$2.5M price tag on Detroit mansion an eye-opener

DetroitDad · February-06-11, 07:00 AM

http://www.detnews.com/article/20110206/OPINION03/102060307/$2.5M-price-tag-on-Detroit-mansion-an-eye-opener

From the inside, you can see why. You can see the 14-foot ceilings and the hardwood and the love.

From the outside, from the places where logic and reality take over, all you can see is the price tag. It's hanging from a turret, blinking in imaginary red neon: $2.5 million.

In Brush Park. In Detroit. Walking distance from Ford Field and Greektown and, in other directions, probably some places where you'd want to watch your step.
Ten bedrooms, 11½ bathrooms, 135 years of history.

$2.5 million.
That's the asking price, anyway. Whether Ghassan Yazbeck and Marilyn Nash-Yazbeck can get it, or get any offers worth considering, remains to be seen.
They bought the 11,000-square-foot Victorian mansion in 1986, when it was a former low-rent boarding house and they were engaged. Now it's a showplace and they're divorced.

That's part of the problem. They're selling it as a single-family home, but they ran the Inn at 97 Winder as a luxurious bed and breakfast, and that was tough enough when they were united. These days Ghassan is in New York studying design, and Marilyn's putting in 60-hour weeks at her pharmacy on the east side.

"If I made the same effort here," says Nash-Yazbeck, 57, and if she did some advertising and marketing, things might be different. But when her cell phone rings as she's sitting in the front parlor, and a man coming to Detroit for an estate sale wants to book a room for the weekend, she has to turn him down. She'll be filling prescriptions.

"When I come in, even now, I get a charge," she says. She remembers what it was and loves what it is and imagines what it could be.

What can you get for $2.5 million in Detroit? Entire blocks, in a lot of areas. In others, entire square miles.

Nash-Yazbeck will sell you a house — and a dream.
Hard work is done

John Harvey — a pharmacist, like the Yazbecks — built the house in 1876. French mansard roof, gables, bay windows, mahogany and maple floors.
By the 1930s, it was a rooming house. When the Yazbecks saw it on a real estate agent's bus tour, it was a dump: 20-plus bedrooms, 1½ bathrooms, a place for hard-luck tenants getting by with a sink and a hot plate.
Between the renovation and the decoration, Nash-Yazbeck says they've put more than $1 million into the building. The results say it was money spent well, but that doesn't necessarily mean wisely.

A seven-bedroom Tudor in Indian Village, about the same size as 97 Winder St., recently sold for $675,000. "You can go to Palmer Woods and be on Fairway Drive for $500,000," points out Lisa Debs, owner of Suite Properties realty in Detroit. "I could see somebody paying $1.5 million to use it as a business, but I don't think anybody would pay that much to live there."

If the Yazbecks hadn't been optimists, though, they wouldn't have bought it, not even for the $50,000 they parceled out on a land contract. They'll take the furniture and artworks when they go, but they'll leave behind two mammoth water heaters, half a dozen furnaces, lavish window treatments and a chandelier in every room.

$2.5 million. Maybe it'll be a law office, Nash-Yazbeck says, or a hotel annex. Maybe movie companies will lease it for their actors.
The hard work is done. All it takes now is vision and …$2.5 million? That's vision, and a mansion full of faith

From The Detroit News: http://detnews.com/article/20110206/OPINION03/102060307/$2.5M-price-tag-on-Detroit-mansion-an-eye-opener#ixzz1YfP2UIqY

**Magnatomicflux** · February-06-11, 07:22 AM

Wow....that thing is beautiful!

Would anyone here buy it? .....supposin' you had won a 50M lotto or something?

I would!

**mwilbert** · February-06-11, 08:15 AM

A real estate agent who thinks Fairway Drive is in Palmer Woods isn't an agent I'd want to use, but I have to agree with her. This is an extremely nice house but there are a lot of other very nice houses available. The former Berry Gordy house is listed at around $1.2M, and I'd like that better because of the grounds. You could buy 1089 Iroquois, which has a beautiful interior [[although the outside is a bit clunky) for 1/10th the price.

Someday Brush Park will probably be a premium location, but I don't see that it really is yet.

**Pam** · February-06-11, 09:07 AM

They're selling it as a single-family home

That makes no sense. Who needs 11 1/2 bathrooms? It's going to have to continue as an inn of some kind.

**mwilbert** · February-06-11, 09:41 AM

Who needs 11 1/2 bathrooms?

Maybe someone with an extended family. It would help fill up all those bedrooms as well.

