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David Goldsmith

All Powerful Moderator
Staff member
Price drops fuel bump in Manhattan’s luxury market
Largest two deals last week involved $5M discounts

Discounts and days on market.
That is what defined the biggest luxury deals in Manhattan from Aug. 17 to 23 as pandemic price drops offered a boost to an otherwise slow summer and moved properties that had sought buyers for years.
Contracts were signed for 14 homes asking $4 million or more, matching the total for the same week last year. The most expensive was a 15-room duplex at 655 Park Avenue, which was asking $12.8 million — down from $18 million when it was listed in 2018. The seller, Massimo Ferragamo, is the son of late Italian fashion designer Salvatore Ferragamo.

The second-priciest was unit 61W at 111 Murray Street, which went into contract asking $12.4 million. The property was originally listed for $18.9 million in 2015.

Discounts have been inconsistent in Manhattan’s luxury market since the pandemic hit, despite falling sales. Since the beginning of March, on average, $4 million-and-up homes for which contracts were signed had been discounted 14 percent from the original asking price and spent 633 days on the market, according to Donna Olshan, who tracks luxury deals in a weekly market report.

Many developers are holding on to pricing that ignores the pandemic and in some cases the de-inflation of the luxury market that preceded it.
“The market has got an anchor around its neck with overpriced properties,” Olshan said. “The ones are moving are the ones that reflect new market realities.”

Indeed, some deals offer a window into the tough realities of 2020 pricing. The Murray Street unit, for example, was dropped to $16.75 million in early March — before the state shutdown. In July it was lowered again, to $12.4 million.
Property records show the final asking price for unit 61W, a five-bedroom unit spanning 4,014 square feet, was significantly less than neighboring units traded for. Unit 60W, for example, sold for $14.9 million last June. Unit 58W sold last May for $14.4 million.

Jason Walker of Douglas Elliman, who represented the buyer, told Olshan his client “did not pay ask but got a fair deal.”
“He’s a local New Yorker with a family and he appreciated the views and amenities,” he added.
 

David Goldsmith

All Powerful Moderator
Staff member
"In July, new contracts for Manhattan condos priced between $4 million and $5 million were down 77 percent from the same month last year, according to a recent market report from Douglas Elliman. In the $5 million to $10 million bracket, contracts were down 39 percent. Above $20 million, there were zero."
Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut
Deal comes as Manhattan’s luxury market struggles to gain ground

A luxury condo at Related Companies’ 35 Hudson Yards has sold for just under $7 million in an all-cash deal — a bright spot for the Far West Side development after months of setbacks.
The buyer is identified in the deed as David Rutter, the same name as the founder and CEO of blockchain technology company, R3.
Rutter went into contract on March 13, a little over a week before the state’s shutdown order went into effect. The deal closed on August 14. No mortgage was recorded at time of publication. Rutter did not respond to requests for comment.

The Metropolitan Transportation Authority is named as the seller. Related, which developed the luxury condo and rental tower with Oxford Properties, has a ground lease at the site. The arrangement means the MTA gets paid a share of the land value when a condo closes at the 71-story building.

Sales at 35 Hudson Yards launched last March. Since then, Manhattan’s already soft luxury market has been battered even further by the pandemic. In a June letter to EB-5 investors, Related cited “extremely challenging conditions for the sale of residential condominiums” as one of several obstacles it was contending with.

In July, new contracts for Manhattan condos priced between $4 million and $5 million were down 77 percent from the same month last year, according to a recent market report from Douglas Elliman. In the $5 million to $10 million bracket, contracts were down 39 percent. Above $20 million, there were zero.

Active listings at 35 Hudson Yards range from a two-bedroom unit for $4.2 million to a penthouse apartment asking $59 million.
 

David Goldsmith

All Powerful Moderator
Staff member
West Village condo has the week’s priciest two resi deals
Units at 90 Morton Street collectively asking more than $40M

In Manhattan’s fickle luxury market, one big contract is an achievement. Two in one week at the same building, these days, is almost unheard of.
But a condominium at 90 Morton Street has defied the odds, recording the two most expensive deals last week, according to the latest market report from Olshan Realty.

The number-one deal was a duplex penthouse on the building’s 11th and 12th floors, asking $33 million. It originally went into contract last January, but the buyer backed out of the deal after the pandemic hit.

The 5,254-square-foot home has five bedrooms, five and a half bathrooms and more than 2,000 square feet of terrace space.
The number-two deal was a 3,537-square-foot unit, asking $9.45 million. The buyers of the “townhouse unit,” which has its own private entrance, are local New Yorkers, according to listing broker Shlomi Reuveni of Reuveni Real Estate.

The contracts were among 11 last week in Manhattan — one higher than the same period last year. Deals have fallen overall in Manhattan, with new condo contracts down 38 percent in August from the previous year, according to a report from Douglas Elliman.

But brokers have reported an uptick of late, as warm weather draws New Yorkers from their homes and more of the city reopens. (Discounts could also be a factor, but the extent to which these are being offered won’t become clear until the deals close.)

“I have had back-to-back appointments in the building in the last three weeks, Reuveni told Donna Olshan, who authors the market report. Reuveni added that the people are “affluent, mainly local buyers, and some are bicoastal.”

