The Real Deal New York

New condos have an expected sellout of $6.4B

In Q2, the AG's office accepted 697 new resi units
By Chava Gourarie | July 13, 2017 06:05PM

Clockwise from left: Waterline Square, One Beekman Place and Parkadon Condominiums

Not since 2015 have projected condominium sellouts reached such heights.

The record $4 billion valuation of Extell Development’s Central Park Tower TRData LogoTINY brought the total targeted sellout for condo filings accepted by the New York state Attorney General’s office in the second quarter of the year to $6.4 billion.

The total has only been exceeded twice, in the second and fourth quarters of 2015, at $6.8 billion and $8.6 billion respectively, according to a TRData analysis of condo filings.

But even excluding Extell’s sky-high valuation of $4 billion for 179 units at Central Park Tower, the condo market welcomed $2.6 billion worth of potential units to the pipeline. That’s the best showing since early 2016 and the first time in a year that the total sellout per quarter exceeded $2 billion.

The number of accepted units rose as well, with 697 new residential units accepted in 18 offerings, compared with 592 units the previous quarter. That’s a 15 percent increase, and 19 percent above the average of the last four quarters.

Besides for the $4 billion sellout at Central Park Tower, another megaproject contributed a hefty bit to the quarter’s total. GID Development’s three-building complex at Waterline Square on Riverside Boulevard was accepted with an expected sellout of $1.15 billion.

The remaining $1.25 billion was divided among 14 offerings, including a second Extell project at 1010 Park Avenue, the 25-story One Beekman condos from Urban Muse, and the affordable 63-unit Parkadon at 70 West 139th Street in West Harlem, with a modest $608,000 sellout per unit.

In terms of new condo units submitted to the market in the second quarter, the outlook was bleaker however. There were 12 new condo offerings submitted with 558 residential units, compared with 775 the previous month, a 38 percent decline, and 27 percent below the average of the last four quarters.

(To view an interactive chart of accepted prices by quarter over the last 10 years, click here)