Last week Aaron made his inaugural contribution as an actual blogger (rather than a commenter) with a post about a South Slope property. We got some good discussion, both about who would buy it and why, and whether the post was an ad in disguise.
I commented that one of the saving graces of the post was that interested observers would be able to watch what happened with a real property in almost real time. To keep that true we require an update.
The property sold, after some negotiation back and forth, for full price. There was a great deal of interest in it, but price was a bit of an obstacle. Most enquiries were sign calls, and after price came up the calls generally ended promptly.
Jim made some interesting comments, in regard to investor return as well as price, building costs and builder profit. Doing his builder numbers this doesn’t work. However, if a builder bought this property, what does that say about Jim’s math, or more to the point, how are builders able to do their business? Are reported costs wrong? Or is it that there is a great range of costs, and the difference may ot always be apparent to the casual observer?
Are costs $200/sq. ft.?
Or are they $80?