MiMA goes completely rental

TRD New York /
Dec.December 15, 2011 09:10 AM
From left: Related Companies President Jeff Blau and a 51st floor residence at MiMA

The Related Companies has switched its strategy at MiMA in Midtown West, the Wall Street Journal reported, and will now lease the nearly complete top-floor units it had long been planning to sell.

Since development began on the 63-story, 814-unit building at 450 West 42nd Street near 10th Avenue, Related had said it would reserve the 151 apartments on the top 13 floors for condominium sales. But now the developer has plans to market them as ultra high-end rentals, with three-bedroom units commanding as much as $20,000 per month.

“There was more value creation by renting this up and holding it than selling the units,” said Related President Jeff Blau.

The Journal noted that the switch from condos to rentals has become more common with the strong rental market and lagging sales market, but usually only happens with buildings under some financial distress — most notably several new Financial District developments. MiMA, on the other hand, has found success, leasing about 90 percent of its 500 market-rate rentals at greater rents than initially anticipated. Rents in the previously planned condo units will range from $4,595 to $20,000 per month. [WSJ]

Related Articles

Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

Related Chairman Stephen Ross (Credit: Getty Images, Wikipedia)

Related drops 700-foot-long “wall” from Hudson Yards plan

Shaun Osher, CORE CEO (Credit: Getty Images and iStock)

CORE becomes latest NY resi brokerage to expand into South Florida

Related Companies chairman Stephen Ross and Hudson Yards (Credit: Getty Images)

Next phase of Hudson Yards could include 700-foot-long wall

(Credit: iStock)

Luxury rents up across the city

15 Hudson Yards (Credit: StreetEasy)

Hudson Yards pad resells for 22% premium

From left: 200 East 66th Street; Extell’s 157 West 57th Street; and 15 Hudson Yards (Credit: Street Easy)

Four home sales that caught our eye — and cost an arm and a leg

Related chairman Stephen Ross and a rendering of Western Yard (Credit: Getty Images and Hudson Yards)

Related no longer giving timetable for finishing Hudson Yards