The Real Deal New York

HFZ not shooting for the moon at High Line megaproject

"I don't want to be hostage to a $10M to $20M condo market": Ziel Feldman

May 21, 2015 03:25PM

518 West 18th Street

From left: Ziel Feldman, 518 West 18th Street in Chelsea and Bjarke Ingels

Ziel Feldman isn’t looking to push the envelope in terms of pricing at his Bjarke Ingels-designed High Line condominium project. Condos will start at less than $4 million and the development could have as many as 300 apartments.

The founder of HFZ Capital Group said he has no desire to add to the city’s existing ultra-luxury condo inventory, with plans for the site — at 518 West 18th Street in Chelsea — to house smaller units averaging between 1,500 to 2,000 square feet in size.

“I don’t want to be hostage to a $10-to-$20 million condo market,” Feldman told Bloomberg. “I don’t want to be in that market a year or two from now.”

Feldman discussed the High Line project in an interview at The Real Deal New Development Showcase & Forum May 12, which you can watch below:

While Feldman’s plans call for units roughly half the size of new luxury condos that have sold in Manhattan since 2013, the price per square foot will likely be between $3,750 to $4,000 –in line with the average for new luxury condos sold in the first quarter of this year. But it’s an unusual move given the caliber of architect — Bjarke Ingels Group — attached to the project, which will feature two residential buildings standing about 28 and 38 stories, respectively.

HFZ’s acquisition of the parcel was the priciest lot sale in the city in almost a decade, according to Bloomberg. HFZ reached a deal to acquire the property late last year from a partnership led by Edison Properties, as first reported by The Real Deal, and secured $1 billion in financing to close on the project earlier this month. [Bloomberg]Rey Mashayekhi