Fitz condos vs Americana Center condos Rockville MD (real estate, apartment)

[Streganona]

I am hoping to purchase a 2 bedroom, 2 bath condo in Rockville MD, close to the Metro and Town
Center. I am currently living out of town and have only looked at listings online. I am puzzled
as to why condos at the Fitz (501 Hungerford Drive) are so much more expensive than condos on
Monroe Street (ex. Americana Center). The Monroe Street condos are closer to the Metro although
the Fitz is also within walking distance. Square footage and amenities appear to be the same,
based on info and photos posted online. The Monroe Street condos (there seem to be several
different buildings) also seem to be closer to Town Center. I'd appreciate any information available
as to why an apartment would be listed for only $285,000 when a a seemingly equivalent apartment
at the Fitz is listed at $330,000. Thanks!

[goldenage1]

Originally Posted by Streganona

I'd appreciate any information available as to why an apartment would be listed for only $285,000 when a a seemingly equivalent apartment at the Fitz is listed at $330,000. Thanks!

You will get better answers in the Washington DC suburbs of Maryland. But, a couple of quick observations. The Americana Center was built in 1972, and probably shows its age by now, eg 8 foot ceilings, dark cabinets.

The Fitz was built in 2003 when a real estate boom was starting. I believe I remember that they were initially over-priced based on that optimism. (Note that some units are "MPDU" with income restrictions, and not sure how that affects the market.) The finishes should be more up-to-date: crown moulding, granite and satinless steel kitchen, etc.

At any rate, good luck with your home search.

[Streganona]

Thank you, goldenage1. After reading your reply, I did some online research about The Fitz and discovered that the
developers held an auction in 2009 to sell off the remaining units, which they had renovated from rental units. I've
now done a property search at redfin.com and am shocked that if a 2bedroom/
2 bath was first bought in 2005, it sold for over $400,000; if bought at (or soon after) the auction in 2009,
it sold for as low as $270,000. This is especially interesting to me because it seems that the Fitz is very close
to the path of the Metro, Marc and freight trains so there is a noise level to consider. The condos on Monroe Street,
although older, are close to the Rockville Courthouse and must be in a much quieter location.
I am encouraged that the difference in price between these two buildings rests on such unimportant (to me) factors
as whether or not an apartment has crown moulding or granite counter tops. I greatly appreciate the perspective
which you have provided so quickly.

[bufflove]

Originally Posted by Streganona

Thank you, goldenage1. After reading your reply, I did some online research about The Fitz and discovered that the
developers held an auction in 2009 to sell off the remaining units, which they had renovated from rental units. I've
now done a property search at redfin.com and am shocked that if a 2bedroom/
2 bath was first bought in 2005, it sold for over $400,000; if bought at (or soon after) the auction in 2009,
it sold for as low as $270,000. This is especially interesting to me because it seems that the Fitz is very close
to the path of the Metro, Marc and freight trains so there is a noise level to consider. The condos on Monroe Street,
although older, are close to the Rockville Courthouse and must be in a much quieter location.
I am encouraged that the difference in price between these two buildings rests on such unimportant (to me) factors
as whether or not an apartment has crown moulding or granite counter tops. I greatly appreciate the perspective
which you have provided so quickly.

The age of the buildings isn't just about the dated finishes you see; it directly impacts the cost you'll pay. E.g. condo fees for the 2003 build are $423/m (2bed 2 bath) while a similar size unit for the older complex has fees of $739/m. That $316 difference is equivalent to roughly a $70K mortgage payment, except the condo fee isn't tax deductible and it is theoretically paid ad infinitum, instead of only for the term of a mortgage (usually 30 years). So a $285,000 old condo + $739/m condo fee is likely just as - if not more - expensive than a $329,000 newer condo + $423/m condo fee, depending on the ancillary factors (property taxes, insurance cost, what utilities are included in each fee, etc.).

Anyways, for both the buildings I'd be very wary and spend a lot of time considering their balance sheets. As you mentioned, the 2003 build ran into major issues of not being able to sell off all their units once the recession hit. It's entirely likely their reserves are severely underfunded from a decade of delinquencies. Ditto for the older building; it's entirely possible the complex hasn't been properly run over the last generation so doing your due diligence is extremely important.

[goldenage1]

I would also be careful of the energy efficiency in the 1972 condo and check the electric and heating bills. The newer building may have much more efficient heat and air.

Another factor is the safety. The sliding glass doors on the older units look easy to pry open. The newer unit looks better built.

[Streganona]

Thanks to you both for your thoughtful replies. I feel as though I'm beginning my real estate education. By the way,
I have discovered that there are open doors all around the garden style Fitz building. No locks on any of those outside
doors and no glass in the window panes. A friend who spoke with someone who lived there (before buying a house)
said that security was fine, which might be surprising given that the Fitz is open to the world. She enjoyed living there
but said she thought the developers had emphasized surface details (granite counter tops) over improving structural
details. I'm looking forward to visiting units in each building when I visit later this month.