at 140 Fifth Avenue, “B” lofts go wild, designer effect boggles

comping is … (you know)
The “2,000 sq ft” Manhattan loft #8B at 140 Fifth Avenue had a pretty successful campaign this Summer, coming to market at $2.195mm on June 17 and finding the contract by July 29 that closed at $2.1mm on October 18. That is 6 weeks to get a contract at 95.7% of the ask. PARA However (you knew this was coming, right?) … the last sale in the building was #6B a week and a half before #8B came to market. Details below, but #6B is only a bit larger at “2,200 sq ft” yet is a very different animal, closing on June 8 at $3.1mm. That is $1,050/ft for #8B and $1,432/ft for #6B. Almost the same footprints.

do the kids know?
There is not a great deal of detail about the condition of #8B in the broker babble, but the thrust is enthusiastic and positive: not only is the loft “[r]ecently renovated” but it is “[s]un flooded and sprawling”. It takes a while to get into the loft (see the floor plan, with that long gallery), but once there there is a lot to like: big windows looking north (that flooding sun), a nicely proportioned open living / dining / kitchen area (22 x 32 ft?), with 3 bedrooms and 2 baths.

And one “dressing room”, sadly not pictured but said to be windowed and “not to be believed!”. That dressing room is nearly as large as the 2nd and 3rd bedrooms. Perhaps those other bedrooms are guest rooms or offices; but perhaps they were used as children’s rooms, in which case I can imagine a child (say, 14 years old) wondering why she is in a room less than 10 x 9 feet when the parents clothes egt nearly twice that much space. But perhaps I have an over-developed imagination….

happier kids on 6?
The most significant difference between the #8B and #6B floor plans is probably not that the 2nd and 3rd bedrooms on the 6th floor are larger (at 11+ x 11+ ft) but that loft #6B floor is about 10 feet longer than loft #8B. There is no measurement given in the #6B listing, but our data-base has it at “2,200 sq ft”, which not only looks right based on the floor plan (#6B has that library and still is one window longer than #8B in the living area), but is consistent with the respective monthly maintenance charges ($2,257/mo for #8B and $2,512/mo for #6B). But a 10% difference in size does not explain a 36% difference in market value per foot.

you can see (some of) the million dollar difference
For reasons unknown to me, the listing description is missing from the surviving material on StreetEasy. Here is what it used to say (taken from our data-base), which will help you a bit in enjoying the photos on StreetEasy (be sure to click for a full screen view):

Published in House Beautiful, designer Shawn Henderson combines intrinsic prewar architectural details with natural stones, rich woods and calming colors to create a home that both soothes and captivates the soul. This circa 1920 loft has 17 windows north and south, 11’+/- ceilings. The art gallery hallway leads to an expansive living, dining, media area and professional chef’s kitchen perfect for gracious entertaining. Master bedroom has en-suite bath and closets galore. There are two additional bedrooms plus library. Other features include: custom built-in shelving and cabinetry, large pantry room, full-size washer/dryer, state-of-the-art audio/visual with two plasma TVs and Lutron lighting system. …

 (For more photos, you have to dig a bit on that designer’s website: click Homes, then Flatiron Home.)

do the math
The “2,000 sq ft” #8B was recently renovated and sold for $2.1mm. The “2,200 sq ft” #6B was designed since the recent sellers bought it in 2003, and sold for $3.15mm (taking 3 weeks for a full-price contract). Two things about that design: our data-base shows that loft #6B had not been renovated after that 2003 purchase (the floor plan before is the exact same as after), and the condition before was pretty darn good (“Triple mint … gourmet kitchen. …[t]ruly spectacular!”).

I am not the person to riff on the contributions that interior designers make, but here I can do the math. This guy Henderson changed the skin of loft #6B (exactly how, and what materials, I don’t know) and created a space that was worth 36% more than the “recently renovated” #8B, on a $/ft basis.

That boggles my mind. And makes me wonder what that design cost….

more numbers
Loft #6B has sold at least 4 times in the last 20 years, not quite doubling each time:

• June 8, 2011 $3,150,000
• Aug 19, 2003 $1,850,000
• Dec 12, 1997 $950,000
• July 1, 1993 $495,000

(Prior sales are from our data-base; the first price is “estimated”, which was frequently captured that way in olden times.)

This history suggests another way to look at the premium factor for the Henderson design. Some part of the 8-year appreciation from $1.85mm to $3.15mm is the change in market, and some part is the Henderson Effect. For now, I am content to guesstimate that The Market change is probably less than half the difference, with a Note To Self… to check if the overall Manhattan residential real estate market is up 33% 2003 to 2011. If true, that would leave more than $650,000 in difference in value from the Henderson Effect, using the internal comps from #6B having sold in “spectacular” and “triple mint” condition at $1.85mm in 2003 and then post-Henderson at $3.15mm in 2011.

repetition is the mother of memory
That boggles my mind. And makes me wonder what that design cost….

2005 was pretty wild, too
StreetEasy shows two other “B” line lofts sold at 140 Fifth Avenue in 2005, again at a (seemingly) huge spread:

• Dec 1, 2005 #3B $1.89mm
• Sept 27  #7B $2.9mm

Maybe my mind is easily boggled today, but there is an explanation for what looks like a ridiculous spread. Our data-base suggests that the reason is mostly size: #7B was “2,400 sq ft”, #3B was “1,437 sq ft”. (Not to go crazy here, but our data-base actually says “437 sq ft”, but that really seems like a typo that dropped a digit, as the whole floor seems to be about 3,000 sq ft and we have #3A at “1,475 sq ft”; but I will stop.)

All I see about condition is that #7B was babbled as an “[e]legant light-filled,and beautifully finished loft”, as we have no listing corresponding to that #3B sale. On a $/ft basis, the spread reverses, with #3B as the one favored by The Market: $1,208/ft for #7B and $1,315/ft for #3B.

What do they (I?) say about comping …?

© Sandy Mattingly 2011