Toll Brothers Has a Secret

A few blocks away from Northside, Toll's North 8 project has sold out of its one- and two-bedroom units, which all have water views. That project opened for sale in October.

Still for sale are six two-bedrooms, whose windows face North 8th Street and mostly offer no views of Manhattan. Five duplex townhouses, listed at around $1.2 million each, also are still on the market. The company says there have been zero cancellations and no incentives offered to buyers at either project.

The two Brooklyn projects represent a small piece of Toll's overall business. But the company's management has said in recent months that the New York City region -- and the developments specifically -- is the one bright spot in an ugly national housing market.

Across the country, builders are cutting prices and facing pressure on profit margins in order to sell homes. Last month, Toll withdrew its full-year earnings guidance amid ongoing weakness in the real estate market.

In a recent research note, Bank of America analyst Daniel Oppenheim said Toll would need to cut prices and offer more discounts across its portfolio to reach management's revenue forecast of $4.26 billion to $4.88 billion in 2007.

Room Without a View

Much of the discrepancy in pricing at Northside Piers has to do with views. The site is billed as a waterfront destination, but a good chunk of the water-facing side of the first tower won't see the Manhattan skyline. Instead, the view will be of neighboring new buildings.