The Real Deal New York

PH at Witkoff’s 10 Madison Sq. West in contract for $35M

Developer combined floor plans of two separate units
April 10, 2015 06:00PM

Witkoff announced Friday that a penthouse at 10 Madison Square West that the firm created by combining the floor plans of two separate apartments recently went into contract for $35 million, a 21 percent premium over what they would have sold for separately. 

The Steven Witkoff-led firm purchased 10 Madison Square West, the former Toy Building, for $190 million in a 2011 auction. While the developer sold 75 percent of the units within three months of launching sales, a handful of apartments – including two on the 22nd floor – were more difficult to unload.

Witkoff and Douglas Elliman Development Marketing, which handles sales at the building, decided to redraw floor plans to create the 6,500-square-foot, five-bedroom apartment after seeing a need in the market for larger homes, according to Crain’s.

While the move was risky given the influx of newly-built or renovated ultra-luxury apartments on the market, the $35 million sale netted Witkoff about 21 percent more than what the buildings would have gone for if sold separately, the developer said.

The possible purchase of 30 Central Park South by Gary Barnett’s Extell Development could make it challenging for Witkoff and Harry Macklowe to build a supertall skyscraper at the site of Their Park Lane Hotel in Midtown. [Crain’s] – Rey Mashayekhi