The Harrison

We live in Phoenix but are moving to NYC w/n the next year. We went to the Harrison sales office in late March 08. The sales woman was VERY snooty and acted like she was doing us a favor. There were numerous units available at the time we visited. We were so unimpressed however, that we immediately threw all the sales materials in the trash upon leaving. If they are waiting and hoping for a change in the market, they are not being very realistic considering their way overpriced offering.

We bought in the Harrison back in November--We had been on the waiting list to get an appointment to buy for over 6 months--It is my understanding that the building is more than half sold (may be as much as 70%)If you go to the Harrison website, you can find out just which units are still available--There are only 4 of our particular unit in the building and all 4 are sold! As for the 'snootiness' comment, I understand what you mean but I think that is just a tactic to weed out serious buyers--everyone has only been 'charming' since we established ourselves as serious!

fleurdelys: It's nearly impossible to get reliable information on pre-closing contracts and availability in any development, even in the best circumstances. In a slow market, sales offices are especially cagey. Often, "70% sold" means they've sold 70% of the released units, which may only represent a portion of the building. At the Harrison, you're dealing with masters of snob appeal and manufactured scarcity. They also have a history of delivering a solid product, so I'm not saying it's all smoke and mirrors. But as a contracted buyer, you have a vested interest in the marketing pitch being true. So unless you have inside connections or an incredibly good attorney, your remarks have to be discounted for the possible "rose-tinted glasses" factor. Nothing personal - it's just human nature.

As I stated above, for someone who walks by the sales office on a daily basis, it is always empty. The selling prices look quite inflated, especially in this environment. But time will tell.....

For what it's worth, when we visited in March, we walked in off the street with no appointment and were immediately given the sales pitch. As for using snootiness to weed out serious buyers, this could very well be true, but it has a real downside -- we are "serious" and plan to purchase within the next year but have no intention of returning to that building.

West81st--I completely understand and agree--and yes, guilty, now that I am contracted I do concede to the 'rose-tinted glasses' factor; however, all that being understood and said, we are happy we bought there because of the reputation of the builder--reading some of the 'horror' stories about less reputable ones on this site had made me think twice about new developments--Nima, I, too, was somewhat turned off at first but we had to weigh that against the final product and in the end, The Harrison is exactly where we want to live--as you all know, only time will tell whether we made a 'good' choice or not-

fleurdelys: The Harrison seems like the "conservative" choice - in the best sense of the word. I hope it works out well for you and the other buyers who have taken the "safe" path - snooty marketing notwithstanding. A successful, high-end condo along that stretch of Amsterdam would be good for the neighborhood.

I'm curious to see whether many parents in the Harrison wind up sending their kids to P.S.87. The marketing material (and pricing) seem aimed more at families who would favor private schools. On the other hand, part of the justification for the high prices should be that public school is a viable option, at least through 5th grade. The worst-case scenario for the local schools would be if affluent new arrivals in buildings like yours deplete the available slots in special District 3 programs for gifted kids, but spurn the General Education programs if they don't get into G&T tracks, Anderson, etc. P.S.87 is very strong on the Gen Ed side; but for many of the achievers who can afford the Harrison, that may not be enough. Obviously, each family's circumstances and priorities are different. We'll see how it plays out, child by child.

West81st makes a good point. Both my children got to PS 87, and we love it. But anyone who is spending $2.5mm on a 3 bedroom is more likely than not to send their kids to private school if they fail at getting into G&T. It is a shame, because the building is adjacent to the school. so convenient for Harrison dwellers.

I had a fairly unpleasant experience with the Harrison team as well. I visited I believe around Janaury and although I have been looking downtown, my wife and I would love to stay on the westside. We are looking for 2500+ sf ideally, for 3 - 4 million. We got major snob factor at the Harrison and were shown plans for a 1900 sf 4 bedroom and a 2100 sf 3 bedroom, both for over 4 million. We are qualified buyers and even have some relationships with the owner/developer (which we didn't share). We don't love the size of the building (large for our taste), and for that kind of price would rather have bought larger units or done a combo of a much bigger size at Linden78 around the corner - which is essentially all accounted for now.

