real estate

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: You recently offered off-market condos near Rosslyn in your Off-Market Source post. Do you have any additional information about the building and other units that are available?

Answer:

Full Disclosure

Before I jump into the details, I want to disclose that my team and I have a direct role in the sales of Pierce Court (1245 N. Pierce Street), unlike previous condo buildings (Key & Nash, Trafalgar Flats) that I have written about. Now back to your regularly scheduled program…

The Basics

I’ve noted in the past that Arlington is starved for new condos, averaging less than one new condo building per year since 2010, but beyond that, Pierce Court will be one of only a few buildings with less than 20 units (12 total units). It has six 2 BR/2 BA units on the first two floors and six 3 BR/2 BA units on the top three floors.

All units have high-end finishes (gas cooking!), upgraded sound-proofing, parking and a lot of private outdoor space, including some units with multiple balconies and/or large terraces (the model unit alone has 596 square feet of combined outdoor space). The penthouse units each have private rooftop terraces with ~500 sq. ft. and wide open views.

These smaller boutique 2 BR-3 BR buildings are wildly popular in D.C. (zoning plays a big role in their prevalence) and I think it will play well in Arlington for buyers who don’t want to live in a high-rise or pay high monthly fees for amenities they don’t value.

What I’m Most Interested In

I have no doubt buyers will love the floor plans, finishes and outdoor space delivered by the builder, The Asset Companies, but what interests me the most about this project is how it will do in an underdeveloped, yet highly desirable, neighborhood.

Most locals will know it as being “around the corner from Quarterdeck,” it’s more easily described as being across Route 50 from Rosslyn/Courthouse and the County calls it Radnor/Fort Myer Heights. It’s a half mile walk to the Rosslyn or Courthouse Metro and the Iwo Jima Memorial, one mile to Whole Foods/Clarendon and truly a quiet, residential neighborhood (was a favorite of mine for dog walks when I lived in Rosslyn).

One would think that every neighborhood this close to Rosslyn-Clarendon would be developed and expensive (Lyon Village/Park), but Pierce Court sits in the middle of a 2-3 block radius of underdeveloped properties and will garner a lot of industry attention to gauge future condo and townhouse development.

There is precedent for $1M-$2M+ sales here, but for properties a few blocks east, with unobstructed views of D.C., like Monument Place townhouses (in my opinion, the most undervalued properties in the D.C. area) and condo buildings like Prospect House, Memorial Overlook and The Westlie.

I think the builder did a great job setting prices that will attract buyers to an area they aren’t used to seeing modern condos, which I will detail next…

On-Paper vs In-Person

The 2 BR/2 BA units range from $485k-$575k with monthly fees under $350 and the 3 BR/2 BA units range from $815k-$995k with monthly fees under $530. All units include parking and the fees cover all utilities except for TV and internet. For details on floor plans, pricing, availability and more you can visit the Pierce Court website.

When I initially reviewed the project on-paper, the square footage jumped out at me. With the 2 BR’s at 702 sq. ft.-870 sq. ft. and 3 BR’s at 1127 sq.ft.-1261 sq. ft., I was concerned about how buyers would receive that amount of space — would it be enough?

Once I had a chance to see the units in-person I was sincerely impressed with the layouts and how the space was used. The way it’s designed for functional space feels like there’s an extra 20-25% more square feet in each unit.

When you add in the large, usable outdoor space and low condo fee, I think the builder is delivering incredible value to the market and this building will stimulate more development in the neighborhood.

Say Hello at the Launch Party or Private Tour

We are hosting a public launch party at Pierce Court (1245 N. Pierce Street) on Thursday, November 8 from 3-7 p.m. I’ll be there the entire time and would love a chance to meet readers! We’ll have light snacks, beer and wine for you to either celebrate or drown away the results of the mid-terms! Please RSVP online if you think you’ll make it.

If you can’t make it to the launch party, the model unit (unit #1, a 2 BR with huge private terrace) and on-site sales office opened on Sunday and will keep regular hours Tuesday through Sunday.

You can also schedule a private tour online or directly with me by emailing me at [email protected]. I’m happy to share my personal thoughts on which units I think will sell the fastest and offer the best value, just shoot me an email and we can meet or find time for a call.

