can an address provide enough oomph?

pricing like it’s 2008
One of the risks of pricing a Manhattan loft above The Market, of course, is that no one will visit, let alone bid, because there are alternatives that start at lower-prices. (I discussed this most recently, in a cowardly fashion, on March 25, am I a coward? assessing + bearing risk in a risky world .) But what if the building has a strong history? Can a building be enough of a draw to ensure that ‘enough’ buyers will visit ‘anyway’? Can a seller reasonably expect to attract buyers in 2009 by asking 2008 prices because the building has been a draw in the past, leaving (an otherwise risky level of) negotiating room? (When will Manhattan Loft Guy stop with the rhetorical questions and get down to it??)

if it takes a Village, can a building suffice?
Of course I have a building in mind. Lovely Greenwich Village loft conversion; now a very mature coop; a very handsome loft building on a beautiful loft block. A handful of sales in this building last year took just a few weeks to get into contract — typically at, above or at a very small discount from full asking price —  certainly evidence that The Market loves well-priced lofts in this building, and evidence (perhaps) that The Market simply loves this building.

here’s the rub
Each of the handful of 2008 sales went into contract before Lehman.

here’s another rub
Each of the handful of 2008 sales sold in the range above $1,000/ft, while two were at or above $1,100/ft.

when the rubbing meets the road
The new-to-market loft is priced just above the price/foot level of any of that 2008 handful. The new-to-market loft is marketed based on space and character (and on the building), rather than on its finishes or renovation; the handful from 2008 liberally tossed mints, named proper proper names, and generally bragged.

From a purely marketing perspective, the new seller is asking a slight premium to 2008 pricing for a unit that is not described as a peer of those that got 2008 pricing (way back in 2008, of course), as if the seller is confident that the building is enough of a plus factor to overcome an aggressive price. From a purely Manhattan Loft Guy perspective, this charming loft in a handsome classic loft building on a beautiful Village block is today’s candidate for the too pushy …? thread. Needless to say, I would be too afraid to rely on the address to attract buyers at this price level, but courage is sometimes rewarded….
 

© Sandy Mattingly 2009