It has been pretty frustrating finding something that we like given our parameters - we may actually ultimately end up in Tribeca, Soho or the West Village and give up our runs in Central Park in order to get the quality space we seek for not much more than 4, and hopefully less - or we will wait a while and buy 3 floors in a townhouse when the time is right...

We also got an apartment, back in December after having been on a waiting list. Similar experience in the sales office, but we decided to look beyond that, since the snooty woman in the sales office will not be living with us:) 1) We want to be on the UWS and this is prime location 2) there won't be any new development of that size with those amenities around there for a long time, because there are so many historic buildings 3) Related is a great developer that deliver what they promise 4)It's in a good school district. Yes, we are planning on sending our child to P.S. 87 because I do believe in public schooling, that's the experience I would want for my children (granted this is a good school). I don't think (and i don't hope) that we are alone in having that philosophy, even if we could afford to send our children to private schools. It's not all about the $$$ people, please don't assume things about people just because they just buy a condo in a nice building!

And also, we actually were trying to buy another apartment there recently, so we got to know what they had left, so it is actually true that they are around 80% sold.

Humla: Thank you for your post - informative and encouraging stuff. Best wishes for a smooth closing and a happy move. Sorry if we seemed to be stereotyping Harrison buyers.

Knowing the RAMSA/Related team, they will produce a quality product for sure. It will be architecturally b o r i n g, but it will be well built. Not spectacular (they are good business people too), but solid. They are indeed masters of creating "understated hype".

I'll bet that a microscopic fraction of the children in that building will ever see the inside of a public school. I know similar buildings, in equally good neighborhood, with even better public schools, where the parents buy into the hood because it's politically fashionable, but then shuttle their kids to private schools. The snob factor in the Harrison will equate nicely with private school.

rvargas; I agree. Totally boring and crowd-pleasing architecture for sure. And it's just hilarious that people buy into a building because of the supposed 'Stern factor'. Like he has anything to do with the actual apartment that you'll live in. They are effective boxes in the sky (maybe better than some, but still) with 'luxurious' finishes. And yes, I am a snob, if that means wanting a new solid product and not wanting to deal with old coop buildings with airocons hanging out of the windwos and annoying coop boards. Just had enough of that. And you are probably right about private schooling and the Harrison. But don't worry, our children will be responsible respectful citizens and maybe they can teach the other kids in the playroom at the Harrison some social responsibility:) What can I say, I'm an optimist.

They just started to put the faux brick fascade on. Has a cheap, manufactured look. Not sure what it will look like when on the whole building, but it looks sloppy.

Humla--We are right there with you--we bought for all the same reasons as you and really hope that most of the other tenants will share our viewpoint. Look forward to meeting you 'neighbor'!

fleurdelys- that's great! I cannot wait to see the place. Hopefully the delays won't be too bad.

I live right next door and have been watching the building go up. (Thankfully I still have some of my view.) They seem to be doing a pretty good job - but then again - I'm not in construction.

After walking up 76th today, I have to agree with dlafronz about the "brick" sheathing. I imagine it will be a lot less conspicuous when the windows are in.

West and dla - I saw it today - ugly! I hope it's better with the windows!

I have no horse in this race, so I think that my comments are relatively unbiased. The prices listed for The Harrison are 2000+/square ft. Just a hunch, but this building, more than any recent new development on the UWS, will be the one that everyone says in 18 months, "Wow, what was I thinking when I signed that contract!"

dlafronz. not sure where you are getting those numbers, I do have a horse in this race and paid under $1300/sf. Granted, that was before any pricing amendments, but still, I doubt that the average pricing is up around 2000/sf at the end of the day. I agree about the brick, unfortunately. I do think that once the limestone will come up, it will offset it a lot. They can't make limestone look cheap! I hope:)

About two thirds of the remaining active listings are priced at or near $2K/sq.ft. I'm not sure how representative they are of the project as a whole.

I would say not representative at all. It's the 'stop the bleeding' phase of the project where a developer like this can afford to sit on a few remaining listings for a while, to get a much higher price out.

