With the city’s real estate market so hot several years ago, it took a big dose of ineptitude or just plain bad judgment to build a residential building that turned out to be a bomb.

That’s the case so far, real estate agents say, with a well-publicized 27-story building located on Third Avenue at 205 E. 59th St., directly across the street from Bloomingdale’s.

From the outset, prior to its debut in early 2004, the concept – bringing SoHo living to Manhattan’s Upper East Side in the form of high-ceiling, loft-type luxury condominiums – had all the earmarks of a sure-fire moneymaker.

Instead, just the opposite is the case, what with the building, as a business venture, being looked upon in some real estate circles as the house of horror on 59th Street.

Developed by Manhattan Skyline, a Big Apple builder run by the father and daughter team of Donald and Laurie Zucker that owns some 6,000 city rental units, the East Side building features 62 pricey loft-type condominium apartments.

Originally offered for sale in February 2004, prices start at $1.47 million for a one-bedroom apartment, $1.74 million for two bedrooms and $3.02 million for three bedrooms. There is a $10 million penthouse.

More than two years later, it’s hard to imagine that only 30 units, less than 50%, have been sold in what has been the biggest bull market in the history of New York city real estate. What’s more, the penthouse was recently put up for rent, leading to speculation that other unsold units may follow suit.

Further, one of the city’s foremost real estate sales and marketing organizations, the Sunshine Group, had handled the building, but it has been replaced by another marketing firm, Cantor & Pecorella.

In mid-July 2004, the president of the Sunshine Group, Louise Sunshine, told me the loft concept could be a developing trend in upper Manhattan and predicted an early sellout of the condominiums in the 59th Street building. She could not be reached for comment on her forecast.

Two veteran brokers who have shown 10 potential buyers apartments in the building tell me the response from their clients is 100% unfavorable.

A senior vice president of Bellmarc Realty, Deanne Esses, said she has taken four clients to the building and found absolutely no interest. “It’s what you call a mistake and a real dog,” she said. “The living space is too small, the apartments are overpriced for what you get, and the location is noisy and honky tonk,” with a lot of street peddlers, low-end stores, and heavy traffic (people and cars and trucks). She thinks price reductions, probably of about 20%, will be required to sell the apartments.

One leading broker, Elayne Reimer of Coldwell Banker – she sold the apartment Mayor Giuliani occupied when he wasn’t residing at Gracie Mansion during his marital woes – also takes a dim view of the building. “I showed apartments to six clients, but I’ve stopped doing that,” she said, “because nobody likes them.”

Why not? “Because,” she said, “they’re overpriced, the views are terrible, and the entrance looks weird and has no cache.” The entrance is sandwiched between a defunct Dunkin’ Donuts store and a small Chinese restaurant. Describing the apartments as “a very tough sell,” Ms. Reimer, like Ms. Esses, said she thinks it’s only a matter of time before prices come down.

What does Manhattan Skyline have to say? The Zuckers were said to be traveling and the developer’s president, Bob Esnard, didn’t respond to calls seeking comment.

Meanwhile, the rental for the 27th floor eight-room penthouse runs at $40,000 a month. Granted, few apartment hunters can afford a $480,000 a year rental, but a broker at Warburg Realty who is handling the 3-bedroom unit, Robert Schulman, suggests the Zuckers are willing to deal. “There is some room for negotiations,” he said. Likewise, there is no commission for the renter, which, based on the usual broker’s fee of 15% of the first year’s rental, is a savings of $60,000. The Zuckers will pay the broker.

Other features offered for $40,000 a month include a fireplace; a built-in washer and dryer; a granite chef’s kitchen; wide-plank teak floors; marble baths; floor-to-ceiling river, bridge, and city vistas; a fitness center, and a secluded puppy park in the building. Sorry, but there’s no indoor parking; that would have raised the price even more, a spokeswoman said. Likewise, no birds or reptiles are permitted unless they are first interviewed and approved by the board.

If the building interests you and a “honky tonk” environment is your cup of tea but the penthouse rental is too rich for your blood, good news: A couple of two-bedroom apartments are available for rent at $10,000 and $12,000 a month.