Posted on 03/02/2021 6:38:19 PM PST by SeekAndFind
Manhattan's luxury condo frenzy petered out a few years ago. Owners are taking realized losses as they offload properties at steep losses.
A prime example of this is the pending deal at 551 W. 21st St., where two units listed for a combined $26 million found a buyer after a couple of years on and off the market, according to Bloomberg, who cited data from brokerage Olshan Realty. The owner initially acquired the property in 2016 for $31.3 million and then attempted to flip it for $40 million the following year.
With no success, the owner is expected to realize a 17% loss on the properties once the transaction is completed.
Manhattan's luxury condo market peaked a few years ago and has since developed into a nightmare for sellers. Massive supply is quickly eroding values as inventory builds. In early 2020, half of all new luxury condo units constructed after 2015 in the borough were unsold. A confluence of macroeconomic headwinds, as well as SALT deduction caps and transfer taxes, cooled the market. Then came the big bad pandemic that wreaked even more havoc in the borough.
Donna Olshan, president of the brokerage, said sellers in the market have no interest in sticking around in "New York if they're not using the asset or if the asset isn't giving a return."
Olshan said a deal at 80 Columbus Circle for a 74th-story condo recently listed at $25 million. The seller combined two apartments in the tower, one unit purchased in 2011 for $17.5 million, and the other unit (next door) purchased in 2014 for $18 million.
There is some good news in the luxury real estate market - after writing about the downturn for 18 months and the plunge following the pandemic, the decline in prices has brought buyers to the table.
With Mayor Bill De Blasio doing everything he possibly can to drive both businesses (like Goldman Sachs) and individual citizens out of the city, the effects of his colossal mismanagement and general cluelessness have come at a loss for some wealthy elites who bought luxury condos in the last several years, thinking they could flip the unit(s) for a quick buck. Many have transformed into bagholders, or recently, they want out and are willing to take realized losses.
OMG common area charges and taxes PER MONTH almost $30,000 then you have the mortgage on top of that INSANE!!!
$26K/mo for taxes and HOA fees? HAHAHAHAHAHAHAHA Enjoy the suck.
And the rat bastards are all moving to PA. Can’t go a mile without seeing a disgusting yellow NY plate!
They writenit off their federal taxes.
Just $26,000 a month for taxes and ‘common charges’ plus the mortgage payments. Plus you live in a city. Too crowded and noisy.
Deblasio is probably softening up the market the Chinese can take over more easily. Manhattan will be filled with mainland Chinese millionaires.
That is a cool shot!
Very short clip on what makes property valuable...
https://www.youtube.com/watch?v=oCYkXLWmbkI
“Man’d be a danged fool to leave all this!”
Moving to your conservative peaceful neighborhood with the resources to turn it in to another liberal s hole.
Finding new nests to foul.
Even Old New Beijing was once New York.
What are common charges?
Someone please explain why I should give-a-sh*t.
No?
Pass!
Regards,
Gee...I wonder if rampaging mobs might be having an effect as well. The article didn’t mention anything about that though so it must have been fine with residents.
Was too large for one.
Here's a smaller version of it...
I would scream every time I looked out the window and saw how far up I was.
Every. Time.
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