As the ugly fascade on the Harrison continues to go up, and as the stock and job market continue to founder, this building will become the "white elephant" of the UWS.

I walked by this weekend. Ugh!

I disagree, I like the facade. I do dislike the construction which blocks my commute every morning though.

The facade will look fine. This will be an elegant building. Nothing more. The big advantage to the pre-fab stuff is that it holds up much better than actual bricks. Masons these days just don't have the craftmanship that they used and the next thing you know, a few years after your building has gone up, you have scaffolding on it and an assessment for brick work.

As for this building being a white elephant, doubtful. If the market goes down, everyone will have overpaid (at least in the short term) for any new building.

"The facade will look fine. This will be an elegant building."

I have to disagree. Walked by it today and it looks like something built for the Vegas strip. Looks fake, fake, fake. Won't be that bad if the Harrison offers Gondola rides, white tiger magic shows, and Celine Dion concerts.

Good one, JM! Your observations are always so poignant.

JM is right. IT has this teal border that looks cheesy, not to mention the previously mentioned faux brick.If I were paying 1500-2000 per sq.foot, I would expect nicer.

ugh!! yes, that facade is just hideous, and so cheap and tacky looking. I can't believe Stern's name is attached to this building! Aside from the thin layer of faux brick there is now a fake brownstone bottom section with the ugliest turquoise-colored trim. It is just horrible.

I went by the building Sunday and think it looks great. I honestly don't understand the complaints about the "faux brick"--it's real brick, albeit thinnner than ususal. There's nothing fake about it. Also, did anyone see the hunks of concrete the brick is attached to? It's a massive piece of stone and concrete that they are applying. Can anyone actually tell the thickness of the brick once the panels are hung?

It's the same pre-fab stuff Related's putting on the Superior Ink building. The two buildings look very similar (at least at this point in the construction). Superior Ink costs more per sq. foot.

Humla_ Great observation about the snooty sales woman not living in the building; Related has a proven track record of building solid buildings with a quality product at the end of the day. Related also has a reputation of putting their staff through rigorous on-going customer service training and that's who will make you, your family and your guests feel great living there and happy to be home at the end of a long day at work.

Given the state of the economy - I was wondering what people think about the Harrison. I have not bothered to talk to the sales people - but I was wondering if anyone has any info on how the units are selling and if the prices are still in LaLa land.

I still hate the exterior.

Huge, palatial, Park Ave. pre-wars are going for $3-$4 million...should you really be spending the same money on new construction on Amsterdam Ave.?????

http://www.streeteasy.com/nyc/sale/211244-coop-1192-park-avenue-carnegie-hill-new-york

My, how times have changed!

should you really be spending the same money on new construction on Amsterdam Ave.?????

yes

You really cannot compare the two just by the price. One is coop one is condo. One is 50% down, one has 421A tax abatement, new construction health club, hardwood floors, large windows, terraces, etc... Location is just a question of taste. As far as sales, I believe they are doing quite well, just a few units left. They sold the majority of them so quickly, and being related, they can probably afford to sit on a few units for a while.

definitely overpriced for the area. if you want to spend that much to live in upper west side, look at the west 60's, closer to the park.

Matter of taste, obviously, but I much prefer the 70's to the 60's/Lincoln Center. Much more of a neighborhood up there, in my humble opinion.

Amsterdam Avenue is ungodly loud. Lots of trucks use the avenue. The traffic never ends.

And, the other posters are right . . . the faux brick is cheesy and ugly.

Faux brick/prefab brick panels are not the same thing, but I assume that's what you mean. I'd take that over cheaply made, buckling all glass curtain wall any day!

I'd take something in a neighborhood that's been considered top luxury for over 100 years over something that opened yesterday on a block with a history of not-so-nice stereotypes, especially when the prices are comparable.

