A six-story townhouse on Manhattan's Upper East Side is being sold for $8.995 million, representing a loss of approximately $7 million for its owner. The seller purchased the property at 238 1/2 E. 83rd St. in January 2013 for $2.6 million and subsequently invested $13.6 million in extensive renovations.

The total investment of over $16 million is now listed at just under $9 million, a move described by co-listing agent Maggie Peters of Brown Harris Stevens as a "vanity project" where the owner "did it knowing full well he likely wouldn’t get [his money] out."

Property Details and Renovation

The townhouse, measuring just 14 feet wide, spans 4,400 square feet. The renovation transformed the building from a two-family dwelling into a single-family home. It now features three to four bedrooms, five bathrooms, and three powder rooms. The ground floor includes a separate apartment with its own entrance.

Enhancements included adding three stories, creating six outdoor spaces, and installing new mechanical systems, a custom-made marble floor, mahogany panels, an elevator, central air, and a sophisticated security system. Peters noted that the house is "a bit of an anomaly on the block."

Design and Layout Challenges

Co-listing broker Barbara Fox of BHS pointed to the property's narrow width and its location between Second and Third Avenues as factors contributing to the significant price reduction. The block includes a psychic, a copy store, an auto repair shop, and other residential buildings.

Inside, the custom layout has presented staging challenges. The stoop-level foyer features a distinctive patterned inlaid marble floor, which some potential buyers have found "too visually busy." The layout lacks a formal dining room. A room on the second level, originally configured as a media or "man cave" space with reclining chairs, was restaged as a living room. This level also features a copper-top bar, a fireplace, a TV, a powder room, and a terrace.

Other features include:

  • A large eat-in kitchen with a wall of windows and a balcony overlooking a garden.
  • Two bedrooms and two marble bathrooms on the third level, along with a laundry room.
  • A double-height primary bedroom suite on the fourth level with a floor-to-ceiling cathedral window, a private balcony, a walk-in closet, and a large bathroom.
  • A fully equipped gym and a balcony office with a built-in desk and storage on the fifth level, plus a marble bath.
  • Two large roof decks on the sixth level, one with a fully equipped kitchen and dining area, and another for sunbathing.
  • A finished basement with a wine storage unit, laundry equipment, and a dog-washing sink.

Despite the extensive upgrades, the seller's loss is being framed as an opportunity for buyers. "Anybody who’s buying it is getting an incredible bang for their buck," Peters stated.