Dead Cat Bounce?

David Goldsmith

All Powerful Moderator
Staff member
Not sure exactly what to make of the penthouse at 56 Leonard St going into contract. With an ask of $49,995,000 and being on the market for over 6 months:
I think it's unlikely it went for over ask.

I am curious about the numbers/investment value of a unit which was one of the last to sell originally, in a project which dragged on for several years, as far as I know was never leased, and given the 2017 sale price will almost definitely lose money after transaction costs even if gross exceeds the prior sale.

 

David Goldsmith

All Powerful Moderator
Staff member
This very much plays into my confirmation bias:

Manhattan contract activity picks up as discounts grow

36 contracts were signed last week for homes asking over $4M​

Contract signings shot up in Manhattan last week as discounts between initial and final asking prices grew.
Thirty-six homes asking $4 million or more went into contract last week, according to Olshan Realty’s weekly report on Manhattan’s luxury contract activity. The average discount was 12 percent, the largest margin recorded this summer.
Donna Olshan, the report’s author, attributed the increase in transactions to the discounts.
 

David Goldsmith

All Powerful Moderator
Staff member
This is the kind of bullshit which happens when sellers get too much smoke blown up their asses:

Sellers Taking Toilets, Appliances With Them​

Homeowners are selling their homes for high prices in the hot housing market, but many are also reportedly intending to take fixtures including appliances, toilets, and even the backyard fruit trees when they move out.
Pricey toilets, like self-cleaning bidets, are among the most popular items that sellers take when they move, The New York Times reports. They’re also taking high-end Viking stoves and midrange refrigerators, stoves, and dishwashers. With an appliance shortage underway, they want to avoid having to shop for replacements. Yorgos Tsibiridis, an associate broker for Compass, told The New York Times he represented the sellers of a $2.2 million home who wanted to keep a pair of six-foot fruit trees for sentimental value. The removal left two large holes in the backyard.
“Sellers have become more greedy,” Chase Landow, a salesperson for Serhant in Manhattan, told The New York Times. “Good inventory is rather tight and they know that they can control the show.”
Landow recently had to inform buyers of a $15.5 million apartment that the sellers wanted to take all of the kitchen cabinets with them. “The question is what the hell do you do with them?” Landow says. “I have no idea, which is why it’s all very odd. … The market is so bananas, you want to do what you can do to keep the sellers happy.”
More fixture disputes could occur as sellers feel entitled to more of a home’s fixtures and take advantage of a bustling sellers’ market. Real estate pros will want to carefully discuss with sellers what they plan to take with them and what stays. Typically, fixtures attached to walls, like cabinets, sinks, and toilets, are considered part of the sale. But buyers and sellers can discuss and agree to modifications in the contract.
 

David Goldsmith

All Powerful Moderator
Staff member
I'll be interested to see what this actually closed for.

But even in this "Uber hot market" asking price ($13,500,000) had to be dropped below 2013 purchase price ($15,940,000).
Looks like the number was $13M even. So even after shaving $2.5M off the 2013 buy, they had to negotiate another $0.5M to move it quickly. I think this is evidence of what I've been saying - that we shouldn't confuse the extreme liquidity in the market caused by the Fed injecting trillions of dollars into the economy with a "booming" Manhattan market price wise.
 

MCR

Active member
I am seeing a lot of volume in the niche that I watch, but the prices are DISMAL. I am happy for those whose timing to buy per their wants and needs coincides with this phase. For example, the buyers of the apartment we sold during COVID were long-term holders of Brooklyn real estate where they raised their family who downsized to our small apt in Manhattan. Tremendous gains from their Brooklyn house that they funneled into Manhattan purchase. Good for them.
 

inonada

Well-known member
Not sure exactly what to make of the penthouse at 56 Leonard St going into contract. With an ask of $49,995,000 and being on the market for over 6 months:
I think it's unlikely it went for over ask.

I am curious about the numbers/investment value of a unit which was one of the last to sell originally, in a project which dragged on for several years, as far as I know was never leased, and given the 2017 sale price will almost definitely lose money after transaction costs even if gross exceeds the prior sale.


The contract date on the original sale was in 2013 at $47.87M, and I don’t think it was ever leased either. This was a cash purchaser that I think was using it as a residence with no particular care about investment value. I am guessing it’ll close for $45-50M.
 

inonada

Well-known member
I am happy for those whose timing to buy per their wants and needs coincides with this phase.
For some of us, it’s the phase that drives the timing of the wants. But I have learned & accepted that we are the outliers…
 

David Goldsmith

All Powerful Moderator
Staff member
This is the kind of bullshit which happens when sellers get too much smoke blown up their asses:

