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Sales, Common Charges Not What They Seem at One Madison Park

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The soap opera continues at One Madison Park, where, following a brokerage switch, the sides are now arguing over who fired whom. But this is perhaps the most minor of controversies at the new 60-story titan of East 23rd Street, whose recent troubles have been well documented. Other tidbits unearthed by The Real Deal: the building was only 70% sold during the height of the market and before buyers started backing out, not everything-but-the-penthouse like initially thought. And about that $45 million, triplex penthouse: It's now being left as raw space for a buyer to customize, and the developers may finally be willing to come down on the price. Alright, now that we've dealt with that boring stuff, let's move on to the gossip!

Eight condos have now closed in the 70+ unit glasstravaganza, the latest of which was #16A, a 3BR, 3.5BA unit that sold for $5 million and was once listed for much, much more. What gives? Well, it's perhaps a case of One Madison Park speculation gone terribly wrong, a well-informed building tipster writes:

16A was shown in the Attorney General filings as sold to a third party on 10/12/2007 for $6 Million (with a $600,000 downpayment). The actual sale shows up to a party with a different name (presumably resold or the contract was assigned), but for only $5 Million.

Brown Harris Stevens had kept this listing active through much of the last two years. Asking prices started at $8.25M in 2007 and dropped steadily, with the latest listing showing at $6.9M (which was probably the old buyer’s last shot at getting out and breaking even).

Following the brokerage switch, some One Mad Park listings have started showing up with ace Elliman broker Tamir Shemesh, but with a big difference: Higher common charges. How much higher? Let's let our tipster explain:One of the huge problems with the condo documents was the fact that they apparently made a mistake that resulted in a huge understatement of condo fees. It wasn't until the 16th amendment (issued just before closings started) that the mistake was corrected. That meant that the real condo fees for every unit were significantly higher than those in the offering plan and all 15 previous amendments (60% more in most cases).The online paper trail lends support to that theory. Take a look at the listing for #9A, which puts the monthly maintenance at $1,378 (and also mentions the developer is waving the common charges for the first six months). The old listing for the same unit, preserved by StreetEasy, has the fee at $868. Likewise, the new listing for #9B has the monthly fee at $1,589. The old one? $1,019. Some fairly harsh adjustments, but the zebra wood in the wine tasting room ain't gonna pay for itself, folks.
· Who fired whom at One Madison Park? [Real Deal]
· One Madison Park coverage [Curbed]

One Madison Park

One Madison Park, New York, NY 10010