The New York Times-20080127-Season of Discontent

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Season of Discontent

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THERE may be gloom and uncertainty in the housing market in this winter of economic discontent, but for the small number of brokers serving the truly rich in Manhattan, there is discontent for another reason: the dearth of trophy apartments in trophy buildings.

While prices may be plummeting in Florida, California and Nevada, pity the poor broker who complained last week that she had a businessman from halfway around the world who had tens of millions of dollars to spend, and was looking for at least 5,000 square feet, but then had precious few apartments in Manhattan from which to choose.

Or as another broker, John Burger of Brown Harris Stevens, observed, in Manhattan real estate the law of supply and demand is sometimes turned upside down. The higher the price point, the more limited the choices, he said. When you have an unlimited budget, you have very few choices.

At the hottest New York buildings, some resales listed a few weeks ago are now in contract. At least four resales are in contract and waiting to close at the Time Warner Center in Columbus Circle, and the first two resales are now in contract at 15 Central Park West, which opened last year a few blocks away.

Doug Russell and his son, Matthew, both brokers at Brown Harris Stevens, asked for sealed bids last month on a three-bedroom with river views at 15 Central Park West, with an asking price of $12.5 million, after they were besieged with offers.

The winning bidder visited the apartment five times, with parents and friends, but hesitated. They flew in and looked again and said they didn't want it, he said. The next highest bidders, also over the original asking price, then stepped up and signed a contract a few days ago, he said.

And now, brokers say, it appears that a record may have been set for the most money paid per square foot at another trophy building -- the Pierre Hotel on Fifth Avenue and 60th Street. A $25 million co-op apartment has just been sold to a European buyer, according to brokers. Meredyth Hull Smith, a broker at Sotheby's International Realty, who had the listing, confirmed that a sale had just closed but declined to provide details.

The price for the nine-room, three-bedroom apartment with Central Park views works out to $7,000 to $8,000 a square foot, or even more, based on a floor plan with room measurements included with the listing, depending on whether interior columns and a separate maid's room are included.

That would place it above the $6,288 a square foot paid last August by Sanford I. Weill, the former chairman and chief executive of Citigroup, for a penthouse with terraces facing Central Park at 15 Central Park West. That was widely regarded as the highest price per square foot for a trophy apartment in Manhattan.

And last Wednesday, the most expensive co-op was sold -- a $46 million duplex at 1060 Fifth Avenue. It was bought by Scott A. Bommer, a hedge fund manager, who received permission from the board to combine two apartments. The unit was previously owned by Georgia Shreve, a writer. She was never successful in past attempts to combine the two apartments. Mr. Burger and colleagues at Brown Harris Stevens represented the seller.

At the Time Warner Center, buyers and sellers are planning a mass closing on Monday -- not for buyers looking to get into one of the most sought-after buildings in Manhattan, but to allow current owners to trade up to larger apartments.

The current owner of the 65th-floor apartment in the south tower, once owned by Ricky Martin, the pop star, is trading up to a 75th-floor apartment listed at $25 million in the same tower. An owner of a 66th-floor apartment in the north tower is trading up to the old Ricky Martin apartment.

When the deal for the old Ricky Martin apartment was made, the sale price was said to have been close to the asking price of $17.9 million, which was reduced from $18.9 million. The sellers, impatient to move, had actually agreed to a lower price of $15.85 million, according to a broker briefed on the transaction.

While the market is very hot and the building is very hot, we had an opportunity to negotiate almost 20 percent off for our client, said Adam Modlin of the Modlin Group.

The buyers of the old Ricky Martin apartment in turn listed their apartment in the north tower and agreed to sell it for just under $6 million, so they can apply the cash toward their purchase.

[Illustration]PHOTO: The Pierre Hotel