The Wall Street Journal reports today that Hans Smit, a legendary Columbia law professor, is holding firm in his efforts to sell his Manhattan home for $30 million. He turned down a $20 million dollar offer for the crib (pictured at left) which he acquired from Columbia University, in 1979, for $325,000. If he gets his thirty million, he’ll have reaped a delicious 16% annual return on his investment. If he ends up taking the chicken feed, he’ll be suffering with a mere 15% annual return. Either way, not bad for a pointy headed academic.
With similar luck, the NYU law faculty ought to be pretty darn comfy 29 years from now!
No wonder Hans Smit seemed rather self-satisfied back when he taught Civil Procedure to my class.
Did he plunk down the entire $325K at the purchase? Probably not, so his equity investment was even lower. Maybe more like a 20% return when you average it out. Pretty good!
Wow. I take it $325,000 was below market-rate for the house in 1979?