Looks like Greenwich will have one less spec house on the market. This property in Cos Cob went to contract today. The last list price was $3.150mln, which is down 36% from the original asking price of $4.895mln back in July 2007.
Crunching the numbers, the developer bought the property for $1.4mln (3 years ago) and then built 5,234sqft above grade (7,743sqft including finished space below grade). If I assume $300sqft build cost on above grade area, we get $1,570,200 build cost. When we add land cost, we get $2,970,200 or pretty much breakeven at this point (considering RE commissions and fees). When we add in 3 years of financing costs, it would seem the developer walks away with a loss.
By the way, the property was developed by Santora Brothers LLC and built by Pecora Brothers. These guys have been in the business a while and do a solid job.
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