Shifting activity to Social Media

Thanks for visiting the blog! It has been quite a while since anything was posted, but a lot of the content is pretty interesting if you like looking back at what prices were like a few years ago.  There are plenty of other blogs and media outlets that cover all the new downtown development, so I don't feel like I need to post about any of that.

Even though I haven't posted lately, I'm still always digging into market data to see how things are going, looking for trends, etc.  You can see most of what we're up to by following us on any of the various social networks, but mostly Twitter for @dtrdigs and Facebook for @metrodigs.

I launched Metro Digs back in 2016 and have been busy with that venture, so check us out.  I love to hear from you if you have ideas or questions about the Downtown Raleigh market.

2015 Market Snapshot: Cameron Village and Cameron Park

The Cameron Village area is going to see a lot of changes over the next several years. The two large apartment buildings on the corner of Oberlin and Clark were just the beginning. More apartments are coming on Oberlin, and the Cameron Village small area plan calls for even more density within the Village. 

2015 Market Snapshot: Mordecai and Oakdale

Icons made by Freepik from www.flaticon.com

Icons made by Freepik from www.flaticon.com

2015 Market Snapshot: Historic Oakwood

Icons made by Freepik from www.flaticon.com 

Continuing the review of sales of Downtown Raleigh homes in 2015 by neighborhood, Historic Oakwood had a lower volume of sales with only 7. Still a very popular neighborhood and the homes tend to sell quickly.

Curious to know how your home or neighborhood compares? Send me a note or give me a call.

2015 Market Snapshot: East Downtown Raleigh

With the new year comes lots of analysis of the previous year, and in the past I have focused on Downtown condos only. I'll provide a snapshot of that activity as well, but this year I decided to take a look at all the other areas around downtown.

Icons made by Freepik, Teela Cunningham from www.flaticon.comis licensed by CC BY 3.0

We'll kick off this year with East Downtown. This includes single family homes within the area bound by New Bern Ave, Tarboro Rd, MLK, and East St.

Whether or not comparing average price year over year is statistically accurate, everyone who is familiar with this area knows that it is booming.  So the 39% increase in average price doesn't surprise me at all.

Interested in buying in this area or need to sell? Give me a call or shoot me a note. Its very common to have multiple offers on these homes.

Blount Street Commons Wrap up

As we begin 2016, it’s hard to believe that back in 2011 Blount Street Commons was mostly vacant land. Once the major development for the north end of town, the project had stalled during the downturn.  When I joined the project it was clear that the market had shifted and that it wasn't likely that the historic homes and lots would be sold as residential. That spurred the Missing Middle post back in 2012. I still think that there is an opportunity for a low rise community, especially with one-level living, but that's for another post. 

Thankfully the economy turned around and now the first phase (2 blocks), as it was once known, is complete.  The other 3 blocks originally part of the plan were kept by the State. It is very nice to see the neighborhood come together as one cohesive unit. Here’s a recap of the results:

Row and Carriage Homes

Stanley Martin has sold out of both the carriage homes, row homes, and the new condos along Person Street. 






Historic houses and lots sold

 A new residential house is being built by Rufty Homes.







The Merrimon Wynne house is a successful wedding venue and they are building a new building on the lot next door for receptions and general expansion.





The Cowper house was purchased by Legacy Homes and renovated for commercial use and  was purchased by Robertson Law. 

Lewis Smith house was purchased and renovated by Hobby Properties. 

Russ house is now the home of Gallery C .









Person Street Homes Sold

The homes located south of the Murphy School were listed for sale by the State in 2015 and they are under contract. 






Elan City Center Apartments

Almost complete, the apartments at the corner of Polk and Wilmington streets are about to open. 






Holy Trinity Church

Completed in 2015, the church is now open. 








Peace Street Townes

The 17 townhouses fronting Peace Street closed in 2015. This was originally going be a 4 story condo building in the earlier plan with $600k condos, so I'm sure the buyers here appreciated the more accessible pricing. Smaller 2 bedroom units sold in the mid $200's.




