128 5th Closes Under $6mPosted on Friday, June 15th, 2012 at 4:35am.
It was listed for $6.799m, fully furnished, customized, outfitted, never lived in, ready to go. (It's a pretty smashing property; see our review from late April.)
But now it's closed with a nearly $1m discount: $5.850m.
That's very impressive, but we have to look at a couple of markers.
First, the markup over the property's initial condition when new – but nearly blank – in May 2011.
The nice but not-so-wonderful new build in 2011 sold for $5.250m last Spring. It's now up by $600k on resale.
We've heard loose talk that the customization, furniturization and general outfitting of the place from 2011 to 2012 took a year and $2m. The place is literally ready to bring your toothbrush and jammies, a 5-star hotel just lacking the staff.
Assume a 100% overstatement on the prep costs of $2m. Then it was $1m. And a bump of $600k still doesn't cover it.
Oh well, on to the next thing.
The second analysis is: Was this "a new record sale for the type," as we postulated?
As we noted in "Big Fish(es) Reeled In," a neighboring new construction project at 121 9th sold pre-completion in December 2010 for $6.2m, with more upgrades to come. That doesn't even touch issues like furniture and added customization. Looks like 9th reigns supreme. (See "New High-Water Mark Near Downtown.")
Meantime a bunch of $5.6m-ish sales predominate, again unfurnished, but 128 5th beats them by a bit with all the add-ons. Those are 128 6th at $5.595m, 209 16th in escrow at $5.6m and 200 19th, sold for $5.6m way back in March 2008.
So they didn't crack $6m after all, but they did make a pretty quick deal in rarefied air for a truly super property.
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