Tuesday, December 08, 2015

Is 550 Vanderbilt worth $393.7 million? Or closer to $466 million.

According to the Real Deal, based on the offering plan for the 278-unit, 550 Vanderbilt condo building in Atlantic Yards/Pacific Park, the total sellout should be $393,713,950, or nearly $1.42 million per unit.

Maybe not.

At 330,778 square feet, that works out to $1190.26 per square foot for the 17-story--er, 19-story--tower.

However, according to StreetEasy, active sales average $1,456 per square foot, while in contract sales average $1,364 per square foot.

Taking the midpoint of those two figures yields $1,410 per square foot.

If we multiple that by the 330,778 square feet, that would yield $466,396,980, or nearly $1.68 million per unit.

We won't know until real numbers are documented.

But it sure looks like even Greenland Forest City Partners, the developer, underestimated the market. (Remember how the project was supposed to stem the tide of gentrification?)

Note that the per square foot numbers are inexact, because some small fraction of square footage will be devoted to retail and thus can't be attributed to the residential condos.

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