New for $1.5m

Posted by Dave Fratello on Monday, June 15th, 2009 at 7:46pm.

Perhaps detectives at MBPD should not be surprised if they receive a few calls about the theft of a home.

Overstatement, sure, but what else can we say about the deal someone just got on the new modern at 560 36th?

The home was considerably larger than the standard Tree Section speckie at 4br/4ba and 3800 sq. ft., and someone got it for $1.555m earlier this month.

That's officially the new low for new construction in the Trees.

Dare we even mention the PPSF? Try $409/PSF if we go by that 3800 sq. ft. size (that was in the original listing; another source now pegs the square footage at 3456, which would make for $450/PSF instead).

And to think, back in August last year, MBC and several readers were starting to call this home a bargain – or at least a bargain in the making – at $2.2m (see "Not Holding Out" for a greater description of the home).

Everything is relative. At the time last year, 560 36th was down from a start at $2.999m. The momentum behind the cuts, plus the pleading language in the listing ("please submit all reasonable offers!"), suggested that we were going to see a real deal here eventually. As MBC wrote at the time:
what was supposed to be an elite-level, high-priced home at 560 36th is now heading to the bargain bin
The bargain bin, indeed. Try almost 50% off. Yikes.

The lot was acquired for $994,500 in June 2005. Obviously the home was not built for the $561k difference between the sale price and lot acquisition price. Loans against the property were around $1.85m last year, so we know it cost substantially more to build this home than the buyer just paid. (We never saw this labeled a short sale, though the lender must have taken a hit.)

It is no secret why this home slipped. Location and style both punished it, and those will be the factors cited as people treat this sale as a huge outlier.

We actually found the interior to be pretty nice for a modern and plenty spacious, but moderns aren't for most buyers and the location near the armory is subpar.

Could you get over those issues knowing that someone else paid for you to move in? A lot of people could.
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