The
Mandarin Oriental complex, a 14-story property that sets a standard
of luxury in Boston, is set to convert twenty-five of their
apartments into luxury condominiums. The owners of the Back Bay
complex are ending their leases with the current residents and the
one-and-two-bedroom units are predicted to take in some of the
highest prices the condo sales market has seen!
Currently, the number of luxury condos available for sale in the
Back Bay area is at a low of 30. This extreme imbalance between
supply and demand has been driving prices to record levels in
Boston. This year, units in the city have been selling in record
time for prices rarely seen in the past. Six units have sold for
more than $2,000 per square foot and another 3,500 square foot unit
sold for more than $10 million at roughly $2,900 a square foot.
In the last three years, Bostons population has increased by
more than 30,000 people totaling approximately 650,000.
Unfortunately due to the economic downturn between 2007 and 2010,
construction of new condos froze. However, todays market is seeing
a great deal of new condominiums being built with many sellers also
now more willing to test the market. With this, these new luxury
units at Mandarin Oriental could not arise at a better time as they
add inventory to a market that is very strong in demand.
The 25 units that are set to go on sale in January range from
930-square foot one-bedrooms to two-bedrooms with 1,625 square
feet. The asking price of each unit has not yet been determined but
in the past year units at the building have sold for $3.7 million
up to $12 million. All buyers will have the luxury of using the
Mandarins amenities including the spa, fitness center, and 24-hour
concierge service.
Our very own chief executive and co-owner here at Gibson
Sothebys International Realty, Larry Rideout, stated, Its really
amazing to watch. Were starting to get almost a Manhattan feel with
some of our real estate.
The remaining 10 apartments that were developed to fulfill the
citys inclusionary zoning policy will remain as affordable
apartments. These units rent between $1,400 and $2,000 a month.
Mandarin Oriental remains at the center of attention that once
challenged the citys traditional expressions of wealth when it was
first completed in 2008. It really is joining a surging market as
it converts apartments to luxury condos which will immediately be
satisfied by the large pool of qualified buyers. There are plans
for major competition to be built in the years ahead in Downtown
Crossing, Back Bay, on the South Boston waterfront, and beyond as
more developers try to hurry and build while the economy and buyer
demand remain with such a positive outlook.
More Information: Boston Globe