OPP Floats Some 'Limited Availability Pricing'
Following, perhaps, in the footsteps of Forte (which cut prices on a batch of condos for a limited time), the marketing forces behind On Prospect Park, Richard Meier’s flashy building in Prospect Heights, have just introduced some “limited availability pricing” on a handful of units. (Complete listings here.) The most noteworthy is this two-bedroom unit…
Following, perhaps, in the footsteps of Forte (which cut prices on a batch of condos for a limited time), the marketing forces behind On Prospect Park, Richard Meier’s flashy building in Prospect Heights, have just introduced some “limited availability pricing” on a handful of units. (Complete listings here.) The most noteworthy is this two-bedroom unit with 1,547 square feet that just hit the market asking a mere $1,003,500. This comes out to $650 a foot, far less than anything we’ve ever seen listed in the building. We also saw the “limited availability pricing” promoted on two other listings—a two-bedroom and a three-bedroom—though neither get close to the $650 a foot level. Let us know if you see other similar listings pop up. One other thing: Why is the maintenance so high in this building? No J-51? GMAP
Photo by j.morefield
Isn’t it much more likely that there is simply some date shifting going on here? How difficult is it to claim a 2009 contract date when it was really agreed to in 2007 or 2008?
“And as I have said many times, I can’t be bothered to run around lowballing people. I will wait for the market to come down more before starting to make offers. Offering 40% less than ask is not particularly pleasant for either side. I will let the market do my work for me.”
I hear you. Why stress out trying to find that one deal? Let the market come to you. Even $25K/year “wasted” in rent does not compare to the rate that prices are falling, 10% from the peak within a year or less (that’s double the above rental rate for a $500K apartment not even including downpayment, fees, etc.).
Besides, for every rare deal had at firesale today, you’ll find multiple choices later for that same price point if not less. So, extremely hypothetically speaking, even if prices didn’t fall but rather stayed flat, you’d have more choices for a particular price point. But never mind because we all know that makes absolutely no supply-and-demand sense. Why confine yourself to the rare firesale when you can wait for those prices to be commonplace?
As for “painting the tape”, which I interpret to be fraudulently posting shell sales, I’ve long suspected this in many of these developments. Games have definitely been played. Not limited to posting % sold from a fractional sample.
There are few or no tools in business more powerful than deception.
***Bid half off peak comps***
joe, I wouldn’t jump to too many conclusions without having done some research first.
lechecal — I don’t think it would be that hard to do (paint the tape). In the financial markets it’s totally illegal, but real estate doesn’t have to follow securities laws. hmm. anyone in the mood for conspiricy theory: you could:
a. create a company, fund it, and have it buy your unsold apartment. but, if it’s all public record, it would be too transparent.
b. sell to a friendly buyer and buy back in a few years. but then again, would the pairs of transactions eventually show the pattern?
c. guarantee the price after say 2 years? so the developer compensates the buyer for losses if the buyer re-sells for less. of course, then the buyer takes the risk that the developer is bankrupt by that time, but it might just fool some people into paying a high price. this would violate accounting rules if they reported it as a sale, but no one is actually following their accounting, we’re following the home prices.
d. 2 developers start buying each others’ unsold condos? hmm. I think that would actually be fraud, against their banks. not that that precludes it.
e. compensate a buyer in kind for buying at a high price (give them a free car, maintenance fees, etc).
I’ll bet one of these is going on.
I like this building and the location and think this price is attractive. I think it gets done here, probably by parents with kids in private or already enrolled in 321.
Wonder if the J-51 hasn’t kicked in yet, or if this is the real maintenance.
joe, I have been perplexed by the OPP closing prices for some time and am wondering the same thing. I just can’t imagine who would have bought the places that have closed recently, but it’s a big world and there are a lot of things I don’t understand.
I wonder about “painting the tape” often. But I just don’t have the resources to actually track this down. If someone did a investigative piece on this I would find it very interesting. Mr. B?
yeah. I just checked it out, and they look pretty stark. and you know, I’m not always the best about grabbing a towel when I get out of the shower.
still, someone took a 4Br for over 4MM bones just last month. maybe a saudi? a money launderer? the developer taking one for the team? how do you explain that ridiculously high print, and then this drastic cut within a month?
Having been on operating tables I would rather not live in that constant state. I do enjoy looking at the building though. Kitchens remind me of Calvin Klein’s offices, you could never find the door handle nor could figure out where you were, but everything was clean and white, including the flowers.
Like the style of the apartments and would only take an additional half off sale for me to consider them (jk – but I would need a further material reduction from the ‘special offer’ price).
Also would need one of the less-overlooked units. One would have to be a real exhibitionist to live in one of the low floor units facing Eastern Parkway.