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Three Center City developments, each with multimillion-dollar condos, vie for same high-end buyers

The buyers for these condominiums, which run into the millions of dollars and some in the tens of millions, aren’t worried about rising interest rates though they won’t hesitate to take full advantage of a 10-year tax abatement on their purchase.

The last time Center City had a surge in new condominiums on the market was right before the Great Recession when 10 Rittenhouse, the Residences at Two Liberty, Residences at the Ritz-Carlton and the Murano among other projects were developed. Those four towers alone have a combined 819 units.

There are 199 condominiums among the Laurel, 2100 Hamilton and Arthaus and their sales will again test the depth of the high-end market in Center City as well the extent to which buyers are able to look past some of the quality-of-life issues Philadelphia is trying to combat.

“The market is there and I don’t think it is too much given the state of what is available,” said Lisa Yakulis, a real estate agent with Kurfiss Sotheby's International Realty. Yakulis noted that it would also be some time before additional, newly constructed condominiums would be available, which helps keep the supply in check.

“We’re still seeing people coming from New Jersey and New York and the tax advantages, cost of living and what you can get here is still more and less expensive than New York, Boston and Washington D.C.,” she said.

Southern Land Co. is developing the $406 million Laurel, which has 65 condominiums in a 48-story building at 1911 Walnut St. overlooking Rittenhouse Square. The project also includes 189 apartments. It was designed by Solomon Cordwell Buenz.

About six months ago, it surpassed the half-way mark in units sold with all more than $2 million a piece. Those sales include one of three penthouses in the building. A penthouse on the 48th floor priced at $25 million remains unsold.

“We’re hoping in the next 30 days we’re going to be around 60% sold,” said Brian Emmons of Southern Land. “We had a good fall and a solid spring.”

Every single one of the Laurel’s buyers is from the Philadelphia region including those Philadelphia natives returning to the area and they want to live on Rittenhouse Square. “We’re oceanfront property,” Emmons said.

Pricing on units has gone up three times in the last six month with sales ranging from $1,700 a square foot to more than $2,000 a square foot.

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