Upscale Condos Cost More, Offer Fewer SF

Some people believe luxury homes are $50 steaks and condominiums are fast food.
While many condo units are built for affordable housing in Northwest Arkansas, there is also a growing number of upscale condos.
In Fayetteville, projects like the Renaissance Tower, where groundwork has begun at College Avenue and Mountain Street, will add to the luxury market. Sitting on top of the 13 floors of hotel space will be five floors of condos. The Lofts at Underwood Plaza expects to add 74 condo units. The Barber Group is also selling condos at $314 per SF in the Legacy Building.
In Rogers, the project on the rise is Grandview Heights. Nicky Dou, Realtor with Element Realty Group, said prices start at $325,380 for a 986-SF unit (or about $330 per SF). The largest unit is 2,637 SF, or about $500 per SF for a cool $1.3 million. In addition to the three bedroom and three-and-a-half bathroom living space, there is also a 2,190-SF terrace.
The average upscale home in Northwest Arkansas is about $130 per SF.
Condos are a growing part of the real estate market in the area. They’re increasingly being used to combat rising land prices, offering consumers more affordable housing.
The average price of a condo in Benton County during January and February of 2006 was $189,848. During the first two months of 2007, the average price was $170,646.
The story in Washington County isn’t all that different. In the first two months of 2006, the average price for a condo was $191,760. Condos sold in the first two months of 2007 slid to an average of $171,191.
Austin Bivens, owner of Re/Max Partners in Springdale, said the price of condos is important. Under $150,000, condos in Northwest Arkansas often have the price advantage. When condos pass that $150,000 mark, houses become more competitive, so condos must offer similar luxuries and even more.
Condos also are getting larger. According to the National Association of Home Builders, 39 percent of multi-family units were larger than 1,200 SF in 2004, compared to just 20 percent in 1990.
Condos have given a reason for investment. Three to four years ago, the national median price of condos was growing at 10 percent to 15 percent annually, compared to houses at 6 percent to 8 percent. That trend has cooled and houses have caught up. Despite some impressive growth, condos also have shown volatility. Condos actually lost value in a couple of years since 1990, while houses only increased in value.
While condos are important in land-starved markets such as New York, Miami, Chicago and Los Angeles, they are a bit ahead of their time in Northwest Arkansas. People from the area are used to having spacious yards to tromp around in.
During the first two months of 2007, the number of condos sold in Benton County was 28. In Washington County, 15 were sold. In Northwest Arkansas, Rogers and Fayetteville are home to the most condos.
While looking at the market, there are some considerable tradeoffs in condos versus houses.
“In the $200,000 and above range, you’re usually getting a pool and a clubhouse,” Bivens said. “Obviously, you’re getting someone else to do the maintenance for you.”
Another matter to contend with is the Property Owners Association fees, which can range from $50 to $200 per month. Bivens said he’s never had an issue explaining the fees to condo buyers. The fees cover maintenance and can equate to savings for owners. Condos can flex buying power, saving money when it comes to services such as exterminators. Owners also save money because they’re not out of pocket for items such as roof insurance that homeowners have to pay.
Prospective buyers just have to realize what’s important to them.
“Usually condos are located in a really nice part of town – a good part as far as convenience,” Bivens said.
“If you want a yard, if you want your own privacy, you can not get that in a condo.”

Downtown Fayetteville
Sitting atop the Bank of America Building on the downtown Fayetteville square are the six units of One East Center Condominiums. Two have already been purchased. Of the four remaining, the 2,757-SF fat-cat pad goes for $825,075. Sheree Alt, principal broker for Alexander Merry-Ship & Alt Real Estate Group Inc., said the price will be going up.
The condos are considered “white box,” meaning buyers purchase the space — finished only in drywall — and then build it out themselves. The advantage is that owners can customize their luxury digs. The drawback, as Alt has found with these properties, is that prospective buyers aren’t as willing to spend the time needed to design and build the rest of the condo.
Alt said she is now looking to build out the remaining spaces, having them decorator-ready for buyers. This will drive up the going price from the current $299 per SF, but the new price isn’t yet known because bids are still out.
Interested buyers, Alt said, have included young professionals, empty nesters and people looking for a second home for entertainment purposes — of which location plays a large part.
One of the main selling points of these condos is that they are in the heart of Fayetteville. They’re four blocks away from the Walton Arts Center, three blocks from Dickson Street and about 40 feet above the farmer’s market. Living this close to downtown, especially for the target buyers, is difficult to beat.
The upscale, urban lifestyle also comes with a view. The $825,075 condo, hoisted above the square, has 684 SF of balcony to take advantage of panoramic views of Fayetteville and the mountains to the south.
As for parking, tenants and guests are parking on the street, the city parking garage or a company parking lot on a neighboring block. With the construction of the Renaissance Tower, a parking garage will be constructed that the tenants can use. The tower and garage are both expected to be complete in about 18 months.
With the views and the downtown location of the One East Center Condosminiums, finding a comparable home is a stretch.
But at a ballpark price point to the built-out condos is 2250 N. Crossover Road. Listed at $900,000, this Fayetteville house is still well connected to the city — though it may not always feel like it while enjoying the five acres it sits on.
The house comes in at $240 per SF with 3,735 SF of living space. It was built in 1988, has four bedrooms, three-and-a-half bathrooms, hardwood floors and a 700-SF detached garage.
The buyer of the house can take advantage of an extra 1,000 SF and the 5-acre lot. However, a large balcony with a remarkable and easy access to anything downtown sways back to the condo. It’s a matter of needs and wants.

