The Promenade Co-op

Are you thinking of downsizing? Maybe you want lots of amenities but you really don’t want the hustle of downtown Bethesda.  Are you tired of living in a big house without interaction with your neighbors and friends? Then the Promenade Co-op is clearly for you!Click here to see all the coops currently on the market at the Promenade.  Here are all the other condos and coops for sale in the 20814 which are similar to the Promenade.

If you want to get in on the ground floor of a coop on the move, you should choose the Promenade.  It is going through a big makeover which is going to make it absolutely beautiful! The lower level concourse has recently been completely renovated and Chef Tony’s has opened a restaurant there with Italian seafood as their focus.  In the summer, you can dine outside on the patio by the pool too.  The lobby is going to be redone with a fireplace and intimate seating areas.

The onsite management and the front desk are friendly, competent and thoughtful – which is not always the case at some of the large condo buildings nearby.

Set in over 20 acres of greenery, the Promenade sets a high bar for luxury in Bethesda at an affordable price.  Located on Pooks Hill Road, the two towers of the Promenade give an exceptional view of the area from Sugar Loaf Mountain to the north to Washington DC to the south. You even have a great view of the tower at Walter Reed, the Mormon Temple and Silver Spring beyond that.

Even though coops have been around nearly 100 years they are avoided or misunderstood by many buyers. Simply put, a cooperative is a corporation formed for the purpose of providing housing for its members or owners.   There are a few coops in Montgomery County.  Perhaps you are familiar with the Kenwood House in Chevy Chase or some parts of Leisure World.  There also are coops along MacArthur Blvd in Cabin John.

Ownership of a co-operative unit is generally considered an interest in personal property because the co-operative corporation has fee simple title or real property ownership of the entire property. This corporation grants each member or owner the “right” to occupy a unit: herein lies the most significant difference between the co-operative and condominium ownership. One’s ownership interest in the corporation and the right to occupy a unit is considered an ownership interest in personal property and not in real estate. However, the daily operation of co-operatives and condominium associations is quite similar.

The first co-operatives were organized as they still are today, in the form of a corporation which typically holds fee simple title to the entire property.

Membership in the corporation is evidenced by two instruments: a stock certificate and a proprietary lease. Shares of stock are issued to show the value relationship of one unit to the other and to pro-rate the corporate mortgage payment, if any, the operation and maintenance expenses, and the property’s real estate taxes. The proprietary lease spells out the relationship between the owner members and the corporation. It contains many of the same clauses that are found in a residential lease but also refers to those special provisions distinguishing an apartment unit owner from a tenant, such as the owner’s right to participate in the affairs of the corporation, vote or have the use and enjoyment of the unit indefinitely.

The Charter and By-Laws are the co-op’s governing documents which describe the relationship between the individual co-op owners.  They include items such as how to elect the board of directs, when to hold annual meetings and how to vote.  The Charter and By-Laws vest in the Board of Directors the authority to run the building and establish policies, approve new buyers, contract for services and develop an operating budget.

Since all the property is actually owned in the name of the corporation, that body is directly responsible for the monthly payments of principal and interest on any corporate mortgage indebtedness, the payment of real estate taxes, and for any operating costs such as insurance, salaries for staff and service contracts. The individual members of the coop have the obligation to pay their proportionate share of the co-op’s annual operating budget.

If a member does not pay his pro-rata share of the co-op’s budget, the other members are required to pay the deficiency because they are all collectively responsible for the economic well being of the co-op. This is one reason for providing a healthy operating reserve. The co-op then has a lien on each member’s Ownership Documents and has the right to sell the defaulting member’s apartment unit in order to recover the defaulted payments.

Before you reject the Promenade Co-op completely out of hand for its high fee, it is crucial that you examine what is included in the co-op fee and compare it to what is included in the condo’s fee.  Co-op fees include taxes and insurance. Most co-ops include all utilities in their fees and in many instances an underlying mortgage.  The underlying mortgage is deducted from the amount which you will be financing or paying at closing and provides a tax deduction for most buyers.   It is really helpful to compare the condo and co-op fee side by side. In most instances, the co-op fee is not as high as it might seem.  For more information about the difference between a co-op fee and a condo fee, please read this article.

The co-op fee at the Promenade includes property taxes, all utilities including electricity and gas, water and sewer, air conditioning and heat, basic cable TV, common area maintenance, exterior building and lawn maintenance, health club, indoor and outdoor pools, sauna, tennis courts, pickle ball, party room and library, insurance,  management, front desk, parking, recreation facility, reserve funds, security gate, and snow removal.   The fee which covers all your expenses except phone and upgrades to your cable gives you the ability to manage your expenses, a great bonus if you are on a fixed income or trying to save money!

In early 2022, a two bedroom two bath with 1330 square feet listing for $344,900 has a coop fee of $1498 each month while a one bedroom one bath with 981 square feet listed for $195,000 has a fee of $1132.  A two bedroom one bath with 1250 square feet of space has a fee of $1248 a month and a “junior” one bedroom with 631 square feet has a monthly fee of $671.  A  3 bedroom 2 bath unit with 2698 square feet has a coop fee of $2800.

Naturally these fees change over time, so this is only accurate for early 2022.

