New Development price cut >10% examples

Started at $3k/per sq ft but managed to move some at $2300 per sq ft.
http://streeteasy.com/building/37-east-12-street-new_york

Originally started to market at almost $4k per sq ft if you look at old sales listings but that was probably highly aspirational. Now selling at low $2k per sq ft.
http://streeteasy.com/building/17-east-12-street-new_york#tab_building_detail=1

67B sold for $28mm in July 2015.
http://streeteasy.com/closing/10310497
Ask $29.5mm
http://streeteasy.com/sale/1161752

64B
Sold for 21.5mm with ask at $28mm

Both sponsor's sale.

Good article on "data pollution" from 2014 contracts skewing the numbers developers expect to get now:
http://therealdeal.com/2016/06/28/luxury-pads-now-sitting-on-the-market-for-an-avg-of-9-months/

Makes sense. A couple of example in the village seem to be a reflection of that. They managed to move some 25% lower than initial ask for 37 East 12th.

21 East 12th seems to be selling briskly at over $3K for the higher floors.

That is correct. I am guessing that view and light is high premium in the village explaining the high prices despite very high taxes of $2 per sq ft. Maintenance and CC >$3 per sq ft.

30y, What is your take on why this one is moving even for lower floors and not 37 east 12th? Only thing I can think of is more light and smaller apartments on lower floors.

37 east 12th suffers from the eye sore of a PAL building across the street, which is a rat den, and has been shrouded in scaffolding for 10 years with little or no sign of any renovation. I sure hope that 17 east 12th is not finished with the façade of that building, which has all of the character of a NYU dorm and in no sense conveys any charm or elegance. If anything, these two buildings support the idea that 21 east 12 should be selling at higher numbers. Besides, it is a more elegant building, more exposures, and less risky than buying into a 5 or 6 unit building.

Thanks nyc. Good point. If you want to talk offline, email me at 300streeteasy@gmail.com.

I think that this is a great example of why using $/sf is a terrible way to try to determine the worth of a unit. Here you have projects which are just about next door to each other selling (or NOT selling) at vastly different $/sf figures because more goes into the value calculation than simply the amount of square4 feet.

30y, I disagree with you. $/per ft is an excellent starting point which needs to be adjusted for location, light, maintenance, taxes, and view etc. For new development, better marketing as well. Unless you are saying that $/ft by itself it not a complete measure. Terrible is taking it too far and trying to prevent rationality. Jonathan Miller probably will say $/sq ft ALONE is not adequate to price a property. That is why $/ft is one of the key measures in any appraisal with suitable adjustments.

I think you are misconstruing the way appraisals are done. I have done thousands of Broker's Price Opinions for various lenders (which are essentially Appraisals using almost exactly the same forms). You don't start with $/sf. You start by finding truly comparable closed sales, make adjustments for " location, light, maintenance, taxes, and view etc." and finally calculate the $/sf as the LAST step which is simply used as a metric/reality check by the lenders when examining the report.

Presumably you are talking about substantially report formal to page 2 of this report. There is a reason why you have sales price / Gross Liv Area which is price per sq ft for the comps chosen. Clearly $/sq ft is not the last step. A property will not be deemed to be a comp if it is 2 times the property being appraised on $/per sq ft basis. I will leave it there as I do not want to go into how internet is all about provding more transparency rather than it "depends" on many factors.

https://www.fanniemae.com/content/guide_form/1004.pdf