Case study - boutique condo development sold out during pandemic
New York City was hit hard by the pandemic. Hotels are going through foreclosure, office experiences record vacancy, street retails (sometimes block long) are still empty, rental apartment rents dropped 20-30%, and people across all ages are leaving the city. Everything that you see on TV or on the street is quite bleak. You wonder if the real estate industry is doomed in NYC. As a real estate developer, I was born optimistic and here is a bright spot and great example of New York Strong, an 11-story 15-unit boutique condo development in Chelsea that was sold out in less than 12-month during the depth of the pandemic. Total number of units 15* Sale launched February 2020 Last unit sold January 2021 Average unit size 2,570 SF Average sale PSF $2,320 Average sale price per unit $6M Total sellout (11 units only) $65M Acquisition $4M Estimated construction (soft/hard/financing) $33M Total development cost $37M Profit* $28M Equity multiple (assuming 50% le...