In the last week of August 2008, I sold a building (co-broke) in Beacon Hill to a successful condo developer. The building consisted of 9 one bedrooms approx. 450 sq. ft. each and 1 commercial space approx. 480 sq.ft., on a quite street in Beacon Hill. The developer paid $2,900,000 for the building via his buyer’s agent. It’s my understanding the developer put $100,000.00 into renovations and his carrying costs are $24,000.00 per month. The listing agent has listed the properties for sale starting at $379,000.00. As of today’s date only one has sold for $360,000.00. (The unit was sold at a discount unrenovated.)
One of my agents wants to bet me that the developer will make a minimum of $275,000 once all the units are sold. I wish this developer the best of luck, but I’m not nearly as confident as my agent. Based on the minimum information I provided you, do you think this successful developer will prevail once again. The big question is should I take the bet?
Photo courtsey of Flickr