Sellers Taking Toilets, Appliances With Them​

Homeowners are selling their homes for high prices in the hot housing market, but many are also reportedly intending to take fixtures including appliances, toilets, and even the backyard fruit trees when they move out.
Pricey toilets, like self-cleaning bidets, are among the most popular items that sellers take when they move, The New York Times reports. They’re also taking high-end Viking stoves and midrange refrigerators, stoves, and dishwashers. With an appliance shortage underway, they want to avoid having to shop for replacements. Yorgos Tsibiridis, an associate broker for Compass, told The New York Times he represented the sellers of a $2.2 million home who wanted to keep a pair of six-foot fruit trees for sentimental value. The removal left two large holes in the backyard.
“Sellers have become more greedy,” Chase Landow, a salesperson for Serhant in Manhattan, told The New York Times. “Good inventory is rather tight and they know that they can control the show.”
Landow recently had to inform buyers of a $15.5 million apartment that the sellers wanted to take all of the kitchen cabinets with them. “The question is what the hell do you do with them?” Landow says. “I have no idea, which is why it’s all very odd. … The market is so bananas, you want to do what you can do to keep the sellers happy.”
More fixture disputes could occur as sellers feel entitled to more of a home’s fixtures and take advantage of a bustling sellers’ market. Real estate pros will want to carefully discuss with sellers what they plan to take with them and what stays. Typically, fixtures attached to walls, like cabinets, sinks, and toilets, are considered part of the sale. But buyers and sellers can discuss and agree to modifications in the contract.

$28 million and you can't throw in the pier mirrors? What are you going to do with them?
*All light fixtures and pier mirrors are excluded from the sale.
 

inonada

Well-known member
Here's a fun one to add to our watchlist:


05/08/2021Listed by Douglas Elliman$13,500,000
12/04/2019Douglas Elliman Listing sold$12,995,000
Previous Sale recorded$11,500,000
07/25/2019Delisted by Corcoran. Last priced at $13,950,000$13,950,000
07/12/2019Previously Listed by Douglas Elliman$12,995,000
09/23/2018Previously Listed by Corcoran$15,500,000
08/21/2018Delisted by Compass. Last priced at $16,500,000$16,500,000
02/14/2018Previously Listed by Compass$17,000,000
10/23/2015Douglas Elliman Listing sold$11,950,000
Previous Sale recorded$12,215,284
12/02/2014Previously Listed in StreetEasy, already in contract, by Douglas Elliman$11,950,000


From each of 2014, 2019, and 2021 era listings:
  • 2014: Conceived and realized to exacting standards of quality and craftsmanship by Cook + Fox Architects, with custom interiors by Alan Wanzenberg Design, 150 Charles Street is a luxuriously thoughtful addition to the Manhattan skyline.
  • 2019: meticulously renovated by renowned Architectural Digest 100 architect and designer David Mann
  • 2021: meticulously renovated by interior designer Daun Curry, winner of prestigious awards including being named a 2019 Designer of the Year
How many meticulous renovations does one apartment need over the 5 years between 2014 and 2019??? Three, apparently. Here's hoping the new buyer adds a fourth...
 

David Goldsmith

All Powerful Moderator
Staff member
Here's another Greenwich Village townhouse with pricing arc.



Price History​

07/26/2021Listing entered contract$7,500,000
06/18/2021Price decreased by 14%$7,500,000 ↓
05/13/2021Listed by Sotheby's International Realty$8,750,000
02/16/2016CORE Listing is no longer available on StreetEasy Last priced at $14,950,000$14,950,000
09/23/2015Previously Listed by CORE$15,990,000
07/24/2015Douglas Elliman Listing is no longer available on StreetEasy$15,990,000
05/26/2015Previously Listed by Douglas Elliman$15,990,000
09/02/2008Previous Sale recorded$7,312,500
10/18/2006Previous Sale recorded$2,150,000
SEE LESS
 

David Goldsmith

All Powerful Moderator
Staff member
Apparently the market is so hot right now you can sell your One57 Billionaires Row condo for only 27% off 2015 prices.

Shark Tank’s Robert Herjavec Buys One57 Condo for Big Discount​

The IT security firm founder and reality show star paid about $34.5 million for the roughly 6,200-square-foot spread​

Robert Herjavec, founder of an eponymous IT security firm who appears on the investment reality show “Shark Tank,” has snapped up an apartment at New York’s One57 for roughly $34.5 million, he confirmed.

The deal represents a major loss for the seller, a limited-liability company with an address at the offices of Pacific American, a company with ties to Chinese conglomerate HNA Group. The company paid $47.37 million for the unit about six years ago, The Wall Street Journal reported, and the apartment was listed for $45 million in July 2020, according to listing website StreetEasy.
Well, maybe it's a little more... 36%? (I guess we have to wait for ACRIS)
 

David Goldsmith

All Powerful Moderator
Staff member
For Central Park Tower although the "official" sales launch was October 2018, sales actually kicked off with Offering Plan and whisper listings in June of 2017. So as far as I can tell we're at 4 1/4 years, 15% sold, and discounting 25% to get deals done?
Unit high in world’s tallest condo sells for $28.5M — a $10M discount

Tall order: A 93rd-floor unit at Central Park Tower (center) was just grabbed up for a discount.


A 93rd-floor unit in the world’s tallest condo tower has sold for $28.58 million — more than a quarter off the initial asking price of $38.75 million.

The buyers are Cindy K. Chan and Hung P. Wong, according to property records.

