Extell offers 38 condos at One57 at a big discount

"New" apartments, ranging in asking price from $3.5M to $17.5M, reward buyers who waited

New York /
May.May 19, 2016 07:30 AM

Good things come to those who wait.

As the luxury condominium market dips, Extell Development is offering 38 apartments at One57 at a steep discount – on a per-square-foot basis – compared with the rest of the units at its iconic skyscraper.

Overall, the 38 low-floor apartments – which were previously intended to be rentals – range in asking price from $3.45 million for a 1,021-square-foot, one-bedroom to $17.5 million for a four-bedroom duplex measuring 4,635 square feet, according to filings submitted to the state Attorney General’s office in April and recently obtained by The Real Deal. The one-bedroom breaks down to roughly $3,379 per foot, compared to $3,775 per foot for the duplex.

On average, the “new tower units” are asking just over $3,967 per foot – far lower than the rest of the building. Excluding the new condos, the average price per foot is $10,337, a figure that’s no doubt inflated by some of the condo’s ultra-luxury pads, including the $100.5 million penthouse that shattered the city’s sales record in 2015.

In 35 sales tracked by StreetEasy, the average sale price was $21.9 million, or $6,487 per square foot.

The Gary Barnett-led development firm disclosed plans in April to sell the former rentals, located on floors 32 through 38 of the Christian de Portzamparc-designed skyscraper. Last year, Extell failed to unload the units in bulk, after offering the apartments to investors for $250 million.

According to filings, the “new tower units” include 21 one-bedrooms, 10 two-bedrooms, six three-bedrooms and one four-bedroom duplex.

“We recognize the demand for efficiently sized, luxury inventory below $10 million,” Barnett told Bloomberg at the time. “There is absolutely no comparable product currently on the market.”

The new condos target the so-called middle market, a bright spot in Manhattan’s residential market, which has seen a softening at the upper end in recent months.

“Ironically, these units at the end of the sales effort are more in sync with the current market,” said Jonathan Miller, president of appraisal firm Miller Samuel. “I’m not saying a $3.45 million one-bedroom will fly off the shelf, but the price point for investors is much more obtainable than if these were all $10 million apartments.”

He speculated that Extell is still testing the market by also offering a $17.5 million duplex.

“Cutting bigger units in half is always an option,” Miller said. “They’re not moving as if there’s a sense of urgency or panic, they’re systematically exploring all the options that are available.”


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