Manhattan Luxury Housing In Freefall: J.Crew CEO Slashes Tribeca Loft Price By Over 40%

Tyler Durden's picture

While in recent weeks we have documented various instances of sharp pullbacks in the ultra-luxury segment of New York's housing market (here, here and here), a dramatic example of just how sharp the drop in the high-end housing segment has been comes courtesy of Mansion Global which reports that J. Crew CEO Mickey Drexler has slashed a whopping $15 million from the asking price of his Tribeca loft after it languished on the market for close to two years, unable to find a buyer.

The 72-year-old fashion boss’s 6,226-square-foot spread has just reappeared for sale with a $19.95 million price tag, way below the original $35 million it was first listed for in April 2015, according to listing records. Between its original listing in 2015 and today, there were several other price cuts, with the loft last appearing on the market for $22.5 million last August. That listing was removed entirely in January, only to reappear for $2.5 million less.

Listing images reveal the five-bedroom pad’s stylish interiors designed by French architect Thierry Despont, including arched windows, original columns and industrial doors, par for the course for what one would expect from a fashion industry bigwig. The building located on Franklin Street is a boutique, 12-unit, full-service condominium with 24-hour doorman and is just down the block from Taylor Swift's Tribeca pad.

Even with the hefty haircut, Drexler stands to make a nearly $6 million profit should he find a buyer: property records show that 140 FRANKLIN STREET LLC paid $14.3 million for the apartment in 2012. PropertyShark’s records link the LLC to J. Crew’s headquarters in New York.

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Takeaction2's picture
Takeaction2 (not verified) Mar 11, 2017 8:05 PM

I would love for a big crash...I sure fucked up the last time...bought too much Silver and Gold...not enough houses...and sat on the sidelines when the dow hit 6000.  Come to papa...fool me once...

Chris Dakota's picture
Chris Dakota (not verified) Takeaction2 Mar 11, 2017 8:13 PM

Donald Trump Jr. said it was a big bubble over a year ago.

What ugly wallpaper, rugs, wall unit, light fixture, the whole thing is terrible.

And he wonders why it didn't sell........wow.

Son of Loki's picture

If you bought alot of gold when it was $750-$800, you're still way ahead of most.

Raffie's picture

I bought some gold in early 2014 for 1300ish...... 8-(

Bigly's picture

Who wants to live in that declining hole?  See the next story of the beatdown and people doing nothing.

Deblahzee-o is a statist moron and quality of life measures have declined quite a bit.

Squeegie men will not return because nobody wants to make an effort for a quarter/dollar.  Easier to just intimidate the money off people, sans work.

 

847328_3527's picture

Gold will come back for sure. Right now there's still the house buying frenzy but when that ends, or is ended by rent control, etc, gold will shine imo. The yellow metal has many advantages that a house does not have.

Delving Eye's picture

Oh yeah? Can't eat it, sleep in it, burn it or drive it.

TheRideNeverEnds's picture

You can sell it to fools who think it will appreciate though.

yogibear's picture

This tells all of us that Manhattan real estate is over-priced by at least 40%.  Let the shit crash. 

SixIsNinE's picture

i don't know Yogi - i was thinking 19mil was sounding pretty good - then i read Taylor Swift is a block away -
dealbreaker -
sorry - 9 mil and not a penny more.

if he wants to sell that space he better get better copy control and never mention Swift again.

Silversides's picture

Gold at $1350 by Friday

Takeaction2's picture
Takeaction2 (not verified) Son of Loki Mar 11, 2017 9:00 PM

No...that is NOT true.  I bought it at $700ish...even if it doubles...triples..etc...I still lost...Why?.... rental houses generate cash...tax advantages...on and on.  It was a big fuck up to put big money in metals.  I missed 9 years of rent...and 9 years of appreciation...9 years of tax right offs.  At least I didn't lose it....I just need to rent some scuba gear after all of the boating mishaps to recover it.

squid's picture

If my folks had bought gold in 1964 rather than a house, it would be worth 600K Canadian right now WITHOUT factoring in 50 years of taxes, insurance, improvements and maintenence.  If you add that in, the ROI is even worse.

