E4 A
www.philly.com
Condo
Continued from E1 “It was a big bet for both developers and the city to believe we could absorb the largest amount of new units since the post-World War II boom,” he said. “The fact that we continue to not only do so, but in such a difficult economy, makes the Center City market not only a real, but also surprising, success story.” Still, the expiration of the tax credits for home buyers meant sale agreements for condos plummeted as the third quarter progressed. To qualify, deals had to go to settlement by June 30 or, after a government extension, be in the pipeline to close by Sept. 30. Two hundred contracts were signed in September compared with 500 in June, Gillen said. Regionwide, that helped push condo inventory to a record 22.3 months from about 15 months in June, and it hints that fourth-quarter city transactions will plummet. The data show that just 20 third-quarter sales were resales of foreclosed units and that those were scattered among several lower-price condo buildings in Center City and Northeast Philadelphia. In the second quarter, 11 units sold were bank-owned. Strongest sales volume continued to be in the market’s lower and middle segments, the data show. In fact, 83 percent of all condo sales were below $500,000, compared with 79 percent in the second quarter. Auctions boosted the thirdquarter numbers as well. For instance, 64 sales were directly or indirectly connected to an April 29 auction at the Phoenix, 1600-18 Arch St. The auction was timed so that successful bidders could qualify for the tax credit, which required signed sales agreements by April 30. Minimum prices ranged from $185,000 to $415,000. Data show sale prices between $224,900 and $472,000. The 257-unit Phoenix had 119 owners before the auction. Three third-quarter transactions were resales. At WSFS Bank’s May 15 auction at 10-unit CU257, at 257-59 N. Second St., the remaining nine condos were sold. Minimum bid for the two penthouses, once listed at $1.2 million each, was $200,000. For the seven other units, the minimum bid was $95,000; list prices had ranged from $698,400 to $871,255. Sale prices at CU257 were between $473,000 and $650,000. Nov. 21 will bring the next scheduled auction, of 35 units at Waterfront Square’s Reef Building. Minimum bid prices will range from $195,000 to $415,000, according to Accelerated Marketing Partners, of Boston, which was the auctioneer for the Phoenix and also handled the June 2009 auction at the Murano, 21st and Market Streets. On Aug. 30, 51 original buyers of Murano units sued developer Thomas Properties Group Inc., of Los Angeles, and others involved in sales, accusing Thomas of inflating sales numbers to boost prices. During the third quarter, nine additional Murano units sold, at prices ranging from $450,000 to $895,000. Ten Rittenhouse Square at 130 S. 18th St., mired in a legal battle for control between its mezzanine and senior lenders, had nine sales in the quarter, including the largest — $7.17 million for a 31stfloor unit bought by autoparts dealer Stephen A. Thorne and his wife, Sabrina Tamburino Thorne, finance and budget coordinator at the Greater Philadelphia Tourism Marketing Corp. The other eight units sold for $616,800 to $3.7 million. (The most expensive condo sale to date was the penthouse at 1706 Rittenhouse Square Street, bought by Theodore R. and Barbara B. Aronson in the second quarter for $12.5 million.) Technically, the third quarter’s most expensive condo transaction was $10.7 million paid by Parkway Corp. to Abington Bancorp Inc. for 40-unit American Lofts, at 212 Brown St. in Northern Liberties. The mid-rise building — developed as condos by Creative Real Estate Innova-
Sunday, November 14, 2010
THE PHILADELPHIA INQUIRER
Third-Quarter Condo Sales
There were 79 fewer condo sales in Philadelphia in the third quarter than the second, but the sales percentages in each price range remained about the same. The 525 third-quarter sales of condos, by price range:
45
Less than $100,000
82
$100,000 to 199,999
ELIZABETH ROBERTSON / Staff Photographer
138
$200,000 to 299,999
Kreme
112
$300,000 to 399,999
68
$400,000 to 499,999
43
22
$500,000 to 599,999
83 percent sold for less
$600,000 to 699,999 11
than $500,000, compared with 79 percent in the second quarter.
$700,000 to 799,999 11 $800,000 to 899,999
4
$900,000 to 999,999
3
$1 million and higher*
*Figure includes $10.7 million purchase of American Lofts on Brown Street by Parkway Corp. from Abington Bancorp. Condo building is now rental apartments.