**davewindsor** · February-06-11, 10:30 AM

Originally Posted by DetroitDad

http://www.detnews.com/article/20110206/OPINION03/102060307/$2.5M-price-tag-on-Detroit-mansion-an-eye-opener

Hmm, it's surrounded by newer brick and aluminum clad condos that are listed for $84K http://www.trulia.com/property/10824...troit-MI-48201

They bought it for $50K as a low income rooming house. Put a mil. into it, and now want $2.5m?

How do they justify asking for that kind of money?

The neighbourhood doesn't support that price, the numbers don't support it, and a vacant building isn't going to show the kind of income financials to justify that price.

I'd like to see how quickly the bank manager laughs and kicks them out the bank the moment someone ask them for a mortgage on it based on that kind of fairytale value..

**One Shot** · February-06-11, 01:41 PM

Nucking Futs.
Maybe if the furniture was included. Maybe.
Sounds like a good pharmacist to know...

**iheartthed** · February-06-11, 02:37 PM

Originally Posted by Pam

That makes no sense. Who needs 11 1/2 bathrooms? It's going to have to continue as an inn of some kind.

Do the zoning laws in that area allow an inn to operate on that lot? Reading between the lines, I suspect that they don't.

**Pam** · February-06-11, 02:41 PM

Originally Posted by iheartthed

Do the zoning laws in that area allow an inn to operate on that lot? Reading between the lines, I suspect that they don't.

They've been operating as an inn since 2005 I think.

**iheartthed** · February-06-11, 02:47 PM

Originally Posted by davewindsor

Hmm, it's surrounded by newer brick and aluminum clad condos that are listed for $84K http://www.trulia.com/property/10824...troit-MI-48201

They bought it for $50K as a low income rooming house. Put a mil. into it, and now want $2.5m?

How do they justify asking for that kind of money?

The neighbourhood doesn't support that price, the numbers don't support it, and a vacant building isn't going to show the kind of income financials to justify that price.

I'd like to see how quickly the bank manager laughs and kicks them out the bank the moment someone ask them for a mortgage on it based on that kind of fairytale value..

Not sure why you're comparing the prices of condos to the price of this entire building... But on an apples to apples comparison, they are selling the mansion at $227/square foot, and the condo you linked is selling for $96/ square foot. There is still a big difference, but it doesn't look as ridiculous as comparing an asking price of $85K to one of $2.5M.

**PaulieG63** · February-06-11, 02:48 PM

Personally, if I had the means, I'd purchase the former Woodbridge Star B&B and save $2.3 million in the process.

http://www.realtor.com/realestateand...8_M46986-81478

Paul

**Caseyc** · February-06-11, 03:41 PM

Those people have clearly lost all discernible touch with reality. Take a look at these listings here in just one urban neighborhood in Cincinnati--historic and restored neighborhood, walking distance to historic neighborhood retail strip with art galleries, a few bar/restaurants and coffee shop, 2 short miles from a thriving and resurgent downtown, and many of these have hilltop river views. Nothing over $1.75MM. This first one is 156 years old.

http://www.sibcycline.com/scmp.asp?s...AdvancedSearch

People need some perspective.

**mwilbert** · February-06-11, 03:47 PM

That search doesn't return anything. Also, comparing prices between cities doesn't make much sense. If you want to live in Detroit, it doesn't matter what stuff costs in Cincinnati, or vice-versa.

**Caseyc** · February-06-11, 04:07 PM

Originally Posted by mwilbert

That search doesn't return anything. Also, comparing prices between cities doesn't make much sense. If you want to live in Detroit, it doesn't matter what stuff costs in Cincinnati, or vice-versa.

The comparison makes sense as far as perspective is concerned. You would benefit from seeing what is going on in other Midwestern cities for comparison purposes. Ignorance is clearly not bliss. Point is there is nothing higher than 1.75MM on the list, so $2.5MM in Brush Park is clearly out of touch with reality.. Here are the top 3.

http://www.sibcycline.com/viewlistin...Hills-OH-45206

http://www.sibcycline.com/viewlistin...Hills-OH-45206

http://www.sibcycline.com/viewlistin...Hills-OH-45206

**Richard** · February-06-11, 08:37 PM

unless they are trying to sell it as a business which usually uses a 3 year? gross to find value.
@96 per SFT the house would be $1,056,000 and the business, so the business is worth $1,444,000 or is making $482,000 per year? If they could prove that it was generating that amount then I guess it would be worth it as a business verses a private residence.

