House of the Day: 41 St. Marks Place Revisited
Are we surprised that 41 St. Marks Place just underwent its second price cut? No. Do we think there will be more to come? For sure. The listing has been a disaster from the beginning. After hitting the market in mid-January for an insane $3 million, the three-family house was cut almost immediately to $2,650,000….
Are we surprised that 41 St. Marks Place just underwent its second price cut? No. Do we think there will be more to come? For sure. The listing has been a disaster from the beginning. After hitting the market in mid-January for an insane $3 million, the three-family house was cut almost immediately to $2,650,000. The 3,600-square-foot has now been cut again to $2,450,000. In addition to the mispricing, the presentation is abominable—Elliman should be embarrassed about this one. The crappy, overexposed photos only work against it. We took about five seconds to press the “enhance” button in iPhoto and improved them to what you see above. But who took the photos to begin with? That kid in the back hallway? This price has a ways to go, in our opinion.
41 St. Marks Place [Douglas Elliman] GMAP P*Shark
HOTD: 41 St. Marks Place [Brownstoner]
Based on current rents, this building is worth about $1m (see 3:12). If you pay $2.5m, you have to get the rents up 2.5 times to break even, then more to cover your losses until then, then more to make your profit. Say you triple the rents to 7500/month/floor, so the building is worth $3m.
Now, all you have to do is find someone earning 52 * 7500 = 390k / year who wants to spend 1/3 of their income to live in a one br apt on Third Avenue. Who likes looking at hookers, but doesn’t mind not being able to afford them after paying the rent. And who doesn’t want to buy, because renting is always better.
Once they’ve rented, you can sell it to them for $5m, because renting is bad, and they can try to find the person earning $800k who wants to live there.
See how it works? We all get rich. In 10 years you can always sell for a profit. Guaranteed. Ask the people who bought in Fort Greene in 1948.
If you buy and hold NYC hookers for 10 years, you’ll make a profit. But you have to hold them in the right way, or you’ll just get kicked.
I am still waiting to hear more about these hookers on 3rd ave…
if you buy and hold for at least 10 years in new york city, you will make a profit.
Safer than paying 2.5m to invest in negative cash flow on Third Avenue? I’ve got some CDOs I got cheap from Citibank I could offer you.
And, to make 4:33 happy, I’ll sell them to you outright, so you own them. I’ll even lend you up to $1.6m of the entire purchase price at 8% if you give me that $1.6m in UWS profits as collateral. Interest is different from rent, you know.
4:29, can you direct to to some safe 8% bonds? Haven’t seen many of those.
In 1995, no way this house was worth as much as 4:19’s UWS apartment. It’s gone up far more than 12 times. Extrapolate the trend — in 20 years, it’ll be worth more than Switzerland. Surest route to the Fortune 400 I’ve ever seen. I’m bidding over ask tomorrow.
Can’t wait till this sells, so you all can shut your traps.
4:19 – If this house goes up 12 times in the next 12 years, as yours did in the last 12, it’ll be selling for $29.4 million or about $300,000/month.
For $300000 per month, don’t you think the prospective purchaser will want to actually be ON the New Park Avenue, not just a block away?