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Ask Andrew: Pike & Rose Blooms In North Bethesda

by BethesdaNow.com — April 29, 2014 at 9:20 am 472 8 Comments

Ask Andrew

This sponsored, biweekly Q&A column is written by Andrew Goodman, broker/owner of Goodman, Realtors. Based in Bethesda, Andrew serves clients in Maryland, D.C., and Northern Virginia. Please submit comments, questions, and opinions in the comments section or via email.

Question: What affect do you think the development of the Pike and Rose project will have on the real estate of its immediate area?

Pike & Rose is a development project set to open its first phase in the summer and fall of this year.

The total project is going to consist 430,000 square feet of retail space, 1,500 new residences, 1.1 million square feet of office space, a 300-room luxury hotel, eight-screen iPic Theatre, and a 250-seat performing arts venue.

Businesses that have already signed leases include: iPic Theatres, Del Frisco’s Grille, Stella Barra Pizzeria, Summer House, Protein Bar, Roti, ShopHouse Southeast Asian Kitchen, Tanzy, Salt Bar, Sport & Health, City Sports, and Chipotle.

As far as the community’s housing is concerned, the first building scheduled to be delivered in the summer is the PerSei, which is a 174-unit building with 1- and 2-bedroom units ranging from 615-1,585 square feet.

The second building is the Pallas, which is to be completed by the first quarter of 2015. The Pallas will include 319 units with units ranging from 554-2,007 square feet. As of now, all residential units seem to be labeled as rentals, but I do expect at least a small portion of of the 1,500 residences would be available to purchase..

Pike & Rose will have a huge and positive impact on the real estate of the area.

I am truly excited for the project. I believe the new attractions, stores, and restaurants will ultimately increase the high demand that already exists in the area. With all residential units slated as rentals, as of now, the housing supply for purchase will remain low and the demand will continue to grow with the opening of the town center-like neighborhood.

Right now, The Gallery at White Flint Place, The Sterling and the Midtown Bethesda North anchor the condominium market in the area — just across Rockville Pike from Pike & Rose.

The White Flint Station low rise is also in demand, but seems inferior to the other three buildings — even though it is still very stylish. I do expect these condominium buildings to appreciate.

The one drawback, however, is associated condo fees. While The Gallery and White Flint Station fees seem to be consistent with the market, The Sterling and Midtown Bethesda North buildings are considerably higher.

Yes, The Sterling and Midtown Bethesda North buildings do offer phenomenal amenities, but the higher condo fees could push them out of the market if they increase at all.

Townhomes and single family homes will also grow in demand. However, most homes in walking distance to the Pike & Rose are at an age typical of needing significant updating. This will require cash, unless some sort of construction loan can be obtained, which may make it difficult for some buyers to consider purchasing.

All in all, Pike & Rose will be great for the transforming area. This project is the first of many which will change the face of North Bethesda and the 20852 zip code.

  • Gary

    Interesting that so many people buy (or rent) the condos. Right down the street you can buy a house with a yard for the same amount of money. While not Tilden Woods in its prosperity, Randolph Hills is the neighborhood to buy in.

    • Andrew Goodman

      Both great areas. However, the 3 rules to real estate. Location location location. Not saying the neighborhoods you mentioned weren’t in good locations, but the condos/apartments that residents have been drawn to are in walking distance (if not crawling distance) to the future Pike & Rose. A yard is very nice to have, but some people love a starbucks outside their front door.

  • Jake

    Great article Andrew! Would a 203K loan be possible to purchase one of the homes in walking distance that needs repairs?

    • Gary

      The single family homes within a mile are now averaging $390,000 and rising in Randolph Hills. $203K puts you closer to Viers Mill Road (like right in the middle of it). There are condos in your range though off of Parklawn.

      • Andrew Goodman

        Gary,
        Jake was referring to a 203K loan program which is a rehab loan. Not a price range. Sorry for the confusion.

    • Andrew Goodman

      Not necessarily. Most repairs I was referring to would be considered cosmetic. A 203K loan would be directed towards more significant repairs. However, you may be able use a home equity line, cash out refinance on a current property, etc.

  • Michael Darzi

    Andrew, I would strongly disagree with your characterization that the White Flint Station (WFS) Condos community “seems inferior” to the nearby high rise condo and apartment buildings, of which there are several, with more coming soon.

    My wife and I bought our condo at WFS precisely because they are not high rises. We visited several such tall buildings in our search. Their corridors struck us as gloomy and depressing, regardless of how well decorated and lit they may have been. On the other hand, WFS’ beautiful courtyards and open corridors and breezeways provide abundant natural light, and are a breath of fresh air, figuratively and literally.

    I am sure you realize that buyers have a wide range of tastes and preferences. Although WFS Condos may be very “different” from the high rises, they are by no means “inferior” for being made from a different mold.

    • Andrew Goodman

      I agree with you and I should have clarified what I was referring to. I have had several owners in your building reach out and I have told each of them that I will make a remark in my next column retracting my misunderstood statement.
      My comment was strictly due to the Gallery and the Sterling buildings towering over them in regards to height. In no way was my intent to downgrade the building nor it’s units. The units are very nice and the building does offer a different feel compared to the others.
      My apologies for the confusion and I will certainly make a retraction statement in my next column.

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