Did a major Chinese investment just revive Witkoff’s Park Lane condo plans?

Greenland Group now owns a 41 percent stake in the project

New York /
Apr.April 28, 2016 03:20 PM

Greenland Group bought a 41 percent stake in the Park Lane Hotel on Central Park South from Kuwaiti investment company Al Waseet International this week, and the Chinese firm appears to be putting recently-shelved condo plans back on the table.

“The Park Lane project will be developed into a world’s top-notch luxury property project that is estimated to reach a sales income of US$3.6 billion -US $4.3 billion, with strong add value potential as well as an optimistic market outlook and investment return,” Greenland said in a statement, adding that the Hong Kong-based firm has “always been confident in the United States market.”

To meet those extraordinary sellout projections, Park Lane condos would have to sell far in excess of units at Vornado Realty Trust’s 220 Central Park South — currently slated to be the most expensive condo development in the city — or expand the size of the project. The most recent projected sellout at 220 Central Park South stood at $3.1 billion, according to an offering plan filed with the Attorney General, which translates to an average of more than $9,000 per square foot.

The apparent move back toward condos at 36 Central Park South appears to contradict recent announcements by developer Steven Witkoff, who declined to comment for this article.

Witkoff bought the hotel for $660 million in 2013 as part of an investor group that also included Harry Macklowe, Howard Lorber and Al Waseet. The developers planned to tear down the hotel and build an 88-unit, 1,200-foot luxury condo tower at a cost of $1.7 billion and expected revenue at $2.3 billion, aiming for a sellout averaging $8,500 per square foot. They shelved the plans earlier this year amid a weakening market.

“The fact of the matter is, the velocity is not what it was,” Witkoff told Bloomberg in January. “Because we have a cash flow, we have the flexibility to wait.”

Witkoff also told Bloomberg he had halted efforts to raise EB-5 money for the project amid uncertainty over the Chinese economy and the visa program’s future. Now he appears to have secured a cash infusion from China via a more conventional route.

Al Waseet’s role in Witkoff’s investor group was another small surprise in Greenland’s statement, which was released Monday. The firm’s involvement in the project was not previously publicized.

As part of the deal between Al Waseet and Greenland, the firms agreed to form a joint $8 billion real estate investment fund.


Related Articles

arrow_forward_ios
Witkoff's Alex Witkoff and Access Industries' Len Blavatnik with 76 11th Avenue (Witkoff, Access Industries, Google Maps, iStock)
One High Line launches sales, says goodbye to the “XI”
One High Line launches sales, says goodbye to the “XI”
Steve Witkoff of Witkoff Group, Len Blavatnik of Access Industries and the XI (Getty Images, The XI)
Witkoff, Blavatnik set to resume XI condo project with new contractor
Witkoff, Blavatnik set to resume XI condo project with new contractor
Steve Witkoff and Kenneth Fisher with XI project, Manhattan Mini Storage, Park Avenue Plaza, 292 5th Avenue (Fisher Brothers, Witkoff, iStock)
Financing for huge self-storage deal leads Manhattan’s real estate loans
Financing for huge self-storage deal leads Manhattan’s real estate loans
Steve Witkoff of Witkoff Group, Len Blavatnik of Access Industries and the XI (Getty, TheXI)
Witkoff and Access Industries buy HFZ’s languishing XI condo project
Witkoff and Access Industries buy HFZ’s languishing XI condo project
The Real Deal’s Erin Hudson with Property Markets Group’s Kevin Maloney, Crescent Heights’ Russell Galbut, Kushner Companies’ Nikki Kushner Meyer and Witkoff Group’s Steve Witkoff
WATCH: National developers talk location scouting at TRD event
WATCH: National developers talk location scouting at TRD event
The Real Deal's Erin Hudson with Property Markets Group's Kevin Maloney, Crescent Heights' Russell Galbut, Kushner Companies' Nikki Kushner Meyer and Witkoff Group's Steve Witkoff
Witkoff, Kushner, PMG, Crescent Heights talk strategy at TRD’s Miami event
Witkoff, Kushner, PMG, Crescent Heights talk strategy at TRD’s Miami event
From the rubble: How NYC real estate lived 9/11
From the rubble: How NYC real estate lived 9/11
From the rubble: How NYC real estate lived 9/11
Witkoff Group CEO Steve Witkoff, Simon and David Reuben and The West Hollywood Edition (Getty, Witkoff)
Reuben brothers look to foreclose on Witkoff’s West Hollywood Edition
Reuben brothers look to foreclose on Witkoff’s West Hollywood Edition
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...