Price war: Partners at MoMA tower went to arbitration over unit discounts

Hines wanted more leeway to slash prices amid market slump

TRD New York /
Feb.February 14, 2019 09:30 AM

From left: Kwee Liong Keng, 53 West 53rd Street, and Gerald Hines (Credit: Google Plus and Leading Voices Podcast)

Facing poor sales and an oversaturated market, the partners behind the ultra-luxury MoMA tower have had trouble agreeing on how much to cut prices.

Hines, Goldman Sachs, and Singapore’s Pontiac Land Group recently resorted to an arbitration process to resolve their differences, sources told Crain’s, with Hines seeking to slash prices more aggressively at the Jean Nouvel-designed tower at 53 West 53rd Street.

Spokespeople for the project, Goldman and Pontiac declined to comment.

The 1,050-foot condo building has seen price cuts totaling about $167 million since hitting the market almost four years ago. The tower’s projected sellout, initially pegged at more than $2.14 billion, is now under $1.98 billion according to disclosures filed with the state Attorney General’s office. Closings are set to begin in the spring, according to a project spokesperson.

In addition to a general slump in the city’s super-luxury market, observers have also pointed to specific issues with the tower’s design as a reason for slow sales. Structural columns in the building’s facade impede views from many of its windows.

“I commend the developer for wanting to build something so artistic, but I’m not so sure of its market viability,” Donna Olshan of Olshan Realty told Crain’s.

The tower, located next door to the Museum of Modern Art, will include one of the museum’s galleries in its base as part of the museum’s expansion. The final stage of that expansion will see the museum closed for four months this year, from June to October. [Crain’s] — Kevin Sun


Related Articles

arrow_forward_ios
ButterflyMX CEO Cyrus Claffey (iStock; ButterflyMX)

ButterflyMX raises $35M to grow smart-intercom business

ButterflyMX raises $35M to grow smart-intercom business
76 Schermerhorn Street and 378 5th Street in Brooklyn (Photos via The Symon and StreetEasy)

It’s just one week, but Brooklyn luxury contract signings fell 50%

It’s just one week, but Brooklyn luxury contract signings fell 50%
565 Broome Street and 35 North Moore Street (Photos via 565BroomeSoHo and Google Maps)

Manhattan sees highest number of luxury contracts signed since early March

Manhattan sees highest number of luxury contracts signed since early March
(Photo courtesy of Winkworth)

London’s so-called skinniest home hits the market

London’s so-called skinniest home hits the market
(iStock)

Déjà vu: New home sales hit 14-year high in August

Déjà vu: New home sales hit 14-year high in August
Housing and Urban Development secretary Ben Carson (Getty; iStock)

CoreLogic’s screening algorithm may have discriminated against renters: lawsuit

CoreLogic’s screening algorithm may have discriminated against renters: lawsuit
220 Central Park South with Louise Sunshine and Steve Roth (Google Maps, Getty)

Another 220 Central Park South condo trades for over $10K psf

Another 220 Central Park South condo trades for over $10K psf
The Real Deal's Amir Korangy, Fredrik Eklund and Louise Sunshine

Louise Sunshine and Fredrik Eklund hold court on selling luxury

Louise Sunshine and Fredrik Eklund hold court on selling luxury
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...