Thursday, May 19, 2011

Luxury penthouse condos at One Hanson Place sell at auction for $465-$625/sf; FCR, according to KPMG, was expecting $1217/sf for AY condos in 2015

In October 2009, as I wrote, the Empire State Development Corporation (ESDC) released the Atlantic Yards market study by KPMG, which stated, in the words of an ESDC lawyer, that it was "not unreasonable" for the 14 residential buildings (sans Site 5 and Building 1) to be absorbed in the officially announced decade.

The upshot: Forest City Ratner was counting on sales prices of $1217/sf in 2015 up to $1369/sf in 2019.

Well, we're four years away, and the luxury housing market isn't getting too close.
At One Hanson

A 5/17/11 New York Times article headlined A Perch Above Brooklyn, Going Once, Going Twice... described the bidding for penthouse condos in One Hanson Place, the former Williamsburgh Savings Bank building.

A two bedroom duplex with 2,120 square feet inside and 1,948 square feet of terraces sold for $1.325 million. That's $625/sf, without counting the terraces.

Three 3,243-square-foot four-bedroom, three-and-a-half-bath apartments without terraces were originally listed for close to $5 million ($1542/sf) sold for around $1.7 million, or $524/sf.

A 2,848-square-foot, three-bedroom, two-and-a-half-bath, went for $1.325 million, or $465/sf.

The prices aren't quite firm, as two of the sales could be rejected, and the buyers must pay a 10 percent premium on top of their bid. And, of course, an auction can't be expected to bring top dollar.

Summing up

As one commenter on Brownstoner summarized it:
After looking at the sale prices to the buyers (i.e. hammer price + 13%), most buyers paid 575-600 $PSF (counting outdoor space as 1/4th of indoor space) -- a much lower result than we've been seeing recently.
Yes, these may be lower than most market-rate units, but still the numbers are way way off that KPMG report.

And consider that the KPMG report described more generic Atlantic Yards condos, not penthouse apartments in a vintage building.

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