OYAToMLG about different market conditions, 2012 and 2009 (of course)

apparently, everyone wants to Gansevoort
Let’s take a step back from the hysteria momentum of the current market and the New York Times-induced hysteria and revisit those thrilling days of yesteryear; more precisely, that thrilling day yester year when One Year Ago on Manhattan Loft Guy I posted my June 5, 2012, developer’s remorse? Gansevoort loft sells +50% over 2009 sponsor sale at 325 West 13 Street, about the travails of a condo loft developer in 2009 and the smiles of that original owner on resale a year ago.

The short story is that the developer wanted $2.5mm beginning in May 2008 (just 2 months after The Peak in the overall Manhattan residential real estate market) but was not able to close until July 2009. That first buyer paid $1,527,375 then, and got $2.3mm on May 17, 2012. I didn’t mention it in that post, but that buyer took a risk in going to contract in the very thin market of May 2009 (other “buyers” were then sitting on the sidelines, waiting to see when The Market would turn). A gross $772,625 profit is a healthy reward for having taken that risk, don’cha think?

My sub-head is a reference to the fact that there are now two “Gansevoort” condos on West 13 Street, and I lament that there is (apparently) no honor among developers. Not exactly, news ….

© Sandy Mattingly 2013