New development marketing can be even more brutal than fashion. One day you’re out, and the next day you could be out again.
Ben Shaoul’s Magnum Real Estate Group has removed Compass from another of its new developments, the 96-unit condominium rising next to Katz’s Deli at 196 Orchard Street. Sources told The Real Deal that Douglas Elliman will be taking over sales at the Lower East Side property.
In confirming the new development pickup, Elliman president Susan de Franca said Reid Price, Justin Tuinstra and Glenn Davis will lead the marketing effort.
Compass spokesperson Julie Binder confirmed that the firm was no longer on 196 Orchard, and wished Elliman the best. Shaoul could not be reached for comment. The developer’s decision mirrors one he made in February, when he replaced Compass with Corcoran Sunshine at the 138-unit Luminaire in Gramercy.
Compass’ Leonard Steinberg launched sales at 196 Orchard, which has a total projected sellout of $206.8 million, in September. It’s unclear how many units the brokerage has been able to sell since then.
The removal is another pinch for the venture capital-backed firm’s new development division, which is reportedly struggling with sluggish sales at RFR Holding’s 94-unit condo at 100 East 53rd Street. It has, however, secured an exclusive contract to market Yitzchak Tessler’s 72-unit Midtown condo 172 Madison and just took over Siras Oriel Development’s Soori High Line, a 31-unit condo at 522 West 29th Street.