Now that this neighborhood is completed, let's hope that Gov McCrory's Project Phoenix will further activate the north end of town and the Government Complex to better connect it to the city core. 

 

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.

Death and Taxes, Indeed. A Summary of the 2014 Preservation Conference.

I'm so glad that I attended this year's Preservation Conference in October. First, because I got to tour the future Death and Taxes building, but also because something tells me that there may not be as many exciting projects to talk about in the future.  Our tax credits are dying.  Touring a new building that will house the Death and Taxes restaurant could not have been more appropriate.

I don't want to sound too negative, but part of the conference included reviewing the last 25 years of Preservation in Raleigh. And when you see what an impact the historic buildings and homes have had on the revitalization of Downtown Raleigh, you can't help get a little sad now that the tax credits as we know them, will disappear as of Dec. 31, 2014.  This article mentions that Empire Properties alone bought and renovated 45 historic buildings since the 90's.

It costs money to preserve historic buildings. Lots of money. So be sure that Preservation NC is working very hard to keep incentives available for restoring historic structures.  But it will take time before a new program is put into place, so for the next few years we can enjoy the projects that are being approved now, as they start construction.

Speaking of projects under construction, I was able to tour two buildings as part of the conference:  Boylan Pearce and the Death and Taxes building where Ashley Christenson will house her next restaurant/bar/venue.

Boylan Pearce was a high end department store that moved out of downtown in the 1950's. The top two floors of the 3 story building have been empty since! Hard to believe given the resurgence in downtown, but from what the architect said, a renovation has been underway (on paper at least) since 2000, with various owners.

First level of store

First level as it appears today.

It's hard to see in the picture to the far left, but this is the first floor of the department store.  The building is 200 feet deep and goes all the way back to Salisbury St.  This level is where buyers would select their fabrics.  The original tile can still be seen on the floor under the dust and debris in the photo on the right.

2nd level

2nd level

These next few photos show the second level of the store, where dresses were stored in glass cases on hangers that could be pulled out and turned around to display the various selections.  

As you can see in the photo of the present condition, the cases are still in tact (other than the glass) and are fully operational, albeit dusty.

The next building we toured was the building at Salisbury and Hargett Streets (I can't find the name for it), which was once a funeral home and a bank.  Rumor has it that it is haunted, but we didn't experience anything weird.  This photo shows the 3rd floor, which will be called Bridge Club and can be rented out for receptions, etc. The other floors were hard to photograph given their state of construction, but from everything they've said, it's going to be a gorgeous place. See the before and after photos of the exterior here.

These historic buildings bring so much character and interest to the downtown area.  A huge thanks to the people who are taking on these large projects and preserving them for the rest of us!

Update, January 7, 2015: You can sign a petition to support bringing tax credits back here: http://www.historictaxcredits.org

Mid-Century Neighborhood Inside the Beltline - Is it on your radar?

The beginning of the 2013 spring housing market was pretty hectic for just about every Realtor that I know. Multiple offers. Cash deals. Appraisal issues. I wrote at least 5 or 6 offers for several clients before they finally got a house. The news is finally catching on to what those of us close to the ground already know - the market is back.  The problem is - little inventory.  Those looking to live "inside the beltline" are having to duke it out with several other buyers.  Many buyers are disappointed at what their money can buy ITB.  $300k will get you a great location, but a fixer upper that needs at least another $100k.  Many people just can't do that. Options are to consider a smaller house, perhaps? But if you're looking to start a family, that may not be an option either. 

It's with this background that I'd like to introduce you to Longview Gardens.  If you're in that

$200k to $400k range and aren't finding what you want, you may want to expand your search.  ITB to many agents means "area 1" in the MLS system.  The problem with only looking in area 1 is that you miss half of downtown.  The eastern border of Area 1 is Raleigh Blvd, and the southern border is New Bern Ave.  There's a whole section to the east that is STILL inside the beltline that you miss if you only look in area 1. This other area is area 3, and that is where we find Longview Gardens.

