From sleek towers overlooking the harbor to quaint yet modern townhomes in Beacon Hill Boston has seen no shortage of luxury condo development. However, with nearly 2,000 condo units currently under construction across the city and many questions surrounding COVID precautions and the long term effects of the disease, how will the market react?

In a recent filing Millennium Partners once again cut down the residential portion of the Winthrop Center Tower and has requested a change from condo to rental units citing "impacts to the project, the condominium market, capital markets, and the construction process caused by the unprecedented COVID-19 pandemic." With these factors in mind, BLDUP spoke with some of the top brokers in Boston to get an idea of how the events of the past few months have affected the market and what adjustments they have made to their business. In speaking with the group, one thing was clear, while construction may have paused in Boston condo sales did not as agents got creative to keep the lines of communication open and close deals. Recent transactions, support this point including sales at One Dalton at over $4,$7, & $12 million. Just recently a unit within a renovated Beacon Hill townhome sold for $4.3M and EchelonSeaport has already seen seven closings this month including a penthouse unit going for nearly $6M. With another 3,000+ condos approved in the city, we also gained some insight into how these top agents are landing luxury listings.

As the data shows, deals are still getting done despite the pandemic and activity has also picked up more recently as things begin to return to the new normal. Patrick Cutter, Sales Director for EchelonSeaport told us they have seen 5 deals so far this week and their recent traffic has been within 10% of pre-COVID levels.

EchelonSeaport features a total of 447 luxury condos.

The Sarkis Team, led by George and Manny Sarkis with team member Cassandra Svolis, is also seeing a rise in activity under this new normal.

More sellers have decided to hold off on selling, while buyers are out in droves.  The low inventory on the market has created an environment fit for bidding wars in the low to mid-price segments. Some developers are moving full steam ahead with delays only due to city permitting being backed up, while others have held off on selling and have decided to rent instead. Overall, the first few weeks were a bit of a shock for everyone, but once that wore off and we got used to our new normal, activity has been on a steady and rapid rise!

Collin Bray of Century 21 Cityside, who has 14 years of luxury experience is also optimistic, especially with the stability of the Boston real estate market. While he has heard some concern during the pandemic. His philosophy is to focus on the "why. "It is rarely about X's, O's, and percentages. It is about families, health, transition, retirements, downsizing, relocation, a new adventure, and more. I am committed to listening and asking the right questions."

As with all aspects of life, these unprecedented times have led to many adjustments for sales teams. At EchelonSeaport, one of Boston's largest projects, Cutter's team shut down showings during the outbreak to focus on communication with buyers under contract, basically transforming sales agents into “communication liaisons”. Through this outreach, the team did not lose any deals despite having to push back the move-in date on building two, 135 Seaport Boulevard. As the project included multiple buildings with phased openings, 133 Seaport had already had 117 closings with around 75% of those people already occupying their residences. This made things more complicated for tours and construction restart. Now that the team is back to in-person tours they are taking new precautions including staggered appointments along with a limit on the number of people on each tour. They are also meeting with prospective buyers outside the building in a further effort to keep current residents and staff safe.

Bray has also had to get creative, siting an example of a luxury condo sale in the South End brokered via Facetime when the client could not immediately travel back to Boston.

“Creating solutions to problems and communication can help both sides be successful. Time is of the essence! We "pull" deals through, we never push.” 

The Sarkis Team too made modifications to quickly adapt to the COVID crisis. At one point in time with closings uncertain “attorneys had to formulate a "COVID Clause" for P&S to protect buyers who were moving forward with an offer without seeing the property until after P&S was signed.” Through these quick changes, The Sarkis Team has closed or put under agreement 34 transactions and 14 rentals during quarantine.  “This is a testament to how serious buyers still are, even during a pandemic.  People still need a place to live!”

On the question of new procedures, everyone has certainly seen all the articles and blogs on the importance of virtual tours and while everyone agreed these tours are important, buyers want to see these homes in person! The Sarkis Team utilizes the tool to “identify a serious buyer before taking the risk to meet in person.” Cutter also mentioned that “no one buys off virtual tours” but his team uses them to keep people engaged with the project. Bray was on the same page telling BLDUP “They (virtual tours) are a valuable tool but 99% of buyers still want to tour in person.”

