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Transcript of Berkshire Hathaway HomeServices The Loft Warehouse Condo ... Ellington Condos Carola &Lamar...

  • DEVELOP WITH CONFIDENCE

    Berkshire Hathaway HomeServices The Loft Warehouse Condo Market Report Downtown Detroit June 30th 2018

  • Condo Market Report

    Downtown Detroit - June 2018 DEVELOP WITH CONFIDENCE

    Copyright 2018 The Loft Warehouse Inc.

    Contents

    Introduction

    Market Outlook

    Development Map

    Desirability Analysis

    Development Markets

    • New Development Market

    • Hybrid (New + Resale) Development Market

    • Resale Development Market

  • Condo Market Report

    Downtown Detroit - June 2018 DEVELOP WITH CONFIDENCE

    Copyright 2018 The Loft Warehouse Inc.

    Introduction Welcome to our Detroit Condo Market Report! This report is aimed at listing all significant condominiums project in Detroit, and organizing essential information about them so that buyers. sellers, developers and real estate agents can use it to quickly find relevant information and aid in their decision making process.

    It includes key metrics such as sold price per sf, desirability index, as well as a list of the most recent sales, with unit size, price, and close date.

    We hope it becomes an essential tool for anyone already involved in our very dynamic and growing market, as well as an exciting introduction for those considering a move to our City either a new residents or as investors and developers.

    Definitions • New Development - A project that is new to the market and has never been sold before. Only projects that are publicly

    offered for sale are reported. Contact us to learn more about upcoming developments.

    • Hybrid (New + Resale) Development - A project where both developer sale and existing owner sales happen at the same time.

    • Resale Development - A project that was sold out by its developer and only has existing owner sales.

    • Average Absorption - Units sold per month over last ten sales or last three years.

    • Launch Year - Year that closings started or that closings are expected to start for new developments.

    • Sold Out Year - Year when the last developer owned unit was sold. For older projects this is often an estimate.

    • Average Listing Price/SF - This is applicable only to new developments, and represents the average of the price per square foot of the units that are publicly marketed at the time this report is issued. It does not include the price per square foot of units under contract and not yet closed, as this is not public information.

    • Address - When a development has multiple addresses (as is typical for townhome developments for example) the unit number is a short form of the street address comprised of the street number followed by a letter code indicating the street.

    • Condominiums/Cooperative - This report only covers condominiums in the city of Detroit and excludes cooperative units that are usually bundled with condominiums on the MLS. Due to the specific type of ownership and ownership restrictions, the cooperative market does not follow the same dynamic than the condominium market.

    • Desirability Index - The Desirability Index reported for resale developments is an average for the units sold during the period. The Desirability Index reported for new developments (units not yet sold) is based on the publicly available information.

    • Sources - Realcomp II Ltd. is the source of all sale data. Other data is credited to each project specific website and other marketing materials.

    • Amenities - The visual key below has been used to describe the amenities available for each Development.

    Valet Concierge Hotel Storage Fitness Lounge Food

    & Drink Outdoor Parking Pool

  • Condo Market Report

    Downtown Detroit - June 2018 DEVELOP WITH CONFIDENCE

    Copyright 2018 The Loft Warehouse Inc.

    Market Outlook

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    1/1/2008 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019

    Book Cadillac

    CBD

    Midtown

    Detroit Average

    With an average sold price at $225/sf, the Detroit market has confirmed a complete recovery from the 2008 economic crisis and is now

    well surpassing its historical high. That recovery is lead by the Central Business District (CBD) and Midtown, both neighborhoods well

    above $300/sf.

    The Westin Book Cadillac is still the market leader even in a full resale mode and outperforms even new construction condominiums with

    an average above $500/sf.

    The market dynamic at play for the last few years has been a severe lack of new inventory compared to the accelerating pace of demand.

    More and more people come and work downtown in the new office buildings being renovated by the likes of Dan Gilbert and his Bed-

    rock group or for employers that see significant growth such as Meridian Health or Olympia Entertainment. These new employees are

    attracted to the City where they can now find amenities (especially food & beverage, entertainment) that easily compete with surround-

    ing communities while offering the benefits of a reduced commute.

    The residential market started to respond over the last 3 years with an increased supply of rental inventory, but the for sale demand has

    not been addressed until 2018. We are now seeing the first new condo inventory coming on the market with Selden (12 units), Fort

    Shelby Residences (56 units) and City Modern (104 units).

    This lag in inventory response to the market demand combined with the major improvements in the City’s infra-

    structure, are fueling a sharp appreciation at rates of $50/sf/yr to $75/sf/yr.

    Price/sf vs. Close date

    10-year sales history

  • Condo Market Report

    Downtown Detroit - June 2018 DEVELOP WITH CONFIDENCE

    Copyright 2018 The Loft Warehouse Inc.

    Leland Lofts

    Lofts at New Center

    Grinnell Place Lofts

    Campau Farm in Elmwood Park

    55 West Canfield

    Canfield Lofts

    Stuber-Stone Lofts

    Riverfront Tower Condos

    Lofts at Rivertown

    Indian Village Manor

    Detroit Towers Condos

    Shoreline East Condos

    Park Shelton Condos

    Art Center Town & Carriage Homes

    200 River Place Lofts

    FD Lofts

    Gramont Manor Condos

    Westin Book Cadillac Residences

    Spinnaker Tower

    Research Lofts

    Garden Lofts

    Woodward Place at Brush Park

    Ellington Condos

    Carola &Lamar Lofts

    Map of Coverage

    Saint Charles - 1454 Townsend Street

    The Selden - 438 Selden Street

    Fort Shelby - 525 W. Lafayette Boulevard

    9 on 3rd Townhomes - 4402 - 4434 3rd Street

    Cass & York - 5935 Cass Avenue

    Ashton Detroit - 659 Howard Street

    City Modern - 318 Edmund Place

    Franklin Lofts - 2987 Franklin Street

    64 Watson - 64 Watson Street

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    Willys Overland Lofts - 444 W. Willis Street

    Great Lakes Tower - 250 Harbortown East Drive

    Garden Court - 2900 Jefferson Avenue

    Carlton Lofts - 2915 John R. Street

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    Resale Developments New Developments

    New + Resale Developments

  • DEVELOP WITH CONFIDENCE

    Desirability Analysis A Buyer Behavior Model

    The Desirability Index is a proprietary index developed by Berkshire Hathaway HomeServices The Loft Warehouse, that

    represents how desirable a property is for a typical buyer. It is a number from 0% (least desirable) to 100% (most desira-

    ble), based on a statistical model of buyer behavior extracted from past and current sales data. The desirability index is the

    cornerstone of a new statistical method to model condominium markets that allows us to predict the sale price of any con-

    dominium unit based on its location, finishes and amenities.

    Changes in the buyer behavior occur because of long term trends in buyer taste and changes in available construction and

    material technology, but also more rapidly, through the influx of new residents to the City moving from surrounding com-

    munities, as well as bringing fresh expectations from other Cities & States.

    As we update regularly our model, we are able to see trends in buyer behavior such as the continued importance of park-

    ing, or the evolution away from industrial lofts toward refined products featuring higher quality finishes. More importantly,

    we are able to quantify these changes and their impact on perceived value.

    Market Model

    The use of the Desirability Ind