21 Winthrop

21 Winthrop

21 Winthrop

I mentioned here last week that 21 Winthrop, 0.75 acre, two building lots, asking $3.450 million, had gone to sealed bids. Today that’s confirmed. I won’t even pretend to understand how someone could pay this much or, it sounds like, even more.

Crazy market over here in Riverside.

24 Comments

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24 responses to “21 Winthrop

  1. Anonymous

    Agreed…unless you also tell us the new construction houses on Hearthstone Drive have accepted offers.

    • Even assuming they do sell, from, say, $2.95-$3.450, depending on the house, if someone pays $1.750 here for each lot, there’s just no room for profit on a $3.250 sale or even, go wild, a $3.4 one, to justify the risk and expense.
      So I don’t get it.

      • RE Junkie

        could be a greater chance of making a profit on a single huge super-high-end house (e.g, another Doran Sabag number) with what would still be a relatively big yard…could price it for $7-8M?

      • housecat

        Dutch Tulips.

      • Toonces

        A regular person like me pays 300/sq foot to build. – can’t a builder do it for much less -say 150/sq foot? So you build 4000 sq feet at 600G, spend 100 on landscaping and you’re in for 2.450. That’s a nice profit if selling for 3.2 Do I have all the numbers wrong?

        • I hear $250, and for $3 million plus, you probably will have to build 6,000 sq. ft. So that’d be $1.5 for construction, $1.750 for the land = $3.250 before you’ve even begun to address carrying costs, commissions, taxes and risk. Bad deal.

          • Toonces

            hmm, I was considering the above ground (FAR) sq footage because I hear below ground is cheaper per foot. I think builder cost is much less but I am just assuming and you know what they say about assuming.

  2. Anonymous

    numbers just don’t pencil out at that level ….

  3. Publius

    A small building lot in Greenwich ……. $1mm; to live on a street named Winthrop in the Riverside section of Greenwich……. priceless

  4. South of Village

    Say each house will be 4500 sf + 500 garage + 1500 basement. Based on comps from Welwyn, etc., selling price could be close to $4mm. Build cost probably $1.1 – $1.2 million. So you could easily pay $1.9 and make a great profit. I think these lots will sell for between $1.9 and $2.0 a piece.

    • Most builders still follow the 1/3, 1/3, 1/3 rule (land, building, overhead and profit). A $3.9 sale, assuming you could get that much for a 4,500 sq.ft. house on 1/3 acre, and assuming you could achieve the quality finish work you’d need to justify that price for $250 sq.ft., and assuming the garage, landscaping and basement were done at no cost, would net you 20%, not 33%. There are builders who will take that risk in boom times – none that I know for long, and none who will be here after the coming bust, but they do exist.

    • Accolay

      Don’t think it’s appropriate to use Welwyn as a comp for Winthrop. Perhaps we can begin using Byram streets as comps for Belle Haven?

  5. RE Junkie

    Could be the buyer is planning to build and stay there for a while so doesn’t have to worry about making a profit ..just wants to be on Winthrop badly

  6. South of Village

    I agree there will be a correction. New construction is in short supply and is selling in a frenzy. As new supply is built, the scarcity premium will correct. But land prices have entered boom time territory. In Rye (as an aside), 11 Ann Lane (teardown land) sold for $1.5 in 2006, listed for $1.7 recently, and went in sealed bid for $2.7. Bought by an end user who plans to build on it and outbid all the builders and the asking price by a whopping 60%.

  7. Anon

    It just feels like real estate prices will surpass the peak in 2004 or 2005.

  8. High and Dry in Riverside

    I firmly believe that the increased demand in Riverside is a result of people wanting to move into the Old Greenwich/Riverside area and are nervous about Old Greenwich being so low lying. Winthrop is the best of both worlds.

    • Accolay

      You would think this is true, but lots in flood zones (e.g. Carriglea, Dawn Harbor) are going for $$$. Perhaps it’s just the Indian Head cachet?

  9. Riversider

    I am not sure the price is crazy. Weren’t building lots in Hearthstone and Druid being sold for about the same price some time ago? Winthrop is much nicer in my opinion.