New York real estate, like all other areas of the economy, has suffered the negative effects of the recession. Yet it sometimes has seemed that niche, high-end properties have been immune to the recession. In the past a name brand location, developer or even interior designer has been able to keep prices afloat. This however no longer holds true in the current market climate. This the past week, several high profile celebrities sold their New York condos for, sometimes drastically, reduced prices. It seems that even with the cache of a famous name it is now a buyers market.
Perhaps the most glaring and ironic example of the markets new alignment was the auction of Damon Dash’s two Manhattan condos. Dash is a hip-hop mogul and the ex-business partner of Jay-Z, who has penned numerous platinum odes to conspicuous spending such as ‘Big Pimpin’ and ’99 Problems’. Despite his success and lavish lifestyle, Dash’s luxury properties had accrued almost $9 million in liens and were put on the auction block at slashed prices. Only his 2,500 square-foot co-op in the Atalanta on 25 North Moore Street sold for $5.5 million, a half million higher than the reserve. His other condo at the Sugar Warehouse at 79 Laight Street went unsold at an asking price of $3 million.
Damon Dash (right)
Another big name to feel the sting of the recession was David Bouley. The celebrity chef is one of the most recognized figure in culinary circles, has a string of successful restaurants, best selling cook books and has appeared on Bravo’s Top Chef. His two-bedroom co-op on East 10th Street first went on the market in 2007 with a listing price of $2.4 million. Despite the desirable location and the impressive kitchen, it only recently sold for $1.4 million, a price reduction of more than 50%.
David Bouley
The old adage ‘one man’s loss is another man’s gain’ could be the mantra for the current real estate market. Ritzy properties in hot neighborhoods that were once beyond reach of most buyers have suddenly become attainable. My advice to the prospective buyer comes in the form of another adage, ‘strike while the iron is hot’.
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