Built in the 40's and 50's, you'll find all sorts of mid-century architecture here on HUGE lots.  

In 2011 it was awarded status on the National Register of Historic Places. This is different than what you may know of Oakwood and Boylan Heights - those are local historic districts, that have restrictions on what you can do to the exterior.  The National Register does not carry such restrictions, but it does mean that a home can potentially be eligible for tax credits. 

Right now there are 4 houses on the market in Longview Gardens, from $125k to $399k, including one listed by Peter Rumsey and Debra Smith.  Their listing on Lord Ashley is 4422 sq ft, making this house $90/sq ft.  And 3592sf of that is above grade, with 830 in the basement. This house in area 1 would be at least $150/ft and would probably be torn down to build a mcmansion since it sits on over half an acre. If you need space, you gotta see this one. 

There are also some great starter houses like the one on King Charles for $125k.  

So, who lives in Longview Gardens?  Well, Matt Griffith of In Situ Studio, that's who.  And lots of other great folks.  Matt recently wrote about his house for their newsletter, but you can find the article here. 

Hopefully you've learned about a great neighborhood that may have been off your radar. Tell your buyer's agent to expand your search or shoot me a note if you don't have an agent and would like to take a look at some of these homes in Longview.  

The Missing Middle: Housing Opportunity for Raleigh

I recently stumbled across this article about the Missing Middle housing type in cities across America.  It was incredibly refreshing to me to find this article because until finding it, I was pretty sure that I was the only person who recognized this missing piece in the housing market (in Raleigh anyway). We have big condo buildings and houses, with not much in between. 

Those who know me know that I have been involved in the Blount Street Commons project, along with Peter Rumsey, for the past two years.  Blount Street Commons was originally envisioned as a neighborhood that would recreate the past and bring the wealthy families back to Blount Street.  (For a little history, check out this old article).  In addition to the wealthy families in the historic homes along Blount Street, there would be a mix of row homes, and condos to complete the mix.  Needless to say, the downturn in 2008 had a huge impact on the neighborhood and a few things had to be adjusted.  Things are picking up now and the neighborhood is making a comeback, which brings us back to the Missing Middle. 

There are five empty lots along Blount Street that were originally planned for single family homes.  Given the character of the street, these homes would need to be quite large, at least 3500-4000 sf, and plans would have to be approved by RHDC.  The market has simply not been there for single family homes, so we've been brainstorming on other uses of the space while still bringing residents to the neighborhood.  

In thinking about the demographics of downtown and how the residents are largely either young professionals or empty nesters/retirees, and being someone who hates stairs myself, it occurred to me that if you wanted to live in a flat (one level condo), you had no choice but to live in a large condo building with 200+ other people.  

Other cities have 2 and 3 story walk ups with 3 one-level units.  Some buildings have six or eight apartments in one building, essentially a low to mid-rise building in a more residential neighborhood.  Raleigh does not have this kind of product. 

We do have a few small scale condo buildings:  Martin Place has 12 units (and stairs), the BSC row houses are new and clustered in small rows of 4 (also have stairs), and Hillsborough Street has a few buildings with less than 25 units, but they lack the quality that can be found in today's condo homes. A few of the condos built along Cabarrus Street in Boylan Heights are one level, but that's all we have. There aren't many options for low-rise, one-level living with high quality features in an elevator building.  The developers of Fairview Row have recognized this, but they are targeting the luxury market with $800k plus units. 

I believe that Blount Street Commons *is* the Missing Middle for Raleigh and it provides the ultimate mixed use space only blocks from downtown.  The neighborhood has grand historic homes, row homes, carriage homes, and town homes with rooftop decks (coming soon). The mix of businesses from the AIA building to Gallery C to the Seaboard shops only a block away and the Person St shops around the corner put you right in the middle of everything.  The ability to stroll through Oakwood on a morning walk, walk a few blocks to museums and the Capital, and jump on the R-Line for anything else gives this location a unique and intimate feel while being in the heart of everything.

