Portofino Sold for $100m... Converting to Condo

[smp9778]

I've seen a lot of rumors of this on the board, but here is confirmation.

From the NY Times:

"In a separate transaction last month, Roseland sold five other parcels at Port Imperial to K. Hovnanian Homes of Red Bank, N.J. Construction is expected to start next year, with the properties yielding 960 condominium units. Farther south, on the waterfront in Jersey City, Roseland sold the 283-unit Portofino to Crescent Heights, which is based in Florida, for $100 million in December. It, too, will be converted to condominiums."

http://www.nytimes.com/2005/03/02/business/02real.html

The article also references the new condo building at Newport.

If the Portofino is worth $100m, then the Lefraks must have $500m+ in value at Newport, given relative size.

I wonder what the condos at Portofino will go for.

[LostinLaMancha]

Thanks. This is what my question yesterday was about.

From the same article

"Average sales of the new condos are expected to be around $600,000."

[smp9778]

Thanks. This is what my question yesterday was about.

From the same article

"Average sales of the new condos are expected to be around $600,000."


I think that quote refers to the condos at Port Imperial (in Weehawken.)

That being said, the developer is paying $353,000/unit for the Portofino (283 units, $100m total), so $450,000-600,000/unit on average doesn't sound unreasonable to me, after they spend money on upgrades and earn a profit on the transaction.

[LostinLaMancha]

hmm. I wonder if 400k for a 1 bed would be a decent price. I am looking to buy something next year. But Portofino somehow doesn't excite me. May be the upgrades that they'd do would make it better. I wonder what the average going price for a 1 bed or a two bed at james monroe is.

I wish I had bought something 3 years ago when I was living there. I know a 3 bed at james Monroe went for 425K. High floor with a balcony. Didn't look over Manhattan though. I just couldn't afford to buy anything at that time. Had no credit, because I was relatively new, And I wasn't sure how long I was going to stay here.

[bonacera]

Yes.. I cannot agree with you more. We all wish we bad bought some place three years ago. Housing market is so crazy thesedays. I wonder how long it would go up like this.

[wiley]

Please excuse me for my ignorance. What is "Portofino?" Is it an existing rental building? Where exactly is it?

FYI, A 1BR at Maxwell Place of Hoboken starts from around $525,000 + $30,000 parking. A 950 sq ft 1BR facing the river on 10th floor is $628,000 + parking.

"Housing market is so crazy thesedays. I wonder how long it would go up like this." ... there is a board about Maxwell place. You will see how speculative those buyers are as many of them are talking about how much they expect the unit will appreciate. One wrote "100% profit by 2008."

[Lenin]

Condominium conversion of rentals is NOT the easiest thing to pull off in NJ. For ONE thing, renters over 52 CANNOT be evicted for 40 years. So to get them out a pretty sweet deal must be made. Rent increases for the people who stay PROBABLY reverts to rent control mandated increases, that are quite low, and NO non-buying tenant cannot be forced out for at least 3 YEARS.

It's been a while since I've thought about the conversion process but there are some other onerous (for the landlord) provisions that come into play as well. An apartment building with unregulated rent might all of a sudden found itself QUITE regulated by state law.

Anyone who seriously would consider buying into the Portofino should rent NOW and get an insider's price when the time comes. But realize that "real-estate-speak" isn't the same language the rest of the world speaks. MANY projects never make it from the wishful blurb in an article to fruition. Considering that in the last 20 years NO major downtown buildings have swiched from rental to condo or co-op, there are probably many good economic reasons why rentals have STAYED rentals.

[bonacera]

Please excuse me for my ignorance. What is "Portofino?" Is it an existing rental building? Where exactly is it?

FYI, A 1BR at Maxwell Place of Hoboken starts from around $525,000 + $30,000 parking. A 950 sq ft 1BR facing the river on 10th floor is $628,000 + parking.

"Housing market is so crazy thesedays. I wonder how long it would go up like this." ... there is a board about Maxwell place. You will see how speculative those buyers are as many of them are talking about how much they expect the unit will appreciate. One wrote "100% profit by 2008."
Wow.. 100% profit by 2008. If that is true, a 950 sqft one bedroom would be more than a millon dollar. :eek: Oh, my God...

[wishiwas]

The cost of apartments in this area makes me want to barf / move south.

But then my salary probably wouldn't be so inflated.

[cancerdotcom]

100 percent profit

i think what this means is that if you put 100 thousand down and the apartment appreciates from say 500 to 600 thousand

you make 100 percent profit on your 100 thousand

c.c

[wiley]

100 percent profit

i think what this means is that if you put 100 thousand down and the apartment appreciates from say 500 to 600 thousand

you make 100 percent profit on your 100 thousand

c.c

Actually no. I did not repeat those messages word for word. That one really said "... appreciate by 100% by 2008 when all units are ready." Another wrote "... leverage is great ..." Sometimes I doubt if I was reading a board for residential real estate properties or a newsgroup for day-raders ... sort of wonder. Sorry the side track this thread anyway.