Tuesday, June 09, 2009


There's a lot of nonsense in real estate, including a deep belief in the power of comps. I wish this guy luck, but...

The Center City high-rise condo market may be soft these days, but Residences at Ritz-Carlton developer Craig Spencer won't let it get the better of his bottom line.

"I turned down a $1.3 million all-cash sale from a buyer who wanted me to cut the price by $50,000," Spencer said yesterday as he showed a visitor the 8,000-square-foot unfinished penthouse at the top of the 43-story, 270-unit building at 15th Street and South Penn Square.


On the day he formally dedicated his luxury high-rise, and gave city and Center City District officials a chance to describe plans for a $45-million revamping of Dilworth Plaza, overlooked by the Residences, Spencer acknowledged that 80 units had closed so far in a market that saw one-third fewer new condo sales in the first quarter of 2009 than in the 2008 period.

I think when real estate markets are booming, developers start to lose the plot a bit. Most people don't especially like living in skyscraper condominiums. They might choose to do so for various reasons, but "tall luxury condo building" isn't in and of itself a selling point.