29
SOURCE: Philadelphia Recorder of Deeds, compiled by Kevin Gillen of Econsult Corp. The Philadelphia Inquirer
tions, then recovered at sheriff’s sale by the lender and completed — now is apartments, with monthly rents from $1,300 to $3,800. At the 53-unit Hawthorne Lofts at 12th and Fitzwater Streets — the rehabbed Nathaniel Hawthorne School, in the neighborhood just east of Broad Street — 14 units, priced from $149,900 to $279,900, went to settlement in the third quarter, with three more under agreement. “Almost all [were] firsttime buyers who were motivated by price and the fact that the units were newly rehabbed and included park-
MICHAEL S. WIRTZ / Staff Photographer
Condo auctions boosted the
city’s third-quarter sales, some at the Phoenix — timed to qualify for U.S. tax credits.
Read more about the condo market in Philadelphia at http://go.philly.com/condos
ing,” said Mark Wade of Prudential Fox & Roach, who handled sales for developer Anthony Rufo. “Many buyers came from outside the Philadelphia area to attend school, or start jobs here,” Wade said. He called the third quarter “a mixed bag, with the segment that saw the most activity at the lower end of the price scale.” “It is said that anyone who has the money to buy a home in July or September,” Wade said, “also has the money to be at the Shore.” Richard Oller, whose GoldOller Partners L.L.C. bought half the unsold units at the Aria on Locust Street near Broad in late 2009, closed on five additional units in the third quarter, ranging from $270,000 to $757,000. “The rebound from the summer was somewhat delayed, with activity lagging until midto late September,” Oller said. “The pace has picked up and remained strong.” These days, Realtors and condo developers said, they are seeing increased interest from buyers motivated by record-low interest rates of 4.17 percent for a 30-year fixed mortgage. “Lower rates have stimulated the first-time home-buyer market,” said Allan Domb, whose Allan Domb Real Estate specializes in Philadelphia condominiums. “There is also a feeling that the worst is over, and we are starting to stabilize.” Contact real estate writer Alan J. Heavens at 215-854-2472 or aheavens@phillynews.com.
Money Watch
Continued from E1 franchise store in Philadelphia. Amid the grand-opening hoopla of employee-led chants and cheers, the soft-spoken Southerner with a near-daily Krispy Kreme habit from his childhood in South Carolina candidly reflected on how the onetime rave of Wall Street and Main Street had seriously screwed up. Uneconomically sized factory stores, overstated sales and earnings, and largely neglected franchisees were just a sampling of the dysfunction. “Early on, we were successful in spite of ourselves,” said Morgan, 63, a former financial-services executive who came out of retirement in January 2008 to oversee Krispy Kreme’s revival. The goal now, he said, is to once again be successful — this time because of what Krispy Kreme is doing. Central to the recovery plan is a new hub-and-spoke satellite store initiative that involves smaller outlets, but more of them, Morgan said. The Krispy Kreme of plummeting profits and stock prices was a network of so-called factory stores ranging from 4,000 to 8,000 square feet, generally in freestanding suburban locations. Not counting the land, the stores averaged $1.8 million to build, according to a report by Roth Capital Partners, making it cost prohibitive to establish enough of them to achieve significant market penetration. “One of the biggest problems Krispy Kreme has had is we’re not convenient,” Morgan said. In other words, they were far from the seeming omnipresence of Dunkin’ Donuts — which bookends the stretch of Oxford Avenue in Fox Chase that Krispy Kreme has chosen for its return debut. Under the new business model, “hub” stores like that one will be closer to 3,000 square feet, and provide product to smaller “spoke” stores of 1,200 to 1,600 square feet. Pedestrian outlets, such as walk-up counters in airports and train stations, probably would not be much larger than 200 square feet, Morgan said. Won’t a faltering economy with so much unemployment and limited disposable income interfere with Krispy Kreme’s renaissance plan? There has been no evidence of that, Morgan asserted, calling the company’s sweet temptations “an affordable indulgence.” (A glazed in Fox Chase is 89 cents.) Indeed, analysts (who have only recently begun following Krispy Kreme again) think the company is on track to have the first full-year profit since fiscal 2004. “The hemorrhaging has been halted,” Anton Brenner, senior research analyst for
Yields Available to Greater Philadelphia Area Residents
Allegiance Bank 610-949-9500
Chase Bank, 1-800-242-7324
Alliance Bank 610-353-2900
Unsec. pers. loan
New car
Used car
N/A
4.36
4.46
N/A
N/A
