17 Khahum Wood RdThe Winner!
In an earlier posting I stated that the biggest loser in price cuts was 66 Cherry Valley Road, listed for $20 million and sold for $11.4 million, or 57% of its asking price. I forgot (because its listing was deleted) 17 Khakum Wood Road, whose builder, Mark Mariani, originally listed it at $25 million and, after slowly marking it down to $13.5 before deleting it from our MLS records, eventually sold it privately for $12.5 million. That success earns Mariani the coveted "What Was I Thinking Award" for 2005, 2006 and 2007 (the years he first listed it, reduced it and sold it). That's a trifecta, no? When this first came on the market I suggested in print that there were equal or better houses available for half its price, a comment that caused the builder to permanently ban me or any member of my firm from the privilege of viewing his subsequent creations. I paid no heed, of course, but I did take a certain satisfaction in seeing where this house ended up. Instead of banning me, maybe he should have listened.
Update: A reader asks how this particular Waterloo compares with Antares own fiasco on Langhorne Lane and, I do so hate to break this to Mr. Mariani, but it appears that Antares has edged him out of the title by a hair. Langhone was listed for $25 million in April '07, increased (Antares genius at work)to $28 million that October and sold this August for $13.75, or 49% of the highest listing price. Mariani may squeal, but I decide the rules in this contest and I've determined that calculating mark downs will be done using the highest, not the first, asking price. Antares is out of the residential construction business now but they were certainly competitive for the title when they were building. 16 Cherry Blossom Road, for instance, part of their failed mansion project in our N.E. corner (which any realtor could have told them was a dead spot for sales) listed at $10.9 and sold 1 1/2 years later in December '07 for $6.6 million, 60% of its asking; not enough to win the award but a darn good try. I'll miss those boys.
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20 comments:
How does the Antares project at 11 Langhorne compare?
Good Point about listening - Chris. You are a 'Good Man' and the builder was wrong to cut ties with you. Even thou I've done business with others - it does not mean that I would forget about or not do business with you - too. Sometimes we have a mutual parting of the ways - respectfully - and we do not burn the bridges when we say so -long. I certainly listen to your advice - and will continue to thank you for it!
Um, 13.75/25 = 55% (it can't be UNDER the 50% Mariani got or Mariani wouldn't be the "winner"!)
C, have you ever seen 546 North Street? It seemed cheap for the amount of land you get in mid-country; we drove by it and - while we're not sure we'd want to be that close to North Street - it's one of those things we'd keep an eye on.
CEA
Chris - I find your analysis of the real estate market informative and interesting. I especially look forward to it when things are headed in the positive direction. Hopefully that is soon, for everyone's sake. Thank you!
CEA - I fixed it (even before reading your comment - I do reread these musings sometimes). I noted the price rise but used wrong number from my scratch sheet.
How does the quality of construction compare between these two "Titans of Building"? From what I've seen and heard, they both leave a lot to be desired. I can understand and expect it from Antares, but Mariani doesn't really have a valid excuse. Maybe greed combined with ego?
I think Mariani does a good job. What he does do is an incredibly quick job, bringing in dozens (or more) workmen, using his own mill shop for trim, etc. Other builders who can't or won't follow his lead and complete houses in 6-9 months claim that you can't build the big houses he does this fast - floors will shrink, trim will gape, foundations will settle, and so forth, but I've never heard an owner who actually lived in one of his houses complain. Then again, I don't KNOW anyone who lives in one of his homes because we travel in different social circles, so who knows? But I admire anyone who re-thinks the building process which, for the most part, is still stuck in the 19th Century. My own great grandfather built in Manhattan then but I can't believe he wouldn't have adopted some of the new technology invented since then - trucks, for instance, would probably have struck him as useful.
Chris, the $13 million that Antares got for Langhorne is that to complete the entire house, or is the owner going to pay additional $$$ (my guess around $5 million) to complete?
Greenwich Diva
It's an empty shell right now and the buyers have got quite a job ahead. $5 million sounds about right. Antares never intended to finish this place - their concept was that they'd get a project through all the permitting delays and erect a shell and a buyer could finish it himself to his taste. Might have worked at $4 million but for $28 million, people expected a little ...more.
I know it's your game, but.....
I think you need to have 2 contests going.
1 for completed homes and the other for incompleted.
Because the owner still has to put another $5million into it. It's a little above buying land, so you really can't compare it to Mariani's and Cherry. So, I really think Mariani is the real winner, please give Mariani back his trophy!
Greenwich Diva
If Antares had bailed out from finishing the place I might agree but it was always its intention to sell a half-baked project. They wanted $28, they got $13, the award's theirs. But with them out of the way and the incentive of knowing how close he came to finishing first, I'll bet we can expect great things from the Mariani workshop.
What am I missing here?
Mariani: $12.5/$25 = 50% of asking
Antares: $13.75/$25 = 55% of asking
So isn't the award Mr. Mariani's, because he got the lowest price-to-original-asking-price ratio?
Or is my calculator in need of batteries again?!
Thanks on #546 North. Will speak with you about it another time.
CEA
I'm sorry to see Antares kidz bowing out. They were like the Wales brothers but without their charm.
No no - you have to read these comments! While it's true that Antares started at $25 million, they INCREASED it to $28 million ( a point I explained in a corrective posting). By the rules of the game, which I make up as I go along, it's the highest asking price, not the original price that controls. And $13.7 into $28 million (or is it the other way around? You're the math wiz here) yields a 49% figure. So Antares edges out Mariani by a nose. I think.
HEY THIS WHOLE THING IS UNBELIEVEABLE.I AM ALWAYS HERING THAT MARIANI IS A GREAT BUILDER , AND I AM SURE MOST OF THE TIME THIS IS TRUE. I THINK HE DROPPED THE HAMMER ON GRAMPTON. I SAW THIS AND THERE ARE SO MANY FLAWS IT IS LIKE HE JUST TOLD THE CONSTRUCTION CREW TO DECIDE ON A FEW IMPORTANT POINTS LIKE THE KITCHEN ISLAND THE SIZE OF THE LIVING ROOM AND THE FIREPLACE IN LR , THE ENTRY WAY STAIRCASE, NO HALL CLOSETS I HATE TO SAY ALL OF THIS I WAS ACTUALLY EXCITED TO SEE ONE OF HIS HOUSES BUT IT WAS AMAZINGLY DISAPPOINTING.
SORRY I JUST PUT THE WRONG STREET ON MY COMMENT INSTEAD OF GRAMPTON IT SHOULD BE MEADOWCROFT
Grahampton, Meadowcroft, same thing - Mariani just added a driveway on the latter. By the way, internet protocol frowns on the use of all caps when posting - it's considered THE WRITTEN EQUIVALENT OF SHOUTING!.
Just pointing that out - I do appreciate your readership and, if your caps lock button is glued down, never mind - keep writing.
I sure hope he doesn't cut corners on Judge Judy. She will turn him into a prime time TV star.
Hey sorry about all the caps. I wanted to tell you about a house on the corner of lake at Deer Park. I do not know who the builder is but he did a really nice job. All the brs are a beautiful size all the baths are great , screened porch with fireplace, the big downer , it is on a busy corner. Who wants to sit in there yard and hear all that traffic . you can sit on a balcony in dumbo if you want noise. Otherwise a great home.
Yeah, I have my doubts about that one too. At $16 million, I don't want to watch Lake Avenue traffic whiz by (I don't want to watch traffic, period, at any price). Yard's so-so and I personally don't have much use for these hotel-sized houses. The last point is entirely personal but I think the traffic will prove a turn-off to many people.
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