Gary Barnett’s Extell Development has quietly placed 38 apartments up for rent amidst One57’s luxury condos.
The asking rents range from $13,350 for a one-bedroom to $50,366 for a three-bedroom, according to Bloomberg News. All of the units come fully furnished and with equipped kitchens.
These prices are relatively affordable compared to the eight and nine-figure real estate trading in the building. The cheapest unit would be available to a person earning $534,000 per year. In New York City, the market for luxury rental units over $25,000 per month has been booming.
“Extell always planned on having a long-term investment in the building,” an Extell spokeserson said.
Experts told the website that the motivation for keeping rental buildings could be to secure certain tax benefits like 421a and lower capital gains tax rates. Also, as of now, the building has 94 condos, protecting it from court rulings finding that buildings with over 99 condos must comply with federal law governing interstate land sales. [Bloomberg News] — Tess Hofmann