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msa1124 t1_jdd8ds1 wrote

$850/sf for a fully vacant office building is an obscene overpayment. Likely that the only economically viable business plan is to convert to condos.

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d4ng3rz0n3 t1_jddhe14 wrote

Condos in flatiron would sell for a huge premium. I cant imagine a bigger flex for NYC than saying “I live in the Flatiron”

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thegreatsadclown t1_jddjahx wrote

I used to work there and everyone would lose their minds when I told them

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z3rohabits t1_jde6mxo wrote

the biggest flex would be I live in a pizza shaped studio

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TizonaBlu t1_jddufnf wrote

Are you serious? It’s like saying, “I work in ESB”, like ok?

I own a townhouse in Manhattan is a significantly bigger flex. Not to mention Flatiron district is actually not great to live in, and the price reflects it.

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vanalla t1_jdek5ea wrote

"I work in ESB" is a dunk on everyone who doesn't live here.

"I own a townhome in UWS/WV/Chelsea is a dunk on everyone who lives here.

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40characters t1_jddpfe1 wrote

I … kinda … like? … the condos idea?

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damnatio_memoriae t1_jddx2i2 wrote

the only thing i dont like about it is i wouldnt be able to afford the penthouse.

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SSG_SSG_BloodMoon t1_jdepjpk wrote

You'll be able to afford one of the units that opens up when the city's wealthier residents do their hermit crab dance up to the flatiron building.

Guy moves into the Flatiron, guy 2 moves into that guy's old place, yaffa yadda yadda, you move into guy 10,000's old place

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damnatio_memoriae t1_jdevepw wrote

trickle down housing

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maydaydemise t1_jdfp4y8 wrote

You joke but it's a real thing

Now obviously boutique condo conversions like this have less impact than larger housing developments, but new supply is still a good thing

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JetmoYo t1_jdggrzo wrote

This presumes the higher end housing is actually going to NYC residents. And maybe Flatiron would. But some of the luxury market is functionally geared to foreign wealth sheltering and money laundering. I think that needs to be factored into NYC's luxury housing model as well.

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z3rohabits t1_jdgymkt wrote

truth be told I can’t even afford a pent house in Jersey city

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dbenc t1_jddkkwj wrote

That's 220k sq ft, if converted into 115 condos of approximately 2000 sqft, taking into account 100m of renovations needed (mentioned by another comment) they would have to sell for 2.6m each to break even, probably more like 3-4m each. or more condos of smaller size... might work 🤷

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_ACompulsiveLiar_ t1_jddl9el wrote

Brand new 2k sq ft in the flatiron building would go for well above 3m. Probably closer to 6m, with ~$3k/sqft. With the risk of construction/condo dev it seems like a reasonable buy.

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TizonaBlu t1_jddummu wrote

You significantly overestimate the amount of wealthy people who want to live on 23rd, and in a building where tourists are constantly outside taking pictures.

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_ACompulsiveLiar_ t1_jdduw1s wrote

No, I don't. Flatiron new developments are going for $2k-$4k/sqft right now and they are having no trouble clearing inventory (flatiron house for ex). Also owning a 5m property is not that selectively "wealthy" for a location as central as 23rd. It's a lot, sure, but there's also a lot of wealthy people in this city

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theageofnow t1_jdestah wrote

Normally developers like to have sell out be 2x hard and soft costs when underwriting a deal. The numbers don’t always work out that way (overruns, market conditions etc) but that’s the pro forma

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nonlawyer t1_jddai3c wrote

Could be. Maybe in a few years it will be seen as cheap. Who knows.

Or maybe the buyer is just a big fan of The Boys and wants to pretend to hunt supes

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TizonaBlu t1_jddu5cz wrote

It’s not gonna be good as a condo. The weird shape of the building significantly limits the shape of the building. Not to mention it’s landmarked. It’s also iconic, meaning there’ll be people taking pictures outside constantly. Lastly, it’s on 23rd, and not exactly luxury real estate.

The actual luxury buildings in the area sit on 22nd and are nice and quiet while still having park view.

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JonB_ t1_jddy2zx wrote

Converting the floor plans for use as condos could be a little awkward, but I have to think it would be easier than converting the postwar super wide office towers to condos, no?

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AlienTD5 t1_jded5sr wrote

Yeah for sure. A huge problem with converting most office buildings to residential is that NYC requires a window for every bedroom; shouldn't be an issue for the Flatiron bldg.

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msa1124 t1_jdey8l2 wrote

Think you’re wrong on most accounts but I guess we’ll see

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[deleted] t1_jdet1ps wrote

[deleted]

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TizonaBlu t1_jdettj4 wrote

Uh, you’re literally proving my point? I was referring to both One Madison and MSP Tower, both of which have their entrance on 22nd, a much quieter street, not that you’d know. I’ve literally been on top of both.

Also, please stop spamming me with the same stuff thanks.

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jles t1_jdfz6zn wrote

Another viable business plan is laundering Russian money.

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