128 5th Closes Under $6m

Posted by Dave Fratello on Friday, June 15th, 2012 at 4:35am.

A couple of weeks ago MBC noted that "[t]he priciest non-Strand home in MB" had made a deal.

128 5th
We wondered if 128 5th "could become a new record sale for the type."

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?

Not really.

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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