Why Extell’s not concerned for its new building, despite a flooded luxury market

The oversupply forced some rents to drop by 11% in February.

Apr.April 08, 2018 06:44 PM

(Credit: Extell)

Residents are beginning to move into Extell Development‘s new luxury rental building at 510 East 14th Street in the East Village and timing couldn’t be worse in theory.

In February, an oversupply of high-end units brought apartments with monthly rents at $10,000 or more down by about 11 percent to an average rent of $12,925. Additionally, a Douglas Elliman report found that 36.2 percent of buildings offered tenants concessions to sweeten the deal, as The Real Deal reported.

Extell’s 110 market-rate apartments in the building, which can range in size from studio apartments to three-bedrooms, are supposed to rent from between $3,695 up to $12,510 for a three-bedroom unit. The developer is also offering two months free rent.

Director of residential sales and leasing, Anna Zarro believes the building is “in a really special position given the sub-market we’re in,” and said applications for the units have been coming in steadily, though she didn’t give exact numbers. “There’s not so much new, well-thought out luxury product with the lifestyle considerations that we’re providing.”

Some of the amenities Zarro believes will seal the deal include a rooftop terrace, a large gym and pool area and a series of enormous private “backyard” terraces.  Balconies or the backyards are attached to 52 of the units.

“I think that’s going to set us apart a little bit,” said Zarro about the outdoor space, which tenants can landscape to their own taste. Time will tell, but it’s not slowing down Extell’s plans; the company is in final stages of securing its next development site on the Upper East Side, as TRD reported.

Here’s a look at what one of EVGB’s two-bedroom units going for just over $9,000 per month.

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