developer takes 27.2% haircut to close 166 Perry Street

did they get bored?
The listing histories for the uber-development 166 Perry Street are a little fuzzy. Marketing started in 2007, well before construction was complete. (I wonder if the dominant color on the spreadsheets changed between first marketing and first closings….) The asking price for the Manhattan loft #4B has been $2.875mm, but it is unclear if that has been an actual offering price since marketing began in May 2007 or if this unit was priced and released only last Fall. Either way, it just closed at $2,093,934, in something of a trend for this new development, with a contract as of November 5.

How uber are these lofts? Unit #4B is "1,494 sq ft", so it cleared at $1,401/ft; taxes and common charges are $3,582/mo; and the building offers room service and refrigerator stocking for those with absolutely no interest in food shopping.

other contracts, other (early!) haircuts
Unit #1A is a ground floor duplex of "2,588 sq ft" and closed on February 3 at an even $3mm. That one has clearly been marketed since Summer 2007 and found a contract by July 2008 at a 20% discount from the original asking price of $3.75mm.

The #3A and #4A neighbors will have an interesting conversation about their "1,126 sq ft" lofts when they meet. The folks in #3A signed a contract in March 2008 at a 16.1% discount from the $1.95mm asking price. The neighbors in #4A didn’t sign a contract until November 19, 2009, so they got a 28.6% discount off the $2.05mm asking price.

On reflection, it is interesting that the spread between the March 2008 and November 2009 contracts wasn’t bigger. That suggests that the developer was very motivated to deal even 6 months before The Fall of the House of Lehman. (Note, too, the 20% discount for #1A in July 2008.) Too bad (for them) they didn’t get more units into contract then.


© Sandy Mattingly 2010



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