So - back to the Missing Middle.  I strongly believe that there is demand for one-level living in a neighborhood like Blount Street Commons.  Picture what looks like a large historic home (but newly constructed), with 4-6 condos inside with an elevator, nice shared common space, and well designed floor plans.  If that sounds interesting to you, shoot me a note. 

Living Smarter - Design that Sells

Sarah Susanka's Not So Big House book was published in 1998, but the concept of living smarter and more efficiently wasn't really new.  I think people just forgot how to do it.  Or maybe I think that b/c I grew up in a smaller house where we didn't have a choice but to make it work.  It was that simple. You made do with the space that you had. But something happened in the 80's and houses became bigger and bigger. Now I think we're starting to come full circle because all that space didn't necessarily make life easier or better.

Having said that, the Not So Big principle actually has nothing to do with size, meaning that the author doesn't expect everyone to live in 1000 square feet.  But the idea is to live in a home that is well designed such that every space is used. I am sure there are many people who use every inch of their 4000 sq ft home, so this is not a rant about large homes.  I am guilty of falling in love with a kitchen once and ending up with a 3100 square foot home where at least 4 rooms were never used. I've learned my lesson.  I recently updated a 1500 sq ft, 3 bedroom, 2 bath home with the same types of features you'd only find in a luxury home. I wanted quality without the added space.  Will someone pay a luxury price when I go to sell? Will I get my money back? It's a risk I was willing to take to get what I wanted, because at the time it did not exist.

So, with all that as background, it was nice to see several homes sell lately that were small, but well designed.  Yes - Raleigh has shown that you don't have to have square footage to get a quality home with style. And if you're worried about fixing up that tiny home and not getting your money out of it, here are some examples of small homes that brought great prices:

Historic Oakwood - East St
This 1076 sq ft home has 3 bedrooms and 1 bath and just sold for $315,000 in 3 days.

Oakwood - Elm St - This 1262 sq ft home has 2 bedrooms, 1 bath, and just sold for $335,000 in 5 days.

Glenwood Brooklyn
This 1420 sq ft home has 2 bedrooms, 1 bath and just sold for $362,800

Historic Oakwood
The Rose Cottage.  This 1489 sq ft home with 2 beds, 2 baths, sold for $370,000 in just 2 weeks. 






Location is clearly a factor, as all of these homes are within walking distance to something. The most important point here is not to get caught up in the price per square foot. So many people get lost in numbers and forget the value of what they are looking at in front of them. A well designed home lets you live the way you want in a more compact and BEAUTIFUL home. But having the numbers to back it up is also important, because it will encourage others to renovate smarter, not larger. And it's not just home owners that want to live this way.  Check out my friend Nicole's new blog, Intentionally Small.

What to expect with condo living

I've never lived anywhere longer than 3 years. It's amazing considering I lived my whole life in the same town until going away to college. I've mostly lived in houses, but for the last 2 years it was condos. After living in both I'd thought I'd share my experience for those who may be considering moving to a more urban environment.

First, I lived in a 50's building in a third floor walk-up one block away from a busy street in an urban area in a major US city. The bedroom was on the street side - not the best floorplan. You could hear a woman in high heels coming from a block away. Granted, it was the thin windows that caused so much noise to get through, but I was surprised at how much. The good news, though, is that it had to be fairly close to the building to hear it. A one block radius was all you could really hear, and that goes for fire trucks, too.

But the noise was worth it to be able to walk to the myriad of restaurants, shops, and grocers that were within 3 blocks of where I lived. There was only parking for one car, so the other had to fight for space on the street. Yet it was worth it to be in that part of town.

In real estate, I've learned that there are 3 things that most people want. In reality, you can really only have 2 at a time. Typically one of them will have to be sacrificed. They are:
- Price
- Location
- Quality
If you want the convenience of living close to town, you have to pay the price. If you can't pay the price then you lose quality to be in a good location. If you want quality combined with the location, you'll have to pay the price.

