We’ve mention 480 North Street before: built by a NYC builder as his first project and finally going to contract two weeks ago. Today the sale price was released so here’s a fun recap:
Land purchased for $3 million in May, 2005.
House, still under construction, offered at $9.5 million, July, 2006.
Many, many price cuts later, house sells 11/18/08 for $4.5 million (last asking price was $5.5 million).
I thought $4.5 would have been an appropriate starting price back when I first saw this in 2006, so I think this sale is less a reflection of a bad market today than the crazy market of 2005, when inferior building lots were fetching $3.0 million.
It also demonstrates what happens when people with no knowledge of Greenwich come to town to make their fortune and assume our residents will pay any price for any house.
Update: a reader calculated the loss on this house based on a guess that it was 8,000 sq.ft. In fact, the listing shows 10,250, but a lot of that would be in the basement which is less expensive to build. Still, I bet it hurts.
Another item of interest, perhaps: The seller was SMI Construction, out of NYC. There is a SMI Construction Management shown as located in the residence at 81 Butternut Hollow Road.If it’s the same owner, we can probably sleep tonight and not worry about his finances – 81 Butternut last sold, in 2003, for $8.75 million.
But wait, there’s more! 81 Butternut sold for $10 million in January, 2000. The buyer put it back on the market one year later, unchanged, for $14 million. Not surprisingly, it didn’t sell for two long years until a new broker lowered its price to $9 million and unloaded the place. It was hard to lose money in Greenwich real estate back then but over-pricing by at least $4 million accomplished that trick. It would be ironic if the same person who benefited from the overpricing at his house on Butternut pulled the same dumb mistake with his own project.