Model unit: A 1,650 square foot two-bedroom originally listed at $1.9 million
There have been a handful of new buildings that have stuck to their original pricing since opening for sales: Related Cos' Century project in Century City, the Residences at the Ritz-Carlton, and West Hollywood's Hancock Lofts (Update!: Hancock Lofts is still offering auction pricing on some units). Other buildings, like the Residences at the W Hotel, have dropped prices, and renegotiated with buyers. Add the recently supergraphiced Ritz, which has 224 condo units, to the list of those offering a price reduction. Prices recently dropped by 10-20 percent across the board, according to Tami Scully, sales manager at the Ritz. The price drop is both for listed units, and units already in contract. And maybe it's an anomaly, but Redfin shows a unit that's dropped nearly 40 percent--it was originally listed at $1.3 million and dropped in price last Friday to $800,000.
Meanwhile, two weeks ago, some buyers in contract were sent a letter informing them of their specific price reduction and a one-year HOA credit, all part of AEG's "Loyalty Recognition Program." One source tells Curbed a recent buyer was offered 15 percent off his unit.
According to Scully, those buyers who bought earliest got the biggest price reduction--the bigger price drop was basically a thank you for sticking with AEG. Closings will start this summer, with move-ins to follow. And as for that big Coke supergraphic that went up? A few real estate agents commented on Curbed that maybe higher-end buyers wouldn't want to move in to the building because of the ad, but Scully says no one has said anything.
"The ones that are buying here get what we are and where we are," she says of the signage around the Ritz. Meanwhile, the Ritz is 60 percent sold in terms of contracts, according to Scully.
· 900 West OLYMPIC Blvd Unit 27D [Redfin]
· Touring the Ritz [Curbed LA]