Hurry, hurry, hurry! Fire sale!

112 Field Point Circle

112 Field Point Circle

Victor Borge’s old property, minus his house, remains one of Greenwich’s finest pieces of waterfront property. But when the present owner put it up for sale at $35 million last October after paying $25.750 for it the year before I questioned where the added value had come from. It’s true that no one made any new waterfront land on Field Point Circle during that brief period of ownership but I also noticed that the market had declined a wee bit and I wondered whether a buyer would share this seller’s exuberance. Apparently not because today it’s had $7 million lopped off its price and it can now be yours for a mere $28 million. That’s actually not a bad price and with the $7 million you saved you can pick up a  foreclosed ski house out in Montana or Vail. Win win!

8 Comments

Filed under Uncategorized

8 responses to “Hurry, hurry, hurry! Fire sale!

  1. CEA

    Conversion factor:

    1 2007$ = .75 2009$

    $25.75 in 2007 = $20 mil in 2009.

  2. Inagua

    CEA,

    What do you mean when you say that $1 in 2007 is equal to 75 cents today? Are you suggesting that inflation has been running a 15% a year? Or are you suggesting an implicit hurdle rate of 15% for investment? Please explain. TIA.

  3. CEA

    I am saying that property in Greenwich in general has declined significantly from mid-2007, when this presumably went to contract.

    Perhaps I should have added that this is a “Greenwich real estate conversion factor”

    Thus, this being an empty building lot that was bought for $25.75 in 2007, I believe will go for 20-25% less (I averaged and took 22%). Therefore, $20 million for it.

    Note:
    I also took into account that “Whispering Pines”, 14 acres WITH a lovely house (brick Georgian, and in need of updating) is not selling at $13 million, down from $23.75. It is not waterfront; it will probably trade around $10. Therefore, twice that amount for waterfront seemed to be a good cross-check to the original -20%-25% estimate.

  4. Inagua

    CEA,

    Thanks. Got it. Makes sense. But of course this owner knows that the Real Estate Conversion Factor does not apply to his parcel because it is special.

  5. anonymous

    Would think any competent realtor in Greenwich would know which 5-10 hedgies might be interested in building a new, ~$40MM mansion on waterfront….list can’t be very long

    Does land have structural/aesthetic “issues” which prevented a quick, private transaction before needing to be openly marketed to unwashed masses?

    At least per aerial views, land seems less well-situated than Eddie’s….

  6. ff

    The Borge mansion was torn down to make way for a two-lot subdivision. That subdivision was denied both at P and Z and in court. A subsequent attempt to subdivide was further denied. It is what it is…a slightly less than 4 acre parcel on which a single house can be built.

    Of course only the well washed, or the Russian oligarch, can afford that

    • christopherfountain

      True about the subdivision but I’m pretty sure that had been resolved by last summer when the present owner bought the place. So, to quote our last president who I know was your personal idol, the guy misunderestimated.

  7. anonymous

    Margin calls and global recession are affecting many 3rd World, alleged “oligarchs” and/or plutocrats (not sure who’s more dim-witted….old US money or old EU money or new 3rdWorld money???)….clearly, not many w/liquidity have interest in Greenwich waterfront and a 2yr build process….besides, 15 CPW has many available apts for immediate occupancy, w/no silly co-op Board process

    Suspect this land is a useful datapoint re: interest level of Greenwich hedgies of means….if this land has any scarcity value….gotta love the efficiency of the mkt in baring naked the issues of any asset…