with their actual closing dates, effectively backdating its database.

As described on this site [which has undergone a well-done redesign; kudos]:

1010 Mass condos is a 14-story, 163-unit condominium in a new building developed by Rock Creek Properties (RCP), Faison & the Carlyle Group. Sales began Oct. 2005; settlements began early Summer, 2007, the project sold out by late spring 2008. Sales by McWilliams Ballard, with prices from $400k to $1.5m; parking available to purchase at $37,500 (limit of one). Located downtown, 3 blocks from Metro (Mt. Vernon), a short walk to Penn Quarter, this waving brick and glass structure will have 8700 s.f. of ground floor retail, rooftop lap pool, and overlook the new DC Convention Center and Mass Ave., with floor to ceiling windows in some condos. Underground garage will house space for 169 cars (i.e. only one per unit), and 217k s.f. of gross space. Faison, very active in Washington DC real estate, has projects throughout the southeast and southern Florida. Architectural design by Esocoff & Assoc., Glen Co. performed construction before they went bust after completing about 80% of the building.

While those folks may claim that the building's sold out, not so according to the District, which says that 48 units are still available. BTW, how could it be "sold out by late spring 2008" when Spring is less than a month old? Also, I think there's a discrepancy in the number of units. Both the District and this site state that 163 units were built. I go with the District [for now].

Ten Ten Mass 1010 Massachusetts Ave NW, DC, 20001

Sales Through February 2008

The District has recorded sales for 115 of Ten Ten Mass' 163 units through the end of February 2008. I'm hard pressed to believe that units PH210 and PH211 were both purchased by the same person for the same price, but that's what the District says so it must be so.

The table below lists each sale at Ten Ten Mass [use the scroll bar on the right].

Rental / Resale Activity

I've found no resales in the building to date.

As of April 14, I find one unit advertised for sale. It's a 2/2 available for $575,000. It's currently renting for $2850 / month and has a $490/month condo fee.

Two are listed for rent:

  • Unit #706 is available as a furnished rental. For a whopping $4150/month rent and $200/month for parking, you get a toaster, a blender, sheets, and towels along with the 24 hour security.
  • Unit #1011 can be yours for $2499/month. It's a 1/1, 744 sq ft. MLS DC6649713.


Anonymous said...

I rent one of the units on your list. Last I heard from the sales rep, they had about 20 units remaining... which is consistent with the earlier (25) figure they'd mentioned to me back in October 07. As for the $4150 unit, judging by the 1200 sq ft size, it's a 1BR + Den, 2FB model, nice, but certainly not $4150 nice?! They can dream on, then again there's one born every...

Anonymous said...

Thanks Keith, very helpful. My experience is that many of the developers are in denial of the current declining market and not willing to decrease the price of their remaining units at current market value. Interesting now how they are not releasing the true number of units sold. Looks as if they are almost all sold when the numbers tell otherwise.

Keith said...

$4150 for a furnished corporate unit may be a competitive price. I recall such units rented for about $3500/month in late 2003, when I was last in the market.

Anonymous said...

I'm an agent who just helped a client rent a unit in 1010 Mass, and $4150/mo for a 2BR (like #706) furnished is definitely high. I was able to get my client a $2200/mo furnished 1BR, although that transaction was a little atypical for a variety of reasons; even so, based on the other activity in the area and in the building, #706 really shouldn't go for more than $3200/mo (give or take a few hundred depending on terms of the lease).

Keith said...

At $2200 or $3200, I can't see how it's even a break-even proposition given the prices paid and the capital/operating expenses required to furnish and maintain the units. But who said profit had anything to do with it?

Thanks for your comments.

Anonymous said...

For a unit costing $600k, if it was purchased w/ 20% down, the monthly payment on the mortgage would be around $2800/mo; add in condo fees (around $500/mo) and taxes (around $400/mo), it would become a breakeven proposition at around $3700/mo.

A savvy investor who cares about cashflow could also choose loan products that could drop the mortgage part of the carrying cost to closer to $2100/mo, which would bring the total monthly carrying costs to closer to $3100, so positive cashflow isn't out of the question as a rental.

(Whether or not the sales price paid for these units is a reasonable one is another question altogether, that I can't go into in public fora thanks to the vagaries of DC real estate agency law.)

Anonymous said...

I've looked at buying at 1010 Mass and they definitely have inventory especially for the pricier end of the spectrum. don't know if they'll dicker or not but I think they'd be foolish not to consider offers within 10% of list price.

Anonymous said...

The same person did buy the two units, they combined the two units into one.

Anonymous said...

These prices aren't necessarily representative of the deals people received though, they also offered incentives. They were offering 20k in incentives when I bought, but I negotiated the sales prices down and gave up a little in incentives.