When we go to Costco we  go with the understanding that we are going to be buying a product in a really large quantity, but we are going to be getting a great discount for doing so.  Thats why we shop there.  I personally love the hot dogs and coke for $1.50, but thats just my own personal thoughts.  Well now here in New York City you can buy Condos Costco Style!!

According to a recent article,

Last month, the sponsors of 20 Pine, a 413-unit condo conversion in the Financial District, put 80 of the building's unsold units on the market for $63.7 million, according to the Web site Curbed.

The bulk price for the units, according to an advertisement reprinted on Curbed, represented only 51.5 percent of their current value of $124 million.
Meanwhile, 22 units in a 40-unit condo in Williamsburg also hit the market last month.

The sales pitch for the units at 349 Metropolitan Avenue included the following description: "Newly built 40-unit elevator building was developed as a luxury condominium and is being offered as a bulk sale for investors. Eighteen units are currently under contract at an average price per square foot of $720 and the developer can't close because the building is not finished. The developer is currently in default on his primary debt. Prospective purchasers can bid on the entire project and/or on the available units."

The above examples aren't the only ones. Faced with a stagnant market and looming loans, more and more developers are finding the notion of bulk condo sales attractive.

"When you can't sell retail, you sell wholesale," said Eric Anton, a principal at the investment services firm Eastern Consolidated

From a lender's standpoint, bulk sales can be a "pragmatic" move, said Dan Fasulo, managing director of Real Capital Analytics, a research firm that focuses on the commercial market.

"The last thing a lender wants is to have the units back at this point," said Fasulo, who noted that attempts at bulk sales are beginning to be more commonplace. "How's the bank going to sell them?"

The last couple of years, I would say that the overall trend for these new development buildings has been over the top luxury exclusivity, super-lux, mega-lux, fancy words that are hard to pronounce.  Bargain, value, those adjectives were unheard of, so I find it very ironic that now these high end condos are being compared to a value based store like Costco.  

For more information, please contact Morgan Evans or call 917-837-8869

Disclaimer: All information in this post is subject to change without notice. Subject matter: is an opinion, is not guaranteed, may be time sensitive, and may be based on information collected from several sources which may or may not be reliable at the time of sourcing.