Disaster at the Rushmore

Certainly when some sees a building who's average sales price is $1600/sqft renting units out at an average of $47/sqft, there is a major correction coming. 3 of the 1br rental units are available with 800ft and 900ft units at $3200. These are units that are asking approx. $1400ft for sales, so the price/rent ratio is almost near 40!! Expect significant reductions in the value of these properties,... [more]

Certainly when some sees a building who's average sales price is $1600/sqft renting units out at an average of $47/sqft, there is a major correction coming. 3 of the 1br rental units are available with 800ft and 900ft units at $3200. These are units that are asking approx. $1400ft for sales, so the price/rent ratio is almost near 40!! Expect significant reductions in the value of these properties, and I am talking in comparison to the already reducing real estate values across the area. The saturation of units along Riverside Blvd will create a domino effect of falling prices impacting everything around it (The Avery/Element/10WEA/etc) in a way that many cannot fathom at this stage. Buyers are nowhere to be found and when the banks are tasked to clear the mess that Extell is uninitentionally left with, it will be a sloppy mess. This is one of those areas that required another 3-5 years of boom development to create a sustainable neighborhood, however, as the economy deteriorates I expect this to be one of the hardest and longest hit in Manhattan. [less]