Wednesday, February 20, 2008

And Y'all Think Malee-boo Is Expensive?

Come on kids, let's take an imaginary ride on the defunct, too small to stand up in but still fabulous in theory Concord and hop across the pond to discuss some London real estate so expensive that it makes New York City's 15 Central Park West look like the damn ghetto. That's right kids, Your Mama is talking about the Richard Rogers designed residential project called One Hyde Park located in the natty and nabobish Knightsbridge area.

Now puppies, don't even bother to go looking for the website, because this particularly posh apartment block is so insanely expensive and exclusive that the website for the hyper-luxe project does not even allow the average millionaire to ogle and drool over pictures or floor plans. You gotta sign your shit up and request the information, and more than likely the sales people are going to Google your ass to try and figure out if you're at least as rich as the Pope before they start handing out you any information.

Last year, the not yet finished building that overlooks the 350-acre Hyde Park rocketed to real estate gossip fame when one of it's financial backers, a freakishly rich man known as Sheikh Hamad of Qatar, reportedly dropped a record breaking (and obscene) $192,000,000 to purchase one of the penthouse units that is said to measure around 20,000 square feet. That's right kids, $192,000,000

The Times Online, who have thoughtfully mentioned Your Mama and our little endeavor here several times in the past, recently posted an article about the current and exuberant sales numbers for One Hyde Park, and children, the numbers are staggering. So sit right down now and swallow yourself a big fat nerve pill cause you are gonna need one when you learn how much coin it takes to live up in One Hyde Park.

Although the building is not due to be completed until 2010, The Times reports that half of the 80 apartments have already been contracted for sale with an average apartment price of roughly $39,230,000. (Gasps and cries of the impoverished are heard around the world.) That number is so shocking and unbelievable that Your Mama is going to type that again...an average apartment price of roughly $39,230,000.

The Times goes on to report that only 14% of the contracted buyers are British, 11% come from Continental Europe, another 25% hail from the Middle East, and a whopping 39% have been bought by Russians, which makes sense because everyone knows the Russians have new money coming out of their Versace clad crappers.

The interiors of One Hyde Park are being worked over by the well publicized people at Candy & Candy and include marble work surfaces, wooden baths (huh?), and floor to ceiling refrigerators. The building itself will feature 24-hour hotel services for when the richie rich residents have an uncontrollable hankering for a milkshake and fois gras at 3:30am, a private underground tunnel to the nearby Mandarin Oriental Hotel, private elevators with new fangled eye scanner security, private underground parking, a panic room and bullet proof glass. Now kids, Your Mama can understand a panic room. We live in a dangerous world. However, there is simply no way Your Mama and the Dr. Cooter would ever fork over $40,000,000 to have neighbors hated enough by dangerous killers that they to want and require bullet proof windows in their home, you know what we're sayin'?

So next time y'all wanna bitch about what a cottage on Carbon Beach costs or the purchase price of a 6 floor townhouse in Manhattan, just try to remember that it ain't shit compared to what all the mega millionaires are paying to shack up at One Hyde Park.

Super Rich Snap Up Apartments... (Time Online)
One Hyde Park (Business Week)
Big Sales... (Luxist)

20 comments:

pch said...

Anyone know if these prices are for a leasehold or a freehold?

Your Mama said...

sorry baby, we forgot to include that bit of infro...it's freehold...at least the parcel the complex is being built on is freehold.

alex the sea turtle said...

I try to leave prejudices out of my head. But good lord the 40% rich russian thing makes me want to puke. I was in Italy last summer and the rich russians were running around with every damb label on thier clothes in shiny letters and climbing on ancient ruins. Oh my god they were fat, rude, and disgusting.

I would never consider living in a building made up of 40% rich russians.

With that said I live in Los Angeles around a very large russian population and I don't nearly the same distaste for the super rich currently living in russia russians that I have run into.

kai said...

Wow, this is crazy, especially when considering that this is likely not a primary residence for some. The concierge service sounds nice though! Still, I'd rather have an ocean or a fabulous yard for my $39+ million. Clearly I'm not a New Yorker, though I respect those that do love NY and its offerings.

Alex, what part of L.A. has such a large Russian population? I'm glad those aren't as flashy as the ones abroad because there are enough label-whoring foreigners adorning the streets already.

kai said...

Does anyone know how London real estate typically compares to NY prices?

Viva! said...

The buildings just aren't my thing. Great location, freehold...but for that kind of money you could have any townhouse in Belgravia, Mayfair or Chelsea that your heart desires (and then some!).

Jordy said...

absolutely crazy! location may be good, I was in London last week and must say Hyde park is really beautiful but still that much money, no way, even if I had the money to buy 3 of those apartments, waste of money if you ask me!

Anonymous said...

I would imagine the apartments are leasehold. Most new builds are usually on 999 year leases, in older parts ie: Belgravia, Knightsbridge, Kensington etc the leaseholds can be anywhere from a couple years to just over 100 generally & it costs a fortune to renew them AFTER paying a fortune for the apartment/house!

