The layout number(s) is/are the last digits of the units on each of the specified floors.
I should note that - in this particular grid - I attempted to calculate the ORIGINAL OFFERING cost per square foot associated with every unit in the 1025 building. However, a few of the data points were from resales and some were not available at all, for a number of reasons (including no sale yet). However, such "outliers" are easy to spot given the map configuration.
The importance of this exercise is to put valuations in context with the original offering prices. In some situations - contrary to popular opinion - units were resold A YEAR AGO at little or no profit, even a loss by the first owner(s)!
As I publish more of these results, I welcome any input on missing data or corrections. The results in the grid are "$/sq ft" for original sales in the new development - without weightings for property taxes and maintenance fees. Future grids will incorporate those categories as well, in order to remove all emotional stigma from the cost of carry in these "INVESTMENTS."
Two words...
Buyer beware!
2 comments:
There has been only one resale that was negative, which just occurred a few months ago.
Actually that's only true with the information at hand. Valuations have taken on many disguises in "soft dollar" terms whereby incentives of significant "value" have been accorded within the transaction.
The FBI just recently announced their exploration of these far flung practices across the homebuilding industry since financial institutions lending the funds to the buyer were/are not made aware of such inclusions. But in many cases, the banks are to blame because they were "partnered" with the builders in financing the buyers. They deserve no pity unless they were truly fooled.
The result (in this particular type of cloaking) COULD BE a false indication of the property value for CREDIT purposes - just another shift from low or no verification credits to incorrect valuation for the closing. If I close at an asking price of $950,000 but include incentives of $100,000 in the deal, the property is "worth" $100,000 less than is being "published." Get the math?
Think about the possible implications in any large development with several hundred units.
If the cost per square foot (my ultimate measuring stick) smells of something suspicious, the institutions were foolish to close the transaction in the first place.
Any property selling here at $700 per sq ft or more under these conditions is nothing but tulip mania! Valuation RE.ality is just beginning to sink into the Hoboken marketplace. I believe that sellers are already 15% or so behind the 8-ball at 1025 MP.
I like Toll Brothers stock but shun the MP property because they have chosen a way to wait out the buyers' emotions, thereby moving the risk off their books onto the individuals/buyers. Resellers of those units find themselves scratching their heads in a mispriced market because they are comparing other asking prices rather than the price point where a sale is amenable.
Hint: Have you seen any such transactions at those asking prices recently? What is the ultimate effect of the ongoing pile-up in property inventory (including 1125 MP)?
This blog is directed at providing transparency to the local issues. Your observation is exactly in line with the lack of any such information. Do those asking prices make any sense to you? If so, based on what - emotional attachment? That's my point on this next wave of greed that got us in this situation to begin with. Hoboken is in the midst of a bubble pop. Never mind what everyone has been saying for years. Bubbles can and will pop while prices rise.
This market correction is not similar to previous ones. I've been here 15 years and owned several properties. The easy credit conditions are gone forever! The banks are now coming to terms with those circumstances. Twenty percent is the new zero! 1025 MP (re)sellers will lose money when all is said and done - either because of empty space with monthly carrying costs already discussed here or an appropriate markdown of asking prices. These sellers are actually under the notion that they will make money on property purchased over the last couple years. The reasoning? Toll gave them a very special phone auction (insider) price. Oh puhleeeze!
Unfortunately, the rise in readership of this blog comes from those in that situation and it's time that we stop playing musical chairs.
Toll is in business to make money. They are obviously a lot smarter than most were - emotion aside. Thanks for the comment and stay clean.
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