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NOV
22
Ultimate Irony: AIG Office to Be Converted to Condos
By John Askins



The New York headquarters of troubled insurer American International Group (AIG) is being converted into luxury condominiums and the irony is not missed by many in the industry.  The offices of a company credited with aiding the housing collapse is soon to be converted into just that.

In a research note, Fox-Pitt Kelton real estate analyst Robert Stevenson calculates the profitability of the transaction for developer Young Woo.

Woo bought the building from AIG in May for $150 million, which is a per-square-foot cost of $105. Woo plans to sell the units for $2,000 a square foot, a price that Stevenson says is unrealistic.

But even if the sales price is half that—$1,000 a square foot—Woo would make a profit of $500-a-square-foot per unit or an average of $600,000 on each condo.

Source: The Wall Street Journal
Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

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John Askins

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Welcome to Royce Realty, your source for Houston and Texas real estate. If you own property that you are thinking of selling I would be happy to provide you with a FREE Home Evaluation. If you are buyer, in this competitive real estate market, timing is everything. Many good homes are sold before...
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