Jeff Bezos Receives $ 80 Million "Contract" on New York Condos

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The purchase, which includes a penthouse and two apartments located below, is located in a renovated neo-Gothic building from 1912 that overlooks Madison Square Park.

The penthouse extends over 10,000 square feet on three floors with an additional 5,700 square feet of outdoor decks. It has five bedrooms, five bathrooms and three shower rooms.

The other two apartments were purchased together by Bezos in May for $ 28.45 million and it would not be surprising that they were combined with the penthouse to create an even bigger and more distinctive property, says Jonathan Miller, president of Miller Samuel, a real estate valuation firm that was not involved in the sale.

"In Manhattan, the bonus is given to large contiguous spaces," he says. "One plus one equals two and a half years, combining all three creates extra value."

But this is not the most expensive real estate sold in Manhattan. this year.

In January, billionaire hedge funds Ken Griffin closed a property sold for $ 238 million. The property located at 220 Central Park South, a nearly 24,000-square-foot multi-story apartment at the top of a tower, has become the most expensive home ever sold in the United States.

A privileged moment to buy

We do not know how much Bezos finally paid for the penthouse, as the purchase has not been publicly registered yet. But based on its latest catalog price – which was considerably lower than its original price – Bezos got a discount on the property, benefiting from a declining luxury market for new developments in New York, says Miller.

The penthouse was originally $ 73.8 million in November 2017, according to Miller. A year later, it was reduced to $ 62.8 million. Four months later, in March 2019, it was reduced to $ 58 million. Two months later, it was under contract.

"That's a 21% drop in asking price," Miller said, "I do not even think it could have been lower."

This reduction corresponds to the larger luxury market in New York.

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"We see reductions of 15% to 35% on these properties," he says.

Although the purchase came nearly four months after Amazon signed an agreement to build part of its new headquarters in Long Island City, Queens, Miller was not surprised by the Billionaire's purchase in New York.
"I was waiting for it," he says. "Even without Long Island City, Amazon (AMZN) always has a great presence here. And New York is a Mecca of commerce. It would seem strange that there is no presence here. "
According to the building's website, 212 Fifth Avenue includes a lounge, a conference room, a golf simulator, a projection room, a games room and a games room.

Although it is not clear whether Bezos will be able to receive drone deliveries on its expansive penthouse terrace, the building has a porter and a full-time cold store – for manage Amazon Fresh shipments.

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