While traveling on the East Coast last week probably one of the most intriguing bargains in the real estate market sold and closed at $75 per square foot! Yes $75 PSF Finished. While many may assume the house is a wreck or was sold for land value or is inhabitable; all such assumptions are incorrect.
Actually the home located at 50 Poplar Drive, Farmington, CT is a bit gaudy for my personal tastes however the home does offer 21 bedrooms and 35 bathrooms, as well as a movie theater, gym, indoor pool and basketball court. The strip club room complete with stage and stripper poles may have alienated some prospective buyers yet one can always renovate. The location; while located in Connecticut, away from the popular commuter rail lines and inland thus no water views.
Now for the history. The home was once owned by boxer Mike Tyson (who tried to sell the home for $22M in 1997). In 2003 as the national economy was heating up, rapper and entertainer 50 Cent paid $4.1M to Mike Tyson to take the mansion off his hands. Then 50 Cent invested millions into the house concerning renovations.
The real estate market has not been kind to 50 Cent. He first listed the home in 2007 at the height of the real estate boom, one year prior to the Lehman Brothers implosion and the start of the world-wide recession. The downward price adjustments continued soon after:
- Initial Ask – 2007: $18,700,000
- 7/2009: $10,900,000
- 1/2011: $9,999,999
- 10/2015: $8,500,000
- 7/2016: $5,995,000
- 12/2017: $4,995,000
- 3/2019: SOLD for $3,900,000 or $75 PSF
In general the larger the home and cost the fewer prospective buyers. Within Denver the largest most luxurious homes usually sell for less on a per square foot basis than smaller homes on the same block or neighborhood. While the average home in the United States has steadily increased in size, there is a limit.
While anomolies include the blockbuster sale at 220 Central Park South in New York or the Hongtian Chen residence purchased for $270,000,000 USD in Hong Kong; most real estate experts agree bigger is not always better and the larger the home and pricing and more finite the market. BTW: the Central Park South and Gough Hill Road (where a nice rental is available) homes are priced beyond traditional jumbo mortgage options.