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

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

Extell lands $690M refinancing package for One Manhattan Square
Sheikh Sultan A. Al Qasimi and 15 Central Park West (Google Maps)

Tax lien triggers foreclosure filing on sheikh’s 15 CPW unit

Tax lien triggers foreclosure filing on sheikh’s 15 CPW unit
Photo illustration of the Williamsburg Bridge (Getty, iStock) 

As Manhattan struggles, Brooklyn’s sales market is “booming”

As Manhattan struggles, Brooklyn’s sales market is “booming”
HFZ Capital’s condo the XI has sold 38 of its 236 units (iStock)

HFZ’s Chelsea condo now effective, with 16% of units sold

HFZ’s Chelsea condo now effective, with 16% of units sold
Zillow's Rich Barton (iStock)

Zillow launches brokerage to boost iBuying

Zillow launches brokerage to boost iBuying
421 Broome Street (Google Maps)

Soho penthouse buy sets record despite price chop

Soho penthouse buy sets record despite price chop
Oxford Property Group CEO Adam Mahfouda and (inset) the late Bianka Yankov (Mahfouda courtesy of Propco Holdings, iStock, Linkedin)

Oxford Property Group acquires Spire, expands to nearly 800 agents

Oxford Property Group acquires Spire, expands to nearly 800 agents
Brooklyn’s Sunset Park is in the midst of a severe housing crisis and in desperate need of affordable housing. (Photo by Jim.henderson via Wikipedia)

Sunset Park faces severe affordable housing shortage: report

Sunset Park faces severe affordable housing shortage: report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...