The Real Deal New York

Extell’s record-setting Central Park Tower is priced for the dip, Gary Barnett says

The developer will be rolling out new incentives
January 17, 2019 03:30PM

Gary Barnett and Central Park Tower at 217 West 57th Street

Even the world’s tallest condo tower isn’t immune to the sales market slump. But Extell Development’s Gary Barnett is banking on pricing flexibility to weather the storm.

The developer will roll out new incentives at Central Park Tower this year and is still paying 50 percent of a broker’s commission upfront, the Wall Street Journal reported. Sales launched at the development, the most expensive condominium project in New York City history, in October.

“We’re certainly going through a dip in the market, but we’re priced for that dip,” Barnett told the Journal. In the current market, “you’ve got to be a little more flexible on price.”

That flexibility may come with strings attached. In one deal at the supertall, Barnett agreed to accept a lower price. But when the client refused to sign a non-disclosure agreement regarding details of the deal, the client was turned away. In Barnett’s words: “If we’re going to give someone a special deal, we don’t want them saying it all over the market.”

At $4 billion, Central Park Tower’s projected sellout is the biggest in the city’s history. Of the 179 units, 18 are priced above $60 million, the report said. The 1,550-foot-tall skyscraper will boast panoramic views of the city — and amenities will include indoor and outdoor swimming pools, and a 1,000-foot-high private club.

Under terms of its $1.14 billion in financing, Extell must sell $500 million worth of units in three years. But Barnett told the Journal he’s not concerned about meeting the deadline.

Meanwhile, this week Barnett tapped Sush Torgalkar to take the reins as CEO of Extell while he stays on as chairman. Torgalkar, former chief operating officer of Westbrook Partners, will help grow the firm’s business and oversee the existing portfolio, including One57 and One Manhattan Square.

Barnett recently relocated from Queens to Monsey, New York, an hour north of the city, with his wife and kids. However, he keeps a one-bedroom unit at One57. [WSJ]Meenal Vamburkar