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]

From left: Larry Gagosian, the Harkness Mansion and J. Christopher Flowers

High-profile art mogul Larry Gagosian has just closed on the Harkness Mansion, the more than 20,000-square-foot townhouse at 4 East 75th Street, for $36.5 million, the New York Post reported.

J. Christopher Flowers, the private equity magnate who, in 2006, logged the city’s priciest residential transaction ever with his $53 million purchase of the property, got serious about his search for a buyer for the townhouse in the wake of a separation from his wife last year.

In 2009, it was reported that Flowers, who had already put more than $4 million worth of renovations into the 114-year-old, 50-foot-wide mansion, wanted around $50 million for the home. Flowers bought the home from banking heir Jacqui Safra, who used to produce Woody Allen movies. [Post, 1st item]

J. Christopher Flowers, the private equity magnate who, in 2006, logged the city’s priciest residential transaction ever with his $53 million purchase of the Harkness Mansion at 4 East 75th Street, has gotten more serious in his search for buyers for the townhouse in the wake of a separation from his wife, according to the Wall Street Journal. Last year, it was reported that Flowers, who has already put more than $4 million worth of renovations into the 114-year-old, 50-foot-wide mansion, wants around $50 million for the home. But he may be unlikely to get even that, sources now say. Comments

From the October issue: The ranks of Manhattan’s super-high-end listings may have shrunk over
the past year, but the city still boasts a number of properties with
sales prices north of $30 million. It’s no surprise that few of these mega-listings have traded in the
last year, with the global financial crisis paralyzing potential
buyers. But now, very high-end listings are beginning to generate
interest again, albeit at smaller price tags. (Case in point: Madonna’s
new $32.5 million Upper East Side townhouse, originally listed for $42
million in October of 2008). This month, The Real Deal looked at five of the city’s
priciest listings — some new, others market fixtures — along with
other noteworthy properties generating buzz this fall.