msa1124 t1_jdd8ds1 wrote
Reply to comment by Mistes in Historic Flatiron Building sells for $190 million at auction by Orener
$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.
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”
thegreatsadclown t1_jddjahx wrote
I used to work there and everyone would lose their minds when I told them
z3rohabits t1_jde6mxo wrote
the biggest flex would be I live in a pizza shaped studio
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.
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.
starxidiamou t1_jdh79sn wrote
Sounds like you’re agreeing with the guy above.
40characters t1_jddpfe1 wrote
I … kinda … like? … the condos idea?
damnatio_memoriae t1_jddx2i2 wrote
the only thing i dont like about it is i wouldnt be able to afford the penthouse.
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
damnatio_memoriae t1_jdevepw wrote
trickle down housing
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
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.
z3rohabits t1_jdgymkt wrote
truth be told I can’t even afford a pent house in Jersey city
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 🤷
_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.
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.
_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
theageofnow t1_jdet08x wrote
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
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
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.
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?
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.
msa1124 t1_jdey8l2 wrote
Think you’re wrong on most accounts but I guess we’ll see
[deleted] t1_jdet1ps wrote
[deleted]
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.
jles t1_jdfz6zn wrote
Another viable business plan is laundering Russian money.
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