The Real Deal New York

Vornado is set to make $1B at 220 CPS, which is 83% sold

Closings scheduled through 2020: filing
By E.B. Solomont | October 29, 2018 05:26PM

220 Central Park South and Steve Roth

Vornado Realty Trust is looking at $1 billion in profits from the sale of ultra-luxury units at 220 Central Park South — which is 83 percent sold, the company disclosed Monday.

In a quarterly filing, the real estate investment trust ended its three-year silence on sales at the Billionaires’ Row project, where it turns out roughly 98 of 118 units are in contract. Closings are scheduled through 2020, Vornado reported.

Excluding Vornado’s land cost of $515.4 million, the project’s total construction cost is $1.4 billion — or nearly $5,000 per square foot. According to the state Attorney General, 220 CPS’ total sellout is $3.4 billion.

“They are printing money on this. it’s a highly successful deal,” said Alexander Goldfarb, an analyst at Sandler O’Neill. “Kudos to Steve [Roth], the way he brought it together, found the right occupants. Hats off.”

The REIT’s last update on 220 Central Park South was in late 2015, when CEO Steve Roth said it had contracts valued at $1.1 billion six weeks after launching sales. Designed by Robert A.M. Stern, the limestone-clad tower is among the city’s highest-profile condo projects, with a 23,000-square-foot penthouse asking $250 million.

Since 220 CPS’ sales launch, however, the luxury market took a sharp turn and Roth’s been mum on how sales ever since. At the same time, he’s been personally vetting prospective buyers, who are rumored to include Sting and the hedge funder Ken Griffin. Corcoran Sunshine Marketing Group is handling sales.

Vornado recently sent out closing letters to buyers, after obtaining a certificate of occupancy.

Last week, an anonymous buyer became the first to close on a unit at 220 Central Park South. Great Lawn Holdings LLC paid $14.6 million — roughly the asking price — for a three-bedroom pad, according to public records.