Motoko Rich’s article Rocking the House to Sell Condos [NYT] explores marketing efforts by The Corcoran Group on behalf of Extell and The Shvo Group on behalf of Leviev Boymelgreen.
For the Avery “Extell is spending more than $500,000 to inaugurate the sale of apartments in the building, due to be completed in the fall of 2007, with a party next Thursday on a strip of grass next to its construction site. Seal will perform there under a tent designed to hold 800 people.”
Disclaimer: I don’t claim to know much about marketing real estate and I don’t do it for a living. I can only offer a layman’s everyday interpretation:
Lavish spending on an opening launch shows weakness.
Potential buyers might be thinking that they are paying for this.
It doesn’t attract buyers, just media coverage.
It smacks of investor speculation seen in other investor-heavy markets like Miami.
Seal? What about Led Zeppelin? 😉
For 20 Pine Street, Boymelgreen will about $200,000 on the part that is partly a benefit for the New York Academy of Art.
It will attract people that are interested in the arts but how does that translate into sales?
How is this a different approach than an open house?
How do I get invited? 😉
At the end of the day, I am sure these efforts will move units and generate interest, after all, these are significant marketing efforts and there is a lot of talent and experience found in these real estate consultant/broker firms.
I am only wary of the message it sends to the market: weakness…which is exactly what these efforts are intended to counteract.