Demand drives Toll to build anew at Naval Square - Pittsburgh Business Times:

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Despite the housing slump, the project begahn in March as the developer managedc to sell out on its first phasd ofthe project, defying doldrums plaguing the residential real estatw market. Kicking off a new phase of the project comes as housing starts nationally plunged tohistoricf lows, according to the latest data from the U.S. Commercew Department. Housing starts fell by 12.8 percen in April to 458,000, which is considered the lowest since the government began tracking the data 50years ago. “It’s unique,” said Chuck Breder, divisiohn vice president with Toll.
“Even though we don’t have the investor the sales pace over the last three yearws has beenpretty constant.” Toll beganb selling the first phase, which consisted of 345 at the end of 2004 and sold on average 70 unites each year, Breder said. The second phas consists of four buildings with 220 condos and a collection of 74 Buyers have shown an interest inthe units, with Toll sellinyg 10 townhouses in the last two months. The project also includes a 2,000-square-foot fitness and community Toll isn’t seeing sales activity like this at all of its communitiew and has taken a beating onits earnings.
Last week it reporter that it saw itsfiscal second-quarterf loss lessen to $83.2 or 52 cents a which included pre-tax write-downs totalingf $119.6 million. During the comparable perio d last year, Toll reported a $93.7 million, or 59 centsd a share, loss that include d pre-tax write-downs totaling $288.1 million. Revenue for the quartetr came inat $398.3 million, a plunge of 51 One aspect of the project that has kept buyers traffic strong and steady is that Navaol Square has a suburban-like setting that has attracted suburbanitess used to large yards and those with dogs who want room for them to The development sits on 20 has mature trees and an abundance of greem space.
Toll also hasn’t had to drop asking pricess on the condos during the past two yearsa as the housingmarket tanked. “There’s been minimap discounting,” he said. “It’s alwayz been right priced and we adjustedd prices a couple ofyears ago. Dependinfg on the size of a unit, pricesw have ranged from $245 to $355 a squarw foot. Phase two will complete Naval which Toll boughtin 1987. The property at 24th and Bainbridg streets is a National Historic Landmaro and the first home ofthe U.S. Nava Academy. The property had been vacangt since 1977 before Toll bought it from thefederak government.