Thirty-nine Boulder Brook, that rather dreadful failed construction project that in 2008 was priced at $8.595, was sold today by Patriot Bank’s successor for $3.125 million. While I’m sure that’s news to gladden the darkest of bankers’ hearts, previous buyers on this street have just witnessed millions of dollars of equity evaporate.
#39 is assessed at $2.488 million, and sold for $3.125
#33. originally asking $6.875 in ’08 and assessed at $3.553 this year, sold last month (!) for $4.882 million
#9, originally asking $6.750 in ’08, assessed at $2.877 this year, sold for $4.4 million in October, 2009.
#16, asked $5.995 in ’07, assessed this year at $3.3. sold in 2007 for $5.882
#31, originally asked $3.975 in ’06 assessed this year at $2.083, sold in 2006 for $3.6 million.
With the possible exception of the purchasers of #31 (and I have my doubts about the lasting value of that one), folks who bought these big spec homes are going to feel sore when they go to resell. Number 39 was certainly the worst of the lot but I don’t think appraisers will give that much weight. The houses are all about the same age and size and Greenwich, at least, considers them to be of roughly equal value. So if you paid $4.882 last month, of $5.882 four years ago, then “ouch” is the operative word. By the way, I can, sort of, understand someone paying top dollar in the frothy days of 2007 but what the Hell was November’s buyer doing paying so much this year when he knew that prices had fallen – Number Nine, the finest house on the street, barely escaped the foreclosure auctioneer’s hammer in 2009 – and he knew that Number 39 had been foreclosed on and was bound to sell at a fire sale price? Oh well, a nice commission was earned, and isn’t that what this is all about?