Citizens Bank, 1-888-910-4100
16.99
N/A
N/A
N/A
6.49
Firstrust Bank, 1-800-220-2265
13.49
7.49
8.49
N/A
4.49
N/A
N/A
N/A
N/A
5.34
Credit Home card equity
N/A
8.62
10.24
N/A
10.79
13.75
N/A
N/A
N/A
4.99
N/A
7.25
7.75
N/A
6.63
11.50
6.40
8.25
N/A
5.50
Harleysville Saving Bank, 1-800-243-8700 N/A
7.50
8.00
N/A
5.74
HSBC Bank USA, NA, 1-800-975-4722
16.55
9.69
10.14
N/A
8.39
N/A
8.25
N/A
N/A
5.49
Republic Bank, 1-888-875-2265
12.74
7.40
8.15
N/A
5.60
Susquehanna Bank, 856-983-4000
13.50
5.10
5.60
N/A
5.75
Third Federal Bank, 215-968-4444
12.95
6.25
7.50
N/A
5.24
WSFS Bank, 1-888-973-7226
13.99 10.09
10.59
N/A
6.99
Abington Bank, 215-886-8280 Conestoga Bank, 1-866-437-2265 DNB First, 610-269-1040
Penn Liberty Bank, 610-535-4580
Bank of America, 1-800-225-5353
N/A
2.89
3.39
N/A
7.59
10.74
N/A
8.49
N/A
4.99
Hudson City Savings Bank, 856-667-0223 N/A
N/A
N/A
N/A
N/A
Beneficial Bank, 1-888-742-5272 PNC Bank, 1-800-523-1792
10.99
3.49
4.86
N/A
5.69
TD Bank, NA, 1-800-937-2000
10.24
6.24
6.74
N/A
5.04
Personal loan: Rate charged on a $3,000 unsecured personal loan with a 24-month term. New car: $16,000 loan with a 48-month term and 10% down payment. Used car: $10,000 loan with a 36-month term and 20% down payment. Credit cards: New bank card applications; loan against standard Visa or MasterCard. Home equity: $30,000 home-equity loan, with a 60-month term; a second mortgage is required on the borrower‘s home. N/A: Not available.
Area Loan-Rate Trends The average rate in the area for a $30,000 home-equity loan with a 60-month term.
7.00 6.25 Aug. 18 5.50 5.18% 4.75 4.00
The average rate in the area for a 48-month car loan with a 20 percent down payment.
7.75 7.50 Aug. 18 7.25 7.05% 7.00 6.75
The average rate in the area on an unsecured personal line of credit.
14.25 Aug. 18 13.50 12.65% 12.75 12.00 11.25
S
om
PHILADELPHIA CD & DEPOSIT GUIDE
Following are the interest rates, in percent, for a variety of consumer loans at Philadelphia-area institutions on Friday, availability based on credit verification. All rates are fixed unless marked “V” for variable. Credit unions have membership requirements.
Wachovia Bank, 1-800-922-4684
Contact staff writer Diane Mastrull at 215-854-2466 or dmastrull@phillynews.com.
ADVERTISEMENT
Consumer-Loan Rates
Sovereign Bank, 1-877-768-2265
Roth Capital Partners, wrote in a June report to investors. Krispy Kreme’s $140 million debt of a few years ago is down to $40 million, with a debt-restructuring announcement expected soon, Morgan said. The improved financials, however, have not yet triggered a rebound in stock performance. Shares closed down 19 cents, at $5.27 Friday on the New York Stock Exchange. The stock had been as high as $108.50 a share in November 2000. Krispy Kreme, which continued to expand overseas throughout its problem years, now has more than 600 stores worldwide — about 230 in the United States, including 83 company-owned stores. In the Philadelphia area, cousins Keith Morgan (no relation to Jim Morgan) and Brian Zaslow plan at least 20 more stores over the next five years, with the second expected to open in April at a former Rite Aid at 16th and Chestnut Streets. That their Fox Chase shop is open is pure testament to their powers of persuasion. Before Zaslow and Keith Morgan approached him in the spring, said Krispy Kreme CEO Morgan, “we had Philadelphia on a back burner. We weren’t ready to get to this area.” Then he experienced the Zaslow/Morgan “energy” — and a franchise was born. Zaslow is a former vice president of marketing for Philadelphia food-service firm Aramark Corp. Keith Morgan was former CEO of Aamco Transmissions Inc., the repair-shop franchiser cofounded by his father, Robert, in 1963. Keith Morgan praised Krispy Kreme’s “tremendous brand awareness, outstanding product, and wonderful consumer loyalty.” The firm’s last few years of restating financials, closing stores in certain U.S. cities, and settling all litigation have also been a time of developing new product lines, including more waistline-friendly baked goods. Krispy Kreme stores are also starting to offer more healthful options such as fresh fruit and yogurt. But at last week’s grand opening, it was the traditional doughnuts that brought out most of the 7,500 customers. “We’ve been craving them ever since they left five years ago,” said Len Pundt of Parkwood, who polished off a dozen with son Albert, 11, and daughter Audra, 8. Practicing willpower were a half-dozen members of construction union locals who staged a brief protest nearby over the use of nonunion labor in renovating the site, a former Popeye’s chicken restaurant. Of Krispy Kreme’s growth goals, Jim Morgan said: “We haven’t even scratched the surface.” But expansion will come at a controlled rate, he assured: “We have to crawl before we walk, and we may never try to run again.”
