Ten East Delaware
Jun 1st, 2014


Extensive pre-development planning, and proactive sales, marketing and customer service have made Ten East Delaware a steady seller in the luxury market.

Location: 10 E. Delaware Street, Gold Coast
Developer: The Prime Group, Inc.
Total # of Units: 121
Price Range: $600,000 to $2.6 million
Current status: Sold Out

Challenge

Sales for 10 East Delaware launched in the fall of 2006 when the luxury market was strong and buyer confidence was high. That confidence steadily eroded and eventually was shot to pieces as the recession took hold and the city’s housing market was plunged into crisis. However, the development program for Ten East Delaware had been engineered from the very start to withstand a variety of challenges. In the end, the project was a steady performer throughout the real estate downturn, holding the line on pricing and avoiding the contract-fallout that plagued many other luxury developments.

Solution

  • Conducted extensive pre-development planning with developer and architect
  • Performed in-depth pricing analysis to identify under-supplied price bands
  • Devised unit mix to cater to buyer demand
  • Worked with developer and architect over a period of several months to refine unit mix and floor plan designs, and identify finishes that would differentiate the product and add value for buyers
  • Oversaw creation of luxury branding, marketing and advertising
  • Instituted buyer communications program, which kept buyers engaged and informed despite a number of setbacks related to the economy as well as a labor dispute that delayed construction
  • Resisted the temptation to reduce pricing, instead offering a broker bonus in late 2010, following the first wave of closings

Results

  • 75% sold upon completion of construction
  • Limited contract fallout rate to under 10%
  • Maintained pricing levels throughout market downturn
  • Broker bonus netted more than a dozen new contracts, pushed project to nearly 90% sold
  • Project sold at a blended average of $670 per square foot; current pricing is averaging over $750 per square foot

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