Famed Plaza Hotel still mired in trouble

New York /
May.May 18, 2011 12:26 PM

With the controversial Miki Naftali stepping down from the Plaza’s helm, the recent record $48 million sale of a 12th-floor spread, and the pre-Lehman-esque $37.5 million asking price on the penthouse unit, it appears the landmark building has steered clear of the financial storm. But according to the Observer, The Plaza is still stuck in choppy waters. The primary concern is the retail spaces on the coveted Fifth Avenue lot. The Oak Room is closing in July, the Edwardian Room has been looking for a new tenant for years and the Shops at The Plaza are mostly vacant, having already gone through two cycles of retailers. Prudential Douglas Elliman retail broker Faith Hope Consolo simply asked, “Why would you want to be in this maze when you could be on Fifth Avenue?”

Though Todd English’s new food hall in the building is packed, the surrounding shops are too expensive to attract its own foot traffic, the Observer said. As are the residential condominium units above. The Observer reported that only the record-breaking sale garnered a higher price than the seller originally purchased the unit for, and even that took a multi-million dollar renovation that might have resulted in a net loss for the seller. Adding insult to injury, the building has earned several complaints for shoddy construction. As a result, compared to other famed New York City apartment buildings, The Plaza still has a lot to overcome to live up to its stellar reputation. [NYO]


Related Articles

arrow_forward_ios
John Giannone and Jac Credaroli (Credit: iStock)
Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans
Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans
Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)
Douglas Elliman is coming to Texas
Douglas Elliman is coming to Texas
Douglas Elliman chairman Howard Lorber (Credit: Getty Images and iStock)
Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax
Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax
Cash to burn: How brokerages are spending capital in a record year
Cash to burn: How brokerages are spending capital in a record year
Cash to burn: How brokerages are spending capital in a record year
Richard Steinberg (Courtesy of Compass)
Richard Steinberg jumps from Douglas Elliman to Compass
Richard Steinberg jumps from Douglas Elliman to Compass
Josh Flagg (Getty)
“Million Dollar Listing” star Josh Flagg jumps to Elliman
“Million Dollar Listing” star Josh Flagg jumps to Elliman
Jessica Springsteen and 6 West Pond Drive (Getty, Douglas Elliman)
Straight from the horse’s mouth: Famed stable asking $20M sells
Straight from the horse’s mouth: Famed stable asking $20M sells
Vector Group CEO Howard Lorber (Getty)
Elliman’s record 195% revenue jump, $43M profit just the beginning: Lorber
Elliman’s record 195% revenue jump, $43M profit just the beginning: Lorber
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...