Last summer, Bezos purchased a penthouse and two apartments below it in a renovated 1912 neo-Gothic building that overlooks Madison Square Park.
At $16 million, Bezos paid well over market rate for the 3,000 square foot apartment with three bedrooms and three and a half baths that is a floor below the others he already owns. The price represents a 43% premium over the $11.25 million the apartment sold for in 2018.
That premium is due to the added value of acquiring contiguous properties within a building in Manhattan, said Jonathan Miller, president of Miller Samuel, a real estate appraisal firm that was not involved in the sale.
“One plus one equals two and a half,” he said. “You’re overpaying for a standalone apartment, but it is logical in the world of taking large apartments and creating even larger homes.”
Still, Miller said, the premium is on the high side.
“Generally, we see a 20% to 30% premium in this echelon,” he said. “But this isn’t a record, we’ve seen 100% premiums.”
Miller says it is better to acquire contiguous properties sooner than later, if you’re building a dream home.
“The people there haven’t been there for 20 years,” he said, meaning they may be more likely to sell.
The sale was fairly swift, according to real estate documents, with a contract signed on February 25 and the sale finalized April 7.
“Right now the average time between a contract and closing in New York is about 90 days,” Miller said.
Representatives for Bezos did not return requests for comment.