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http://streeteasy.com/talk/discussion/33496-67-profit-in-24-months
Talk » Sales » Discussing '67% Profit In 24 Months..............'

67% Profit In 24 Months..............
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You can't go wrong with Manhattan Real Estate! LOL!

"Throughout his career as a developer, David Edelstein has had a knack for buying low and selling high, and he has done it again with the Upper East Side town house that he owned with his wife, Susan, at 122 East 70th Street. The five-story brick and limestone house, which they bought for $12.85 million in 2010, sold for $21.45 million, making it the biggest sale of the week, according to city records."

http://cityroom.blogs.nytimes.com/2012/12/28/big-ticket-sold-for-21450000/?ref=realestate&gwh=52779890BCE7E9158BD42985E66370E6

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Here the townhouse
http://www.botero.com/associates/project/24
Damn, I knew I should have bought a few of these...

I just hate it when people don't pay attention to details in their houses

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122 East 70th seems to be a prime example of an expensive, taste-specific renovation limiting resale potential. The Rubins (with Botero's help) converted the house into a showplace for their Tibetan art collection. Their taste and their cultural affinities slapped every potential buyer in the face.

Compare the photos in falcogold1's link to the 2012 Elliman listing for the Edelsteins' resale: in eighteen months, the house has been rendered completely neutral. In some rooms, the changes are simple, e.g. turning this:
http://www.botero.com/sites/default/files/styles/medium/public/sba_large/Towhouse%20E70%20%289%29.jpg
into this:
http://img.streeteasy.com/nyc/image/79/31328479.jpg

Some of the work, however, must have taken a more substantial bite from the Edelsteins' vaunted profits. Consider the kitchen and baths. Even if you're a developer with preferential access to tradespeople and materials, There's no cheap path in Manhattan from this:
http://www.botero.com/sites/default/files/styles/medium/public/sba_large/Towhouse%20E70%20%2812%29.jpg
to this:
http://img.streeteasy.com/nyc/image/69/31328569.jpg

Timing was obviously a factor too. When the Edelsteins negotiated their purchase in mid-2010, the S&P was slightly above 1000 and high-end buyers and sellers were still recovering from the trauma of 2008-2009. The 2012 resale was negotiated with the S&P close to 1500.

From a comparison of the floorplans, it appears that the kitchen was not only expanded, but relocated, with the old kitchen converted to a mud room. That's a major project. It's not as though the Edelsteins painlessly flipped the house for an $8.5MM profit.

A few single-family TH renos/conversions in this time frame with same-ish profit margins.

317W77, 45W84 made 100+% before cost of renovations. Mis-price or get the renovations wrong, and make less $ - 116W71, 238W74. The latter 2 jobs took more than 2 years. Not easy to do large scale renos in under 18 months even w/o a co-op board breathing down your neck.

WEst81 there is no cheap path; but when you are in the business the path is "cheaper." and "quicker." I would say that Mr Edelstein has some friends in construction who would flip a job like this at cost or below hoping to stay in his favor.

Friends and I bandied about fipping foreclosures when the market tanked. You just can't do it as quickly or cheaply as the guys in the business (who also get first crack at it)

According to work permit data, looks like they did substancial work including installation of HVAC and ducting.
And there is still an open elevator violation.

But Im sure a few million went easily into the pocket.

What is the story with the beautiful townhouse on beekman place at 52nd listed for 48 million? I've been a renter in the neighborhood admiring it for 2 years assuming that an owner was doing custom reno. To see the scaffolding finally removed and then see it listed left me scratching my head. That is some high end flipping. Will it sell for anything close to asking? Who is behind the project? I am sure this info is on ACRIS, but more fun and easier to ask you all.

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Hmmm - maybe HB and AH ARE one and the same.

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Both are awesome. The question is which one is more awesome.

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I don't think racist is right; one of my dogs is not well socialized and people frequently use that exact phrase with her.

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Enough of that - can anyone answer question re townhouse on beekman place at 52nd?

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I care but I don't have the answer. Anybody . . . ?

You mean 50th St., i.e. 21 Beekman Place?

Here's a fun story involving a spite wall, dog feces, and a 5-gallon drum of tar to get you started.

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Yes - 21 beekman at 50th; thanks for correction. What is the story? It had scaffolding for almost 2 years; as soon as it was unveiled, it was listed at 48 million! Who does that?

Nada - is there a link for the story you reference?

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ino
now the ask is over 4X purchase price for 2009

Damn, he made $10 mil in 2 years just for apartment sitting. Real estate. The only path to insane wealth outside of hedge funds and starting Facebook or Microsoft.

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NWT/Nada - Thanks for info. I knew you guys would know. I did Google Peter Novello (heartbreaking death in and of itself; even more so b/c I think he is survived by school-age children) and found this article with photos of the spectacular residence. http://observer.com/2012/09/ellen-biddle-shipman-mansion/

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