This is the Story of an Off-Market Transaction. But it’s also a question of value.
How much is a balcony worth? How much is a view worth?
Our listing at 60 Riverside was up on the 16th Floor
And more curiously: How much are units in a Postwar building discounted when that building sits in a sea of Prewar buildings?
We just closed this $2.895mm sale at 60 Riverside Drive, a 3/4 bedroom, three bath property on the sixteenth floor, on behalf of some very happy folks who moved to the Financial District- into a brand new condominium. Don’t confuse 60 Riverside Drive, though, with the Aldyn, a lovely building located at 60 Riverside Boulevard, on the corner of 63rd Street.
60 Riverside Drive, on the other hand, is a twenty-two-story, post-war doorman building of a very different era. Built in 1964, it features the ubiquitious white brick of that period that drive some people mad. However, it has interesting amenities, that few buildings along Riverside Drive possess: a parking garage, thru-wall air-conditioning, and balconies.
I’ll back up slightly. The majority of buildings on the Upper West Side of Manhattan, where this building resides, were built before World War II (the Pre- in the Prewar to which we refer). Those buildings predated thru-wall air-conditioning, central a/c, proper refrigerators, and the West Side Elevated Highway, too (now called the West Side Highway).
The standout features of this high-floor apartment were its two balconies, and its sweeping views of the Hudson River. The buyers fell in love with the apartment for these reasons, and we put a deal together before we could go to market with the property.
However, there were downsides:
- It needed a total renovation
- It had 8′ ceilings
- It was composed of two apartments (not a bad thing) that needed to be legally combined, which would take some time to coordinate
- It was inside this post-war building, in a location that is predominated by older building with more character.
On the Upper East Side, 60 Riverside Drive would fit right in. But at 78th street? Not so much. My questions are these: How much would this same apartment be worth in one of the more typical Prewar buildings? And how do we value the balconies?
The easier question would have been to value the unit on its own.
- There were a number of sales in Lincoln Towers nearby, high floor units with balconies that needed work, needed combining, and had the same ceiling height. They all sold in the $2.4-2.6mm range. And since they did not have the same views, or location, it was easy for us to envision this property being worth closer to $3 million.
But was that in line with its Riverside Drive peers?
Take two units at 52 Riverside Drive nearby. No parking garage, no balconies, but sweeping views of the River from the main rooms, along with three bedrooms and a maid’s room. Similar size, slightly-higher monthly charges, better ceiling height. Unit 7A, in need of similar amounts of work: asking $2.75mm. Unit 16A, on the other hand, is completely renovated, and is asking $4mm. So it looks like there’s a slight discount, even a pretty decent discount, not to have balconies. Whether the high-floor unit will sell for $4mm is unclear, though after 3+ months, there are no takers. And they started their marketing at $4,200,000. So…
33 Riverside Drive 6GF is just South of our target unit. Four bedrooms, side views of the River, lower floor, maintenance almost $6300 per month, in need of a total renovation- and combination. Is it worth their $3.559mm asking price? It’s only been on the market for 11 days.
So Let’s Look at Closed Sales
This unit at 11 Riverside Drive, aka Schwab House, sold for $2.6mm in March of 2022. But this 3+ bedroom on on the 17th floor, in need of EVERYTHING, sold with a massive terrace for $2.805mm in May of this year. I would note that this unit was on the market asking $2.45mm. So it sold for $350,000 OVER its asking price. And it was about 300 square feet smaller, but with a really, really big outdoor space.
This building is so massive this you almost forget it’s there- even though it’s 5 blocks south of 60 Riverside Drive. 600+ units, taking up an entire city block.
I’m going to hang my hat on this one, and say two things: (1) I think that our sale price of $2.895mm was either market price, or slightly over. So I’m proud of our work. and (2) I still haven’t found what I’m looking for in terms of comparing to a Prewar unit…
Let’s find some PREWAR Closed Sales
Ok. This is the only Prewar unit with a terrace that sold in the past 18 months, that gives us any idea at all. 200 West 86th, with a lovely terrace and open city views, sold for $2.65mm in January. It also had monthlies of $5850/month. This is helpful. We’d have to add in more to the value if this had river views, however. Much more.
Let’s move onto units that do not have outdoor space that have recently sold. Oh yeah! We sold this at 210 Riverside for $2.665mm- but in a different market with lower mortgage rates. This unit sold at 110 Riverside for $3.2mm in August. Closer. Similar size, maintenance, much more “classic” building. And no terrace.
So…where do we stand?
Similar building, this trades somewhere right around our asking price, give or take. And without the terrace, a nicer building is worth between 8-10% more in a similar location. Once you add in the terrace, all bets are off. My estimate is that the combo of Prewar and Terrace would add between 15% and 20% to the ultimate sale price.
One more Question
After everything, all I’m left with is to wonder who’s happier: The seller who got a slightly over-market price? Or the buyer, who got an amazing apartment for 15-20% less than his neighbors?