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Here's a typical assessment of a property for a client. This one closed in January.
'First I would say that the home looks stunning from the pictures and the floorplan - well thought out and tastefully designed. I took a look at DOB, DOF, and at some other recent sales to come up with an initial overview.
DOB - This is my initial main concern as I do not see a current C of O for a single family home (have they told you they have it?). There appears to be open items that remain for sign off before the job is complete (see attached). It is of course very possible the DOB page is not current, but from what I see they still have a ways to go before the home can receive it's C of O (plus Landmarks sign-off). As it relates to a purchase you would want to have your attorney ensure that contract-wise the seller/developer were responsible for taking care of all of the open items and delivering a completed home as it pertains to the city.
DOF/taxes - The Dept of Finance page is showing the building is currently recognized as a one family and is being taxed as such - so there is some contradiction with DOB (either DOB is not up to date or the building could be sufficiently complete for tax purposes). The taxes on DOF match the listing ($58,439/yr - $4869/mo).
I did look back at a tax bill from 2009 before the house sold and any permits were filed and the annual taxes were around $31,000. The current taxes do seem like they could be a natural progression rather than a jump up based on the alteration of building type - will have to investigate further so I cannot say for sure. You would definitely want your attorney to review the tax scenario during potential due diligence as well.
Square footage - I calculated on my own based on the floorpan and outside building dimensions and the 8505 ft2 listed is fairly accurate if you include the basement. Generally we might value basement square footage as half but given the level of the finishes and the usability of the space I can see counting as full here.
Pricing - If you were to purchase this in the "mid-twelves" ($12.5M = $1469/ft2) I think you are right in the ballpark in terms of value. Wonderful location off Riverside, wide home, elevator, new building systems, and a tasteful design are all big positives. Looking at some recently sold homes this one stood out in terms of location and building type:
https://streeteasy.com/sale/1221421 - a good example of an extremely similar sized home down the block, with elevator, renovated but just not a "modern luxury" version - sold at about $1260/ft2. I think you can make the jump $200/ft2 based on the brand new modern reno and features. For example:
https://streeteasy.com/sale/1191390 - a completely modern home with the back blown out/all windows - $1868/ft2
Other data points:
https://streeteasy.com/sale/1224154 - historic home, lots of original details with modern touch - $1449/ft2
https://streeteasy.com/sale/1222923 - smaller home farther north but also a brand new reno, thinner/shallower building, no elevator - $1334/ft2
Again the CofO issue stands out the most to me and would require clarification from the agents.
Would love to hear your thoughts and then we can arrive a proper strategy for bidding.'
Thursday, August 23, 2018