Steve Mnuchin Takes 21% Haircut On Selling His $25 Million Manhattan Co-Op
Not even being former Treasury Secretary of the United States can help your real estate appreciate in Manhattan right now, as Steven Mnuchin just found out the hard way.
Mnuchin just sold his Manhattan co-op for a “deep discount”, according to Bloomberg, reportedly suffering a 21% price reduction before finding a buyer for his duplex at 740 Park Ave.
The five bedroom property was originally listed at $32.5 million in September of 2018 and finally just sold after being listed for $25.75 million. It marks the most expensive co-op to sell in Manhattan over the last 18 months. The final sale price will be recorded with the city in coming months.
Co-ops like Mnuchin’s have been difficult to sell recently – not only because they are “old school” in the face of brand new high-end luxury condo skyrises – but also as many residents with deep pockets, including many businesses, have left New York in favor of red-leaning, tax friendly states, like Florida.
Co-op owners get shares in a corporation that owns the building and don’t hold deeds to their specific units. Boards of the building can approve or deny buyers and have full say over all aspects of managing the building’s residents.
Luxury condos have been “outselling co-ops nearly every year for a decade”, data from broker Olshan shows. Their data also shows that through April 25, 2021, there were 406 deals for condos listed at $4 million or more, compared to just 108 co-op purchases in the same category.
And despite the “prestige” of 740 Park Ave., it hasn’t been spared from the trend.
Tue, 05/18/2021 – 18:25
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