From the October issue: In August, art-world heavyweight Larry Gagosian paid $36.5 million for the Harkness Mansion, the Upper East Side spread that financier J. Christopher Flowers had bought for a record-breaking $53 million in 2006.
To some observers, the fate of the property illustrated the gulf between today’s residential market and the pre-crash boom. However, the art mogul’s purchase could also be a symbol for a longer-term trend affecting residential real estate: the gradual loosening of Wall Street’s grip on the city’s economy — and the growing number of New Yorkers working in education, health care, business services and creative fields.
“The first thing to understand is that this trend is several years in the making,” real estate consultant Nancy Packes said. “I do not think that this is a blip or an anomaly.” [more]
