Famed Plaza Hotel still mired in trouble

TRD 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
(iStock)

Manhattan apartment vacancy smashes 5% barrier

Manhattan apartment vacancy smashes 5% barrier
(iStock)

Suburban housing market surged in August while Manhattan trailed

Suburban housing market surged in August while Manhattan trailed
Plaza Hotel (Getty)

Why it has taken four years for the Plaza to fix a balcony

Why it has taken four years for the Plaza to fix a balcony
Douglas Elliman chairman Howard Lorber (Lorber by Chip Somodevilla/Getty Images; iStock)

Douglas Elliman’s New York revenues fall by half

Douglas Elliman’s New York revenues fall by half
In the Hamptons, the median sales price hit $1,080,000, up 9 percent over the first quarter (iStock)

Home prices set new records as inventory falls across Long Island

Home prices set new records as inventory falls across Long Island
arrow_forward_ios

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

Loading...