Go figure

3 Cross Ridge in Havemeyer has sold (in a bidding war!) for $849,500. The house is a teardown (town assesses its value at $53,000 which says everything you want to know) and, while it’s on an oversized lot, 0.47 acre in the R-12 zone, I don’t believe you can drag two building lots out of it. So what do you do with this land, other than build a big honking house on it?

Okay, so you build that house – allowable FAR is just under 5,000 sq. ft. Maximum value in Havemeyer is probably $1.650 or so. Even 4,000 sq. ft. @300 per foot means you’re into this place for $2 million plus. That rules out builders so I assume a private party purchased this. I’d suggest that he plan on staying here for a looong time but the fact that there was at least one other buyer interested in this location suggests that I’m wrong. I’m pretty sure my numbers are right so what am I missing?

9 Comments

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9 responses to “Go figure

  1. anon

    $300 sq ft is too much to spend to build ni Havemeyer. Better off doing a pre-fab for $150

  2. Shoeless

    What do u figure the current price/square ft is from a sales perspective in Havemeyer as opposed to build price?

  3. Maidenoftheseas

    7 Cross Ridge sold for over $2 million not too long ago.

    • Gold bars in the bathtub, dope in the freezer?
      UPDATE: I may be too pessimistic here. Assuming that the sale you cite is representative of the market value (and it was 2010, so why not?) then, after commissions and taxes, you’d net about $2 million. If – I say if – a homeowner could get away with building at $150 sq. ft., he’d have the same 5,000 sq. ft. of 7 Crossridge for $1.6 million and be ahead of the game.
      But as I recall, 7 Crossridge was high level construction and I doubt it came in at $15o a foot. At $230 a foot,(plus $849,500 land costs) the owner of 3 Crossridge would put in exactly $1,999,500, and might be alright. Any higher than $230 and he’s made a terrible mistake.
      So, can you build a house for $230 a foot and achieve the quality that would be needed to draw a buyer at $2.150? I’m skeptical.
      There’s also the possibility that my first guess, the buyer of #7 was seduced by those gold bars and under the influence of drugs might be right.

  4. Proud Buyer of #7

    Maybe, just maybe, the buyer has a more up-to-date view of the value of living on this street than all of you do! There are plenty of houses that have sold in Havemeyer for more than $1.65M (I know of 3 in the past 2 years besides ours) and the buyers are getting a lot for their money: much newer & larger houses, bigger yards, nice neighbors, a great school district, and a very easy drive to beach/train station/Stamford as well as to central Greenwich.

    We did pay $2.125M for our house in summer 2010 and I assure you I am a very well-educated person who already lived in town and was shopping for houses for a long time with a very experienced agent. We were hoping to live near the beach but, the houses at that price point in Riverside and Old Greenwich south of the Post Road really suck–old, small, or on busy streets. And the houses in the rest of Greenwich at the price point were nothing great either. So we got a brand new, beautifully built house with high-end finishes, 5000 square foot house on a very quiet street with a very very large, flat back yard that is perfect for kids and entertaining. The other advantage of living on the top of the hill: our 3rd floor playroom has winter views of Long Island Sound.

    We plan to live here a long time and I’m not worried about losing money. We bought this house for the right reasons, not because we’re trying to make a short-term profit but because it is the house we liked the best and it was FAR nicer than anything else in town at that price point at the time. And I’m confident that over that time period many other people will recognize the value of this neighborhood, like the people who bought #3. ! And when it comes time to sell it I will be able to tell prospective buyers why it’s a great place to live, and they’ll be able to see what a great house they can get in Old Greenwich (like we did)

    • Your’s is a great house and I too lived in Havemeyer and often recommend it to buyers as a very nice neighborhood. But my point was that I doubted the buyer of #3 could duplicate the quality of your house for $230 sq. ft, let alone $150. If he spends $300 per ft., he’s way above the price you paid for #7 and then he’s, as I suggested, looking at staying put for a long time.
      Which is fine, so long as he doesn’t need to move for a few years. Living in a beautiful house in a good area is hardly a hardship.

  5. Anonymous

    Chris- Didn’t you have a client on Halsey (in Havemeyer) who bought land / built a house?

    • Sure did, and still do (well he’s a friend now, and a reader/commentator on this board). Great deal on the land – $350? $450? and he’s built a modular there. All in, in a brand new house for just under a million, I believe. Came out well.