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Sluggish condo market portends trouble

Victor Sigoura’s Legion Investment Group has secured $133 million in construction financing from ACORE Capital for its residential condo development at 109 East 79th Street, CO first reported. Upon completion, the 19-story building will span 145,000 square feet, and include 33 units.

  • Worth Noting: Sigoura closed on the financing during the pandemic. 
  • Condo market has come to a halt: Only three luxury residences asking $4 million or more went into contract last week. Buyers have inked a mere 25 deals since the crisis started nine weeks ago, compared to 207 contracts during the same time span last year. 
  • Pre-covid market was already weak: Prices had been falling for several years at the high end, and it’s only a matter of time before developers at the top of the market capitulate on pricing. Important factors for how significant the decline will be include: The speed with which the city opens; the time-frame in which people in white-collar jobs are asked to return to their offices; the future of local shops, boutiques, and restaurants that make neighborhoods desirable; the strength of the stock market and U.S. economy; the date that a vaccine becomes available; and whether the shutdown pushes New Yorkers to live in the countryside, Bloomberg noted.

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