Extell ditches luxury rental plan at One57

38 units at Barnett's Billionaires' Row skyscraper now to be listed for sale starting at $3.5M

Apr.April 11, 2016 05:38 PM

Gary Barnett’s Extell Development is abandoning plans to put 38 unsold units at its One57 project on the luxury rental market, and will now try to sell those apartments instead.

The units in question, located on the 32nd through 38th floors of the supertall skyscraper at 157 West 57th StreetTRData LogoTINY in Midtown, will start at $3.45 million. Extell’s move to sell the apartments as condos corresponds with slipping demand and an influx of supply in Manhattan’s luxury rental market, according to Bloomberg.

“We recognize the demand for efficiently-sized luxury inventory below $10 million,” Barnett told Bloomberg in a statement. “There is absolutely no comparable product currently on the market.” Seven of the 38 units will be priced at north of $10 million, according to a project spokesperson, and all the units will be delivered fully furnished.

Increased supply in Manhattan’s luxury rental market has pushed rents down for the priciest units; the median monthly rent for apartments in the top 10 percent of the market fell 3.5 percent year-over-year in March to $8,228, according to Miller Samuel data.

Extell initially expected to reserve the lower floors of the 75-story building for rentals, and began marketing units on the 37th floor for lease last May. Those rentals ranged from $13,350 per month for a one-bedroom, 1,021-square-foot apartment to $50,336 per month for a three-bedroom unit. The condos on the upper floors of the building have commanded some of the highest prices in the city, with one penthouse selling for a record-breaking $100.5 million. Some condos remain, however, and have struggled to sell.

The developer also attempted to sell all 38 rental units in question as a single package being offered to investors for $250 million, the Wall Street Journal reported in November. [Bloomberg]Rey Mashayekhi

Related Articles

One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)

Extell lands $690M refinancing package for One Manhattan Square

Extell Development's Gary Barnett (Credit: Getty Images and iStock)

Chelsea residents paid Gary Barnett $11M to protect their views from a planned tower

Central Park Tower

Extell just went public with Central Park Tower listings

Central Park Tower and Gary Barnett

Pricey listings including UES townhouse, Central Park Tower condos go live

Gary Barnett, Central Park Tower, and the Tel Aviv Stock Exchange Bull (Credit: Wikipedia, iStock)

Extell’s Israeli bonds put on downgrade watch

Clockwise from the top: 500 East 30th Street, 1 Ellis Street and 2555 Broadway (Credit: Google Maps)

NYC’s 10 biggest new real estate projects

One Manhattan Square’s adult treehouse (Credit: Extell)

Check out Gary Barnett’s “Adult treehouse” at One Manhattan Square

Extell CEO Gary Barnett and JPMorgan’s Jamie Dimon (Credit: Getty Images)

Barnett refis Diamond District assemblage with $340M loan