As i predicted on this thread 4 months ago, this will be the building on the UWS where people will look back(if they aren't already) in 1 year's time and say, " what were we thinking when we paid $1,500-1,800/square ft for this apartment!".
And after seeing how he fascade of the building looks like something out of Las Vegas, I suspect we will be reading on this thread the cognitive dissonance responses of people who bought into this building. Just waiting for the, "You don't know what you are talking about, we are thrilled with buying at the top of the market!"
Sorry for the Schadenfreude, but it is true.

"I'd take something in a neighborhood that's been considered top luxury for over 100 years over something that opened yesterday on a block with a history of not-so-nice stereotypes, especially when the prices are comparable."

I'm thinking of an analogy involving Lehman (or Bear) and Google. But perhaps I'll just say nah, Park Ave sucks.

There is no other building like this one in the area and with the flagship equinox and proximity to great schools and stores and restaurants, people who purchased will be pleased with their investment, great service from the staff and will be the envy of all of those who cannot afford to live here anyway but wish they did and will try to be friends with someone that lives there just to take a peak at a place that is far from their reach.

Anthony 205, take off your broker hat for one second and try to give an honest assessment. This building is being laughed at in the neighborhood as an overpriced, top of the market, white elephant.
The phony exclusive, snooty talk that you spew is so yesterday. Nobody will care who lives in this building.It is completely disingenuous of you to suggest that people who purchased are not having some buyer's remorse. The value of these apartment's are down a minimum of 10-15% from where they were purchased.

fmw you are so right. I walked by there the other day it was unpleasantly loud even by NYC standards. Open your $1500 per sq ft low floor apt and hear that racket in your small 2 bedroom? Incredible. No doubt many buyers will be asking themselves "what were we thinking?"

I hate brokers. I am far from being one. All I know is that this place will be call home by a lot of great people; buyers remorse? maybe a few will think that way. The rest I believe will be happy to live there and make it a great place, a home of their own and at the end of the day that is all that will matter.

what will matter is people will have paid hundreds of thousands of dollars more than those apts will be selling for in a yr or 2, money that they could have used for their kids college.
Overpaying hundreds of thousands of dollars? you don't think that will matter? of course you don't.

I have zero 'buyers remorse' and I think it's quite amusing how so many people that post on this website seem so angry with the choices that other people make?? I live in the neighborhood, I love the location and as far as the facade of the building, well, I have never bought (nor would I recommend anyone to) an apartment based on the look of the outside. What matters is the inside of your apartment, the lobby and the amenities.

"I think it's quite amusing how so many people that post on this website seem so angry with the choices that other people make?"

yup

I don't think the Harrison is in any great danger of becoming a white elephent. It's right in the middle of everything that makes the UWS great - easy walking distance to AMNS, CMoM, the JCC, Zabar's, Fairway, Citarella, and both Central and Riverside Parks. For entertainment, There's an off-Broadway theater and a major music hall around the corner, Lincoln Center and two multiplexes within ten blocks and Time Warner Jazz or Symphony Space/Nimoy-Thalia less than a mile away. Although Amsterdam in the 70s has historically been a dim spot in the center, That has already changed considerably with the Apple Bank building anchoring the southern end. The last holdouts of seediness - like the porn shop near 74th - look fairly out of place these days. There could be some backsliding during a recession, but that's true of a lot of gentrified areas.

If you're looking for white elephants, I nominate 455 CPW.

"White elephent?" s/b "elephant".

That's well said. First, I suspect that anybody who bought early there is still above water since there were price increases along the way. Second, there clearly was demand for the building and there will be going forward. Buildings don't sell that quickly if there isn't something compelling about them and, don't forget, most of the sales were in '08, when there were already concerns about the markets. The building sold extremely well into some headwinds. That doesn't mean that prices won't go down, but that building should fare no worse than other sales over the same period and may fare better, given the changes on both 76th Street (Avis and the garages gone) and 77th (Hertz gone). Third, losses only occur when there's a sale, so the notion that people won't be able to put their kids through college in a few years is a red herring. Fourth, as for noise, there are many, many high-priced buildings that are on noisy streets (the Time Warner Center, Astor Place, Park Imperial, the Chatham--all Related buildings, all have the same "noise concerns" and all have done well).

For what it's worth, I like the exterior, except for the green trim, but we should wait until it's completed before we pronounce it good or bad.

