Chinese developer formerly known as Cheerland abandons $300M Flatiron condo conversion

CL Investment Group to keep building as commercial

Nov.November 02, 2016 04:50 PM

Chinese developer CL Investment Group pulled the plug last month on a $300.2 million luxury condo conversion of the United Charities office building at 287 Park Avenue South in the Flatiron District, records show. The company will instead keep the building commercial and will announce a renovation and repositioning plan in the the near future, a spokesperson for CL Investment told The Real Deal.

The now-dropped 40-unit condominium offering plan, first filed with the New York state Attorney General’s office more than a year ago, called for luxury residential apartments averaging somewhere in the neighborhood of $7 million apiece. A penthouse was expected to list for a whopping $17.5 million, a sum topped by only three apartments currently listed in the Flatiron neighborhood, according to StreetEasy.

The developer had also applied for permits to nearly double the height of the 19th-century building with an eight-story addition. Amenities in the building would have included a swimming pool and rooftop terrace.

CL Investment’s conversion project was one of a crop of new residential developments coming online from the Beijing-based developer formerly known as Cheerland, its first development ventures into the New York market.

A total abandoning of major condominium plans is not uncommon, and so far this this year developers shelved nine plans with sellouts of over $100 million, a review of AG records shows.

The biggest plan-canning transpired in April, when developer Chetrit Group TRData LogoTINY and Clipper Equity abandoned their $1.9 billion offering for the conversion of the Sony Building, ultimately selling the office property to Saudi investor Olayan Group for a more than $1.3 billion sum. Many observers cited the softening luxury condo market as a motivating factor.

Related Articles

Here are the week’s top luxury sales

Here are the week’s top luxury sales

Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)

For 15 years, David Koch lived at the world’s “richest building”

Here are the week’s top luxury sales

Here are the week’s top luxury sales

Chrissy Teigen and John Legend with 374 Broome Street (Credit: Karwai Tang/Getty Images; Google Maps)

John Legend, Chrissy Teigen snap up another Nolita penthouse

Marc Jacobs with 68 Bethune Street (Credit: Jacobs by Randy Brooke/WireImage; Townhouse by Nest Seekers via StreetEasy)

Marc Jacobs gets what he paid for West Village pad: $10.5M

The Gretsch at 60 Broadway in Williamsburg. (Credit: Douglas Elliman via StreetEasy)

Williamsburg pad hits market for almost $9M

Dennis and Karen Mehiel with 3 East 95th Street (Photo by Will Ragozzino/Patrick McMullan via Getty Images; Sotheby's)

Carhart Mansion duplex returns to market after four years

Ghost Towers

NYC’s ghost towers: How many Manhattan luxury condos are owned by people who don’t live there?