It seems that the bullish and optimistic tone of both President Obama and Wall Street may be affecting the confidence of New York City real estate brokers as prices climb to rather lofty levels.
Today, Katherine Clark’s Real Deal article on the $90,000 per month price tag at 247 Central Park West seems to symbolize such confidence in New York real estate. The 12,000 square foot, thirteen room Upper West Side townhouse, which was previously owned by Keith Monda (Former President of Coach), hit the market in April 2010 with a lofty $32 million price tag.
The price paid by the current owners of 247 Central Park West in January of this year was a far more modest, but yet record breaking $22.38 million. However, as reported by broker Matthew Lesser of Leslie J. Garfield, the owner of 247 Central Park West will now be renting out this abode for $90,000 per month…per month!!
But, if history is any indicator, we don’t expect anyone during this time to actually meet that asking price, no matter how well the Congressional Budget Office and President Obama says the economy is rebounding. Such lofty price tags have already been proven to to lack justification elsewhere in the city where numerous developments struggled to sell units.
This was the case with 350 West Broadway in SoHo, which opened in 2008. Of the seven units in this luxury class facade development by Aby Rosen, four are still actively on the market with a median price tag of $8.9 million and a high of $26 million (penthouse).
But such lofty and idealistic price tags should be questioned. For as cited by Sara Polsky of CurbedNY, the three closings at 350 West Broadway all finished well under their initial asking prices…in fact $1.2 million under on-average.
Thus, in light of these trends, we at Blockhawk are rather certain that the lofty $90,000 per month tag at 247 Central Park West will eventually float its way back down to reality.