I last featured 933 25th in May after the sale listing expired (at 174 DOM) and we found out the property was then being listed for rent on the MLS.Listing History: 10/22/09 - $4,488,000
Reduced: 01/13/10 - to $4,250,000
Reduced: 03/06/10 - to $3,895,000
EXPIRED after 174 days on market
Rental History: 4/12/10 - $19,000/month
RENTED: 7/9/10 - $16,000/month
The developer has to be eating massive losses on this. They bought the lot (with plans and permits I believe) for $1.95mm all the way back in August 2007. They then spent a ton of money building this thing and it has been almost 3 full years now since the lot purchase.
We all saw how the builders and developers were minting money during the bubble...examples like these here show the other side of the coin.
Who's been building all these Roman-Persian-Ottoman McPalaces over the past ten years?
ReplyDeleteThis persian palace is so awful, it looks like a little piece of the Bellagio Vegas hotel. Why can't they hire a real architect to come up with a clean, modern design. This looks dated and old already, and it's new construction.
ReplyDeleteAgreed... just awful.
ReplyDeleteMcXerxes?
ReplyDeleteAnd another monster mansion going in 2 lots away from this one..8 months just working on the foundation! Disgusting..I called SM City Council to complain...Kevin M? talked to me and said he would come over to take a look..he says there are current laws about this sort of construction and "maybe they need to revisit them"...somebody is paying somebody off!
ReplyDeleteIs it just me or is anyone else surprised that this rented for $16k/month? That seems like a lot of rent to pay...
ReplyDeleteShocked about the rent, actually. Not that I know much about the high-end rental market, but I have one uber-rich (and wasteful) friend, and he's been getting much nicer places (more bedrooms, expansive views, good pools, etc) in the Hollywood Hills in the $10k/month range.
ReplyDeleteI think the raw cost would be about $6.2K/mo/million in financing depending on the loan. So if they financed $3M, they are looking to cover a $18K/mo nut. Asking $16K brings the loss down to a more manageable level, but as Epsilon said, there are probably a lot better deals you can cut if you are leasing - especially with people who already have a ton of equity in their rental property.
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