The Real Deal New York

Did Vornado just give a sales update for 220 CPS?

REIT hasn’t shared figures on the project since February 2016

February 15, 2017 02:30PM
By E.B. Solomont

220 Central Park South and Steve Roth

Steve Roth is practically a one-man co-op board at 220 Central Park South, but the Vornado Realty Trust chief has been tight-lipped when it comes to updating investors about sales at the ultra-luxe condominium.

That is… until now?

During an earnings call on Tuesday, Roth assured investors that although he’s held back on updates for “competitive reasons,” sales prices at the Robert A.M. Stern-designed tower were “extraordinary,” and “sales to date [have] exceeded our cost.”

The 117-unit condo tower —which has a palatial penthouse that’s listed for $250 million — will cost an estimated $1.3 billion to build and has a total projected sellout of $3.1 billion, according to the New York State Attorney General’s office. The real estate investment trust shelled out $609.4 million on the project through Dec. 31, 2016, according to its annual report, released this earlier week.

It’s hard to know which figure — $1.3 billion or $609 million — Roth was referring to. But Alexander Goldfarb, an analyst at investment firm Sandler O’Neill said, “Either way, you can take it as a reassuring comment.” Amidst a glut of luxury condos and a soft market, Roth is personally meeting with interested buyers at 220 CPS. “He’s doing a good job of making people feel it’s a good value,” said Goldfarb.

Sales updates have become a point of contention in the city’s luxury market, The Real Deal reported last year. Some developers and brokers provide murky numbers to put a positive spin on sales. That’s not the case with Roth — who has simply opted out of updates altogether.

Last year, Vornado said it’s spending an astounding $5,000 per square foot to build the nearly 400,000-square-foot condo — a price that includes $1,500 per foot for land and $3,500 per foot in hard, soft and financial costs.

The priciest unit is a palatial, four-floor penthouse asking a record $250 million. Hedge fund mogul Ken Griffin is reportedly buying an apartment at 220 CPS for north of $200 million, and TRD also reported that a Qatari buyer was also looking at combining multiple units into a massive penthouse.

(See TRData’s page for 220 Central Park South, including several of the project’s condo amendments including pricing changes in the Schedule A.)

MENU