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November 6, 2009
85 State's Roller Coaster Ride
The pricing of 85 State Street in Brooklyn Heights sure has been interesting to watch, and now that the renovated five-story townhouse's sale for $3.4 million has been recorded in public records, a trip down memory lane seems in order:
9/2005: The house trades hands for $2.5 million in an estate sale.
3/2006: Only 6 months later, the 5,000-sf property flips for $3.2 million to a developer.
1/2007: The house is placed on the market by Corcoran for $5.8 million.
5/2007: Brown Harris Stevens takes over the listing and prices it at $5.95 million.
1/2008: The listing jumps to Halstead and is priced at $5.75 million.
2/2009: A series of price cuts brings the asking down to $4.2 million.
6/2009: Warburg takes over marketing but doesn't cut the price further. Listing now says: "Offered at less than cost! Stunning XXX mint Brooklyn Heights townhouse...the home has just undergone a complete renovation from top to bottom."
10/2009: The house finally sells for $3.4 million.
House of the Day: 85 State Street [Brownstoner] GMAP
85 State Street [StreetEasy]
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Comments
Oh GOD! How I love schadenfreude in the morning! It almost makes me as tingly as a woman calling me papi.
Posted by: tybur6 at November 6, 2009 11:36 AM
"Offered at less than cost!"
wrong - how much did it cost to build these things back in the day?
Posted by: dirty_hipster at November 6, 2009 11:37 AM
The downside of greed.
Posted by: buttermilk channel at November 6, 2009 11:54 AM
Don't even know where to start with the hubris of that pricing history. when looked at in absolute terms in sold for 2.5 in 05 and 3.4 in 09 which seems still like a pretty solid rate of appreciation. but to price at 6 million! What a joke.
Posted by: wasder at November 6, 2009 11:55 AM
The renovation was easily $1.5m.
Makes feel pretty good about my prediction the Midaugh place will go for $2.8m.
Posted by: Brokedeveloper at November 6, 2009 11:58 AM
I walk by this house every day, and this has been my favorite house listing to follow. IMHO, unbridled greed and utter insanity - by the developer and the brokers. My pea brain simply fails to comprehend the logic behind raising the asking price of an already overpriced house when it fails to sell at the lower price. As for "Stunning XXX mint Brooklyn Heights townhouse", are you kidding me? This has to be one of the most hideous renovations I've ever seen. I personally like a mix of original details and modern touches. But, not only did the developer do a totally modern renovation inside this once beautiful 19th Century house, but the modern renovation is hideous! So, again IMHO, not only did the house NOT sell for so long because it was vastly overpriced, but it didn't sell because it's FUGLY. (Thank you for letting me get that off my chest. It's been building for awhile.)
Posted by: CarrollGardened at November 6, 2009 12:01 PM
they were lucky to get 3.5. The location of the house is excellent of course but the reno was terrible. Even the exterior browstone work looks crappy.
The new owners should hire a good local architect and re-do the house. It is potentially a showcase Greek Revival home.
Posted by: Minard Lafever at November 6, 2009 12:02 PM
I will cede my log-in name to the Developer if he/she asks.
Posted by: Brokedeveloper at November 6, 2009 12:05 PM
"The new owners should hire a good local architect and re-do the house."
I agree with you Minard. Fixing the exterior is easy enough. But where on earth would you even start trying to restore the interior of this house? Your renovation costs would push the overall price back up to $6 million!
Posted by: CarrollGardened at November 6, 2009 12:10 PM
Is there a link someone can provide that shows the renovations? The Halstead ad is gone.
Posted by: InsertSnappyNameHere at November 6, 2009 12:14 PM
Snappy, I don't have a link. I had previously seen photos posted on all 4 brokers' websites, and I got an in person look at the garden and parlor floors.
Posted by: CarrollGardened at November 6, 2009 12:17 PM
I think a million two to a million four should be enough to undo the bad work and transform this into a fine, genteel townhouse. Not everything needs to be redone.
Posted by: Minard Lafever at November 6, 2009 12:18 PM
I wasn't being entirely serious with my cost estimates.
Posted by: CarrollGardened at November 6, 2009 12:25 PM
I remember back when a million dollars could buy you a lot of stuff. These days all it seems to get you is the inside of a house (exterior not included).
Posted by: the chicken at November 6, 2009 12:26 PM
Seriously... how could interior renovations of this place cost a million dollars? This seems fucking retarded. If that's what the contractors are charging and you are willing to pay them, Jaysus H Christmas. The contractors are very happy (rich) folks and you are a bunch of idiots.
There I said it.
