how does $830/ft sound if you have to build?
There’s a Manhattan loft (fairly) newly for sale that caught my eye as a potential test of one of the limits that is more limiting in the current market than in prior markets: selling a space that will need substantial (if not gut) renovation. With mortgage money much tighter and down payments needing to be much larger, the funds needed to renovate typically come out of liquid assets, instead of being financed. Fewer buyers have the scratch to buy and to build.
This loft is not quite big enough to test another one of the limits that is more limiting in the current market than in prior markets: less than "3,000 sq ft", it is not as big as some of the BIG lofts that comprise a smaller niche than in previous markets. But the need to renovate should be enough of a test.
not so good, as it turns out
In this case, the test is harder because they are asking about $830/ft in a building in which the only two sales in 2008 were at $900/ft and $850/ft. Worse, a higher floor unit did not sell over three months this spring at about $830/ft, despite boasting the proverbial chef’s kitchen.
No … not a good test at all, once I saw the past history of sale and non-sale. (Funny how listings that look interesting can lose their glow when you see some building history.) I will have to find another buy-and-build to track to really
test this limitation….
© Sandy Mattingly 2009