There’s been a lot written about the pricing of the Millennium Tower penthouse, which shocked the city when it was announced. There had been write ups for months leading up to the announcement, wondering which new development would be the first to crack the $20 million mark and then suddenly we had our answer. Most people have scoffed at the idea of $37.5 million penthouse in Boston, but let us give you our top 3 reasons why this price might not be as crazy as it seems.
It’s not possible anywhere else
For those that haven’t followed the details about the Penthouse at Millennium Tower it’s a 13,000 square foot behemoth that has 2,500 square feet of private outdoor space. The last penthouse(s) that had even close to what this unit offers are the 3 penthouses at the Clarendon. I use these units due to the views they offer coupled with the outdoor space deeded to one of the units. Now, even if you were able to purchase all 3 of the penthouses there is still no way to combine them.(Yes, we did have clients ask.) Furthermore, if you did own all 3 penthouse units, you would still only have about 10,000 square feet, making you 3,000 square feet short and the space is divided up on 3 different floors. Based on a recent listing for PH1 at the Clarendon, if there was 13,000 square feet available at the top of the building it would likely cost you roughly $30 million. So brand new construction on one floor doesn’t start to look so bad all of a sudden.
Price per Square Foot is Not Outrageous
The point that a number of people have made and we will support as well, the asking price/ft is not that high or out of the realm of possibility. The asking price/sq.ft. is $2,884 and while this may sound high, keep in mind the most recent sale at The Carleton House (2 Commonwealth Ave) had a price of $2,743/square foot. It’s important to keep in mind this is for a unit(pictured above) that does not have the level of renovation that brand new development will showcase. In addition, a recent sale at the Mandarin Oriental commanded a price $3,879.57 a foot.
Not Really a Shell
The other point that many people have been mislead about is the idea that the penthouse at Millennium Tower is being sold as a shell with no finishes or layouts built at all. The reality is that this is highly unlikely. What most likely will happen is that the final cost includes a certain amount of work done to your taste by the developer. Given the size of this space and how others have handled it, it could be that there is at least 6 million or so in build out costs built into that price.
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