After seeing yet another sale at 20 Pine go through today (this time it was #1907, a 926 sq ft studio with a large terrace) which looks like it was actually sold to a person and not an LLC (oooh), we found ourselves wondering (yet again) whether now is the time to buy at this troubled FiDi conversion that seems to be doing a phenomenal job of blowing out it's unsold inventory of around 70 units to picky buyers. In fact, 20 Pine has sold a recession-busting 5 units in the past 5 weeks, almost half of what the building sold in all of 2009.
How are they doing it? Just take a look at the previously mentioned #1907. This unit was most recently on the market (from the sponsor) at $1.195 million and sold yesterday for exactly $776,750. That's 35% off of the asking price. Exactly 35% off. Not 34.8%. Not 35.1%. 35% exactly. We can already imagine the quick calculator negotiation that the buyer used (who by the way, may have been all cash), chopping 35% off of the ask and flashing the number to the sponsor. We're starting to think now that maybe 20 Pine will get through this after all...
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6 comments:
I really appreciate your blog!! My finance and I are currently trying to find the best deal in Fidi. Your blog truly expresses all my frustrations with this inflated market. This blog is my new perezhilton.com...which I read shamelessly everyday.
Thanks Alisa - what a huge complement! If only we had blue hair and followed Britney around....
Let us know how your search goes!
I'm not sure if looking for 35% from the Sponsor's ask is going to be the best way to look at 20 Pine. I think you'll do better if you find an apartment you like and then try to negotiate to an acceptable price for yourself. If you buy in 20 Pine at $750 a square foot you've made an excellent long term investment. This is a high quality building.
Hi Graham - thanks for commenting - you should pop by more often :)
I agree that there is definitely variability with respect to certain units as well as listing price variability. Some apartments may just be priced lower initially (I think that's happening more now, btw) so just subtracting 35% isn't going to always work. However, if you look at recent sales in the building, many of them really were 35% (or more) off of the ask.
What I meant to convey with this post was that the sponsor is actually trying to move these units (rather than sitting on them and waiting for the market to improve). To move that many apartments, they HAVE to discount severely in this market and they're actually doing that (very cool). They are being realistic and agreeing to reasonable prices (as are buyers).
I will do my best to post more often as this is a blog I read.
The sponsor is being very reasonable and I've had several clients receive very good discounts in this building.
My suggestion is to be very careful when making your first offer because it can be the difference between a real response from the sponsor and them ignoring you.
You can look for 35% off the asking price, but I'd suggest that buyers don't become unreasonable and want the "best" deal and not sign on something that's 20-30% off.
Overall, we agree.
I am planning on making an offer this week. any advice?
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