The ultimate rehab. - Posted by Drew
Posted by Drew on September 30, 2005 at 17:01:50:
Also check out:
which is the link ?Most expensive homes in America?Northeast? from Jack?s page.
Take a look at #2, the Penthouse at the Pierre in NYC, priced at $70 million. This is the highest-ever asking price for a New York apartment (current record is $42.5 million for a duplex condo at the Time Warner Center). The monthly maintenance fee is $47,700! You can see the sale listing at:
and a better description at:
But what?s really interesting about this apartment is that this is a rehab job done by NYC hedge-fund manager Martin Zweig. Zweig purchased the apartment in 1999 for $21.5 million from Australian publishing heiress Lady Mary Fairfax. Prior to the sale, Fairfax spent $12 million acquiring the abandoned ballroom at the top of the hotel and adding it to her apartment, thus creating the triplex. At the time of the sale to Zweig, it still had ?deferred maintenance? issues.
Zweig spent several million (the exact amount is undisclosed) fixing the place up and getting it ready to go to market. Although it has not yet sold, insiders have indicated that this is less because of the price and more because the building is a co-op, and thus requires board approval of potential residents. This requires full financial disclosure, something that many buyers in that price range are unwilling to do. (For example, Michael Eisner is another resident of the Pierre. Imagine if all the corporations he represents knew the intimate details of your net worth.)
Current speculation is that Zweig will split the Triplex up, separating Lady Fairfax?s original apartment and the ballroom/condo duplex with price tags of $11 million and $59 million, respectively.
Regardless, assuming he will snag $70 million eventually, it seems a pretty nice haul for a ?fixer-upper? acquired for $21.5, with how much invested in the fixup? What would you guess, $10 million? Plus the carrying costs, of course.