If this is the case, you could find an amazing contractor and crew from ANYWHERE else... rent them all apartments in the city for 9 months to a year... buy all of your wood and supplies in Virginia... buy lunches every day... and still costs less than $1 million.
So dumb.
Posted by: tybur6 at November 6, 2009 12:36 PM
tybur, you're back! (New leaf? LOL.)
Posted by: CarrollGardened at November 6, 2009 12:40 PM
I know the guy who sold it to the developer. A true gentleman and a scholar - professor in CUNY. He didn't try to make a killing, asked a reasonable price at the time and was glad to sell it. I am so happy for him and it shows that by not being greedy you sometimes end up with so much more.
Posted by: Brooklynnative at November 6, 2009 12:41 PM
I saw this place before and after renovations. $1.5 seems about right. It's huge and everything needed replacing. Plus it's done pretty nicely.
Posted by: Johnny at November 6, 2009 12:41 PM
Yes, schadenfreude undoubtably is what many of us are feeling.
Very funny, tybur6.
Posted by: Pigeon at November 6, 2009 12:42 PM
"I walk by this house every day,"
Staying a consistent 25 feet behind Gabriel Byrne.
Posted by: Biff Champion at November 6, 2009 12:44 PM
True, Biff, but only because of the restraining order.
Posted by: CarrollGardened at November 6, 2009 12:48 PM
Yes, CarrollG -- I guess my "new leaf" doesn't stayed turned over very well. I just find it totally effing amazing how strident folks are on hear about costs. "$1.5 million seems about right." Are you joking?! This was a gut renovation.... the cheapest kind of complete renovation! You hire a bunch of guys for $9/hr to throw shit into a dumpster then you continue as if it's new construction.
The restoration of the Sistine Chapel only cost $4.2 million! And took 14 years! In Europe by extremely HIGHLY PAID artists, conservationists and scientists!
Posted by: tybur6 at November 6, 2009 12:51 PM
C'mon, tybur, the guys who repainted the Sistine Chapel were hacks!
Posted by: CarrollGardened at November 6, 2009 12:53 PM
I hope I didn't hurt anyone's feelings. I wouldn't want anyone to think I'm judging them for paying 3 times as much as they should for their renovations.
(Oh, wait, I am judging you.)
Posted by: tybur6 at November 6, 2009 1:19 PM
To shine some more light on it:
The developer was Penson, if I recall. Frank Farricker took over his father-in-law's business and tried to go all-out on the 'luxury' front. Then he got divorced from Ed Penson's daughter and they started unwinding.
Everyone knew that the price was crazy. 3.5 M still seems like a lot, though the reno was very luxurious.
Posted by: thwackamole1 at November 6, 2009 1:27 PM
If developer/contractor bought this bldg and did renovation ,IMHO did not cost anywhere close to $1.5m.
Perhaps they might charge some no-nothing bulging pockets
finance type that much because they would know most don't care how much or too stupid to know it shouldn't.
Posted by: Petebklyn at November 6, 2009 1:41 PM
tsix and rob are 'stoner's two pet cranks?
when was the last gut reno project you undertook? that's what i thought. never. your gut tells you a gut reno should be cheaper. ooookay. have you even priced a bathroom reno?
having missed the fotos, but judging by comments and 5000 sqft, i'd wager that 1.5 is correct plus/minus 300.
but at least tsix's posts are quasi-entertaining rages against the machine.
good for the cuny professor. developer took a risk (equals greed?) and lost. next.
Posted by: antidope at November 6, 2009 2:15 PM
I saw this house twice, and there were some truly great things about it. However, it does need renovation, and it is currently not set up as a glorious single family with a rental below in a way that makes sense. That being said, it has beautiful details and although I think the buyers got a great deal and will have absolutely no regrets. I believe the last listing was with prudential elliman and it was $3.8 or $3.9. I thought it would go for $3.6, so I think they did well.
Posted by: homey at November 6, 2009 2:15 PM
>>Perhaps they might charge some no-nothing bulging pockets
finance type that much because they would know most don't care how much or too stupid to know it shouldn't.
Agreed, they are not spending their own money anyways, so why would they care? They are spending tax payers' money and there is a lot of that around.
Posted by: stevieb at November 6, 2009 2:16 PM
$1 million = 16 men X 6 months X 40 hrs/day @ $60/hr
So, in other words, a million bucks is an army of men laboring on your house FULL-TIME for 26 weeks, making a very healthy wage (even if you subtract benefits etc).
Really?
P.S. I have been involved in A LOT of renovations... just not in this retarded city where $1.5 million doesn't seem to warrant even a second thought.
