A 2nd Try at 2nd

Posted by Dave Fratello on Tuesday, March 17th, 2009 at 4:10pm.

It's always interesting to watch listings return after they have taken some time off the market.

That was the case with 700 35th, which MBC discussed last week. (See "Back Again on 35th.")

Now we move to the Sand Section, the South End west of Highland. At 132 2nd, we see another case of a listing that tried last year and is back now at a considerably adjusted price.

At 2nd, the adjustment is far bigger: 25% off last year's start.

This 4br/5ba, 4300 sq. ft. home is plenty nice, though it borders Manhattan Ave., which is arguably a busier street down south than Highland. (A solid patch of oleander shields the home somewhat from the the street, a nice touch.) The home does front the walkstreet, and is near a fairly private stretch of the public beach.

For whatever reason, this home has turned over every few years since it was built in the late 1990s. (See the Property History via Redfin.) The sale history shows that a couple different sets of sellers have walked away with hundreds of thousands of dollars for the trouble of living at 132 2nd.

We're assuming that July 1998 sale was the new-construction price, $1.8m. The current owners paid almost twice that ($3.5m) just 7 years later.

In what may be a case of "the one that got away," we heard that this home was in escrow (off market) for $6.225m at about this time last year. When that didn't pan out, it went public at $6.0m in late March. After 3 months and a $300k cut, the sellers quit.

Today, $1.5m has been shorn, and the home can be yours for $4.5m.

That's still a million-dollar markup (+29%) over the 2005 price, and, well, not everyone is getting any markup over 2005 prices these days. (See "Not Worth Their '05 Prices?") The South End, the beach, a walkstreet – yes, those factors will help.

Now take just a few steps down the 2nd St. walkstreet. Here's another option at 125 2nd.

Same year of construction. About the same size (4br/5ba, 3975 sq. ft.). No Manhattan Ave. traffic, and much bigger views. This is real competition for 132 2nd, even if it does start a little bit optimistically at $4.999m. (For that money, you can pick up a brand new home nearer to downtown, like 224 7th, so, yes, the 90s place is reaching.)

These 2 on 2nd will be doing a little dance this Spring and Summer, trying to lure the same buyers. If either one is serious, we'll learn what the market will support these days for this sweet little sub-pocket of MB. The folks at 132 2nd have already begun to adjust their expectations. How long till 125 2nd gets a bite, or makes a move?
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