The Plaza Hotel in New York may the canary in the gold mine for the over-reaching executives. Since they started selling condo’s in the building they have been snapped up as the glamour properties for some of America’s top executives.

Well, it seems things crash and burn around those business magnates that bought a condo at the Plaza Hotel in New York.

• James Cayne, Chairman of Bear Stearns, bought a unit. Now the  company is selling for pennies on the dollar and almost caused a worldwide financial crisis.
• Harry Macklowe, noted New York developer, bought a unit.  Now he is doing all he can to avoid losing all of his New York properties to repay a billion dollar loan.
• Now Luigi Zunino, head of  Risanamento SpA, is trying to flip his 10,000 square foot property in the Plaza. He is trying to make it look like he is selling for 100 million, but make him an offer. His stock is down almost 80 percent and he probably would listen to all offers.

It probably would be a good bet to bet against the early buyers at the Plaza if they are involved in real estate. They are the true optimists who are getting their brains beat in.

Mr. Zunino, chief executive of Milan-based property company Risanamento SpA, hasn’t yet closed on the third-floor apartment of 10,000 square feet, the people say. The agreed-upon purchase price couldn’t be learned, but Plaza condos have sold for $4,000 to more than $6,000 per square foot. A spokesman for Mr. Zunino confirmed the condo contract but declined to elaborate.

The storied 1907 Plaza Hotel has recently reopened as a mix of hotel and condo units. Owners include Bear Stearns Chairman James Cayne and developer Harry Macklowe, who bought an apartment for nearly $60 million last June. A $100 million price, or roughly $10,000 per square foot, would test the upper limits of Manhattan’s market. The residential record there is likely an apartment at The Pierre that sold for $8,000 per square foot, several brokers say. via the WSJ.com

Tags: Plaza+Hotel, New+York+Real+Estate

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