Real estate pricing theory, high-end style

So let’s say that you paid $25.75 million for waterfront at 112 Field Point Circle in June of ’07 (the Old Victor Borge place, now missing his house). You decide that you may have made a slight miscalculation, or maybe you see better opportunities elsewhere, like horning in on that ever-growing AIG bailout, which started at $20 billion and is now, where? – $160 billion? Whatever, you want out – where do you price the land?

How about $35 million? You’ve owned it for over a year, for Chrissake, and no one’s built any more Belle Haven waterfront since then, have they? And aren’t you entitled to some kind of compensation for exhaling CO2 over the once-verdant lawns during that time? It works that way on Wall Street and it damn well ought to work that way here!

The difference between the original owner of this place and the current one? Victor Borge only played a clown.

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  1. Anonymous

    what do you mean, “minus the house”? Did it get knocked down so it’s just the acreage?

    I was there once, as a girl; Danish friends of ours knew him. He was terrific.

    CEA

  2. Anonymous

    Bravo, Chris! Well said.

    However . . . could the seller be taking as a comp the Schmidt property in Belle Haven that traded for $15+ million within the last 2 months? If I recall correctly, that was significantly less than 4 acres, did not have the extra layer of cachet and security offered by Field Point Circle, and might have even have been impacted somewhat by I-95.

    I was shocked when that sold (in 1 day, I believe), so maybe the $35M ask on Field Point Circle is not entirely nuts.

  3. Chris Fountain

    yes, under 4 acres and definitely highway noise, but it seems to me that somewhere around $25 million would cover the adjustments. It is also true that what a seller paid for his property is irrelevant – it’s just that when the buy and the sell are so close in time, people …wonder.

    And yes, CEA, the Borge manse is now in some landfill, probably in Ohio. I thought Mr. Borge a wonderful man but he did take a nice old Victorian era house and “Danishized” it back in the ’60s, not, in my opinion, to its general betterment. In fact, I thought he’d ruined the old place. He’d have disagreed, I’m sure, but either way, you’ll have to rely on your memories, rather than direct observation, to decide for yourself.

  4. Anonymous

    oh, gosh, I was much too young to know much about what the house looked like. He could have turned it into New Orleans bordello-decor and I wouldn’t have known any better. He fooled around on the piano and made funny noises to make my friend and I laugh. He just seemed like a very happy man.

    CEA

  5. Chris Fountain

    “New Orleans bordello-decor” well now that you mention it …. nah, it was just a bit jarring. I never had the chance to meet the man but my friend Joel Kaye, real estate lawyer to the stars, once performed alongside him here in town. Joel, who ordinarily considers himself to be a funny guy (and he should – he is a funny guy) was extremely nervous – I think it could be said that “no one laughed when I sat down at the piano” but, he reports, Borge was gracious, kind and very, very funny. I never heard otherwise from anyone.

  6. Anonymous

    Belle Haven – isn’t that the place where home owners can do what-ever they damn please – I’ll ask some of the Water Front Home Owners!