Rupert Murdoch is in contract to buy the penthouse (combined with one floor below)at One Madison Park for $57,25 million, the fabled building that was possibly the most famous victim of the 2008 GREAT RECESSION, bailed out by HFZ Capital and Related, and redesigned on the interior by Yabu Puschelberg. Murdoch is buying the place raw (did he not like the garish design we all saw rendered recently?) which certainly makes this the most expensive, record breaking sale Downtown. If you add a $ 1,200/sf finish out (conservative), this will be a $70 million quickly stripping Walker Tower of its record breaking title by almost 40% in just a few weeks after that $ 50m penthouse closed. To those who decry this level of excess, here are some benefits to the masses:
1) When this unit closes, combined transfer taxes (1.825%) will amount to roughly $ 1,044million.
2) Mansion taxes of approximately $ 570,000.00 will be collected.
3) I imagine the buyers broker (Deborah Grubman?)will collect $ 1,4m….of that about $ 1m will go to her and she will have to pay about $ 350,000 in taxes.
4) Who knows what capital gains taxes the developers will pay? Not sure about that.
5) When the place is decorated, imagine at least $12 million will be spent. The interior designer will get paid a hefty fee (and pay taxes), not to mention the many contractors and suppliers.
6) This purchase will probably result in at least 30 jobs for 12 months. Each one of these workers will not be collecting benefits from the government, and will consume with their earnings.
7) From here on out, this penthouse will generate approximately $ 120,000/year in real estate taxes once the tax abatement expires in about 4 years. And this penthouse probably has around $ 20,000/month common charges paid to the building.
8) After reading this list and you still don’t feel that good knowing that each time you read PAGE SIX, or watch American Idol you help Murdoch afford to buy apartments of this caliber, think about the moment when Mr. Eichner’s mega-tower goes up next door and that penthouse buyer looks down on this penthouse from several hundred feet above…..remember no-one in New York wins for long!
Add this all up, and it becomes apparent that while these excessive displays of wealth are somewhat exhausting to watch for some, they are also good for the economy at large.