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N EIGHBORHOODS ON C LEARANCE Upper East Side ers to price their property as close to 20 per- Uptown housing stock is old,” she said. he Upper East Side, home to cent lower than comparable peak sales,” cal- nlike several other fledging Melvin Caro, a broker for Nest Seekers and some of the city’s wealthiest culating a premium or discount for factors Manhattan real estate markets, co-developer of three townhouses, said he ex- T residents — including Mayor like view and renovations. Just looking at Uthe median sales price from the pects many unsold units to be remarketed to Michael Bloomberg and the notorious the median listing price today versus the northernmost tip of Manhattan down to renters — already 90 percent of the residents Ponzi-scheme mastermind Bernard median sales price last quarter, that’s a huge 156th Street has ticked up over the past — and for unfinished projects to save money Madoff — has long been considered one drop of 45 percent. three years, from $349,000 in the fourth by downgrading amenities and finishes. of the safest real estate markets in the Even the duplex of late philanthropist quarter of 2006 to $396,000 in the fourth His planned townhouses at 203 Cabrini city. The median sales price has steadi- Brooke Astor, an apartment designed in quarter of last year. Inwood and Wash- Boulevard, each with its own elevator, are ly increased since the fourth quarter of 1931 by celebrated architect Rosario Can- ington Heights have been known to woo the area's three priciest residences at $2.95 2006, from $686,250 to $975,000 in dela, had its price reduced to $29 million buyers with their heavily discounted real million each, and also the most discounted the fourth quarter of last year. last month, $17 million less than its original estate, stunning western waterfront views — they were originally marketed in 2005 But those familiar with the market agree asking price. and ribbons of parks — including the at $4.8 million. that prices need to take a hit here just like Because prices are dropping so rap- city's last primeval forest, Inwood Park. Caro said the project became entangled everywhere else, particularly considering idly, contract holders are organizing re- Still, with a median listing price 25 per- in convicted attorney Anthony Bellettieri’s the slew of unsold new apartments weigh- volts against developers, often on blogs cent higher than last year’s median sales price money laundering scheme. “Then, we re- ing down the market. More than 2,200 and StreetEasy’s chat forums, to either get and a long commute to central Manhattan, a solved the issue with the lost money, but listings are active in this district, which in- price reductions themselves or their depos- decline is expected. Plus, the vast majority of the bank [Chevy Chase Bank] is still refus- cludes Yorkville, Carnegie Hill and Lenox its back. Attorney Adam Leitman Bailey residents are still renters. ing to allow us to pull any money out of the Hill. Since developers only list a select num- said he has groups of contract holders at the Kim noted that 39 percent more listings construction loan.” ber of units at once, even more “shadow in- Manhattan House in the Lenox Hill section are on the market today than a year ago, and Now that Capital One Financial Corp. ventory” is on the way, sources warned. of this district and at the Brompton in Yor- that’s with several new buildings shuttering purchased the bank, Caro said he hopes to fi- One prominent local broker, who asked kville, among “many other buildings” in the their sales offices. “The location of the area nally get the financing necessary to pour the not to be named, said, “I would advise sell- city, seeking to terminate their contracts. is neither central nor convenient and [the] foundation. Most expensive units on the market Most expensive units on the market Address Unit Original Price Current Price Address Unit Original Price Current Price 1016 Madison Avenue N/A $39,000,000 $75,000,000 203 Cabrini Boulevard N/A $4,800,000 $2,950,000 22 East 71st Street N/A $75,000,000 $75,000,000 203 Cabrini Boulevard N/A $4,800,000 $2,950,000 25 East 77th Street PH $60,000,000 $60,000,000 203 Cabrini Boulevard N/A $4,800,000 $2,950,000 Units with biggest cuts Units with biggest cuts* Address Unit Original Price Current Price % Change Address Unit Original Price Current Price % Change 103 East 84th Street PHD $375,000 $199,000 -46.93% 225 Bennett Avenue 2A $289,000 $200,000 -30.80% 1192 Park Avenue 10A $5,875,000 $3,250,000 -44.68% 790 Riverside Drive 10E $1,995,000 $1,395,000 -30.08% 170 East 78th Street 3F $1,249,000 $699,000 -44.04% 801 Riverside Drive 4G $825,000 $599,000 -27.39% *Does not include units at 203 Cabrini Boulevard; see text. 25 Columbus Circle 1016 Madison Avenue Harlem market, has seen the highest decrease between arlem, including Hamilton recent signed contracts and contracts signed Heights, Manhattanville and for similar properties a year earlier. HMorningside Heights, has his- The most expensive listing is a luxurious torically been shaped by boom-and-bust duplex penthouse listed at $14.5 million three cycles. Speculative developers typically years ago at 1200 Fifth Avenue, a newly reno- overbuild high-end housing at the height vated prewar building across from Central of the market, and then are forced to drop Park and Mt. Sinai Hospital. Only a third prices once it crashes. of the apartments in 1200 Fifth have been Experts agree that the same thing will sold. The Plaza happen this time. A well-placed source said there are a dozen There are 44 new projects currently being investors in the building and only half have marketed here, according to StreetEasy, the agreed to start discounting apartments. highest of any district in Manhattan. “We’re just waiting on the other half,” said 318 East 30th Street It is “a perfect storm of increasing prices, the source. diminishing market demand, and too much Tamir Shemesh, managing director of Pru- development pipeline,” said Gollinger. “This dential Douglas Elliman, marketed a Harlem neighborhood will likely experience price ad- property that backed out of the market early, justment on the upper end of the range.” turning into a hostel. “The Lotta Condo was The median sales price in these neighbor- priced very well,” said Shemesh. “The problem hoods has been steadily dropping since its peak is we launched in a grim economic [climate]. in the second quarter of 2007, from $712,919 Most of the buyers in Harlem are not cash to $496,500 the fourth quarter of last year. buyers. They rely heavily on bank financing, Miller said this area, together with the Uptown and that’s just not available.” Most expensive units on the market 221 West 82nd Street Address Unit Original Price Current Price 1200 Fifth Avenue PHB $14,500,000 $14,500,000 1200 Fifth Avenue 10S $6,634,640 $6,966,400 One Madison Park 1200 Fifth Avenue 6S $5,932,800 $6,300,000 Units with biggest cuts Address Unit Original Price Current Price % Change 102 Bradhurst Avenue 906 $350,000 $199,000 -43.14% 100 West 119th Street 6A $1,275,000 $725,000 -43.14% 100 West 141st Street 58 $340,000 $200,000 -41.18% 62 March 2009 www.TheRealDeal.com .