Jun. 11, 2008 - data point in a sideways market / closing at 32 West 18 Street
... and sometimes the bear gets you
I need to address Josh Barbanel's latest frustrating review of market data from Sunday's New York Times (A Mixed Picture) soon, but the money quote for me was from The Miller, who:
said that unsold inventory was running about 27 percent above that of last May, a time when inventory was unusually low. He said the market was “moving sideways, flat” with some apartments selling for less than they would have a few months ago, and some selling for more, a trend that he believes is likely to continue.
poster child for "selling less" in Altair 18
32 West 18 Street #2B (Altair 18), had been for sale since October, starting at $4.6mm, dropping to $4.2mm, then $3.995mm, then $3.75mm, then (finally) $3.5mm in April, with $5,186/mo (condo). [The original PruDE listing info is gone from their site but Street Easy is a good ("easy") source of information about past sales (and current listings) in a building; this building's page is here.] It had a signed contract in May and shows up as Sold & Closed in the inter-firm data today. While that is undoubtedly a huge relief for the sellers after 7 months and 5 prices, that sweet relief comes at quite a cost.
The closing price is not yet posted on city records that I can see, but the price trajectory suggests they did little better than the final asking price of $3.5mm (if that). The now-breathing-again seller was the original buyer of this unit (although he never moved in) in August 2007. He paid $3.45mm then (his during-construction contract was signed in August 2006) and launched his flip attempt within 3 months of closing, looking for a 33% bump. That did not work out.
The market for this particular loft has been flat, at best, over nearly a year -- something that neither the seller nor his agent predicted.
been here, hit that (twice)
I hit this loft as part of a nice pair of dueling open houses in January (back when I was doing that sort of thing) with a similarly priced loft at 217 West 19 Street. That post was old enough that I did not get around to scraping it off when I pulled posts thatcommented on then-current listings from other firms, so it is still here: January 18, dueling $4mm open houses at 217 West 19 Street + 32 West 18 St.
Indeed, I hit this one again in a more recent post that did get scraped just a few days after I wrote it in early April. But I saved the text of that one, so here is a trip down Manhattan Loft Guy memory lane:
I hit 32 West 18 Street #2B (Altair 18) when it was not-quite-new, along with a similarly priced (at that time) loft, 217 West 19 Street 9th floor. My point in that open house duel post was that there would probably be a 65% overlap between open house visitors to these two lofts, due to their proximity, similar prices and size, and both being new-ish condos "from the high end of the catalogue". January 18, dueling $4mm open houses at 217 West 19 Street + 32 West 18 St. The histories of these two Manhattan lofts could hardly be more different since then.
a lot of history in a short time
#2B had come to market in October at $4.6mm, dropped to $4.2mm in December and to $3.995mm just before that January 18 post. (Common charges and taxes are $5,186/mo.) They dropped the price again in February to $3.75mm and again this weekend -- down to $3.5mm. As I said in January,
"you’d get “3,292 sq ft” with “everything you expect” from architects Cetra/Ruddy (including a 23 foot long Rosewood kitchen), but you won’t get any views to speak of (2d floor) and only 4 windows at each narrow end. Altair 18 has an attended lobby (217 West 19 Street does not), with monthly expenses commensurate with a high level of service (concierge, La Palestra gym, roof deck with cabana)."
net net hurts hurts
The critical context for this price history is that these flippers (the loft has never been lived in) signed a contract in October 2006 (during construction) and closed in August 2007 at $3.45mm. Obviously, the tiny spread between purchase price 8 months ago and current asking price will be dwarfed by round trip transfer taxes and other big-ticket expenses. OUCH.
I see only one other attempted re-sale in the building. #11A is newly for sale (last week), asking $5.8mm for "3,007 sq ft" with Empire State views and "custom redesigned everything". That unit was bought (newly constructed with high-end finishes, but not yet "custom redesigned") for $4mm in August 2007, with a contract signed in July 2006. (Common charges and taxes are $4,591/mo; why so much lower than #2B??)
I don't know if the sad history of #2B is because it is a second floor unit or if The Problem is more general for the Altair 18, which The Market loved enough to sell out last year. If #11A has a happy ending (for those flippers), it will look like a second floor problem only.
other happy news (for a different seller)
The other loft in that January open house duel has had a shorter history. The 9th floor at 217 West 19 Street came to market January 12 at $4.1mm, dropped to $3.995mm within 4 weeks and found a buyer and a contract within 3 weeks of that (single) drop. That history shows the sellers are satisfied and implies the sellers are happy. That one is a little smaller than #2B at Altair 18, in a 2002 building without all the amenities of Altair 18 (as noted above), but with similar sounding bling and unusual light and views. My January comment was that it
was “designed for the most discerning buyer” (see the listing for the bling-bling verbiage). That’s all good, of course, but it will earn its money (or not) because of the 52 feet of north windows (that bright needle is the Empire State Building) and another 52 feet of south windows (windows are 10 feet tall). And the south wall has a full length balcony. There are not many lofts with this length of glass and this kind of view behind that glass.
They are asking $4.1mm and $2,703/mo (condo) for “2,611 sq ft”.
That glass (and what is behind [outside] that glass) were well received by The Market.
happier seller on 19th street
The other half of that 'dueling open house' pair fared better. As I said in closing that April7 post, above, it found a contract within 6 weeks of coming to market in January at $4.1mm, after one price drop to $3.995mm. It has since closed (7 weeks ago) at $3.9mm, less than a 5% discount from their original asking price.
I still think that these two dueling units are an interesting pair, having been offered at the same time at similar prices, being roughly the same size, being both rather high-end renovations. Altair 18 had all those amenities in its favor (and the common charges toreflect that), while 217 West 19 Street has those amazing 9 th floor views. Those views actually point at the major deficit for #2B at 32 West 18 Street: not only does the second floor not get much light (and no direct light), the rear overlooks a parking lot and some HVAC equipment, as I recall. #2B was punished for something -- either that or (and/or?) the higher monthlies. But it is at peace now, finally.
© Sandy Mattingly 2008
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