I'm sorry my brother didn't buy there (decided not to buy at all). I think the building will do very well and anybody in it for the long run will do well.

you people are delusional...it's the same euphoria that drove this market up. i suggest you save your money, or sell your overpriced apts. and go buy some tulips. this building is awful.

Well, at least it's convenient to Candle Bar.

Its cognitive dissonance. And this building is so overpriced. Unbelievable is correct. People are delusional.

I agree that the pricing will leave many buyers regretting the timing of their purchase. I just don't see the Harrison as a prime candidate for white elephanthood, cheesy facade notwithstanding.

I think that's right. In analyzing it, you need to separate the timing of the purchase and what has been purchased. Nobody wants to buy at the top of the market and many people who bought a unit at that building may have done that, but that shouldn't be a negative on the building itself. It's in a prime location, built by a developer with a proven track record and has amenities that many people look for. Those that bought units in that building will do fine over time. Anybody looking to flip will be hurt. Anybody looking to live there for a number of years will do fine. This crisis will pass, but the quality of the location and the building will still be there.

Luckily, the overwhelming majority of buyers does not need the blessing of streeteasy bloggers to buy. Nor does that majority need to justify the buying.
It's just us, idle mind.

"Third, losses only occur when there's a sale, so the notion that people won't be able to put their kids through college in a few years is a red herring. "

tax losses are only realized with a sale, but economic losses happen regardless. this has been addressed so many times, it's surprising people still think that mtm losses don't affect them. Two identical couples buy in this building. Both are similar in every way and have $400k in the bank. Both buy identical 2 bds in this bldg, Couple A buys for $1.5mm, and Couple B buys later when prices have fallen to $1.0mm. They both put 20% down. So where are we right after Couple B buys??

Couple A now has $100k in the bank and owes $1.2mm on a mortgage. They are underwater on the apt by $200k so their net worth is -$100k. Can't afford college on that. Couple B now has $200k left over after the down payment AND has $200k equity in their house. That's not a red herring, that's your kids' tuition.

"Those that bought units in that building will do fine over time."

So by "doing fine" i assume that you mean, over a very long period of time, couple A can recoup their losses and break-even on a nominal basis on their apartment. If so, ok - given enough time, i agree. But i don't characterize that as doing fine. In my book, Couple B did a heck of a lot better. In fact, by the time Couple A breaks even, Couple B will be up $500k in their house.

I understand the difference between tax losses and mark-to-market losses. But that's not the point. It's a cash flow issue. If the value of an asset you own is underwater but your cash flow is fine, you can pay for college out of cash flow and wait for the value of the asset to recover. Only if you were going to sell the condo to pay for college, thereby realizing the loss, will you actually "lose" the money for tuition.

"But that's not the point. It's a cash flow issue."

Ok, so in my example let's assume 4 year college for one child is private university is $150k all-in. Just making that number up for purpose of illustration. Couple A only has $100k in the bank now. Assuming they want a buffer of $50k against unforseen emergency/job loss etc (given they have a $1.2mm mortgage), they can only spare $50k. So they are short $100k of cash for school.

For couple B, right after they bought their house, they can spare $150k of their $200k in cash. enough for school.

In neither case are we selling the condo. In fact, couple B could still sell their condo and access their (assuming no trx costs for simplicity) their $200k in equity while Couple A can't even do that because they are underwater already.

Assume your facts, but both couples have $5 million in the bank.

so your point is, i have $5mm in the bank and if i take a $500k loss, then i can still pay for college? hmm... let me run my calculator, i think your math checks out. you are right, anyone who has $5mm will be able to afford college for their kid. surprise, surprise. and what % of 2 bd buyers of a $1.5mm 2 bd at the peak actually has $5mm in the bank vs. my scenario of down payment plus some extra left over?

no matter how you shake it, bake it, twist it, or turn it- couple A is worse off by the tune of $500k.

Agreed. So, in this case, the notion that the mark-to-market loss impacts an upcoming expense is a red herring, as originally posted. Nobody wants to lose money and you'd rather pay less for an asset than more. That's obvious and I wasn't suggesting anyting to the contrary.

