A Condo with a View…of the US Real Estate Collapse
By: DIANA GOLOBAY
October 9, 2009 4:14 PM CST
Sure it would make for a long hike up 60+ stories if the elevator were out of service, but the view makes up for it. Nestled in a luxury condominium atop one of New York’s most famous — perhaps infamous — pieces of commercial real estate, any buyer could easily forget that inconvenience.
And all for a minimum $1,000 per square foot.
The former headquarters of American International Group (AIG: 35.10 -1.57%) — yes, that 70 Pine Street — will soon be renovated into high-end condos. A post at the Wall Street Journal has the details.
The developer, Young Woo, bought the building for $150m, or $105 per square foot, and expects to sell the finished condos for at least $1,000 but as much as $2,000 per square foot.
The building dates back to the 1930s and is well known for its role in housing the corporate business of AIG before the company faced financial fallout from its business with credit default swaps (CDS). The business went sour after the real estate-related assets underlying these CDOs defaulted at massive rates.
And, at $2,000 per square foot, the AIG tower’s rennovated condo setup will present a significant real estate investment to the new residents.
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