**davewindsor** · February-06-11, 08:59 PM

Originally Posted by iheartthed

Not sure why you're comparing the prices of condos to the price of this entire building... But on an apples to apples comparison, they are selling the mansion at $227/square foot, and the condo you linked is selling for $96/ square foot. There is still a big difference, but it doesn't look as ridiculous as comparing an asking price of $85K to one of $2.5M.

I think you missed my point.

You can't compare square feet of a mansion to square feet of a new condo complex. These are apples to oranges comparisons. The condos are worth more per square feet because they are new and they were approved with zoning for a plan of condo subdivision. Wood frame vs. condo construction is different. The condos have elevators. The layouts are different. Old buildings cost a lot more to maintain and, thus, worth less from a banker's perspective. A square footage comparison to the condos is ridiculous.

My point is that a mansion in a neighbourhood of which the property is surrounded by $85K condos is worth a lot less than mansions in a neighbourhood of mansions. A mansion this size is worth a lot more in Indian Village because it's surrounded by other large mansions, not $85K condos. You have much higher calibre residents in Indian Village. I'm not even sure if you turn a mansion in Indian Village into a multi-res. because of the zoning. In fact, it doesn't look like there are a lot of zoning restrictions in Brush Park. Yet, they want more than a similar sized mansion in Indian Village, which is ridiculous.

NorthEndere · February-06-11, 11:19 PM

Hey, they got some free press, which I'm sure is what this column was all about to begin with. They know as well as anyone having lived in this city for years that they aren't getting anywhere close to $2.5 million, but, now they have a spotlight on the place.

**Rocko** · February-07-11, 12:44 AM

http://cmsimg.detnews.com/apps/pbcsi...ofile=1409.jpg

I love Brush Park. I really hope we don't lose any more of what is left of the historic fabric that really characterizes this neighborhood.

**leland_palmer** · February-07-11, 01:01 AM

Originally Posted by iheartthed

Do the zoning laws in that area allow an inn to operate on that lot? Reading between the lines, I suspect that they don't.

That was the first of two B&Bs to open on Winder [[The other being the 234 Winder St Inn.) I'm sure the city was aware of their presence.

**motivedetroit** · February-07-11, 08:31 AM

It looks as though it's many years as boarding house took it's toll. Not a lot of crown moldings...and Italianate style homes like this would have had massive, elaborate ones. No overmantles either. If the interior were more intact I could see a bit more...but this price tag is WAY out reality.

**iheartthed** · February-07-11, 08:35 AM

Originally Posted by davewindsor

I think you missed my point.

You can't compare square feet of a mansion to square feet of a new condo complex. These are apples to oranges comparisons. The condos are worth more per square feet because they are new and they were approved with zoning for a plan of condo subdivision. Wood frame vs. condo construction is different. The condos have elevators. The layouts are different. Old buildings cost a lot more to maintain and, thus, worth less from a banker's perspective. A square footage comparison to the condos is ridiculous.

My point is that a mansion in a neighbourhood of which the property is surrounded by $85K condos is worth a lot less than mansions in a neighbourhood of mansions. A mansion this size is worth a lot more in Indian Village because it's surrounded by other large mansions, not $85K condos. You have much higher calibre residents in Indian Village. I'm not even sure if you turn a mansion in Indian Village into a multi-res. because of the zoning. In fact, it doesn't look like there are a lot of zoning restrictions in Brush Park. Yet, they want more than a similar sized mansion in Indian Village, which is ridiculous.

If the price per square foot in Brush Park is on average more than the price per square foot in Indian Village, then a mansion in Brush Park will cost more than a mansion in Indian Village. It doesn't have much of anything to do with whether there are other mansions in the area. A mansion in Manhattan will cost more than a similar sized mansion on the North Shore of Long Island, even though there are a lot more mansions on the North Shore.

**Detroit2MeetU** · February-07-11, 08:41 AM

Originally Posted by Richard

unless they are trying to sell it as a business which usually uses a 3 year? gross to find value.
@96 per SFT the house would be $1,056,000 and the business, so the business is worth $1,444,000 or is making $482,000 per year? If they could prove that it was generating that amount then I guess it would be worth it as a business verses a private residence.

Very good point. The bed and breakfast could have relationships with businesses that send their workers to stay there while traveling and not to forget the location to Ford Field and Comerica Park for out of town sports fans.

**iheartthed** · February-07-11, 10:19 AM

Originally Posted by leland_palmer

That was the first of two B&Bs to open on Winder [[The other being the 234 Winder St Inn.) I'm sure the city was aware of their presence.

The city may have been "aware", but if the area isn't zoned properly for that type of business then a potential buyer might not be eligible for a commercial mortgage to purchase the property.