Plaza Hotel's condos fail to turn a profit 15 years after bigwigs including ... trends now
Condos in New York's iconic Plaza Hotel are now listing below their original purchase prices, making them a rare money-losing Manhattan real estate investment, according to a new report.
Real estate pros say the building's awkward design quirks, including cramped layouts, cheap finishes, and rooms punctuated by columns, are depressing resale values, Curbed reported this week.
'Everything's a little off; it's not like you think it would be,' author Julie Satow, who wrote a book about the Plaza, told the outlet.
After the units first hit the market in 2008, designer Tommy Hilfiger payed $25.5 million for the penthouse and reportedly spent another $20 million on renovations — but took 11 years to sell the unit for $31.5 million, down sharply from his $80 million asking price.
'When the original sales were going on, it was a crazy market and people paid ridiculous amounts of money without seeing their units, so there were a lot of lawsuits,' said Satow.
Condos in New York's iconic Plaza Hotel are now listing below their original purchase prices, as buyers spurn the building's awkward design quirks, such as columns punctuating rooms (above) that cannot be removed
The historic Plaza Hotel, designed in French Renaissance chateau-style and built at the beginning of the 20th century, has been featured countless times in pop culture - in movies, television shows and books, such as Eloise at the Plaza
Satow said the original buyers complained about cheap finishes, including oak veneer over plywood instead of solid oak, Chinese marble instead of Italian, and hallway carpeting cheaply cut and pieced together in patchwork fashion.
Although many of those original finishes have since been replaced, the Plaza's landmark status prevents more radical renovations to the units, including the oddly placed columns found in some rooms.
Now, buyers who rushed to snap up the units 15 years ago are desperate just to break even.
In one example cited by Curbed, a couple from Florida who dropped $14 million on a three-bedroom Plaza condo sight-unseen in 2008 are now listing it for $13.9 million.
Another three-bedroom, originally purchased for $14.375 million in 2008 is now listed for $14.15 million.
In comparison, some condos in 15 Central Park West, another classic building that also offers sweeping Central Park views, have flipped for double their original price, according to Curbed.
The historic Plaza Hotel, designed in French Renaissance chateau-style and built at the beginning of the 20th century, has been featured countless times in pop culture - in movies, television shows and books, such as Eloise at the Plaza.
In the books and the film, Eloise is said to live on the 'tippy-top floor' of the building.
The unit above, on the market for $31.4 million, also features a prominent set of columns in the living room
The penthouse units in particular come with irregular layouts due to the building's design
In May, A rare corner apartment at the top of the Plaza hit the market for $15.9 million. One of the apartment's four bedrooms on the higher level of the apartment is pictured
The Plaza offers sweeping views of Central Park -- but neighboring buildings have proven better investments for buyers
The Plaza was once owned by Donald Trump after he bought it in 1988 for $407.5million. 'This