Re-Sale at The Ritz

By John B. Turiano

Want to live at The Residences at the glitzy Ritz Carlton, Westchester? At least three apartment owners who thought they did—now want out.

Take the couple, which owns apartment 15A in South Tower. They work in the county but live in a house by the water in the Bronx. After closing on the two bedroom, two-and-a-half bath unit in December, they "decided they wanted to stay in their house after all, according to Christine Hazelton of Prudential Rand, the agent for 15A. “This is a resale that’s like new," Hazelton says. "The owners never lived in it."

Perhaps. But why then was it reduced last week from $1,199,000 to $1,149,000?

John Sauro, president of Northatlanticmortgage.com in Stamford, Connecticut, says a high-rise condo resale may take a little longer to sell if there’s similarly-priced construction right next door. Next door is North Tower at The Residences, which is expected to be completed sometime this summer.

Greg Rand, managing partner of Prudential Rand Realty in White Plains, declares: "If priced under the new construction market, resale condos should sell."

Another unit, 12E, a 1,664-square-foot corner apartment with two bedrooms and two and one half baths, was listed at $1,140,000. A different case than unit 15A, the owner of 12E bought it as an investment to rent or sell. It was on the market since October 31, 2007, just having been rented this week. "Buyers coming from Armonk, Chappaqua, Scarsdale, and other local communities are selling their large homes and want to downsize in an upscale way—taking advantage of the Ritz-Carlton lifestyle,” says Janet Ferrante, agent at Sotheby's International Realty in Armonk. “Manhattan professionals comparing the same square footage and amenities in a Manhattan high rise will pay considerably less per square foot at the Ritz-Carlton, White Plains.”

According to Hazelton, the real estate market is not bad in the county but when talking about a concentrated market such as condos that are between one and two million, there’s currently more supply than demand. Unit 15A is also available to rent for $5,700/month.

"In nearby Trump Tower," says Hazelton, "an equivalent-sized unit would go for about $7,000 month. The owners are motivated."

And they may have to be if they want to sell their unit anytime soon.

Sauro says that tougher lending guidelines have slowed down the market and there may be some seller-waiting going into the spring. "While property values in wealthier areas like Westchester are perhaps somewhat immune to a declining real estate market," he explains, "affluent buyers, like those that might purchase at The Residences, are not immune to the banks’ ever-changing lending guidelines and what it takes to qualify for a mortgage. Since the credit crunch that started last August, guideline changes on mortgages have slowed down the lending process. There are fewer mortgage programs available that allow for no income verification—and wealthy people hate to give out their income. And banks require more money down than in past and require higher credit scores. The bottom line is potential buyers may sit on the sidelines for a while."

Jessica Rohm, managing director of sales and marketing for Cappelli Enterprises, isn’t worried about selling at The Residences. "Since September 2007, after the subprime crisis in August, people are more cautious. They now come in three or four times to look. But in the end, they still buy."