If you’d like a question answered in my weekly column, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781.

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: I’m the Treasurer for my condo association and we’re working on the 2019 budget. What’s a good way for us to save money in the budget without compromising the health and maintenance of the building?

Answer: As a former Condo Board Treasurer, I feel the pain that this time of year brings, so I’m happy to offer some advice that helped me finding savings while I oversaw the budget and has helped other associations do the same… review your master insurance policy.

I know, it’s not the most exciting answer, but your insurance policy is likely a top three expense on your balance sheet every year and if you haven’t reviewed it lately, there’s a good chance you can cut the cost by 5% or more and probably improve your coverage at the same time.

I’m not an expert in insurance so, I asked Andrew Schlaffer, Vice President at USI Insurance Service’s Community Association Practice to provide some details on what Board’s should look for when they do a review of their Master Policy. If you’d like to discuss a review with Andrew directly, you can reach him at 703-205-8764 or [email protected].

Take it away Andrew…

Pillars Of Insurance Reviews

Condo insurance reviews require a holistic approach, so it’s important to break the cost into a few distinct categories: insurance premium, deductible expense and out-of-pocket costs. To effectively accomplish long-term savings, all three of these categories need to be considered and addressed with a qualified insurance professional.

Adjust Coverage Responsibly To Save On Premium

Premium is certainly a factor to consider during the insurance selection process; however, available insurance products differ significantly.

Coverages and services should be very carefully analyzed and compared. While omitting various coverages will save premium dollars, it might also result in substantially increased costs to the association for out-of-pocket expenses related to uncovered claims.

It is critical to work with a professional who understands local insurance needs and can adjust your insurance program in a way that maximizes premium savings while maintaining adequate insurance coverage. Some coverages may be required by statute and/or association documents, so cutting required coverage exposes the Board to unwanted risk.

Deductibles Based On Loss History

Associations with strong financials often choose to increase their property deductibles which can provide immediate savings of 2-5%. Deductibles range from $2,500 to $25,000+.

When considering deductibles, it is important for the association to review their loss history and the loss history of comparable buildings in an effort to obtain an accurate estimate for deductible expenses.

Rate Shopping

The most common strategy employed by associations seeking lower insurance costs is to shop their carrier.

An association can accomplish this in several ways but generally their appointed broker can offer alternative carriers in an effort to obtain the most competitive rates possible. Make sure your broker has access to all of the competitive markets in order to maximize the likelihood of finding savings.

Secondly, and more importantly, if savings is found, your broker should verify that all required coverages are included to secure the association’s long-term financial security and lender approval. Additional savings can be realized by a thorough coverage analysis to verify the association is not being over-insured by paying for coverage it won’t use.

We are in a relatively soft insurance market, so an association can expect savings of 2-5% from a simple review, depending on the number of claims that have occurred during the previous policy period.

To insure cost savings and long-term health of your property, make sure your insurance broker specializes in condominium or homeowners associations. To maximize your savings, the association, insurance broker and insurance carrier need to work in harmony in an effort to identify and reduce threats to the financial health of the community.

Help Reducing Claims

One of the best ways to keep insurance costs down is to avoid claims altogether.

Some examples of how insurance brokers can help reduce claims and the impact claims have on your future premium costs include coverage reviews/benchmarking, claims management services, site inspections, building upgrade recommendations, life safety planning, vendor contract reviews, discrimination/harassment training and hiring/firing best practices.

Thank You

Andrew, thank you very much for providing your insight. I know from experience how much of an impact an insurance review can have on a condo budget, but also how important the right coverage can be when there’s an unexpected claim.

One thing board’s often overlook when they’re solely focused on price is the quality and speed of service when a claim in filed. For example, if a pipe bursts and floods the gym and lobby, a board should be confident that the work orders will be executed quickly so the building can be back on its feet without delay or headache.

Unfortunately, most boards don’t think about this until they’re dealing with it, and it’s too late. I encourage any board/treasurer to reach out to Andrew to review their policy. He does fantastic work and USI is a leader in condo/HOA insurance policies in Northern Virginia. His contact info is:

Andrew Schlaffer, Vice President
USI Community Association Practice
www.usi.com
Direct: 703-205-8764
Email: [email protected]

If you’d like a question answered in my weekly column, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781.