Geoff Anderson, President of Taz Anderson Realty Co. and developer of The Aberdeen, was quoted in a recent Atlanta Journal-Constitution article about the importance of fantastic views in Atlanta’s luxury condo market. The Aberdeen, located in Vinings just 10 minutes from the heart of Buckhead, offers stunning panoramic views of Atlanta’s skyline. Mike Bugg, senior vice president of SkyRise Group, is also quoted.
Standing on the 17th floor “amenity deck” of the Ritz-Carlton Residences in Buckhead at sunset, you don’t get a sense of the uncertainty that once surrounded the luxury condo building.
The stunning view of downtown Atlanta, bathed in golden tones, is evidence of the one thing that never changed about the building: its amazing views of the city and beyond.
Such panoramas have enabled developers of several high-end, high-rise condos have been able to keep selling units-with-a-view — even if prices aren’t quite as stratospheric as they originally hoped.
When Laura Balser and her husband, Matt Smith, started looking for the perfect view at the W Hotel & Residences in downtown Atlanta, they were surprised at the markup such scenery could command.
The couple closed on their $2.4 million split-level penthouse in February, a unit that was initially said to be priced well above $3 million.
“We initially hesitated at the price we were told,” said Balser, a senior vice president and principal managing director for the Balser Companies, a benefits adviser for executives. “But with the market the way it was we were able to get more than we thought we could.”
Balser and Smith ended up buying a penthouse in the W Residences because it had the view, and the space, they desired.
“We didn’t go looking for a penthouse,” she said. “But we were looking for a certain view.”
The market slump hasn’t changed that impulse among buyers, said Mike Bugg, senior vice president of SkyRise Group, a division of Atlanta Fine Homes Sotheby’s International Realty.
“People who wanted great views still want great views,” he said. “They just know that they might be able to get more view for their dollar now.”
Before the Ritz condos broke ground, project planners banked on the demand for great views to fuel sales.
“The location and quality of property were all considered,” said Dave Stockert, president and chief executive of Atlanta-based Post Properties Inc., which owns the project. “Along with Ritz-Carlton brand services, we thought all of that put together would be a unique offering in Atlanta.”
The condos begin on the 17th floor of the mixed-use building that sits near the corner of Peachtree and Wieuca roads. The plan, Stockert said, was that each home offer views that would command a premium that is usually only experienced on the upper levels of other high-rise condos. Initially prices were to range from $600,000 to more than $2 million, but by the time construction was completed on the building earlier this year, the market reality was far different from what Stockert an his partners in the project had planned.
Pricing had to be revisited — even for units with views some might deem priceless.
“From where we conceived it, price is off around 30 to 40 percent,” Stockert said. “I think that’s a safe estimate.”
Some units in the building have already closed and are occupied, he said. Remaining condos range from a 1 bedroom/ one bathroom unit on the 18th floor for $331,700 to a $1.9 million dollar 3 bedroom/3.5 bathroom home on the 33rd floor. The 34th floor has almost 10,000 square feet of space and could be built out into one or two homes, Stockert said. Pricing of that space will depend on a number of factors, he said, as they are 100 percent customized by the buyer.
The Brookwood, in south Buckhead, and the Atlantic, in Atlantic Station, have similar stories. Presales at both locations were said to be strong, but by the time construction was complete, bank loans were harder to get. Closing the presales at the original asking prices was nearly impossible.
Now co-owned by the Federal Deposit Insurance Corp. and Chicago-based ST Residential, the Brookwood and the Atlantic are part of was used to be Corus Bank’s Atlanta portfolio. The new owners had to figure out how to price the building, including the premium and penthouse units that offer residents a little extra scenery.
“The desire for the view is certainly still there,” said John Huckaby, an executive vice president and regional director for ST Residential. “And you didn’t have to discount those units as much because you had the view, but we couldn’t sell at the original prices. Adjustments had to be made.”
Seven condos on the top two floors, out of about a dozen, are under contract with sale prices ranging from $793,000 to just over $1 million, he said. The units range from 2,126 square feet to 3,166 square feet. The top price for the building under previous ownership was reportedly well over $1 million.
Huckaby said the lower pricing wasn’t so much because of buyer demand, but because the properties wouldn’t appraise at the higher prices.
“At this point the view is only part of the picture, where it used to be a major selling point,” said Geoff Anderson, developer of the Aberdeen in Vinings and president of Taz Anderson Realty Co.
The Aberdeen, which opened earlier this year, was built for its views of greater metro Atlanta, Anderson said.
“The building is set on a hill to take advantage of the views,” he said. “We built huge terraces, well over 100 square-feet, so people could take advantage of the views outside.”
But even with all of that preparation, he too had to adjust sale prices downward to meet the market. Some of his penthouse units, once listed for $2.9 million have come down by nearly $500,000.
Still, Anderson is happy to be selling views along with his condos.
“If you’re selling a high rise, in this economy, and you don’t have a view, you’ve really got your work cut out for you,” he said.
Balser and Smith are happy with their deal, and their view.
“People continue to say how they cannot get over the view, but we didn’t buy it to show off, we bought it for us,” Balser said. “It is nice to share, but we wanted this for us. This view is now a part of us and it is priceless to us.”