I have no idea how many people fall into which category, but I suspect the truth lies somewhere in between. I went through this in the '80's. History has a way of repeating itself, both on the upside and on the downside. Markets go up, sometimes too much. They also go own and at times overcorrect.

The bottom line: sales were made at the top of the market. That impacts value no doubt. But the doom and gloom is overplayed, in my view. If you have the cash, you weather the storm and move on. Those that bought in this building will be fine--as long as they weren't looking to flip their unit. They would have done better had they bought earlier or later, but they bought when they did. And what they bought is a quality building in a quality location which, in my view, relative to other buildings should do fine.

agreed.

You also can't borrow against home equity if you don't have any.

Sorry, didn't notice that Special_K made that point already.

For the non economists among us (like me) let me break it down. To pay a few hundred thousand more than you needed to because you bought just prior to the real estate bubble bursting is painful financially (b/c we all have other things we could have done with that few hundred thousand). You can rationalize all you want about cash flow etc as anyone who got suckered would.

Special K, are you kidding me? Did you really just feel the need to explain that someone who buys an asset for less will do better with respect to that asset then someone who buys the identical asset for more. Thanks.

"To pay a few hundred thousand more than you needed to because you bought just prior to the real estate bubble bursting is painful financially"

street_easy, while in some sense that's true, one could say in that in other situations as well. for example, when I bought my 2br in 2003 for $800k, I was a little bummed because the people who I bought it from had paid a lot less then that 4 or 5 years earlier. Course I sold it in 2007 for $1.3 so I don't exactly stay up at night worrying about it.

Once again, if that provides some consolation to those who ended up not being able to get a seat when the music of the real estate bubble stopped playing, then more power to them.
Some people will have gotten screwed. That's the way the ball (bubble) bounces.

What a dumb post.

ccdevi, your welcome. didn't know that you needed the education on the basics as well.

I am hearing that people are walking away from their deposits at The Harrison. Has anyone else heard this rumor?

dlafronz _ No. If you're hearing things already, can you pump your source some more?
What a strange site. Renters are cheering on bad news and hoping the major disaster.

osiris, did they finally change the Vegas style exterior? Place looks like a 70's porn star threw up on it after eating a miniature Statue of Liberty.

Apparently there were some people who backed out for for the most part the building is sold; i heard that there was a wait-list for some of the units and now that they have become available again, people are grabbing them. It looks like the sales office is going bye bye and probably move into the building since they only have a few units to sell. The looks are not too bad and the location still great. For everyone that either lost their job or backed out of their deposits there are two or three waiting for the opportunity to buy into this place. Related is not going to loose money on this one.

Did someone say "wait list" with regards to already sold apartments?? That may or may not say a lot about a building, but it says a whole lot about the state of the R/E market right now.

"For everyone that either lost their job or backed out of their deposits there are two or three waiting for the opportunity to buy into this place."

What a shill.

JuiceMan: Agreed, and this is a good example of how easy it is to mislead without actually lying.

"I heard that there was a wait-list for some of the units ..."
I don't doubt that somebody associated with the Harrison made this claim at some point. It may or may not have been true. If people put their names on a waiting list in 2007, that doesn't really mean much.

"...and now that they have become available again, people are grabbing them."
Possible, but how many, and at what price?

As for the exterior, it's improving as it nears completion, IMO. Now that all the design elements are taking shape, I think the silhouette of the building is rather nice. And as garish as the colors are, the rose-and-teal might age well. Overall, the building looks a bit less like a UNLV dorm than it did two months ago. I'm still not a big fan, but I'm less of a hater.

