The Landmark

Something in the vein of #2801 might be attractive to our friend Mouse...

As to pricing, I'd point to the 70s-era construction. It has neither the high ceilings and craftsmanship of nearby prewars, nor the hotel-like amenities of a modern condo. Of course, if you don't care about such things, then the option to not-pay for them is nice.

For me a major factor would be noise suppression, which can really only be evaluated in person. The traffic at 59&2 terrifies me as a cyclist, but you never know what it might be like 28 floors up. I've visited plenty of pin-drop units in "loud" areas and annoying creaks in "quiet" areas.

Pricing here is 100% bridge driven — I’ve seen units there, and unless you plan to keep your windows closed 24/7, the honking from cars jockeying to get on and off the QBoro Bridge is never-ceasing

Thanks for the color on noise and post-70s construction at the Landmark.

Another building where pricing surprised me was 305 E40th. A ~1250 square foot 2br is in contract with a listing price of $875k, and another one on a higher floor of the same building for $1m?
https://streeteasy.com/building/305-east-40-street-new_york/2d There appears to be less traffic in that area than near the Landmark, wonder what could be the explanation for the low pricing?

If 2D were, say, 10D (i.e., on a higher floor) it would be getting more. There is virtually no view from any of the rooms, and it appears to be at roof level to adjacent buildings, so possibly plagued by noise from their AC units. Also, it is in unrenovated condition (but looks well kept, so not a huge bundle to fluff up). Consider that 5D sold back in 2018 for ~1.1m in similar condition.

Same building era, same 8' ceilings, more inconvenient location, and probably equal noise (what you lose in traffic you also lose in height above the fray). If those things don't bother you then there are plenty of favorable deals on the island.

(to the extent any purchase is "favorable" vs renting such an apt for $4K)

Location does not seem to fully explain the pricing here. For example, it appears that the building directly across the street is much more expensive.
https://streeteasy.com/building/the-churchill/27b
https://streeteasy.com/sale/1445960
Even after applying 10-15k premium per floor to the listed / recently sold units at the Churchill, I do not understand the differential. Also, maintenance charges seem higher at the Churchill. What am I missing?

Also, within the same building, how much is a renovation worth? 2R seems to be in a better condition (not high end renovated), but is also priced ~20% higher than 2D. Is that a reasonable markup?

The Churchill is a full-service amenity building.

By all means if you don't care about the porte cochere, pool, gym, garage, valets, etc then don't buy into such places, as you'll be paying for them whether you care or not.

Thanks @richardberg. The Hamilton is a doorman building, and has a garage, but no pool and gym, and agree that service is a notch below The Churchill.

Do buildings with commercial spaces downstairs trade at a discount? 305 E40th has commercial tenants (supermarket and garage). That could be another factor.

They are different market segments. To a value-minded buyer, commercial units take pressure off the maintenance budget and offer additional upside when retail rebounds. To a posh buyer, commercial units detract from the grandeur of the entranceway. So places like the Churchill trade higher not because the Hamilton's tenant configuration is "worth" less, but because the complete package they're touting aims for buyers with extra money to burn.

If you take away the stately porte cochere / amenities / staff, however, then the package deal falls apart and your more "valuey" buyers will bid up prices in the building with lower maintenance.

Guess all those owners in UES Madison Avenue buildings are happy to have retail rents subsidize their maintenance, unless of course the retail store has closed or declared bankruptcy

Same with many UWS, Chelsea, Village and Park Avenue buildings in the 50’s

Pretty much same in the entire world right now.

Think the Churchill owners don’t see any income from the garage due to cond op ownership structure