beautiful “turn key” Chelsea loft at 126 West 22 Street goes for (only) $1,189/ft; why?

not many bedrooms in this loft

I am not saying (yet) that the reason the “2,161 sq ft” Manhattan loft #5S at 126 West 22 Street (in the Chelsea Flats) sold for (only) $2.57mm is the lack of the plural “s” in the “bedroom” feature, but that’s a reasonable place to begin the inquiry of why this “[b]eautifully appointed” condo loft sold under $1,200/ft. Of course, there are obvious parallels to the “1,700 sq ft” coop loft 7 blocks due south that I hit yesterday (did a famous guy set $/ft loft purchase record at Jensen Lewis building at 161 West 15 Street in Chelsea?), including that each loft is optimized for a single bedroom, but this one’s a condo forcryingoutloud. Let’s hold that comp for a little while and plumb the interior of loft #5S.

The brief broker babble twice notes the location is “prime” but has only this to say about what’s inside this loft:

turn-key, pre-war, condo loft. Beautifully appointed with limitless possibility for reconfiguration. 2100+ sq ft, pin-drop quiet, southern exposure, over sized windows, 11′ beamed ceilings, central AC, custom closets, washer/dryer. Keyed elevator, private storage

Note the lack of babbling about the kitchen or the baths, other than the generic that it has all been “[b]eautifully appointed”. Note that listing photos #3 and #4 are consistent with the kitchen and master bath being “[b]eautifully appointed”, but also consistent with them being not-so-lux. Note the floor plan, which shows a master suite larger than many 1-bedroom apartments. Again,, this is a “[b]eautifully appointed” condo in a prime location that sold for only $1,189/ft.

Interesting that the sellers expected this result, as they came to market at (only) $2.595mm on August 21 before negotiating to only a courtesy discount to sign the deal by November 4 that closed on December 30 at $2.57mm.

it is not fair to blame the neighbors, but …

Yesterday’s loft was also modestly babbled, was also a One Bed Wonder, was also a modest result compared to the overall downtown Manhattan loft market, but whereas that one set a building record on a dollar/foot basis, this one lags. That Jensen Lewis loft seems not to have been the equal of a “stunning” neighbor that sold for less (confounding efficient market theorists throughout the land). This one at the Chelsea Flats has an obvious superior: loft #7S has the identical footprint (though a simple 2-bedroom floor plan) and boasted a “super mint condition” to justify selling on October 1 at $2.85mm, or $1,319/ft and an 11% premium to #5S three months later.

The more detailed babble on #7S includes:

south light, extra high ceilings, solid prewar construction, privacy and a grand entertaining space; with hardwood floors, custom lighting, surround sound, CAC and excellent storage throughout. Loft 7S offers a stunning living/dining room with separate breakfast area, private office, two pristine bathrooms and two spacious bedrooms. The master bedroom wing has a massive walk in closet; master bath oasis with double sinks, Kohler soaking tub and separate shower. Chef’s kitchen includes island with black granite counters, Wolf stove, Sub Zero and wine cabinet; a shelved utility room with vented Tromm LG washer/dryer. There is a separate 3′ by 6′ storage unit on the floor

I can’t swear that the kitchens are so different apart from the proper proper names on the #7S appliances, but the overall look is certainly more deluxe in the higher loft. (Love that masterful master closet in listing pic #4.) But one has to credit the assessment of the #5S sellers and agents, who came to market well below the #7S contract price, and The Market, which brought #5S to close well below the #7S clearing price. The clear consensus view is that the difference between #5S at $1,189/ft and #7S at $1,319/ft is fairly stated as the difference between “[b]eautifully appointed” and “super mint condition”.

This conclusion is amply supported by the other time this footprint sold in 2013. Loft #10S took rather a long time to sell at $2,631,500 in March 2013. It reads as though between #5S and #7S in quality, has a no-true-bedroom floor plan with 2 interior rooms, and gets still better light (“sun flooded”) without clearing the building behind. Considering the paired resale StreetEasy Manhattan Condo Index is up 10% from March to December 2013, the small nominal spread between #5S at $2.57mm and #10S at $2,631,500 appears to be delightfully rational. In fact, the trio of “S” units on the 5th, 7th and 10th floors harmonize quite well with the StreetEasy Index (efficient market theorists throughout the land rejoice!).

So … blame the neighbors for the #5S sale at (only) $1,189/ft, in the sense that this building simply does not command premium prices, notwithstanding a “prime” Chelsea location and condo status. Whether it makes sense or not from a larger market perspective, facts is facts.

To anyone still wondering about a One Bed Wonder discount here … nah. The three “S” sales rationalize quite well despite three rather different room configurations. No doubt, due to the ease of shifting the room array to suit.

To ‘value’ conscious downtown Manhattan loft buyers … bookmark 126 West 22 Street.