A press release today discloses that 2280 FDB, the 12-story, 89-unit residential development on Frederick Douglass Boulevard between 122nd and 123rd Streets, commands the highest price paid per square foot at closing among Harlem developments. In the report released by Halstead Property Development Marketing, the statistics reflect activity between January 2010 and June 2011 and show 2280 FDB commanding an average closing price of $736 per square foot. Among the 25 other developments, the Parc Standard at 2101 Eighth Avenue ranked second with a closing price per square foot averaging $720, followed by 5th on the Park at 1485 Fifth Avenue with $719 per square foot.
As far as percentage of units sold, each of the three have different stories. At 2280 FDB, 65% of the building has been accounted for with 56 out of 89 condominium units sold or with contracts out. The Park Standard sold out within a year but that development is a particularly small-scale building at 28 units. Looking at Streeteasy, 5th on the Park has had 51 sales in the past (some of them include non-residential property), 32 contracts out and 13 available listings:
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I posted this comment on The Real Deal as well. As a buyer in 2280 FDB I appreciate the positive press but the numbers are not entirely honest.
ReplyDeleteThis is a bit of a skewed number on 2280. Of the 28 units sold during that 18 month period, 19 of those units were HPD units for affordable buyers and the official purchase prices were set by the city / developer 3 years ago long before the change in the market. All of those units "sold" (with subsidies / grants) for around $800 / sq ft. Obviously those units are entirely responsible for this "ranking" of closing prices.
Affordable units are based on NYC standards and equal to Harlem current prices - so what is the difference? The entire building is FHA approved and thus the government perks apply to all buyers.
ReplyDeleteAs I said - the prices the developer got for the HPD units were set 3 years ago. Before home prices dropped. They are not "equal to Harlem current prices." I know for a fact that HPD bases prices on a percentage of the current market value. Since the prices were set 3 years ago - they were based on a percentage of the market value at the time. The percentage would remain the same today - but with the drop in property value all over the city and country - those prices would be lower.
ReplyDeleteIt was a great bit of luck for the developer to lock in such high prices before the market dropped. Those buyers had no opportunity to negotiate based on the current market. Any other buyer would.
I'm not suggesting that this is a bad thing. But blindly saying that 2280 has the highest square foot average in their sales is not telling the whole story.
Had the prices been set now, they would surely be substantially lower. Everything in the neighborhood - in the city for that matter - is appraising lower than it did 3 years ago.
It seems obvious to conclude that the contract / purchase prices on those 19 units (set 3 years ago) are considerably higher than what the market would dictate now.
I think it's a nice building. I would have liked living there if the prices were more reasonable. This recent "news" is good for Harlem but doesn't truly tell the whole story behind the "price per sq ft" at 2280.