The first 100 units at Extell’s One Manhattan Sq. have sold

Gary Barnett's firm is raising prices at the 815-unit tower

TRD New York /
Mar.March 02, 2017 09:05 AM

Gary Barnett and rendering of One Manhattan Square

Extell Development sold the first 100 condo units at its Lower East Side tower One Manhattan Square for a combined $190 million, according to filings with the Tel Aviv Stock Exchange.

Sales at the tower — which has a projected sellout of $1.9 billion — officially launched in November, but Extell had reportedly been marketing the tower to Asian buyers for months prior. Gary Barnett’s firm is targeting mid-market buyers, with one-bedroom apartments priced around $1.2 million. It has quite a bit of competition in that segment of the market, where about 1,000 new listings in 2017 are expected to be priced between $1,800 and $2,400 per square foot, according to a report from Corcoran Sunshine.

To spur sales, Extell recently announced it would pay 50 percent of broker commissions upfront at its new development projects.

Extell’s TRData LogoTINY senior vice president of development Raizy Haas told Bloomberg that the company is also raising prices. “It tells the market that we’re confident about our product and that we are selling well, selling fast,” she said.

The new pricing pushes the average price to roughly $2,360 a square foot, from $2,311 in December, Haas told Bloomberg.

Donna Olshan of Olshan Realty considers the project risky. “I’ve never seen anything that large, and in an area in Manhattan that would be considered remote,” she told Bloomberg. “This is a new location — an untested, unproven location — and they’re trying to build a community around it. It’s gutsy any way you slice it, no matter what the market is.”

One Manhattan Square is expected to cost around $1.4 billion. Extell is funding the project with $463 million in mezzanine financing from RXR Realty and a $500 million construction loan from a consortium of banks.  [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)

Extell lands $690M refinancing package for One Manhattan Square

Gary Barnett and 1855 Broadway (Credit: Google Maps)

Gary Barnett assembling Columbus Circle development site

Brokerage firms are strategizing ways to make up losses after the cost of application fees was capped at $20. (Credit: iStock)

Brokerages on rental application fee cap: “It hurts”

Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

The Daily Digest - Tuesday

New life for Toys “R” Us, Masa Son is “embarrassed” with the Vision Fund: Daily digest

Nooklyn CEO Harley Courts (Credit: iStock)

Brokerage slashes agent commissions, delays payments after rent law change

From left: Gary Barnett, David Lichtenstein, Larry Silverstein and Boaz Gilad with the Tel Aviv Stock Exchange

New York developers hit restart button in Israel. But has the game reset?

arrow_forward_ios