Luxury's laughable bargain

October 26, 2023

THE BIG SPLASH

Luxury's laughable bargain

What you can’t miss today

In a stunning display of the volatile luxury real estate market, a lavish condo at 432 Park Avenue in New York City, initially flaunted with a $135 million price tag, has been practically given away at a mere $65.6 million.

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  • The sprawling five-bedroom, five-bath apartment, boasting 8,000 square feet on the 79th floor, now serves as a glaring testament to the market’s unpredictability, offering its new owners panoramic views bought at a bargain.

  • Initially paraded at $135 million, the property’s price tag took a nosedive to $92 million, before finally settling at the almost laughable $65.6 million.

  • The seller, Mitchell Julis of Canyon Capital Advisors, who originally snagged the condo for $59 million in 2016, poured millions into its design, enlisting the expertise of Japanese architect Hiroshi Sugimoto, only to see his investment’s value slashed in the end.

  • The new owner, hiding behind the veil of an LLC tied to Strong Advisory Group based in Stamford, Connecticut, has managed to snag this piece of luxury at a steal.

  • Meanwhile, the building continues to flaunt its high-end amenities, including a gym, spa, sauna, 75-foot pool, and a private restaurant run by Michelin-starred chef Shaun Hergatt, blissfully unaware of the financial drama unfolding in its lofty heights.

A SCOOP OF MARKET DATA

The number you should know

12.3%

Sales of new homes rose by 12.3% in September, reaching a seasonally adjusted rate of 759,000 units, significantly exceeding the Bloomberg consensus expectation of 680,000 units.

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  • This marked a 33.9% increase in sales compared to the same period in the previous year.

  • Experts caution that this surge in activity could be short-lived, as the traditionally slower months for real estate, coupled with rising mortgage rates, could lead to a decrease in demand.

  • Mortgage rates remained relatively stable throughout most of September, with fluctuations between 7.12% and 7.18%, before reaching a 23-year high of 7.31% in the last week of the month.

  • The increase in mortgage rates has had a noticeable impact on existing home sales, which saw a 2% decrease from August and a 15.4% drop from the previous year.

A SCOOP OF INSIGHTS

Something you’ll learn

The elusive quest for an 'Amazon of Real Estate' continues, as the intricate and multifaceted homebuying process cries out for a revolutionary platform to demystify and streamline the myriad of steps and interactions involved.

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  • Despite the advent of online platforms like Zillow and Trulia, a significant simplification of the process remains a pipe dream for many potential buyers.

  • A surge in startups has attempted to tackle specific transaction aspects, but this has resulted in a perplexing overload of information rather than a streamlined experience.

  • The vision of an 'Amazon of Real Estate'—a comprehensive, user-friendly platform—holds the promise of guiding buyers effortlessly through their home purchase odyssey.

  • However, the intricate web of regulations governing the industry presents a formidable challenge, necessitating a meticulous and thoughtful approach to ensure consumer protection while bringing about this transformative change.

A SCOOP OF CONTROVERSY

Everyone will talk about it

Maison Hudson is set to redefine luxury living in Manhattan's West Village with its unique 30-day booking model, eliminating the need for a lease.

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  • The high-end hotel-residence, opening in early November, offers eight apartment-style suites designed by Thomas Juul-Hansen.

  • Amenities include a French-Provencal restaurant led by a Michelin-starred chef, an Intuisse spa, concierge service, and a private panoramic rooftop.

  • Targeting the ultra-wealthy elite in need of a pied-Ă -terre, Maison Hudson provides a 30-day booking option, with prices ranging from $32,000 to over $100,000 per month.

  • The lavish interiors feature furnishings by Giorgetti, hand-laid oak and walnut floors, custom Alabaster light fixtures, and Italian Calacatta marble in the bathrooms.

  • Douglas Elliman’s Erin Boisson Aries, who is marketing the property, highlights Maison Hudson as a unique offering in Downtown’s luxury market, blending home comforts with hotel amenities and services.

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