The four-bedroom, 4½-bathroom unit is at Central Park Tower, which rises 1,550 feet tall at 217 W. 57th St.

The 4,296 square feet comes with a relatively modest monthly maintenance fee of $6,336 a month.

So far, 15% of its 178 units have sold, according to Kael Goodman’s Marketproof.

Condo units on Billionaires’ Row have been taking a hit lately, as the US government slightly tightened its anti-money laundering laws to make it a little less easy for anonymous entities to stash dirty cash in American real estate, which helped transform some towers into personal piggy banks for global kleptocrats.

The lobby inside Central Park Tower.
The stylish lobby at the supertall tower.
Extell Development Company
Supertall condos have also become a little less alluring as trophies since the condo board at 432 Park Ave. recently sued its developers over 1,500 allegedly faulty, and potentially dangerous, design and construction flaws.

“Manhattan new developments offered a 10.3% discount on average in Q2, so this transaction at Central Park Tower isn’t an anomaly,” said Kael Goodman, CEO of Marketproof. “Billionaire’s Row has the city’s highest concentration of units asking above $20 million and there is abundant shadow inventory at that price point. Developers looking to make a sale are likely to continue offering discounts, even if they’re selling what’s considered a premium product.”

Billionaires’ Row towers do offer over-the-top amenities to its buyers, however.

Central Park Tower, for example, where fashion icon Iris Apfel recently held her 100th birthday bash, boasts 50,000 square foot space on the 100th floor featuring a private dining room and celeb chefs like Alfred Portale, Laurent Tourondel and Gabriel Kreuther, along with special experiences curated by celeb event designer Colin Cowie.

There’s also an outdoor terrace with a pool and cabanas along with a gym, lounge, screening room and children’s playground.
 

David Goldsmith

All Powerful Moderator
Staff member
Half Eddieeeeeeeeeeeeee!!!!!
The original sellout for the project was slated to be $4 billion. What's the over/under now with discounts like this?

Central Park Tower condo sells for half its asking price​

Sponsor unit at Extell skyscraper was asking $95M, but sold for just $50M, records show​

A price chop this big might cast some doubts on the world’s tallest residential tower.
Gary Barnett’s Extell Development has sold a sponsor unit at its Central Park Tower at 217 West 57th Street for nearly 50 percent below its original asking price, property records show.

The unit, a four-bedroom, 7,984-square-foot condominium, was originally asking $95 million. It went into contract in June and sold for $49.7 million when the deal closed this month.

“The unit sold for approximately $7,000/psf and although the buyer got a great deal, we were not unhappy with the price,” an Extell spokesperson told The Real Deal.
The developer tapped Corcoran Sunshine Marketing Group in October 2020 to work with its sales team as co-exclusive brokers for the building. The unnamed buyer who landed the massive discount concealed its identity with an LLC.

The full-floor residence was once the building’s priciest listing, with a 2,000-square-foot terrace and an outdoor pool. It has since been upstaged by an 11,535-square-foot duplex that hit the market in August asking $150 million.
The tower, which rises 1,550 feet above Midtown Manhattan, launched sales in 2018 with closings beginning in February of this year. It has a projected sellout of $4 billion, making it the most expensive condo project in the city.

Barnett secured $1.1 billion in financing for the project in early 2018, including a $900 million construction loan led by JPMorgan Chase. He also landed $380 million in bridge financing for the tower earlier this year.
 

Noah Rosenblatt

Talking Manhattan on UrbanDigs.com
Staff member
Half Eddieeeeeeeeeeeeee!!!!!
The original sellout for the project was slated to be $4 billion. What's the over/under now with discounts like this?

Central Park Tower condo sells for half its asking price​

Sponsor unit at Extell skyscraper was asking $95M, but sold for just $50M, records show​

A price chop this big might cast some doubts on the world’s tallest residential tower.
Gary Barnett’s Extell Development has sold a sponsor unit at its Central Park Tower at 217 West 57th Street for nearly 50 percent below its original asking price, property records show.

The unit, a four-bedroom, 7,984-square-foot condominium, was originally asking $95 million. It went into contract in June and sold for $49.7 million when the deal closed this month.

“The unit sold for approximately $7,000/psf and although the buyer got a great deal, we were not unhappy with the price,” an Extell spokesperson told The Real Deal.
The developer tapped Corcoran Sunshine Marketing Group in October 2020 to work with its sales team as co-exclusive brokers for the building. The unnamed buyer who landed the massive discount concealed its identity with an LLC.

The full-floor residence was once the building’s priciest listing, with a 2,000-square-foot terrace and an outdoor pool. It has since been upstaged by an 11,535-square-foot duplex that hit the market in August asking $150 million.
The tower, which rises 1,550 feet above Midtown Manhattan, launched sales in 2018 with closings beginning in February of this year. It has a projected sellout of $4 billion, making it the most expensive condo project in the city.

Barnett secured $1.1 billion in financing for the project in early 2018, including a $900 million construction loan led by JPMorgan Chase. He also landed $380 million in bridge financing for the tower earlier this year.
um foo foo??
 

David Goldsmith

All Powerful Moderator
Staff member
Top