The Real Deal New York

Extell cuts prices for unsold units at One Riverside Park

21 condos remained on the market as of March

June 01, 2016 07:30AM
By E.B. Solomont

From left: Gary Barnett and One Riverside Park

From left: Gary Barnett and One Riverside Park

With roughly 10 percent of units remaining at One Riverside Park, Extell Development dropped prices at the Upper West Side condominium to entice would-be buyers, according to filings with the New York state Attorney General’s office.

The developer shaved prices at the 35-story building in April and again in May, according to filings recently reviewed by The Real Deal. The 219-unit tower had 21 unsold units in March, down marginally from 23 in September 2015, filings show.

In particular, a 5,700-square-foot condo once asking $25.75 million is now asking $21 million, according to filings. A $23.1 million condo spanning 6,200 square feet is now priced at $19.95 million, and a similar-sized unit – originally asking $19.8 million – is now listed for $18.85 million.

One Riverside, located at 50 Riverside Boulevard at the corner of West 62nd Street, hit the market to much fanfare in 2013. Within days of launching sales, the Gary Barnett-led firm pulled dozens of condos off the market in order to raise prices. During the first 10 days of sales, 70 of 219 units were in contract, Barnett said at the time. Asking prices initially ranged from $1 million to $25 million.

AG filings indicate prices were raised several times until May 2015, when the building’s total target sellout peaked at $922.1 million, or more than $2,200 per foot. That figure has since slipped 3 percent to $894.1 million, or $2,149 per square foot, though that’s still higher than the initial price target of $870 million, or just over $2,000 per square foot.

Developed by Extell with the Carlyle Group, the project faced backlash over a so-called “poor door,” or separate entrance to be used by residents of 55 affordable units. But more than 88,000 people filed applications to live in those apartments as of last year.

The developers’ price adjustment comes amid a slowdown in Manhattan’s luxury market. Luxury sales volume was down 20 percent during the first 20 weeks of the year, according to a recent TRD analysis of data from Olshan Realty. For contracts signed in May, Olshan reported an average price drop of 7 percent, up from 4 percent in May 2015.

Extell, which declined to comment, has not been shy about pricing to the current market in recent months. Earlier this year, the developer lowered the sellout of One Manhattan Square on the Lower East Side by about $207.3 million, for a total of $1.87 billion. “We’re going to be very conservative here,” Barnett told TRD at the time.

And at One57, where a $100.5 million penthouse shattered the city’s sales record, Extell recently offered 38 apartments at a discount — on a per-square-foot basis — compared with the rest of the building. The low-floor units, previously intended to be rentals, are being offered at just over $3,967  per foot, compared with the rest of the building’s average of $10,337 per foot.

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