Mike Jeffries, the former chairman and chief executive of Abercrombie and Fitch, has dropped the asking price of his Manhattan townhouse from $19.5 million to $16 million. Last October the property was listed at the original $19.5 million asking price but a lack of interest has seen a whopping $3.5 million wiped off the list price. So, why is this particular townhouse catching the headlines?
Mirrors, polished nickel and granite worktops
There is no doubt that this townhouse is “unique” with its woodpanelled walls, mirrors everywhere and polished nickel trim. It looks like a cross between an old world mansion and a courthouse but whatever it is there is no doubt it is striking. While the new $16 million asking price is a significant drop from the original $19.5 million it is worth noting that 4 Sutton Square was bought for $10.9 million back in 2005. So, even if the property is sold at the reduced asking price it will still be a significant profit!
It is well documented that designer Daniel Romualdez was commissioned to revamp and restore the property when it was acquired back in 2005. It took a staggering three years to complete this project but now the five-storey townhouse looks immaculate, with the flexible layout offering between 3 to 4 bedrooms as well as four and a half bathrooms.
There are many features to this property including the seven wood-burning fireplaces, state-of-the-art central air conditioning, security and sound systems taking in the latest technology not to mention the floor-to-ceiling panelled windows and elevator to all floors. There is also a chef’s kitchen and a dining room for business and more formal events which opens out onto the landscaped communal garden. Records suggest this is one of the largest private gardens in Manhattan and when you bear in mind the cost of property in Manhattan, how much is the garden worth in terms of real estate value!
History of the townhouse
Built back in 1899 by Henry Sprague, the inventor of the Sprague gas meter, this property has gone through a few famous names over the years. Each person seems to have had a very different style and we can only guess at the number of times it has been renovated and revamped. It is also worth noting that there are at least three other townhouses for sale in Sutton Square ranging from “just” $15 million through to $29.95 million and right up to $39.8 million.
Millionaires and billionaires are aplenty in Sutton Square but it seems as though a number have decided now is the time to vacate the area. When you bear in mind the number of high value properties for sale in the area it is perhaps no surprise that Mike Jeffries has been forced to reduce is asking price.
Investing in high-end property
The problem with high-end property is the fact that even relatively small swings in the market can equate to million-dollar price changes. In what can quickly become a game of poker, once one person reduces their asking price this can have a knock-on effect to the theoretical value of other properties in the same area. So, it will be interesting to see whether Mike Jeffries hits his $16 million asking price or whether investors are playing a canny game of poker and trying to push the price lower?