 

Mom could sell for 385K today.

 

Go ahead, buy all the realestate you want.

 

Gold in-hand pays no return because it holds no risk, none, nadda, zero.

Anything else has risk, so it pays a return.

 

But go ahead, sell your gold. I can assure you that unlike Mr. Crow's apartment, there will plenty of buyers for your gold.

 

Squid

BigJim's picture

Of course gold has risk. If you're obliged to sell, and it's worth less than what you paid for it, then you've just lost capital.

squid's picture

If you're 'obliges' to sell your life insurance you also take a bath.

 

Gold is insurance, not a speculation vehicle.

 

You want to 'trade' gold, use paper.

If you want to HOLD gold, it has no risk because you HAVE IT.

 

Squid

Takeaction2's picture
Takeaction2 (not verified) squid Mar 12, 2017 3:16 AM

How can you say "Gold has no risk"  I got screwed on gold compared to what I could have done....I am living proof....Do I blame anybody except myself...NOPE.l  This is my fault.  You do your thing......I will live in a warm place rich as fuck.  So...shove your GOLD up your ass...By the way.....how much would you like to buy?  I have way more than you can afford...at spot....now....

Handful of Dust's picture

Timing is everything. Plus, no one expected house prices to skyrocket like they did as never before due to massive printing, tax laws, zero down loans, fraud and foreign buyers.

Chris Dakota's picture
Chris Dakota (not verified) Handful of Dust Mar 12, 2017 2:30 PM

stylish interiors designed by French architect Thierry Despont

below is his work

http://homecaprice.com/wp-content/uploads/2015/10/beautiful-mountain-ret...

https://www.google.com/search?q=architect+Thierry+Despont&source=lnms&tb...

http://nydesignagenda.com/wp-content/uploads/2016/12/GETTY-e148102590188...

Well these cheapo's bought the furnishings from knockoff online outlets.

The owner said "I bought this sofa from Macy's it was too big, too expensive and they wouldn't take it back until I called the CEO. Then they charged me to pick it up"

Really, you didn't know it was big when you bought it, you didn't know it was expensive. (even I don't think Macy's is expensive)

Money worshiping and whinny Jews is what they are.

DPLETTENBERG's picture

It does look pretty ugly inside. He would have done better getting it furnished by IKEA.

j0nx's picture

Move to the No Virginia area. Townhomes that were 380k in December are now selling for 440k magically for no fucking reason that I can tell other than I need to buy and Murphy is calling the shots as usual. Haven't seen RE here this crazy since 2006.

cossack55's picture

That is one ugly pad

Thinkpad's picture

The decor certainly would keep you up at night. The interior needs to be gutted what is on the walls? Weird but great amount of sapce for cramped NYC 

Son of Loki's picture

Is the furniture included in the deal?

lol

I bet not many [potential] buyers ask that.

Chris Dakota's picture
Chris Dakota (not verified) Son of Loki Mar 11, 2017 10:07 PM

His wife is a therapist and "gender scholar"

Why do you need to be a scholar, there are only two genders boy and girl, no matter what you think you are.

SixIsNinE's picture

she may be one of the architects of the New Gender School - New York now recognizes over 30 genders Chris.

and if their trendlines are accurate, they're on their way to catch up to Toronto with over 70 genders.

Imagine no more gender boundaries,
it's easy if you try.

lookup jordan peterson, iirc - youtube for the canadian gender "regress"

JamesBond's picture

Looks like a doublewide from the 60's

 

 

Handful of Dust's picture

I hope he 'self-idenitifes' himself as color-blind.

Chris Dakota's picture
Chris Dakota (not verified) SixIsNinE Mar 12, 2017 10:56 AM

She poses with her new book.

agenda or what?

http://media.gettyimages.com/photos/peggy-drexler-during-launch-party-to...

http://www.peggydrexler.com/images/peggy-photo-bio.jpg

Research psychologist Peggy Drexler embarked on a long-term study comparing boys raised in nontraditional families with those whose fathers were present throughout their childhood. The results were startling. Female-headed households can provide even better parenting for boys than households with men. Sons from female-headed families can grow up emotionally stronger and more well-rounded than boys from "traditional" mother-father families?more in touch with their feelings yet masculine in all the ways defined by our culture.

