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
Douglas Elliman's Howard Lorber and Tongo's Brandon Wright (Getty Images, LinkedIn/Brandon Wright)
Elliman gets into payday loan business as market cools
Elliman gets into payday loan business as market cools
Fredrik Eklund and John Gomes (The Society Group, 53w53)
Eklund-Gomes couples 53W53 open house with magazine launch
Eklund-Gomes couples 53W53 open house with magazine launch
(Photo Illustration by The Real Deal with Getty Images)
Hamptons market leans normal, North Fork not so much
Hamptons market leans normal, North Fork not so much
(Illustration by Priyanka Modi for the Real Deal with Getty)
Contract signings for NYC homes diminish, as do new listings
Contract signings for NYC homes diminish, as do new listings
Rental Market, NYC Rental Market, Douglas Elliman, rents, Jonathan Miller
Rents have stopped growing – but are unlikely to fall
Rents have stopped growing – but are unlikely to fall
arrow_forward_ios

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

Loading...