Condos of the Day: Price Pressure at The Beacon

Most of the units at The Beacon in Dumbo appear to have been sold by now. The last seven apartments, however, are presenting a challenge to marketers. (Corcoran has six of the units, Elliman one.) Five of the seven have already had price reductions, including, most recently, Apartment 20B, a 947-square-foot space that was just cut from $890,000 to $825,000. Given the high floor and the relatively low price per square foot for the area, we could see this moving at the new price. On a side note, we noticed when perusing the past sales that one investor (a Boerum Hill liquor store owner, as far as we can tell) was responsible for buying eight of the units. Interesting.
85 Adams Street Listings [Street Easy] GMAP P*Shark
Photo by Atomic LLC

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"...one investor (a Boerum Hill liquor store owner, as far as we can tell) was responsible for buying eight of the units."

Flip flop.

Posted by: guest at January 29, 2008 1:24 PM

Sounds like at least 8 more units will be opening up soon at discounted prices.

Posted by: guest at January 29, 2008 1:49 PM

luis lima is the liquour store owner. he owns tons of property in cobble hill. i'd expect he's planning to hold these units, not flip...time will tell...

Posted by: guest at January 29, 2008 1:58 PM

"i'd expect he's planning to hold these units"

CHOMP CHOMP CHOMP (holding costs). He bought at the top - he already lost. Rental income will not save him. But he's already rich so he won't even feel the loss.

Posted by: guest at January 29, 2008 2:01 PM

yeah, but if he holds for a long time he'll likely make a profit, don't you think? this is not a dumb guy...

Posted by: guest at January 29, 2008 2:25 PM

Lots of smart people are losing lots of money right now.

Posted by: guest at January 29, 2008 2:43 PM

while making lots more.

Posted by: BrooklynLove at January 29, 2008 4:13 PM

just not in residential real estate

Posted by: guest at January 29, 2008 4:37 PM

then not smart people

Posted by: BrooklynLove at January 29, 2008 4:52 PM

"yeah, but if he holds for a long time he'll likely make a profit, don't you think? this is not a dumb guy..."

yeah, but if Merrill, Citi, Deutsche, etc., hold those CDOs for a long time, they'll likely make a profit.

Point is, if he's buying that many properties, he's probably not in it for "a long time". That's "a long time" to have all your cash tied up and pay carrying costs, unless he wants to be a leveraged landlord.

Posted by: guest at January 29, 2008 7:17 PM

And how are you spending your millions, BrooklynLove?

Posted by: guest at January 29, 2008 7:19 PM

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January 29, 2008

Condos of the Day: Price Pressure at The Beacon

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