Is Buffett's Ajit Jain overpaying at One Beacon?

Yeah, I don't think you are quite getting what this building is.

It is Bloomberg Tower... Jay-Z / Beyonce, multiple Yankees, Le Cirque.

$3k psf is ordinary for higher-end buildings, and this is one of the top name new condos in the city. I'd say Time Warner Center has similar location issues, and it goes for serious dollars as well.

Like with TWC (and unlike 15CPW) the apartments all get views because they are only on the higher floors. If you are facing the park, you have a full blown park view.

> or a nice part of the UES.

Can't say I totally agree with it... but the $$$ have spoken, east or west the big new $$ buildings on the UES/UWS are not the ones in the "nice part", they're in the spots that border midtown.

Not my cup of Tea, but you're talking beautiful apartments overlooking central park. The units are well constructed and appointed with great access to the East Side's top restaurants and stores. In my opinion the apartments are better laid out than Time Warner @ Columbus Circle.

If the average price per square foot is $3,700 and the average (annual) rental listing per square foot is $115, that's a 3% rental yield. Common charges around 0.5% per square foot. So even if taxes were zero in this building forever, that's a 2.5% cap rate...obviously when you normalize for the abatement you are below 2%.

So the question is, is this enough for a trophy space (ie 15 CPW) to justify this sort of valuation? I personally do not think so.

and his "pending sales" chart, which I believe is the one he notes to show demand... is lower than before the crash.... and lower than last year.

I just posted my second comment before I had seen any responses...thanks for the comments.

ha, ignore my last post.... wrong thread.

I've seen a video walk through of one of the apartments, I agree with Riversider, they are well done.

I know not everyone wants to live at a major intersection, but that seems to be the thing these days, particularly for jetsetters (if you have resorts and hamptons houses and a ranch somewhere, I figure when you want Manhattan, you want to be right in the middle of things). If it is where you are living all the time and/or raising your kids, maybe WVillage is more your speed... but with the buildup all along 59th (including CPS) and similar spots all over town, this seems to be a trend for the $$$.