Posted by: tybur6 at November 6, 2009 2:37 PM
(and of course I meant 40 hrs/week)
Posted by: tybur6 at November 6, 2009 2:37 PM
i suggest that given your experience you have identified a previously overlooked niche in the market. you could probably build a multibillion dollar reno biz while operating with fair trade principles and wipe out the rest of the scoundrels who are actively colluding to fleece the tax-payer stuffed pockets of the stupid (rich) buyers.
the beauty of the business is that it is very low capital intensity. in other word, you've got no excuses. get on it before someone else figures it out.
Posted by: antidope at November 6, 2009 2:52 PM
Antidope - your sarcasm is adorable.
Posted by: tybur6 at November 6, 2009 2:54 PM
Interesting. Anyone know what happened to the Carroll Gardens Amity Street Horror? Are there homeless people camping in there now with the granite counters?
Posted by: mopar at November 6, 2009 3:42 PM
"the Carroll Gardens Amity Street Horror?"
Which one was that mopar?
Posted by: CarrollGardened at November 6, 2009 3:50 PM
Looks like it cost a mil to fix up: http://www.horrigancompanies.com/85state.html
So developer had 4.5 into it + carrying costs for 3.5 years... Classic example of chasing the market down, but I think the buyers done good.
Posted by: tricks73 at November 6, 2009 9:02 PM
Is it true that there are "hit the peddle water wahing ass" toilets in the bathrooms?
Posted by: hannible at November 7, 2009 2:56 AM
Looks like it cost a mil to fix up: http://www.horrigancompanies.com/85state.html
So developer had 4.5 into it + carrying costs for 3.5 years... Classic example of chasing the market down, but I think the buyers done good.
Posted by: tricks73 at November 6, 2009 9:02 PM
Love it!! The greedy developer-flipper lost a million dollars plus carrying cost from taking on $3.4Mil of debt for 3 years!! That is going to leave a mark.
Greedy developer flippers are the scum of the earth. They prey on hard working families looking for a good place to raise their kids by jacking up prices of houses.
Hopefully, this will serve as a lesson to these parasites of society. Karma is a bitch sometimes.
Posted by: dandel at November 7, 2009 2:25 PM
Amen to your words dandel! Put real estate brokers and bankers in that catagory too. Our prayers will be answered as soon as that idiot of Bernanke starts raising interest rates and stops printing money and giving it to speculators for free.
Posted by: hannible at November 7, 2009 5:41 PM
i agree with you; real estate brokers and bankers belong in the same category.
Real Estate are also parasites on society; they add little value but get paid a lot of money and they do whatever it takes to thwart the introduction of any system that brings transparency to the real estate market. I don't know why the Cuomo isn't investigating the anti-competitive nature of the new york real estate market. Moreover, real estate brokers were the enablers of the real estate bubble. They fabricated a sense of urgency and got many people to buy into the real estate mania/frenzy. Many people subsequently got hurt financially in a big way. These real estate brokers have blood on their hands. I hope their conscience prevents them from enjoying all the money they made from the real estate bubble.
Bankers that work at investment banks that received tax payers' money are getting paid big bonuses again. These same people were responsible for creating the financial crisis that the nation is facing today. The Washington-Wall street partnership is resulting in the rewarding of a lot of incompetent and undeserving bankers, while punishing the prudent and the savers with the trillions of dollars printed. These same bankers with their fat bonuses that are being paid with bailout money are continuing to buy houses in desirable neighborhoods in brooklyn and pricing hard working families out of places to raise their kids.
Hannible, it is time that the middle class stand up for the rights. The past 30 years have led to the widest gap between the rich and poor since the second world war, while real wages for the middle class have stagnated. It is time for us to let our government know that we are not going to stand for this injustice any more.
Posted by: dandel at November 7, 2009 10:19 PM
Well dandel who is going to write or call Cuomo and tell him to take action against Greenspan and now Bernanke who will not raise interest rates as to not let the value of homes to come down anymore. We get pennies for keeping our money in the bank while speculators and greedy jerks live the life with our money? Are we idiots not to do the same?
Posted by: hannible at November 8, 2009 12:33 AM
Hannible,agreed. Bernanke is ruining our
economy by destroying the dollar through money printing.
He is
stealing money from the prudent savers
and giving it to the reckless and greedy.
He is clinically insane and needs to be
locked up
someone stop him before we become
the next zimbabwe
Posted by: dandel at November 8, 2009 6:15 AM
Zimbabwe is better off! They don't have Nancy Pelosi to contend with.
Posted by: hannible at November 8, 2009 10:41 AM
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