Reviews on Amazon say she is mostly focusing on Lesbian parents raising boys.

The creative director at J.Crew recently left her husband for a woman, they are raising her son.

Here she is painting her sons toenails hot pink.

http://bilerico.lgbtqnation.com/2011/04/jcrew.jpg

Sales down at Michelle Obama promoted J. Crew, shoppers blame this woman Jenna Lyons

http://www.brandchannel.com/wp-content/uploads/2015/06/jcrew-jenna-lyons...

Why he is selling a second loft in Tribeca and house in Hampton's asking $85 million

He was fired from the Gap in 2002 because he is a destructive force, go figure.

FrankDrakman's picture

Just so people know  - Jordan Peterson is a professor at University of Toronto who REFUSES to kowtow to these gender obsessed idiots. He will not call them by their "desired pronouns", or make any accomodation to these retards. For that, of course, the retards want to crucify him. 

Kelley's picture

Maybe if the apartment didn't have fugly Jetson decor, he could get a buyer. It looks like his flying saucer crashed into a Walmart.

More than that, it tells the new buyer that the vibe of the owner is weird. I wouldn't want to move into a multimillion dollar home that was occupied by crazy people. 

Ban KKiller's picture

Boo-fucking-hoo. Its worth what someone pays. 

amadeus39's picture

i would like to see some residents of these luxury apartments commit free fall from their tastefully decorated windows. Jumping out of windows is what these snowflakes do best in times of stress.

 

Troy Ounce's picture

 

Style and money is not the same.

Nesbiteme's picture

Oh that was a design by Thierry Despont. I thought he had consumed two Taco Bell 1/2 Lb Combo Burritos and a sixpack of Yoo-hoo and shat all over the apartment.

MASTER OF UNIVERSE's picture

Oscar Maddison in the first Odd Couple had better taste in terms of decorating IMHO. This Manhattan apartment needs Spagetti Surprise on the walls to give it that lived in look. Tunafish sandwiches under the couch cushions world be good too.

kenny500c's picture

Unlike J. Crew's normcore clothing line this pad looks more like a bad LSD trip.

Blankone's picture

So he paid $14.3 million 5 yrs ago and the now the listing being for $20 million, almost a 50% profit, is a real estate "bust"?

If it sells for $10 million let us know.

squid's picture

He's not going to get 20 mil.

He'll be lucky to just lose his taxes and title transfer fees.

My bet is this property moves at 12 mill which means a 2.3 mill capital loss PLUS all the taxes and rates down the toilet over the issuing time.

 

The greater fool method is a dangerous way to invest.

 

Squid

Max Cynical's picture

Somewhere in NYC, a POS real estate agent advised him to list it for $35M.

Handful of Dust's picture

Evidently they could not find the right corrupt Russian or Chinese gubmint official trying to sneak loot out of their home ocuntry and buy this place.

DirtySanchez's picture

I have bought and sold some homes over the course of my life.

Don't ever believe for a moment one's home is an investment.

Property taxes, utilities, and upkeep take a heavy toll.

Bottom line is the home is worth exactly the price you sell it for.

MASTER OF UNIVERSE's picture

If one has skin-in-the-game and can afford overhead on ownership then it is a wise investment if one can sell when it's time to cash out. If everyone decides to sell all at the same time it would be better to not invest in Real Estate. Timing & expectations rule when it is time to get out. The Royal Bank of Scotland called it two years ago. Everyone knows that prices are now falling drastically, and the flood of panic has already surfaced. Expectation of a massive crash must be in the back of every homeowner's head over the last two years, but you don't see the mad rush for the exits via media because the Real Estate Industry executive wants to pretend, extend, and keep kicking the proverbial can down the road to infinity.

Houses Depreciate's picture

Nonsense. Housing is a depreciating asset that costs you money every day you own it.