In the 11 weeks since Gov. Andrew Cuomo lifted the ban on in-person showings in New York, 103 properties above $4 million have gone into contract in Manhattan, for a total value of $794.8 million, Olshan’s report shows. In the same period last year, 153 deals were signed for a total value of $1.15 billion.

“I think things are down but there is more interest and more activity — definitely,” Olshan said.
“But let’s be clear, it’s going to be a spotty market until we get a vaccine.”
 

David Goldsmith

All Powerful Moderator
Staff member
Pricey Park Slope townhouses drive dealmaking in Brooklyn
Fifteen homes asking $2 million went into contract last week

Fall is starting with a solid set of luxury contracts inked in Brooklyn.
Fifteen contracts were signed last week in the borough for a total volume of $47 million, according to Compass’ weekly report on home contracts of $2 million or more.
The final week of August saw $34 million in luxury residential contracts signed across 13 deals.

The median asking price for homes going into contract last week was about $2.5 million after an average listing discount of 3 percent and 128 days on market. The contacts were dominated by townhouse properties with 13 such deals; just two condos asking at least $2 million found buyers.

The priciest property was a five bedroom townhouse in Park Slope located at 556 1st Street. The renovated home spans 4,960 square feet and features a music studio, a media room complete with a large aquarium, a chef’s kitchen and a 2,000-book library. Its last asking price was $6 million.

The second most expensive listing to find a buyer was for another limestone townhouse two blocks away at 556 Third Street. Last asking $5.1 million, the five-bedroom home comes with three private outdoor spaces, while its interior sprawls over more than 4,300 square feet.

Despite a slowdown in transactions during the pandemic, Park Slope property prices remain among the highest in the borough, with the average price per square foot in the enclave remaining virtually unchanged year-over-year in the second quarter of 2020 at $958.

The price per square foot for the First Street and Third Street limestone row houses was about $1,200.
 

David Goldsmith

All Powerful Moderator
Staff member
Manhattan records 10 luxury deals in week after Labor Day
Weekly total is half what it was in 2018

The sparkle of Labor Day revelry fizzled out when it came to Manhattan’s luxury market this year, as the pandemic continues to wreak havoc on deals.
Just 10 contracts were signed last week for properties above $4 million, according to the latest market report from Olshan Realty. It was the same total as last year, and 10 fewer than in 2018.
“I think every week is a struggle,” said Donna Olshan, who tracks luxury sales for her weekly report. “Hats off to any of these brokers who can get deals done at a high level.”

The most expensive deal was for a duplex condo at 27 East 79th Street, asking $12.495 million. The home has five bedrooms, five and a half bathrooms and views of Manhattan’s skyline.
Pamela Johananoff of Corcoran represented both sides in the deal. She told Olshan the buyers were a foreign couple who knew the developer. They had never seen the apartment in person, but decided to buy it after three virtual tours over FaceTime.

“These people always wanted something in New York,” Johananoff told Olshan. “They have confidence in the real estate market and so they thought this was a good time to buy.”

The second-priciest deal was unit 14A at the Beckford Tower at 301 East 80th Street. The 2,615-square-foot property was last asking $6.65 million, down from $6.9 million when it was listed last summer.

Barbara Russo of Douglas Elliman, who represented the developer, Icon Realty, said the buyers visited the property three times in February and a fourth time last week.
“They have been shopping around for a while, and they love the apartment,” she said. “We expect closings to begin in the first quarter of 2021.”

Manhattan’s luxury residential market is still reeling from the pandemic — particularly the ultra-luxury end — while other areas known for having more space and greenery, including Brooklyn and the Hamptons, have seen a flurry of interest in recent months.
 

David Goldsmith

All Powerful Moderator
Staff member
Clinton Hill townhouse leads Brooklyn’s priciest contracts of the week
Five townhouses and five condos made up last week’s deals

After getting off to a strong start in September, Brooklyn’s luxury market experienced a slight dip in the past week.
The volume of high-end home contracts signed after Labor Day sunk to $33 million over 10 deals, down from 15 contracts totalling $47 million the week before.
Last week’s deals were evenly split between townhomes and condos, according to Compass’ weekly report on luxury home contracts of $2 million or more.

The median asking price across the 10 deals inked in the week following Labor Day was $3.2 million, with an average of 162 days on the market and an average drop in listing price of 3 percent.

The priciest property was a Clinton Hill townhouse at 141 Saint James Place. The five-bed, 4.5-bath property dates back to 1871, but was gut-renovated with a new kitchen and bathrooms. The two-family home spans 3,800 square feet and comes with two fireplaces and 11-foot ceilings. It was last asking $4.25 million.

The second priciest contract was a five-bedroom townhouse in Carroll Gardens that was last asking just over $4 million. The home at 380 Degraw Street was originally built in 1899 and spans more than 3,700 square feet. Original moldings have been preserved and the home has a landscaped rear garden. The home’s price per square foot — $1,100 — is in line with the average price for Carroll Gardens, which is one of Brooklyn’s most expensive neighborhoods.

Despite a slowdown in residential transactions due to the pandemic, Brooklyn’s sales and rental markets have generally fared better than Manhattan.
 
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