The next condo I lived in was in a high rise building in the heart of downtown Raleigh. After being so close to the street, I thought for sure that being so high would stop all the noise. Not so. Being higher was even louder. How? You could hear noises for more than a block away. Try at least 10 blocks! There is nothing to block the sound waves. No other building in the way. Noise bounces of walls of buildings and climbs high. I'm sure an engineer could explain it better, but I lived it, so I don't need to get technical. It happens.

But that was the only negative to the high rise. The views were outstanding. The people who lived there were friendly and outgoing. The security was top notch. Location could not be beat.

Then I moved again. During the transition I ended up staying with a friend in a new, low-rise, condo building only two blocks from where I had lived in the high rise. The building combined the low-rise of the 3rd floor I had previously lived in with the new construction amenities of the high-rise to form the ultimate in urban living. It was quiet, yet in the same part of town as the high-rise. I could only hear things a block away, but even that was muffled because of the newer construction. I could hear neighbors, but not nearly as much as before.

Where is this building I speak of that blends the best of both worlds? It's Palladium Plaza. I think it's one of the best buildings in Downtown Raleigh. I spent a week there with my friend and am convinced of its value even more. For me, well, I'm a hippie at heart and really need a yard, so I'm back to a house that's 2 blocks from everything I need. But I'm so glad that I was able to experience condo life, even if just for a few years.

For both buildings, a few things were true:
- Neighbors - You're going to hear your immediate neighbors come home. You will hear the door shut. You may hear the elevator. You will hear talking in the hallway as people walk past your door. In newer construction buildings, it should end there. I never heard my neighbors watching TV, talking etc. Most buildings are not loud - it's usually bad neighbors that are problems.
- Parking - Parking decks are common in almost all condo buildings. You will probably not be able to park at your front door.
- Electrical components - Almost all condos have some type of security device or other electronics, even elevators, that may break from time to time. This is part of condo life.
 
So that's it.  What did I miss?  Share your story in the comments below.

Downtown Raleigh's North End is Booming

A Summary of Recent Activity

The north end of downtown is primed for growth, with land previously used as parking lots for the State and a few large empty buildings just waiting for something to happen. The first half of 2012 produced an abundance of progress, most notably in the Blount Street Commons neighborhood.  The vision of Blount Street Commons has always been to bring people back to the historic neighborhood, and the area surrounding it is expanding as well. 

Lewis Smith House SOLD

Hobby Properties has purchased the historic landmark and will begin renovations prior to taking occupancy as their headquarters. As you may know, Hobby owns the retail parcel along Franklin Street, only blocks away, which is slated for the Person St Plaza project featuring Market Restaurant, Escazu Chocolates and Yellow Dog Bakery.  Raleigh City Farm, on the same land, has already had their first harvest.

Peace Street Townhomes

Looking for a home with a view? These rooftop patio townhomes are proposed for the corner of Person and Peace Streets. Eighteen total units are available for reservation. Contact me for information and buyer representation (this is not my listing).

 

Holy Trinity Moves In

The renovations on the Jordan House are complete and Holy Trinity church received their Certificate of Occupany this month. Congratulations on a beautiful restoration! The Jordan house is located on the corner of Peace and Blount streets, and the home will be used as administrative offices.

 

Only ONE House Left!

The Merrimon-Wynne. This home has such a rich history, tied to Peace College as a dormitory in the 1920's, then home to the College President and then Chaplain. Moved in 2008, this home sits on one of the larger lots on the street. 

New price: $650k.  

 

Row Homes

Live Oak homes is taking reservations for the remaining 8 row homes (2 under contract already!).  These townhome-like floorplans feature private garages, something hard to find in Downtown Raleigh.

 
Contact me for information and buyer representation (this is not my listing).

 Seaboard Retail Shops

The single story building at 111 Seaboard Ave is getting a new look and will be home to new retail tenants, including a burger bar and a coffee shop.  The new Tylers Tap Room has really brought more activity to this area, and these new shops will add even more value to this shopping center.



Rapid Fitness
A hop, skip, and a jump from the Commons is a new fitness center at the corner of Franklin and Person Streets. Residents can get in a morning work out and (once open) grab something from the market or bakery on their way home.