Palm Tribeca Host In Danger of Foreclosure at 30 West St.

In an article that makes us all think twice about reaching (financially) in this economy for a great apartment, the Wall Street Journal has profiled Carlos Araya, a former Wall Street trader who was laid off from the New York Merc and is now a host at the Palm Tribeca, just down the street from his old job and his 2 bedroom apartment in Battery Park City.

After a little snooping around, we discovered that Mr. Araya bought unit #7G, an 1190 sq ft 2 bedroom, 2 bath condo at 30 West St (The Millennium Tower) in 2006 for $942,500. This is a touch lower than the price quoted in the WSJ. The unit currently has carrying costs of around $2000 per month - not bad at all for BPC, however we believe that 30 West St. is one of those buildings that has sponsor-assisted common charges, so the $2000 might actually tick up in a couple of years as the sponsor abatement comes down.

#7G is currently on the market for $945,000, a tiny premium to the 2006 purchase price but a much larger discount to the most comparable unit (#5G) that is also for sale for $995,000. Will this apartment be a rare Manhattan foreclosure? We really don't think so, but considering that the Araya's financed more than 90% of the purchase price (yes, the WSJ article is wrong according to ACRIS), we don't think they have much room on the price, so perhaps we're looking at a short sale here, folks. Good luck to the couple - hopefully they'll be back on their feet soon.