Since new lending regulations were implemented, 50% sold is the magic number for developers.
When a developer builds a condo project, the FHA won’t insure a loan until at least half of the units are sold or under contract. In the beginning conventional lenders are unable to loan on a project and buyers have to rely on private (portfolio) lenders. Private lenders require a 20% + down payment and borrowers typically pay higher interest rates.
The Clarendon, a 102-unit luxury building in Boston’s Back Bay, has reached the 50-percent-sold milestone with 51 units sold / under agreement. Six of the fifty-one units are under agreement and set to close shortly. For The Clarendon this milestone means that more lenders are able to finance the property at more favorable terms. Sales have soared at the 33-story property in the last year and we anticipate this news to bolster sales even more.
Please call me today to set up a tour of Back Bay’s premier luxury development, The Clarendon.- 617.314.7704