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.
Good Grief $11,000 a month in taxes?
If ever there was a petri-dish for socialism’s utterly futility, it would be New York.
So sad.
RE: Good Grief $11,000 a month in taxes?
Yep, the super rich investment bankers and celebrities were willing to pay that kind of taxes as long as they can enjoy the convenience, dynamism and SAFETY of what used to be for at least 20 years, Manhattan, NYC.
Now that those attributes no longer apply and are slowly deteriorating, there’s no point paying that kind of money.
That condo in the picture has all the warmth and homey feeling of a sterile hotel lobby. Yours for the low, low price of $25M.
Paying the city its Pork for views of the Park.
Hmm...taxes and “common charges” amount to $25,879. A month. If they’d let me raise goats in a couple of those rooms I bet I could break even...
“Manhattan’s luxury condo market peaked a few years ago”
Guess what also happened just before that. New Yorkers decided that they didn’t have enough filth and crime, so they elected Delblasio, ending 20 years of sane rule that literally made the city safe for everyone there.
“A confluence of macroeconomic headwinds, as well as SALT deduction caps and transfer taxes, cooled the market.”
I guess if you don’t want to stigmatize blacks and other minorities, or blame Democrats, you have to state the above (or not get published), but then there’s a reason why Trump calls it Fake News.
“”
Other than the view it looks like an awesome personal garage structure.
“...all the warmth and homey feeling of a sterile hotel lobby...”
Other than the view it looks like an awesome personal garage structure.
Taxes and maintenance fees....unreal in that city.
Ha! I looked at the picture and thought: cold, boring, uninviting.
The view is depressing IMHO.
The MONTHLY taxes and common charges (condo association, building fees, doorman pay) are one-half the average YEARLY salary for a U.S. worker.
Tower of Babel
Wait until New York becomes Chinatown and they elect a Chinaman as their mayor.
“The view is depressing IMHO.”
Probably one of the best times on one of the best days.
At least there is a buncha green out there.
I would hate being so high up off the ground. [How do you let your pets out the front door to go occupy themselves for a while and respond to the call of Nature?]
Buh buy...take your limo liberal politics to Florida with you. You won’t be missed and losing your dollars will mean that my home state can be forced to live within its means.
Sounds like everyone who should be screwed is getting screwed! What’s not to like?
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