Downtown Residents Association

Condo resurgence 2008

Mar 26, 2008

Condo resurgence
Web Posted: 03/21/2008 04:54 PM CDT
Creighton A. Welch
Express-News Business Writer

It's hard not to notice all the condo construction that's happening around San Antonio.
There are about a dozen new and rehab projects downtown alone. Plus there's work being done along Broadway and there are even some new condos out at the South Texas Medical Center, such as the Pinnacle at Oak Hills.
But believe it or not, condos aren't a new fad around town. There have been condos in all of these areas for years.
The condo and townhome resale market is much smaller than the existing home market. At the end of February, there were 636 existing condos and townhomes listed for sale compared with 11,995 existing homes for sale, according to the San Antonio Board of Realtors. But the condos that do exist offer a variety of locations ?— often prime ?— throughout the city.
Lisa Schmidt, a Phyllis Browning Co. real estate agent who focuses on downtown, says there are a lot of the same customers for new condos as existing condos ?— empty nesters, young professionals, retirees ?— but that those buying existing units do so for a specific location they couldn't get with a new condo.
Like existing homes you'll see in some of San Antonio's older neighborhoods, some of the older condos have a more specific style.

Around the Medical Center, many of the condos are apartment conversions. The condos here tend to be contemporary-styled units that cater to medical professionals who don't want to live far from work.

In Alamo Heights there are also many condos conversions, and they're adorned with luxurious-looking molding and exteriors.
And some of the older condos around downtown have prime River Walk frontage with a sleek, 1980s feel.
"These projects are unique from one another, and they all have a different character to them," Schmidt said. "I find the (existing) projects are smaller and they're different. Some of those older complexes have a special location that you just can't get any more."
Some of the oldest downtown condos are the Riverview and the Left Bank, both built in the 1980s. The Riverview is at Navarro and St. Mary's streets and has 19 units. The Left Bank at St. Mary's and Convent streets has 24 units. Both have stucco walls, spacious floor plans and balconies that overlook the River Walk.
"They're kind of the originals," Schmidt said.
The 15-story Olmos Tower was converted from apartments to condos in 1998.

She also said that once these units are sold, they don't come back on the market very often, as residents usually stay there a long time. There's currently one vacant unit in each of the Riverview and Left Bank buildings. The Riverview condo, at 1,100 square feet, is listed for $339,000. The 1,540-square-foot Left Bank condo is listed at $475,000.

Many of what are now condos were once apartments. Some prime examples are in Alamo Heights at the Chateaux Dijon and The Carlyle.
The Carlyle ?— with 73 units on 11 floors ?— was built in the 1980s, a time when the condo market wasn't very hot in Texas, so the owners turned them into apartments. Then in the late 1990s, when the condo market picked up the property was turned back into condos.
Although the property is about 25 years old, the management tries to keep it up to par with newer projects.
"We do what we can to make sure things are maintained properly," said property manager Richard Popps. "We have different committees of owners who travel around and see what's going on at other condos, and they make recommendations to make this place better. They want to keep their place just as nice as the Jones'."
Popps said the average sale price is about $300,000.



The 7701 Wurzbach Tower helps serve the expanding South Texas Medical Center, and was built in 1982.

The Chateaux Dijon, a sprawling, gated and tan-bricked complex along Broadway, used to be an apartment complex when it was first built in 1966. The condos there usually sell for about $100,000.

In addition to location, older condos such as these tend to attract those eager to remodel a place to their specific taste.
"There are clients who are looking for newer or new because they don't want to do that extra work," said Ann FitzGibbons, also an agent with the Phyllis Browning Co. "Then others, they want to put their stamp on an older condo."
Also, there's no waiting time for construction to be finished before moving in.
"I think we're a little bit saturated with the newer construction," FitzGibbons said. "The existing is there. It's ready. You don't have to wait for it, and you know what you're buying into."
The sale price tends to be lower in older condos, too, reflecting perhaps their need to be updated.
"The main difference is pricing, simply because new construction costs more," FitzGibbons said.
She said prices for existing condos are about $140 per square foot, while new condos cost about $225 per square foot. According to SABOR, in February the average price per square foot for condos and townhomes was $97.
Although they may be cheaper, as with older homes, existing condos might require some rehabbing.
"I think over time, any building has to keep pace with maintenance and with upgrades," Schmidt said. "Things that didn't exist when the building was established need to be added, because they can't compete if they can't offer those amenities."
That's where homeowner associations and their fees come in. Some of the money goes toward maintenance and some goes for upgrades, but HOA fees are usually higher in an older condo.
"They are typically more because they are going to have larger-ticket maintenance items," Schmidt said. "But it also depends on the amenities offered by the building. A new building that has 24-hour security, a pool and hot tub, and a fitness center will probably have higher HOA fees than an older building that doesn't have all the amenities."
Though you might pay more in fees, older condos have associations that have had time to work out all the kinks that might come with condo living.
"There's already a relationship created," FitzGibbons said.
Even though the San Antonio condo market is pretty small, the popularity is starting to increase, said Brannon Wood, a real estate agent who sells mostly condos.
"The condo market right now is pretty good," Wood said. "I think 2007 was probably the best year that I've seen as far as the amount of the sales. 2008 seems to be pretty promising so far."
According to SABOR, there were 62 condos and townhomes sold in February, a slight decline from the 69 sold in February 2007. The median sale price dipped from $100,600 in February 2007 to $98,600 last month; the average time on the market increased from 88 days to 92 days during the same time frame.


cwelch@express-news.net


Online at: http://www.mysanantonio.com/business/realestate/stories/MYSA032308.01D.condos.23b69c4.html