We weren't that surprised today when the Battery Park City Broadsheet reported that tony Battery Park buildings The Riverhouse and The Visionaire
Although the ground rent thing is the headline from the story, there are also some other interesting bits of information, including the following:
- The Riverhouse is only 66% sold, which is a touch less than the 75% that we had heard previously. Once they hit 70%, a "participation payment" will kick in which we can only assume will raise monthlies.
- The Visionaire is only 50% sold.
- Millstein was "seriously considering moth-balling" North Battery Park development Liberty Luxe (really? we thought that was just a goofy rumor) but the project is now back on track and even looking to open a Sales Office. Perhaps the allure of Goldman Sachs, which had strong Q2 results and will be moving right next door to ol' Liberty Luxe sometime next year, is providing the figurative kick in the pants to Millstein.
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6 comments:
Thanks for the interesting stats!!
Hi Anon - thanks for commenting. We think so too! The Riverhouse stat was particularly surprising to us given all of the celeb buzz on that building and what we thought were pretty strong sales.
The riverhouse stat may be misleading - there are a lot of combination apartments that show up as one apartment (so there is a unit on the 22nd floor which I think is 3 or 4 combined units but shows up as one). I don't know if thats part of it or not but seems it could be.
You'd think though that combo apartments would have both a numerator and a denominator impact - it would be one less "sold" unit but (I would think) one less available unit as well.
What I thought was the most interesting thing about the Riverhouse stat is that it came from the building itself, so theoretically it should be accurate. Unlike the sales process though, at a BPCA meeting, they want the %sold number to be lower ("poor Riverhouse") so that could be playing a factor :)
Just thinking about the math...if they started with 300 units and sold 200, thats the 2/3 sold. If they combined 30 into 10, they would have sold 180 out of 280, which is a lower % (too early to do the math). Both would be accurate, just different ways to cut the numbers, so I agree they would go with lower to BPCA and higher to the rest of world.
btw great blog, good/insightful comments
Hi Anon - thanks for commenting! Yeah, you're totally right on the math (so much for blogging early in the morning). Since the numerator will always be smaller than the denominator (until you get to 100%), removing the same number of units from both will have a greater proportional impact on the numerator, resulting in a lower overall % sold.
I still think buildings will spin this number to whatever suits their current need though...perhaps this is one way to do it.
Thanks for the kind words - keep reading!
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