Living at the Promenade is like taking up residence in a fine hotel.  The lobby with its friendly front desk even looks like one!  The amenities provided include a Bank On-site, Beauty Salon, Club House, Common Grounds, Concierge, Convenience Store, Elevator, Exercise Room, Extra Storage, Fitness Center, Gated Community, Guest Suites, Jog/Walk Path, Laundry Facilities, Library, Meeting Room, Party Room, Picnic Area, Pool – Indoor, Pool – Outdoor, Recreational Center, Reserved/Assigned Parking, Sauna, Storage Bin, Swimming Pool, Tennis Courts, Cable.  What more can you ask for?

The resort style amenities include a grocery store at the Promenade Market and Deli, Chef Tony which serves Italian seafood (and delicious pasta) and has outdoor seating.  There is a full service hair salon, indoor and outdoor pools, a tennis facility, and a full sized commercial quality gym.  If you never want to leave the property, try the doctors here, the travel agency, and the spa!  There is a dry cleaner, tailor, shoe repair, contractor and an interior designer too for your comfort!

Moving to the Promenade virtually guarantees an active lifestyle – even if you don’t hit the gym or the tennis courts! There are welcome parties, book clubs, movie screenings, community events, speaker series, and dinner groups!  Pickle tennis and mahjong are here too!   Pilates and yoga – they are all here at the Promenade.  The library seems to be in use constantly there with meetings.

The Promenade is not pet friendly unless you have a service or therapy animal.  That may be disappointing to someone who wants to move to the Promenade with their favorite dog or cat, but there are lots of other choices.  In fact, it is nice to know that there is a building like the Promenade where you can get on the elevator and not face a large dog in a small space.  If you are thinking of moving and want to bring your pet with you, just give me a call to find a great building that is in fact pet friendly!  I have a big poodle whom I love dearly so I can definitely empathize with that desire to keep your pet with you!

The Promenade Co-op is in the Ashburton elementary, North Bethesda middle and Walter Johnson high school cluster.  In 2021, Walter Johnson ranked 5th in Montgomery County high schools behind Whitman, Poolesville, Wootton and Churchill (in that order) in the US News and World Report school rankings.  It was 11th in the state overall.  The AP® participation rate at Walter Johnson High is 76%. Also according to US News, the total minority enrollment is 46%, and 7% of students are economically disadvantaged.  You can also choose from schools like Georgetown Prep, Stone Ridge, the Lycee Rochambeau, Holton-Arms and Landon.

The question probably should be – What isn’t near the Promenade?  You are an easy walk or commute to the Metro.  You are perfectly positioned between downtown Bethesda and the new developments on the Rockville Pike like the Pike and Rose and the new community and shops that will eventually be approved for construction at White Flint’s old location.  If you need a bigger grocery store than the one in the concourse of the Promenade, there is a Harris Teeter in Bethesda at Battery and Wisconsin Ave.  There is a large Whole Foods in North Bethesda across from the old White Flint location, and there is a Giant on Old Georgetown Road.   In addition, there is a small market in one of the Grosvenor buildings that everyone raves about  and Balducci’s at Democracy and Old Georgetown in the Wildwood shopping center.

Restaurants abound! Check out Seasons 52 on the Pike or any of the great choices in downtown Bethesda like the Spanish Diner – or Positano or Black’s at the Woodmont Triangle.  You will never be hungry here!

Shopping? Try Westfield Montgomery Mall for Nordstrom’s and Macy’s plus lots of little shops.  Don’t miss the stores at Wildwood shopping center like Sephora or in downtown Bethesda like Bonobo’s and Lululemon.  For that matter, you are close to the Rockville Town Center too.

The library on Democracy is a nice friendly place to visit and if you are looking for swimming lessons so you can enjoy the indoor pool downstairs, you can try the aquatic center nearby.

The Promenade co-op is so big that there are always properties for sale and recently sold.  From September 2021 to mid February 2022 for example, 33 properties sold.  Prices ranged from $130,000 to $154,900 for a junior one bedroom with 630 square feet.  The larger 981 square foot units sold from $145,000 to $211,200.  A one bedroom with 1077 square feet sold for $159,900 and two other one bedrooms with 1250 square feet sold for $195,000 and $245,000 all in August 2021.  Two bedroom one baths sold between$180,000 and $245,000 from September 2021 to February 2022. Two bedroom two baths sold generally in the mid $300s.  The most expensive sale was a 3 bedroom 2 bath unit with 2698 square feet which sold for $625,000.  The coop fee for that unit was $2800.

Floor plan for 981 square foot one bedroom

There are a number of sites on the internet that will give you ‘estimates’ for what your home will sell for. These sites use public records and usually some kind of algorithm to try to produce a value for your home. These sites also publicly state their ‘error rates’. That means they aren’t correct, they are simply an estimate based on incomplete date. We would love to do a free comparative market analysis of your home  and let you know what could expect to get in today’s market if you are considering selling. Our valuation is based on up to the day data for homes that have recently sold in the area. Our valuation is not based on a formula that relies on public records which can take months to update. Please visit my website in order to get your free property evaluation for your Bethesda home

If you would like detailed demographic information about Bethesda as well as school reports or market trends and statistics (including recent sales in the area) just ask!