Historic Fayetteville
To many people, the most attractive feature of condo living is the no-maintenance lifestyle. Just go home, turn the key and enjoy life. Let someone else worry about mowing the yard or fixing the roof.
Mix this upscale attitude with a two-story stained glass depiction of St. Joseph, and you have the condominiums at 321 E. Lafayette, the former St. Joseph’s Catholic Church in Fayetteville.
Alexander Merry-Ship & Alt bought the property in 2003 and converted the church campus into luxury condos. Unit 102, a 1,492-SF condo, is on the market for $350,600 — or about $235 per SF.
The condo offers upscale amenities with the serenity of a quiet neighborhood in the historic district. It has a private entrance, a balcony, two bedrooms and two bathrooms.
The maintenance may be left to the owner, but the home at 409 Ila Street is similar to the condo at 321 Lafayette Ave.
This house has its share of history, having been built in 1927, and it rests in a mature neighborhood. The European home offers 2,000 SF, at $173 per SF, for $347,000.
The home is located one block away from Wilson Park and is a few blocks from the University of Arkansas and Dickson Street.
It’s a two-story house on 0.16 acres with a balcony and a deck with a hot tub. It has three bedrooms and two bathrooms. It also has a single-car, detached garage. Also, not accounted for in the square footage, is an unfinished basement that could be transformed into more living space.
A buyer can get more room for the buck in the house, saving about $60 per SF.

Upscale Rogers Condos at the Peaks
The Barber Group planned the Condos at the Peaks in Rogers. Prices for the mountain-themed development start at $199,999 for the Nepal, a 1,514-SF unit with two bedrooms, two-and-a-half bathrooms and a single-car garage.
Looking at the largest unit, named Everest, opens owners to a condo with 2,880 SF at a price of $379,999. The breakdown is $132 per SF. The condo comes with two bedrooms, two-and-a-half bathrooms and a two-car garage.
The Condos at the Peaks is located in a prime spot in Rogers, situated southeast of the Pinnacle Promenade. It’s just a jump to Interstate 540 and is minutes away from the developments along either New Hope or Pleasant Grove roads.
A stylish motor court, a combination driveway and parking area, welcomes owners home. On the inside, owners can choose from three design styles: traditional, urban or eclectic. The kitchens are outfitted with appliances and granite countertops.
In Rogers, $379,000 will buy a 3,088-SF French Provincial styled home like the one at 5445 Chardonnay Court. The price averages out to about $123 per SF sitting on 0.24 acres.
This home sits just off of Horsebarn Road, a quieter location that is still close to all the commercial offerings in the Pinnacle area. The house has four bedrooms, four bathrooms, a bonus room upstairs, a central vacuum system, security alarm and sprinkler system.
Compared to The Peaks, a buyer gets an extra 208 SF, two more bedrooms, an extra 1.5 bathrooms and a yard.
Again, it’s all in what meets a buyer’s needs and wants.

Pinnacle Pickings
Luxury condos aren’t necessarily defined by price, said Anne Caldwell, Harris McHaney Realtor and agent for Stone Manor. It’s also about the amenities.
Stone Manor converted from upscale apartments last October and now has about 100 units occupied of the 254. Prices start at $121,850 for a one-bedroom, 662-SF condo, or $184 per SF. The largest one-bedroom unit is 1,009 SF and goes for $167,500. The two-bedroom units go up to $195,220 with 1,323 SF. The most expensive unit offers three bedrooms with 1,667 SF of space for $225,045, or $135 per SF.
Again, it’s the young professionals and the empty nesters that have showed the most interest in the gated community, but there is also a fair amount of interest from the vendor community.
“They’re tired of mowing their yards, that’s the comments that I get,” Caldwell said.
With few cares, residents of Stone Manor can go home to a wood-burning fireplace in the winter or head outside in the summer to take a dip in the pool, which also features a swim-up bar. Among other amenities, Stone Manor sports an on-site masseuse, fitness facility, outdoor fireplace pit area and a shuttle that runs residents to and from the Northwest Arkansas Regional Airport.
Caldwell said condos are making up a growing part of the real estate market and is especially catching on with those moving from other metropolitan areas.
“It’s the hottest real estate in the U.S.,” she said.
With condos reaching to about $225,000, a single residential comparison could be 1721 42nd St. in Rogers.
Buyers may have to spend Saturdays mowing and edging, or at least thumbing through the phone book to find someone else to do it, but they do get a quarter of an acre to call their own.
The traditional-style house is listed on the market for $219,900, or $93 per SF. It has four bedrooms, two bathrooms, a fireplace, his-and-hers walk-in closets and 2,356 SF of living space.
Its location is another feature, being about one-half mile from the I-540 and New Hope Road exit.
There is a 689 SF advantage to the house for $5,000 less, but it’s not a gated community with all the amenities.