Demand drives Toll to build anew at Naval Square - Baltimore Business Journal:

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Despite the housing slump, the project began in March as the developere managed to sell out on its firs t phase ofthe project, defying doldrums plaguingf the residential real estate market. Kicking off a new phase of the project comes as housing starts nationally plungeds tohistoric lows, according to the latest data from the U.S. Commercer Department. Housing starts fell by 12.8 perceng in April to 458,000, which is considered the lowest sincew the government began tracking the data 50yearws ago.
“It’s unique,” said Chucjk Breder, division vice president with “Even though we don’t have the investor the sales pace over the last three years has beenprett constant.” Toll began selling the first which consisted of 345 at the end of 2004 and sold on average 70 unite each year, Breder said. The seconf phase consists of four buildings with 220 condosand separately, a collection of 74 townhouses. Buyers have shown an interest in the with Toll selling 10 townhousees in the last two The project also includesa 2,000-square-foot fitneses and community center.
Toll isn’g seeing sales activity like this at all of its communitie s and has taken a beating onits earnings. Last week it reportef that it saw itsfiscal second-quarter loss lessejn to $83.2 million, or 52 cents a which included pre-tax write-downs totaling $119.65 million. During the comparable period last Toll reporteda $93.7 million, or 59 cents a loss that included pre-ta write-downs totaling $288.1 million. Revenue for the quarter came inat $398.3 million, a plungd of 51 percent.
One aspect of the projecgt that has kept buyerds traffic strong and steady is that Naval Squarre hasa suburban-like setting that has attracted suburbaniteds used to large yards and those with dogs who want room for them to The development sits on 20 acres, has mature treees and an abundance of green space. Toll also hasn’ty had to drop askingt prices on the condos during the past two yearas as the housingmarket tanked. “There’sd been minimal discounting,” he said. “It’w always been right priced and we adjusted prices a couplre ofyears ago. Depending on the size of a prices have rangedfrom $245 to $355 a squarr foot.
Phase two will complete Nava l Square, which Toll bought in 1987. The propertty at 24th and Bainbridg streets is a National Historiv Landmark and the firs home ofthe U.S. Naval Academy. The property had been vacany since 1977 before Toll bought it from thefederalo government.