Unit 1704 is the newest listing at Park Place, the Marina district residential high-rise. This 1,545 sq.ft. home arrived on the market yesterday with a list price of $1,220,000, which equates to $790 per square foot. Since the price initially struck me as high, I decided to look at recent sales of similar properties and perform a comparative market analysis on this new listing.

Unfortunately, there are no recent sales of 1,500-1,600 square foot homes in Park Place itself, so I had to look to the next best sources of sales information: (1) sales and active listings of homes with similar characteristics in other nearby buildings; and (2) recent sales of smaller units in Park Place to determine to determine the price-per-square-foot as a yardstick for comparison to Unit 1704.

Luxury Condominiums Marina District

First, compared to properties of approximately the same size in the Marina neighborhood, Unit 1704 is currently the highest-priced property listed for sale. Another way to look at pricing for unit 1704 is to observe that many other properties for sale in the same price range offer substantially more space than Unit 1704, with some as large as 2,900 square feet. All of the comparisons in this price range are luxury homes offering expansive bay views, two bedrooms and two or three bathrooms.

Second, recent sales of smaller units in the same building are a good indicator of value. Unit 1305 in Park Place recently sold at $665,000, or $491 per square foot. The seller received 98% of the $679,000 asking price. This unit is four floors below 1704 and smaller at 1,353 square feet, with mostly city views.

Another recent sale in Park Place might provide a better basis for comparison. Unit 2403, with only 1,353 square feet, sold in July for $850,000, or $628 per square foot. This home, like Unit 1704, has a stunning interior and panoramic bay views. If we took the price-per-square-foot of this 24th Floor unit and applied it to Unit 1704, the equivalent price would be $970,260. ($628 / sq.ft. x 1545 sq.ft. = $970,260)

Over the last three months, homes sales in Park Place averaged $715,000, with an average price per square foot of $525; however this data is drawn from properties in the1,300- 1,400 sq. ft. range. Over this same period of time, sale prices in Marina district’s luxury residential buildings with 1,500-1,600 square feet were an average of $885,000, or $560 per square foot.

Lovely 2-Bedroom, plus den Condo for Sale

So why is unit 1704 listed higher than recent sales and its competition? Most likely, seller of unit 1704 considers its value to be superior in terms of interior style, design, and bay views. It’s a value proposition, is it worth it? Ultimately it comes down to what a buyer is willing to pay, which isn’t always a purely objective decision. Please let me know what you think, and if you’re interested in scheduling a visit to see this or other current listings, don’t hesitate to call me at (619) 246-8400.