The Real Deal New York

Extell asking $250M for 38-unit bulk package at One57

Price values apartments at $3,800 per sf, or $6.5M per unit

November 09, 2015 09:51AM

From left: Gary Barnett and One57 in Midtown

From left: Gary Barnett (Photo: STUDIO SCRIVO) and One57 in Midtown (Photo: Lenny Spiro)

Extell Development is marketing a package of 38 units at its marquee One57 luxury tower in Midtown, asking $250 million.

The units, on the 32nd through 39th floors, are being priced at around $3,800 per square foot — about $6.5 million per apartment.

Eastdil Secured is marketing the package. Most of the proceeds from the sale will go to the Abu Dhabi investment funds that backed the 1,004-foot-tall, 94-unit tower.

Gary Barnett’s firm has designated the apartments as rental units, and is selling the package as an investment. This arrangement allows developers to claim the proceeds from the sale as capital gains, entitling them to pay lower tax rates as compared to normal condo sales, which are taxed as income, the Wall Street Journal reported.

Six of the units were briefly marketed for rent back in May, with rents ranging from $13,350 for a one-bedroom to $50,366 for a three-bedroom. They were taken off the market without explanation six weeks later.

Barnett told the Journal that a sale of the package would leave Extell with a limit stake in One 57 — retaining 20 percent of the remaining unsold condos, a retail unit and a parking garage.

CityRealty reported last week that One57 is the most expensive condo in Manhattan, at $6,010 per square foot over the past 12 months of sales, which eclipses 15 Central Park West at $5,726 per square foot.

A mystery buyer late last year paid $100.5 million for a 10,923-square-foot penthouse, the highest sale recorded at One57. More recently, a condo unit on the building’s 67th floor sold for $28 million in August. [WSJ]Ariel Stulberg