'architecturally designed' loft with no view, little light at 114 West 27 Street sells at $799/ft

the only way to get a bargain
There are over 300 loft resales in 2012 on my Master List of Manhattan Lofts Sold Since November 2008, the vast majority of which have $/ft calculations, and only 19 of those lofts sold under $800/ft. (I am still not quite updated for June; still.) While on price terms these ase are ‘bargains’, they have sold where they did because they have one or more characteristics that The Market hates: location and/or condition, often; high monthlies, bad layouts, and no light are often contributors. The “1,689 sq ft” Manhattan loft #4S at 114 West 27 Street is among The Disfavored Nineteen, but not because of condition (“architecturally designed … gracefully blends classic … with the lavish amenities one would only expect in new construction”) or location (how many new hotels are within a few blocks??).

You would not know it from the broker babble, but the pictures give it away. Not (just) the fact that the lighting is extremely bright in the photos, or that there are so many white or light elements (white ceiling and walls, light rugs, white window treatments). The babble brags on the “the five south facing windows”, as if either the number or the orientation was a plus factor; though the babble may also be parsed as bragging about how well those windows complement the brick walls. Regardless, the (white!) window treatments are halfway down in the living room photo (pic #3) and all the way down in the bedroom photos (pic #4).

114 West 27 Street sits on the south side of 27th Street, so any south-facing windows in the building are in the back, at this height facing the rear of the buildings on 26th Street. There’s just a hint of that in the living room photos.

Otherwise, why did this place sell for $1.35mm, by a seller who knew what he was dealing with (asking only $1.4mm)? With 12 foot ceilings and great proportions in each room, there is both space and volume. With 2 full baths, that master bedroom, a (dark!) home office “currently used as a second bedroom” plus (another) home office, and two-zone central air, there is a great deal of utility in the space (floor plan, here).

One problem is definitely the building. The record high sale (excepting the penthouse and its “2,500 sq ft” of private roof deck) was #8N leading into The Peak:  April 20, 2007 for $1.57mm; call it “1,650 sq ft”, so $951/ft. Facing front at that height there is said to be “city& sky views and Very good light”. Is light and sky really worth $150+/ft in this building?

the dangers of backwards over-determinism
(If you did not know that backwards over-determinism was a problem for 21st century America, read on.) It is very tempting to identify one culprit to explain an outlier transaction, such as a well-appointed loft with great utility and volume in a trending neighborhood that sells under $800/ft. Here the (only) obvious villain is the light (two villains, if you double-count poor light and no views).

I admit that I do not have a better explanation, but I am not comfortable asserting that all no-view poor light lofts suffer in the market; there is too much evidence to the contrary.

Look no further than my July 12, a tale of 2 lofts: did (removable) decor add $126/ft to value of one 32 West 18 Street loft?, for one example. Those lofts at 32 West 18 Street have a little more light and a slightly better view than #4S at 114 West 27 Street, but in neither case is the difference significant. With the benefit of that pair of same-building loft sales, I wonder what would have happened to #4S if they had made the small investment of switching the white shades for full length sheers, as in the more successful sale at Altair 18, forcing buyers to focus on the interior benefits of the space before (inevitably; everyone always does) going to the window to peer at the nearby brickwork.

That is one staging ‘trick’ I definitely will use again. And, yes, i still need to revisit my staging post about the wonderful (and wonderfully sourced!) New York Times piece about brutal stagers (my July 28, ruthless stagers, indeed! NY Times nails story about marketing apartments (and lofts!)). Note to self ...

To sum up: loft #4S at 114 West 27 Street got slammed by the market, at least in comparison to (nearly all) other downtown Manhattan lofts that have sold in 2012. The only obvious culprit to explain this slam is the lack of light and views, but I am very much not comfortable concluding that this accounts for $150+/ft in value, compared to an April 2007 sale.

Sometimes The Market is The Market is The Market. As observers, all we can do is watch. (And complain.)

© Sandy Mattingly 2012