The Real Deal New York

Is $110M for a penthouse really a bargain?

January 04, 2012 03:00PM

It’s no surprise that Extell Development President Gary Barnett said the $110 million he is asking for a penthouse in the forthcoming One57 condominium is a bargain, but according to Forbes there is some sales data to support Barnett’s seemingly wild claim.

For example, the $88 million Russian billionaire Dmitry Rybolovlev reportedly paid for 6,744 square feet at 15 Central Park West comes out to about $13,049 per square foot, whereas the $110 million penthouse has 10,923 square feet, rendering its asking price $10,070 per square foot.

While, the magnitude of the 15 CPW sale is somewhat of an outlier – the median price per square foot of a Manhattan apartment in the fourth-quarter was $1,117, according to the most recent market reports – the top portion of the Manhattan sales market has been hot since the end of 2010. “When you see a record transaction, other listings enter the market because they are confident that they aren’t an outlier. It’s a sign there are buyers in this price strata,” appraiser Jonathan Miller said.

For example, the $48 million Russian composer Igor Krutoy paid for a 6,000-square-foot apartment at the Plaza in March 2011 comes out to about $8,000 per square foot, and a 4,400-square-foot penthouse at the Time Warner Center upped its asking price to $60 million in September, or $13,700 per square foot.

“We are seeing a lot of sales in the market [with] asking prices of $7,000 to $10,000 per square foot,” Barnett said, “on buildings of inferior quality.” [Forbes]

  • Sal

    Not a bargain considering the following:

    (1) its located on 57th Street, not directly on the park
    (2) it shares it amenities with a Hyatt
    (3) It looks like a giant kitchen exhaust duct

    Kudos to Gary though for using the press for some serious free advertising. Are we averaging about 1 article per day?

  • NF

    Agreed. Sharing amenities with a hotel stinks.

    Also, i don’t love the rendering, as it has the living area right on top of the dining area, which doesn’t seem to be a large one. My point, you cannot begin to grasp the size of the apartment rom the rendering an to the contrary, it suggests that it isn’t an exceptionally large unit.

  • ann

    makes one wonder where this money is coming from.

    No one who works hard for their money could be so fooolish!!