It is obscene, even for London but the worlds wealthiest people make London home. Forbes always states that N.Y has the most billionaires which is rubbish - when they counted London they missed out approx 12 London based billionaires - which made London top of the list - Think they forgot that if you have £500M you're a dollar billionaire!

But yes, London is filled with super rich Russians ... Most estate agencies [Real Estate offices] have Russian desks purely to deal with them. I think many people who bought here probably did so for the cache of owning in this building - especially Russians & Arabs who are more flashy than Europeans & Americans ... I also would imagine many value their security, a few of the billionaire Russians in London are anti-Putin & are just waiting to be murdered like the Litvinenko case of 2006 in London. Crazy! It's funny though, many European resorts are banning Russians - St Moritz in particular ... The ski resort of Courchevel in the French Alps has been totally wrecked by rich russians - It's horrendous & all the Europeans, especially French who have vacationed there for decades have stopped going ...

I would bet that the vast majority of homes at 1 Hyde Park are 2nd/3rd/4th + homes - The building, once completed will be so empty most of the time ... Parts of Central London like the squares in Belgravia, Knightsbridge etc.. are often in pure darkness - they're like ghost towns - due to residents always being at other homes ...

Anyway, may all change soon because the Government are in the process of changing the tax laws for non-doms [non-domiciles] ... If you are foreign born you can virtually live in the U.K tax free, hence, the amount of super-rich in our capital city. Makes a mockery of all the British born regular workers paying 40% income tax!

Parker said...

anon 4:04, thanks for the input. Very interesting. As for the 40% income tax vs. tax-free foreign born, I'd be inflamed as a taxpayer!!

so_chic_darling said...

The sales price per sq foot there is six thousand pounds,that's $12,000.In New York at the most expensive buildings like 15 Central Park West the price per sq foot is more like $3000.

Anonymous said...

Yeah Parker, I think it's infuriating for Brits but more precisely Londoners - They have the burden of high tax & national insurance, insane rent/mortgage, everyday living costs not to mention the $16/day to drive in Central London, soon to be $50/day if you have a large car/s.u.v ... $50 per day to drive your car! & the cost of fuel is 4 times the price I pay in Manhattan.

I just don't understand why anyone lives in London anymore, unless you're a foreigner with overseas income or work in the city & get your $2M xmas bonus it just makes no sense to live there.

bentley said...

Incredible post.

I'm reeling from the cost - obscene.

While I think the drive cost has some wrinkles that must be ironed out, it is a bold statement, environmental concerns notwithstanding, to reduce traffic in a city with an impressive subway system, and especially to preserve the architectural beauty and history of it's buildings. I hope it works out and others take note.

I, too, drive all over Manhattan.

sandpiper said...

This is a serious investment. I'm a bit of a duck out of water on the economics, but I'll stay tuned as this (plural?) monument progresses.

Anonymous said...

Bentley, you make some good points but the London congestion charge of $16/day has done absolutely nothing to help traffic. Traffic is going slower now than it did prior to the charge a few years ago [Take note Manhattan!]. The new $50/day charge for larger vehicles is an 'emissions charge' apparently - though it's going to cause so many court cases - especially considering the pollution of such cars is a tiny percentage ... It's just stupid! A few miles west you have the worlds busiest international airport for crying out loud!

Hopefully if they introduce a similar scheme in Manhattan it will be less strict. The funniest thing about the London charge is that out of all the worlds embassies in London, the U.S embassy is the only one that doesn't pay the charge ... They have multi-million pounds worth of charges dating back the past few years ... Which is scandalous considering the worlds poorest countries pay the charge, yet the worlds richest think they're above it.

lucy said...

That's the thing about new money....it always feels it has something to prove.

Bulletproof glass. What an amenity.

Anonymous said...

The privatization of all Russia's state resources into private hands has been mind-boggling. Whoever was in a position to do so has been grabbing assets left and right. Corruption is rampant. Individuals are getting ridiculously wealthy while the Russian government gets poorer and poorer.
At some point, we should see some attempt to stem the tide of the corruption that's creating this vast and obscene wealth - but with all of the rich in positions of power, how would they do this? Wonder if they're trying for the "trickle down effect" economy, hoping that all of this wealth will be spent and benefit the middle and lower classes. Of course, if the Uber rich are spending it internationally, that doesn't really help the finances at home ... It'll be really interesting to see how this develops over the next few decades. I think they're just grabbing as much as they possibly can while they can. And of course, the effect on real estate sales elsewhere is also interesting. The Russians are buying things like crazy in San Francisco, too.

Anonymous said...

The rich are not only different, they're stupid too.

Anonymous said...

I don't believe in the trickle down effect of the wealthy. Money remains constipated with the rich.

Anonymous said...

We need some of those rich Russians to come to L.A. and start buying houses!!!!

The building will have it's own security......and then all the billionaires living their will likely have their own guards. Imagine how many armed people will be walking around there.

Anonymous said...

This is only the tip of the iceberg, these guys are still buying at a tremendous rate, and they are coming to a state near you - Yes they have an office in Beverley Hills, so i bet your bottom dollar things will get more exciting your side of the atlantic, in the not too distant future.