when neighbors really compete, market can be quite efficient, as at 58 Walker Street

head-to-head and dollar-for-dollar
Unlike the neighboring Cobblestone Lofts I hit on August 6 (28 Laight Street loft sale under-performs neighbor’s sale) that engaged in a serial competition for buyers, the two lofts that recently sold at 58 Walker Street directly competed. The results were remarkably parallel, showing that the Manhattan loft market can be efficient (sometimes; just to tease us??).

The former warehouse 5-story 58 Walker Street was converted into “townhouse” condominiums in 2003 and has become a Manhattan Loft Guy fave, with two other posts in the last two months (July 24, 58 Walker Street loft recalibrates after missing Peak, sells 20% off old ask, and June 3, 11 months to sell 58 Walker Street penthouse loft at (eventually) modest discount). The direct competition was between the 2nd floor loft (the one that recalibrated) that closed on June 30 at $2.125mm and the 4th floor loft that closed on July 14 at $2.15mm.

I described the building and the footprints in that July 24 post, as a

classic Long-and-Narrow template: the floor plan is 23 feet wide, with two bedrooms on the back wall and all the plumbing on the long wall opposite the public stairwell and elevator, with a single side window that appears to be very dark….
 

Classic loft elements include the 13 foot ceilings [on the 2nd floor; 4th floor claims “12’+/-”], tall windows and exposed brick, but this is a 2003 conversion, so there is central air, and other nice touches. Finishes are almost certainly original, including “a Viking and Bosch kitchen with granite counter tops”.

In other words, both lofts have the same 2003-era high-end finishes and classic loft elements. The only differences to note are that the 4th floor sits 25 feet higher above the street and the 2nd floor has a small “enclosed terrace”. (I explained in that July 24 post why I thought the terrace was a trivial amenity.)

The 4th floor deed was not filed until July 26, which is why I did not include it in the discussion in my July 24 post, which I think worked out well. My point there was about the cost of missing The Peak by over-pricing back in the day (hint: high!); today I get to revisit the building as a wonderful laboratory for mano-a-mano neighborly competition in the current market.

parallel lines never cross, in theory
How is this for two parallel lines?

In the face of direct competition from the 4th floor, The Market found the $2.3mm asked for the 2nd floor to be too high. Interesting that the 4th floor got an oh-so-slight premium and a full price deal.

One wonders (among other things) whether these neighbors knew of each other’s plans to sell before they both went public on March 31. (The open house schedules in our data base suggest “no”; one had an open house April 10 and 17, the other just on April 17.) If not, one wonders what that next elevator conversation was like.

One assumes that anyone who went to see one would also have seen the other. With contracts only 5 days apart, one wonders if two people bid on the 2nd floor, then the winner loser survivor bid on the 4th floor.

Whatever one thinks (or assumes, or guesses), The Market valued these essentially identical lofts as essentially identical. It is nice to see that that really happens once in a while.

Did I mention that comping is (sometimes) not so hard?

(A shoutout to reader AJ for the head’s up to look out for that the 4th floor deed.)

© Sandy Mattingly 2011