I find all of this interesting as i just came on this site to see what was being said about the Harrison since i visited the sales center two weeks ago looking for a place. While the bldg is no great architectural masterpiece, the finishes in the apt seem to be very nice. The lobby rendering looks to be the nicest of all the bldgs i saw in the area and BUTthat area encompasses a mere 4 blocks in any direction. Has anyone here taken a look at the bldgs in Manhattan??? they are no great architectural accomplishments by any standard. Most prewars have tiny little windows with air cons sticking out of them. the interiors, outside of their good size, are usually old, musty, and aesthetically inferior (read: bad taste), and the lobbies tiny. After reading this i am more inclined to make an offer there than anywhere else so thank you bloggers for helping me in this endeavour. and in regards to the sales person there: he wasn't snooty at all unless you consider being well spoken and extremely knowledgeble about the market snooty. I'm English so i guess snooty works for me.

oneoff - in this current financial climate, snooty may have gone bye bye.

I had an appointment with a sales agent in the summer of '07. Didn't think they were snooty. I was most intrigued by the 6 bedroom combination (with a very large utility room and an approx. 40 ft LR/DR/library) that they were offering for mid 5s. I thought that was an okay deal, but was put off by the lower ceiling heights in the south building.

Amen to oneoffreply! Now I can't afford to live there but it will be worth looking at the model unit inside the building which should be done soon and think about braking that piggy bank that's overflowing; not sure if there are any studios left though. Snooty sales people don't get to live in the buildings and give service to the tenatns/residents most of the time, so it's the actual staff that will make people decide whether they made a mistake or not buying there; but that can be changed, I think.

Anthony 205- Related may not lose any money on the Harrison, but that is not the point. Anybody who bought in this building at 2007 prices will have to mark down their property by 20-30% by the time
it closes.If you knew that, and were unsure whether your job was safe,wouldn't you strongly consider walking away?

Bought in 2007 at $1200/sf. 20 to 30% less than that, for new construction in that location? I don't think so.

"Anybody who bought in this building at 2007 prices will have to mark down their property by 20-30% by the time
it closes"

mark it down on what? are all these buyers audited institutions?

Yes ccdevi, Mark-to-Market accounting is being implemented for owners of Manhattan real estate. Rate of decrease will be determined by an average of streeteasy poster predictions.

ccdevi and Juiceman are of course correct that individuals don't recognize loss (or gain) on an MTM basis.

I take it the point dlafronz was trying to get at (though not clearly expressed) was something like the following: Imagine you put down $200K as a deposit for a 2BR for $2M. Assume, by closing, that 2BR is worth $1.5M. You might be tempted to walk away and forfeit the $200k deposit in order to avoid having to pay an additional $1.8 for an asset that is only worth $1.5M.

That scenario appears to be happening at some new dev in brooklyn (from the few threads we've had over the past few weeks about people wondering if they should walk away from deposits). Seems not unreasonable to think it might happen on the UWS as well.

Why is everybody so quiet on this posts?

Looks like contract heaven...

An interesting post on Wired from last October provides some color on the deposits at Harrison (see #145): http://wirednewyork.com/forum/showthread.php?t=10026&page=10

If that post is accurate, 10% was due at signing, and 10% nine months later. So the deposit was a hybrid of the 10% and 20% scenarios. In that case, a lot of buyers are probably feeling like the proverbial boiled frog: the pain has increased slowly enough so that they didn't jump out of the pot while they could still escape with relatively minor damage. Now it's too late, unless they are prepared to leave behind an awful lot of money: say, $500K (probably plus other expenses) on a $2.5MM apartment. If these are the numbers, I think the vast majority will close.

By the way, as we've discussed elsewhere, all those peakish Harrison contracts will distort the mediian and mean for UWS condos, starting around Q2. As a result, I think coop resales will be the best barometer for this neighborhood in the coming months.

Has anyone heard any updates on this building?

"10% was due at signing, and 10% nine months later. So the deposit was a hybrid of the 10% and 20% scenarios"

OUCH. That sucks.

JuiceMan: Hard decisions create stress. If the deposit were only 10%, whether to close would be a hard decision. So really, the buyers are better off this way.

Good point W81, it actually has an interesting stabilization effect which is good for buyers and for the building.

The article in today's NYT has inspired me to re-visit this building. I feel that there will be many people who are going to walk away from deposits from The Harrison. When will this building close?
It is the most overpriced new Condo on the UWS. Even the Equinox is disappointing!