Alchemy head says concessions are old news

July 26, 2010 09:00AM

Concessions for condo buyers are largely a thing of the past for
Alchemy Properties, founder and president Kenneth Horn told the New
York Times. At 462 West 58th Street, for example, the company is now
shaving just 1 to 2 percent off its condominium asking prices, down
from between 12 and 14 percent last October, he said. Transfer and
mansion taxes are still going on Alchemy’s tab, though. Horn, who is
also set to complete the eco-friendly Griffin Court condo in Midtown
West this month, went on to explain that building green is ideal but
not always practical for a smaller developer. “The problem is it’s
expensive to apply for LEED certification — I think it was like a
quarter of a million dollars,” he said. “In a larger building, the
economies of scale work, but in a smaller building, when you’re a small
developer, it hurts.” Griffin Court, which sits around a
9,000-square-foot courtyard, has about four or five contracts signed
and six or seven in negotiation, he said. [NYT]