dbenc t1_jddkkwj wrote on March 23, 2023 at 5:03 PM

Reply to comment by msa1124 in Historic Flatiron Building sells for $190 million at auction by Orener

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 on March 23, 2023 at 5:07 PM

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 on March 23, 2023 at 6:06 PM

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 on March 23, 2023 at 6:08 PM

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 on March 23, 2023 at 9:44 PM

https://streeteasy.com/building/one-madison

theageofnow t1_jdestah wrote on March 23, 2023 at 9:43 PM

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