480 North Street, reported as under contract yesterday, is reported sold today for $4.725. Maybe. Patriot Bank held a $3.5 million mortgage on this property and with arrears, was owed somewhere around that much. But Patriot was flogging this loan, and a dozen more, for far less than face value. Did they, as they were supposedly negotiating in good faith to sell their note at a discount, miraculously, and just in the nick of time, find a buyer willing to pay one hundred cents on the dollar? Anything is possible of course but in real estate, one never knows. I do find it curious that the buyer would pay $225,000 more than this place sold for a year ago, but maybe his broker told him that prices have increased since then.


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8 responses to “Really?

  1. Anonymous

    Sounds as if someone either has a friend or the bank re purchased it hoping for better times ahead..(either recovery or gov bail out??)

    • christopherfountain

      There are some very, very curious thigs going down at that bank and I hope to have details soon.

  2. WaitingToBuy

    Chris – any insights as to what other loans Patriot is looking to sell? How would someone go about getting that information?

    • christopherfountain

      Until just this past Monday, Waiting, I’d have said to ask me. We had them all, or were told we did. But Patriot hasn’t been honest with us so I can’t say what they have left. Probably nothing, in which case, watch for 25 more spec houses to “sell” soon at “full price”. I would trust the reported price exactly as much as I trust Patriot’s head of lending.

  3. Old School Grump

    Can you get access to just how that $4.725 million purchase price is to be paid? Here’s why I’m curious:

    A few years back, our neighbors moved to a big house a half mile away, for which they paid $1.7 million. (We live in a different time zone, where a $1.7 million house is a very expensive house indeed.). The seller was a bank which had repo’d the house from its owner after he got into a mess of trouble and defaulted on his mortgage. Of course I waited eagerly for the other shoe to drop: Who had bought the house my neighbors were leaving, and for how much? A few weeks later it was reported that this house was purchased for $650,000 by … the same bank that had sold this family the big $1.7 house.

    Both transactions were reported in the paper, but since they were reported several weeks apart you wouldn’t know they were linked unless you were really paying attention. Then a few weeks later, our local business weekly (which lags the regular paper because it digs up the financing info) reported the purchase of the $1.7 million house at $1.7 million, with a mortgage of about $1 million, but no mention of the linked $650,000 trade.

    So the bank off-loaded a big expensive empty house in return for a less-expensive (and presumably easier to sell) empty house plus a million bucks. Clearly the two parties could have priced the components any way that was mutually agreeable. Perhaps something like this is going on here?

  4. Glan Man

    Don’t think there are any shenanigans with the reported # here. keep in mind the seller bought from an out of town first time spec builder at a “fire sale” cost. Then seller, not as desperate to sell as the builder negotiated the realtor commissions into the selling price above the (my guess) original offer of 4.5m. Packed his bag (sleeping bag) and bid Greenwich real estate good riddance as an investment.

    Chris, do you think 23 Palmer lane is getting close to being an opportunity at its current price of 2,675,000?

    • christopherfountain

      23 Palmer Lane has a beautiful view of the water and a dock. What’s been killing it is that, when the Palmers sold off the land above it (which is now Palmer Lane) they granted view easments that pretty much prevent a buyer from doing anything above one story. That wouldn’t be a deal killer to me but at its original price, it turned off buyers. As the price comes down, the restrictions should become less objectionable.

  5. Glan Man

    got ya, thanks.