When we last reported on 20 Pine, we noted with some excitement that #1505, an 1100 sq ft studio with an alcove had sold for just $600 per sq ft, continuing some anecdotal rumors that the sponsor was offering great deals in order to sell the 70 or so remaining unsold units in this downtown conversion.
We now report that #2110, which we think is a 607 sq ft studio, sold for just $495,000 a little less than two weeks ago. Although this isn't the $600 per sq ft bonanza of #1505, the $815 per sq ft sale at #2110 (and the < $500k sales price) continues to be an encouraging sign in a building that needs to sell 70 units FAST. #2010, which we think is a comparable unit, sold for $685,000 a little less than a year ago, which makes the sale at #2110 a whopping 28% lower than the comparable price in 2008.
Although there have been a couple of units (we can think of two actually) that sold for unusual prices in this building back in 2008 (both around $250k), we think that those were NOT arms-length transactions and do not represent reasonable comps. This $495k sale at #2010 however, most likely is a real sale south of $500k, and one that all buyers should be excited about.
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7 comments:
Owners at 20 Pine are going to walk away from their units. They aren't worth more than $650/ft - and because the developers lie about the sq ft in these units the apartments aren't worth more than $600 per stated square foot.
Could have been a great building - it's just too bad so many people paid $1,100 per stated square foot (which equals about $1,250 per real sq foot).
Am thinking of offering between $600 - $625 per sf for an 1100 sf (app.) 1 bedroom. Would appreciate any advice or guidance.
Anon - is this a sponsor unit? We say, give it a shot. 20 Pine gets a lot of attention, so there are quite a few "bottom-fishing" buyers out there approaching the building. Our advice would be to line up financing in advance (if you need it), set aside some time with a sales agent so that they know you're serious, and then make an offer. I think $600 per sq ft in that building is completely reasonable (for a typical unit) so they should consider your offer.
Let us know how it goes!
I rent at 20 Pine, over 1 year and want to buy too but am way worried that if speculator owners (i.e. my landlord) default and common charges go unpaid and that happens a lot, then what? Services stop, doormen get the boot...any precedent for this scenario?
Yes, the worst case scenario would be close to what is happening at 225 Rector in Battery Park:
http://downtowny.blogspot.com/search/label/225%20Rector
I think the type of thing that you describe is unlikely to happen in a building such as 20 Pine where so many units have already been sold and there is at least some diversity in owners (e.g. other than the sponsor units, any single entity does not own more than say, 7 apartments). It's unlikely that most owners would default in any given building, unless there really is some sort of financial/economic meltdown much worse than the current crisis. Is it possible? Yes, absolutely, but I think there are many other reasons not to buy right now (such as high asking prices and a generally unstable real estate market).
All good points; thank you. I agree about waiting this thing out. If you look at the market as integrated, meaning cause and effect, take a look at the number of stalled construction sites in Brooklyn. We were over there last weekend for brunch and it really is sad. So many of my architect/designer friends are out of work completely, not just slow, stopped. I work in NYC, the Midwest and Florida; all except NYC seem to have accepted that prices on real estate need to fall about 50%. The Midwest and Florida seem to be moving again. NY needs to catch on and all will be well, painful but at least over. I like this site, so much more intelligent than curbed and far less nasty. I'm actually learning which is always good. Have a good day.
Yes by all means post a comment that says NYC real estate prices need to fall by 50% and comment how less nasty this site is you bottom feeding clown. Have a good day and please buy in Jersey, that is if your parents still have the down payment for you.
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