Joan Rivers’ Luxurious UES Townhouse Lingers Unwanted on Manhattan’s Real Estate Market

Edited by: TJVNews.com

Even in the opulent landscape of Manhattan’s Upper East Side, some residences face a distinct lack of admiration. Such is the case with the palatial townhouse at 1 East 62nd Street, located just steps from Central Park, once owned by the iconic comedienne Joan Rivers, as was reported by the New York Post. Adorned with a boldly Baroque aesthetic reminiscent of Marie Antoinette’s era, the three-level, 11-room home has lingered on the market for an astonishing 919 days, defying the conventional pace of luxury real estate transactions in the bustling city.

Joan Rivers, who resided in the lavish penthouse until her death in 2014, claimed vehemently that her home was haunted by a malevolent spirit. According to the report in the Post, the distinct blend of historical grandeur and spectral tales may have contributed to the unique aura surrounding the property, making it stand out even in the realm of Manhattan’s upscale real estate.

The penthouse hit the market in 2021 with an initial asking price of $38 million. Despite its prime location and celebrity history, the property failed to attract a buyer, the Post report said. Even after a price reduction to $34.5 million, Rivers’ former residence continued to resist the allure of prospective owners. The estate eventually conceded defeat in November of the previous year, removing the home from the market and placing it among the enigmatic class of real estate’s living dead.

In the world of Manhattan real estate, the undead are not relegated to horror films. Instead, they take the form of luxurious homes, once vibrant and sought-after, now plagued by a malaise known as the “zombie-home apocalypse,” the Post report indicated. In the fourth quarter of 2023, the average time it took to sell a luxury home with a price tag of $5 million or more was 108 days, as reported by Douglas Elliman, according to the Post. Conversely, a “normal” home, priced below $5 million, was typically sold within 79 days or less in New York.

Real estate experts emphasize that properties lingering substantially longer than the average marketing times indicate a pricing problem. As was indicated in the Post report, Jonathan Miller, president of appraisal firm Miller Samuel, noted a significant disconnect between the sellers’ sky-high price expectations and the actual market conditions. The prolonged presence of such properties damages their perceived value, projecting an image of unrealistic expectations.

While some argue that waiting for an ideal price may be a viable strategy, others highlight the financial toll of such decisions. Jennifer Lenz, a broker who worked on selling Rivers’ home, suggested that waiting for the right price without resorting to price reductions can be a sound strategy for sellers with substantial financial resources, according to the information provided in the Post report. However, the carrying cost of Rivers’ former townhouse stands at $16,812 per month, resulting in a considerable financial burden for the estate.

Located a dozen blocks uptown, the co-op at 927 Fifth Avenue stands as a majestic residence with a notorious affliction. The Post reported that the ninth floor, a 14-room mansion boasting 55 feet of Central Park frontage, was once the home of society diamond dealer Harry Winston. However, since 2018, it has been undergoing a protracted demise marked by numerous price reductions.

Brokers reveal that beneath the surface, a myriad of issues lurks, threatening to keep this prime apartment in a perpetual coma. Renovation rules and approval costs present formidable obstacles, deterring potential buyers from investing in makeovers. As was noted in the Post report, the specter of ongoing construction next door fuels caution among buyers, and high-interest rates serve as a formidable barrier to transaction fluidity. Sometimes, even co-op boards can inadvertently sabotage their own properties, creating hurdles that lead to prolonged periods on the market.

Navigating the labyrinth of co-op regulations poses a unique set of challenges. The report in the Post said that broker Vickey Barron highlighted the difficulty of discerning the preferences of co-op boards, noting that securing approval can be an elusive task. Financial assessments often lead to unforeseen rejections, leaving both buyers and sellers disheartened. Even seemingly innocuous factors, such as pet ownership, can turn into deal-breakers. The Post reported add that co-op boards may scrutinize pets with an unexpected level of detail, causing rejections based on the board’s subjective preferences.

Broker Donna Oslan, president of Olshan Realty, proposed a straightforward remedy to end the zombie-home apocalypse: “Lower the price,” the Post report said. Regardless of the property’s age, location, or condition, Oslan asserts that the right price has the power to revive even the most ailing listings.

The affliction of zombie homes is not limited to historic Gilded Age buildings. Even the modern glass-coated supertalls of Midtown, exemplified by 53W53 next to the Museum of Modern Art, are not immune, according to the report in the Post. Rising 1,050 feet with an avant-garde design by Pritzker Prize-winning architect Jean Nouvel, 53W53 houses 161 condominiums. Despite its contemporary allure, the building faces challenges in the ever-evolving Manhattan real estate landscape.

Two notable examples of domiciles that won’t budge on the market are Penthouse 76 in an unnamed building launched in 2016 and the 42nd-to-43rd-floor penthouse at 50 United Nations Plaza, as was noted in the Post report. They shed light on the challenges faced by developers attempting to offload these coveted properties.

Since its debut in 2016, Penthouse 76 has become a symbol of endurance, not for its lavish amenities but for its inability to secure an owner. Developed by Pontiac Land Group and Hines, the penthouse has lingered on the market for a staggering eight years, with its journey beginning in September 2018. What sets this particular case apart is not just the remarkable duration but the unyielding asking price of $63.8 million, unmoved despite accumulating over $1.3 million in common charges, according to the report in the Post. The developers, Pontiac Land Group and Hines, have opted to remain silent on the matter.

Real estate expert Jonathan Miller suggests that the challenges lie in the developer’s constraints, often tied to the expectations set by lenders and the initial pricing structure. As was mentioned in the Post report, in the dynamic real estate landscape, what may have been a viable pricing strategy at the project’s inception may no longer align with the current market conditions. Lowering the price might require the developer to seek permission from lenders, introducing additional complexities into the already intricate dance of luxury real estate transactions.

The Foster + Partners-designed 50 United Nations Plaza faces a different yet equally intriguing challenge. Despite its allure and architectural prowess, the soaring 42nd-to-43rd-floor penthouse found itself on the market for a remarkable 1,320 days. The Post reported that Zeckendorf Development, facing the stark reality of an unsold crown jewel, resorted to an unconventional move: leasing the space to a renter. The six-bedroom, 9,704-square-foot residence, initially priced at $70 million, experienced a series of price cuts, ultimately reaching $39.95 million. The report in the Post added that faced with the pressure of prolonged vacancy, the developer opted to transform the unsold asset into a lucrative rental opportunity, asking $75,000 per month.

These tales of unsold luxury penthouses paint a vivid picture of the intricate dance between developers, market conditions, and the high-stakes world of high-end real estate. Whether caught in a pricing dilemma or forced to adapt to market shifts, these properties showcase the complexities and challenges inherent in the luxury real estate sphere. As the skyline continues to evolve, the fate of these penthouses serves as a testament to the delicate balance between prestige and practicality in the realm of elite living.