Seller who tried to flip two 56 Leonard penthouse pads will take a loss

First unit closed for $19.6M while second pad is under contract for less than original sale price

New York /
Mar.March 13, 2019 03:45 PM

56 Leonard Street (Credit: Getty Images)

An anonymous investor who paid $53 million for a pair of full-floor penthouses at 56 Leonard Street looks very likely to take a loss on his or her massive spread.

An LLC called “South Shore Investments” went into contract for units on the 54th and 53rd floors of the Alexico Group-developed glass tower in 2013 and closed in 2017, paying $29.1 million for the larger penthouse on the 53rd-floor pad, and $23.98 million for the floor above. In total, the units span 12,000 square feet and feature terraces throughout.

But the owner is heading for the exits, with the smaller apartment selling to an anonymous buyer for $19.6 million ($3,550 a square foot) on Monday, and the other in contract for below its original sale price. The 53rd floor apartment was last listed for $27 million, and has been priced as high as $35 million.

Sources said the buyers for the pair of apartments are different.

Speaking generally, Compass’ Toni Haber who sold the 54th floor pad, said that luxury buyers are no longer in a “wait and see” mode. But she also said that there are few luxury units closing at asking price now. “There’s a lot of inventory out there,” Haber said.

Douglas Elliman’s Sahar Ziv, who represented the buyer on the 54th-floor unit, declined to comment, as did Compass’ Clayton Orrigo, the agent who was tapped to sell the 53rd floor apartment.

The Alexico Group-developed building, known as the “Jenga Tower,” launched sales in 2013 with a projected sellout of $1.27 billion.

In January, a trust linked to Spark Capital Partners CFO Paul Conway bought a 3,700-square-foot penthouse in the Tribeca building for $15.46 million, a 13 percent discount.


Related Articles

arrow_forward_ios
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)
For 15 years, David Koch lived at the world’s “richest building”
For 15 years, David Koch lived at the world’s “richest building”
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Confidence is lowest in the Northeast and Midwest, at 73 and 70. (iStock)
Homebuilder sentiment slides to 10-month low in June
Homebuilder sentiment slides to 10-month low in June
Elon Musk and the San Francisco estate (Getty, Gullixson / Compass)
Elon Musk relists San Francisco mansion for $38M
Elon Musk relists San Francisco mansion for $38M
Daniel Humm and 40 Fifth Avenue (Getty, Google Maps)
Chef Daniel Humm scoops Greenwich Village co-op from Chipotle founder
Chef Daniel Humm scoops Greenwich Village co-op from Chipotle founder
Opendoor CEO Eric Wu (Getty, Opendoor)
Opendoor expands to Miami, 5 additional markets
Opendoor expands to Miami, 5 additional markets
The Closing: Janice Mac Avoy
The Closing: Janice Mac Avoy
The Closing: Janice Mac Avoy
arrow_forward_ios

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

Loading...