One57, the alpha dog of the last residential boom, now has its tail firmly between its legs.
“Escape from New York,” an LLC that purchased a pad at Extell Development’s signature project for nearly $32 million in 2014, has gone into contract to sell the pad at what’s likely to be at least a $7 million loss, given that its last asking price was $25 million.
One57 was once the ultimate symbol of the craze for high-end luxury apartments, and holds the record for the priciest closed sale in the city, at north of $100 million. “Escape from New York” was just one of many investors that attempted to profit from appreciating prices. It purchased unit 62A, which spans nearly 4,500 square feet, for nearly $32 million, or north of $7,000 per square foot. It then tried to flip it soon after for $38.9 million, or more than $8,600 per foot.
But, faced with declining demand for ultra-high-end homes and increased competition from new product, the seller slashed the price of the property several times and switched out Sotheby’s International Realty for Elliman. In May, the asking price was slashed to $25 million, or a shade over $5,500 a foot.
It’s a far cry from the prices of previous years, and is yet another sign of the times.