Diplomat Row's Beekman Place Townhouses Fall Out of Favor with Wealthy Buyers and Foreign Governments

Once highly sought after by the wealthy elite and foreign governments, the historic townhouses on Beekman Place in Manhattan's affluent Diplomat Row are now struggling to attract buyers and tenants.

The recent sale of 21 Beekman Place, a 10-story townhouse with a prestigious history, for just $14.5 million is a far cry from its original $25 million asking price when it was first listed in 2018. The property, owned by the estate of the late philanthropist David Rockefeller, was previously used as the residence of the British Consulate General.

The decline in demand for these exclusive townhouses is attributed to a number of factors, including the changing tastes of wealthy buyers and the increasing regulations and restrictions put in place by the city. "People are finding other places to invest their money," says Compass broker Leonard Steinberg. "New York is not the only playground anymore."

Additionally, foreign governments, who once eagerly purchased these townhouses as diplomatic residences, are now facing tighter restrictions and scrutiny from the State Department, making it more challenging for them to acquire these properties.

"We're seeing a real shift in the market for these townhouses," says real estate attorney Stuart Saft. "They were once highly coveted by foreign governments, but now there are more restrictions and it's not as easy to just buy them up."

Despite the decline in demand, developers are still attempting to capitalize on the prestige and exclusivity of Beekman Place. The recent sale of 21 Beekman Place is just one of several townhouse transactions in the area in the past year