Downtown Raleigh's Highest 2014 Residential Sales per Square Foot

PNC Plaza Condos

In the last blog post we looked at the most expensive sales in 2014 by price, but another way to evaluate the market is by the most expensive price per square foot.  Of the 187 total sales within 1 mile of downtown, there were 17 sales that sold for more than $300/ft. 

The top 5 sales were condos, and 4 were at PNC Plaza, which based on previous condo analysis continues to command the highest price per square foot. 

• PNC Unit 2801 - $366/ft
• PNC Unit 2501 - $360/ft
• PNC Unit 3101 - $357/ft
• PNC Unit 2614 - $352/ft
• Quorum Unit 915 - $347/ft

Residences at Quorum Center

PNC Plaza and the Quorum have historically been the only two condo buildings to consistently sell for more than $300/ft.  The views at PNC and the cache that comes with the fact that it’s the tallest building downtown are two main contributors to the high value.  It’s also one of the only buildings to have 24/7 security at the front desk. The Quorum is a very well built building and the only condo building with gas ranges. It’s a very different scene, though, and a much quieter building. 

Will we hit the $400/ft metric in 2015?  There are a handful of condos listed for that now, but they haven’t sold.  Unit 3306 at PNC is under contract and will close in February and was listed for $470/ft, but we won’t know what it sells for til it closes. I bet they’ll get more than $400/ft.  Another unit at Quorum is listed for $401/ft, but it’s been sitting for a while.  Back in 2010 the F units at Quorum sold for more than $400/ft.  But they haven’t gotten back to that level. 

North view from the PNC Plaza Condos in the fall

How does that compare to the rest of the US?  Check out this article that will give you some perspective if you think $300/ft is high. 

Downtown Raleigh’s Top 5 Expensive Sales in 2014

Investors and developers are flocking to Downtown Raleigh and the immediate area as evidenced by the visual changes that the average person can observe through the number of cranes and construction projects. The Citrix building sale and the Crescent Apartment building sale in Cameron Village just broke records.  But are residential buyers paying a premium to live downtown? I thought it would be interesting to look at the top 5 residential sales for 2014.  Within 1 mile of downtown, here are the top 5 most expensive sales in 2014 based on price. 

300 Hillcrest Rd in Cameron Park 

Grand 3000 sq ft home that had been owned by the same family since 1913. Being renovated by the new owners. 

Sold for $749,500.

Dawson Unit 400 

Large 3000 sq ft condo with 4 bedrooms, a rarity downtown. 

Sold for $680k.

920 W Johnson St in Cameron Park

Modest cottage that packs 3000 sq ft through a rear addition. Sold for $652,000 and the owners are renovating.

Bloomsbury Unit 706
Penthouse unit with 3 bedrooms, 2400 sq ft. Bank owned. 

Sold for $650,000. 

Quorum Unit 1405
Totally gutted and rebuilt, this 2000 sq ft 2 bedroom condo is one of a kind. 

Sold for $650,000. 

It’s interesting that there hasn’t been a sale for more than $1M yet in the “core” that I’m referring to as the 1 mile radius from the Capital.  There were a few sales in Cameron Park over $1M that were a bit further than a mile away from the downtown core.  The closest we’ve seen in the city center to date is the Bloomsbury penthouse that sold in 2010 for $900,000 (yep, it’s the same one that just sold this year for $650k).  Several condos have been listed for $1M+ and haven’t sold. Unit 3306 at PNC is under contract after dropping the price into the $900’s.  It will close in early February. 

The only property within 1 mile of downtown currently listed for more than $1M is a house in Cameron Park. Raleigh has so many luxury neighborhoods within just a few miles of downtown that you can have a lovely home and still be only a few minutes from downtown.  Hayes Barton is walkable to Five Points and had 3 homes this year sell for more than $1M. 

So, I guess the answer is, yes, individuals are willing to pay high prices to live downtown, but there seems to be a ceiling in the core (for condos at least) based on this data. Of course, it’s also a bit of the chicken and the egg situation, since most of the condo inventory was created in the last 10 years. 

I think that 2015 will build on this luxury trend and bring a few additional high value property sales, from homes in Oakwood and Cameron Park to luxury condos. We’ll see what PNC unit 3306 sells for and there’s a gorgeous unit at the Dawson that is currently listed for $850k. We’ll see what happens there.