Institution/Phone
Address/Internet
One Belmont Avenue, Suite 105 www.allegbank.com Specials: For details call 1-866-STAR-955
Int Chking Money Acct Mkt Acct Min Min
Check rates daily at http://phillynews.interest.com 3 mo CD Min
6 mo CD Min
12 mo CD Min
18 mo CD Min
24 mo CD Min
36 mo CD Min
60 mo CD Min
0.85 1.10 0.45 0.65 1.20 1.30 1.35 1.55 1.95 100 100,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
541 Lawrence Rd., Broomall, PA 0.10 0.50 0.75 1.00 1.25 1.50 1.75 2.15 2.50 www.allianceanytime.com 99 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Specials: Customer First banking available Thursday and Friday evenings until 7:00 and Saturday 8:30 to 4:00
Discover Bank 800-657-3057
www.discoverbank.com
First Priority Bank 610-280-7100
2 West Liberty Blvd www.fpbk.com
0.10 250
Fox Chase Bank 215-283-2900
4390 Davisville Road www.foxchasebank.com
0.50 0.50 0.10 1,500 100,000 500
NA 1.15 0.60 1.00 1.35 1.40 1.65 1.90 2.60 NA 10,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Specials: Member FDIC. 24/7 online access & customer service. Mention Code D120296
Specials: Call for special rates.
0.75 0.50 0.50 0.70 0.80 1.01 1.30 2.05 7,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000 0.35 500
0.65 500
0.90 500
0.95 500
1.60 500
1.60 500
1420 Locust Street 0.10 1.10 0.40 0.50 www.novabank.com 1 100,000 500 500 Specials: Rates available only in PA/NJ locations. Call 877-NOVABANK for details.
1.00 500
1.30 500
1.55 500
2.00 500
2.50 500
Specials: Call for special rates.
Nova Bank 215-893-1000
Public Savings Bank 215-839-0100
www.publicsavings.com
Sharon Savings Bank 610-586-4070
3 Chester Pike www.sharonbank.com
Specials: FDIC Insured. Invest locally.
Specials: Call for special rates.
NA NA
0.20 100
0.29 0.49 0.79 0.79 0.79 0.89 1.00 1,000 1,000 1,000 1,000 1,000 1,000 1,000
0.25 1.00 0.65 0.95 1.15 1.50 1.75 NA 2.50 250 25,000 1,000 10,000 10,000 1,000 10,000 NA 10,000
Stonebridge Bank 800-807-1666
624 Willowbrook Ln., Westchester 0.10 1.00 NA 0.40 0.80 1.00 1.55 www.stonebridgebank.com 100 1,000 NA 500 500 500 500 Specials: SPECIALS: 14 Month CD Rate 1.00% APY = 1.00% ** 21 Month CD Rate 1.14% APY = 1.15%
1.75 500
2.55 500
VIST Financial 888-238-3330
2.25 500
2.45 500
Specials: Call for special rates.
1767 Sentry Parkway www.visitfc.com
NA NA
0.35 1,500
0.70 500
0.70 500
1.20 500
1.35 500
1.80 500
RATES & INFORMATION AVAILABLE ONLINE @ http://phillynewsinterest.com INSTITUTIONS, TO PARTICIPATE IN THIS AD CALL BANKRATE.COM @ 888-768-4243
Nov. 10 5.21%
Nov. 10 6.96%
Nov. 10 12.21%
O
SOURCE: Bankrate.com, a publication of Bankrate Inc., North Palm Beach, Fla. Internet: www.bankrate.com
N
Note: Rates effective as of 11/12/10 and may change without notice. Rates may change after the account is opened. N/A means rates are not available or not offered at press time. Yields represent annual percentage yield (APY) paid by participating institutions. Fees may reduce the earnings on the account. A penalty may be imposed for early withdrawal. Payout of interest is mandatory for certain non-compounding accounts Banks, thrifts, brokers and credit unions pay to advertise in the CD & Deposit Guide which is compiled by Bankrate.com®, a publication of Bankrate, Inc. © 2010 To appear in this table, call 888-768-4243. To report any inaccuracies, call 888-509-4636. • http://phillynews.interest.com