Above picture is Robert Lenox’s Farm dated 1810.
Do you REALLY think New York Real Estate is a good investment? Are you worried that you might be buying at the top of the market? Should you wait until the market softens a bit before buying?
Robert Lenox deed from 1810 purchasing 6 parcels of land on the Upper East Side of Manhattan
Trivia: There is ONE person who realized an even LARGER profit. Who was this Real Estate Maven? Where was his Property? What did he use it for? What was he THINKING?? Can we replicate that performance?
In 1818 Robert Lenox purchased 6 blocks bounded by East 74th street, Fifth Avenue, East 71st Street and Park Avenue for $500 ($7711 in 2015 dollars) to use as a Farm. His will specified his “firm persuasion” that the area would “at a No Distant Day be the site of a village” and encouraged his son James not to sell it.
James was not as astute and didn’t have as keen a real estate eye as his dad did. By the time of his death in 1880 James sold most of the land away.
Lennox purchased these lots as NYC was adopting its now famous street grid system which helped the city grow North from its crowded tenements south of Canal Street (back when it was a stream).
If you take only ONE of the 6 blocks Lennox purchased (Park Ave., 73, Madison, 72 Street) and calculate how much that is worth your jaw would drop. Those $500 would be worth $748,000,000! Yes, that is a 1,490,000 return on your money (as compared to 15.4 times for the CPI)!. And it would house some of the world’s most fashionable shops, famed streets and residential buildings in NYC.
Do i think someone can replicate this performance today? I don’t think so. Do I Think New York City Real Estate is a good investment? I think that if one is patient, conservatively leveraged and lucky one can make a killing in NYC real estate.