With so many luxury projects in the early stages of construction or approved waiting to break ground, we also asked for some expert advice on how these brokers have landed top projects. Cutter told us local experience is key. Many developers from across the country and globe are coming to Boston and they need their broker to create a local experience that buyers are expecting. In places like NYC and Miami, many international buyers are investing in properties they may never set foot in, but in Boston that is not the case, they want an authentic experience. Bray also agreed that a commitment to Boston is very important as his firm aims to create a legacy in the city through great partnerships. He also believes strategy is key and goes into each pitch thinking about what each developer would want in their broker, asking questions like “In this neighborhood, what can I build that will sell? What types of floor plans do buyers seek on this street? What does the real estate market not offer that we can which will give my project an advantage? What smart home tech will buyers value? Is this a neighborhood where we can pre-sell or need a finished product?”.  The Sarkis team has a "no deal is too big or too small" attitude and prides themselves on being a young, energetic, knowledgeable, and hungry team.  “We have tact and we leverage every relationship we make. Working for a company as well-equipped as Douglas Elliman gives us the opportunity to excel in the world of new development with a seasoned marketing department in New York, and a data mastermind in Boston, we have all of the tools to accurately price and effectively market a building in Boston.  All that's left to do is sell, which we do.” Manny, George, and Cassandra commented.

Finally, we couldn’t let everyone off the hook without asking them their thoughts on the future of the market. The Sarkis Team focused on the data which shows “that the Boston real estate market has historically been on a steady uptick”. Bray believes Boston developers have been smart in creating unique offerings as “cookie-cutter does not sell in the luxury market”. He also discussed how larger developments need to create a sense of community & connection with residents even during COVID. Cutter too touched on the importance of the community within these buildings. He sees buyers not flocking to suburban single-family homes but instead wanting to have access to common amenities where they can have a controlled social experience and be part of a community. Cutter also believes in the strength of all of Boston, not just the real estate market, and while the timeline is uncertain he expects the city’s resiliency to once again be confirmed.

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Boston's Top Neighborhoods for Condo Development

Seaport

The grand pool at EchelonSeaport

With nearly 450 condo residences at EcheclonSeaport and other 100+ upcoming at The St. Regis Residences, Boston the Seaport continues to be one of Boston's busiest neighborhoods for new construction luxury condos.

East Boston

The Mark at DeNormandie Wharf is already 70% sold.

From larger projects offering full suites of amenities, like The Mark at DeNormandie Wharf, through smaller developments, East Boston also continues to be a hot neighborhood for condos with around 450 units currently under construction.

South Boston

The Freeport will bring 114 modern condos to South Boston.

South Boston's busy development streak continues with around 300 condos under construction now including 114 within The Freeport. Boutique buildings within South Boston offer residents easy access to public transit, ample green space, along with the many top restaurants and bars within the trendy neighborhood.

South End

A rooftop terrace at 100 Shawmut.

Two major projects, 100 Shawmut & The Quinn are bringing over 250 luxury condos to Boston's South End. Both buildings will offer modern homes along with top-notch resident amenities and service.

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Meet The Brokers

Patrick Cutter
TCC

An experienced residential Sales Executive with extensive market knowledge, Patrick was instrumental in making Boston’s Millennium Tower the highest-selling residential development in the city with sales exceeding $1.1 Billion including the Grand Penthouse at $35 Million.  A skilled real estate marketer with an ability to manage large-scale residential projects, Patrick is uniquely adept at adding value and exceeding sales goals for his properties.  Over the past 5 years, Patrick has led the sales effort for Millennium Partners developments of Millennium Place (256 residences) and Millennium Tower (442 Residences).
EchelonSeaport & The Collaborative Companies

Collin Bray
Century 21 Cityside

Collin has won the Centurion award for exceptional production in 2011-2019 as well as the Quality Service Award in 2011-2019. He is also a designated REALTOR with the National Association of REALTORS and is ABR Certified – Accredited Buyer Rep.
Collin Bray

The Sarkis Team at Douglas Elliman
George & Manny Sarkis along with team member Cassandra Svolis

With more than 10 years of experience representing buyers and sellers throughout Greater Boston, George Sarkis holds the distinguished reputation of being one of the area’s top residential brokers. As the CEO and Team Leader of The Sarkis Team - the #1 producing group at Douglas Elliman thus far in 2019 and #2 in 2018 – George’s guiding principle is simple: to provide VIP service to every client and to share his market intelligence and keen insights every step of the way. Manuel (Manny) Sarkis, has more than 10 years of experience in the Greater Boston residential marketplace. During that time, he has amassed an almost encyclopedic knowledge of the market; in addition, he can speak to the unique features of the city’s diverse neighborhoods and offer valuable insights about the desirable suburban towns. Cassandra Svolis joined The Sarkis Group at Douglas Elliman in 2019 and brings a wealth of experience in new development sales and marketing to this high-profile team. As the sole sales agent for The Muse, a newly renovated building of studio, one, and two-bedroom loft-style units located at 63 Melcher Street in the heart of the Seaport’s Fort Point neighborhood, Cassandra handled more than $20 million in transactions. She was also part of the sales team for other exciting new developments in Boston, including 14 West Broadway, 232 Old Colony, and The Archer Residences.
The Sarkis Team