The richest man in New Zealand is buying a pricey pad at HFZ Capital Group’s “the XI,” a boost to a high-stakes project where brokers have said sales are slow.
Private equity executive Graeme Hart, who has a reported net worth of more than $7 billion, is in contract for a $34 million penthouse at the property, the Wall Street Journal reported. If it closes at asking price, the five-bedroom, 5,783-square-foot unit will have gone for nearly $5,900 a foot, well above average condo prices along the High Line.
As The Real Deal previously reported, developer Ziel Feldman HFZ Capital is shooting for roughly $4,000 per square foot overall at the XI, which is about double what condos along that section of the High Line are selling for, according to data from Stribling & Associates. The project, with a sellout of $1.96 billion, also includes two $70 million penthouse, which are priced at nearly $5,000 a square foot. If they sell for sticker price, they’ll set a Downtown record.
The project, split between two towers that are connected by a sky bridge, is named for its 11th Avenue location and was designed by architect Bjarke Ingels. The 950,000-square-foot development includes 236 condos as well as a 137-key Six Senses resort and spa, plus gobs of amenities, retail and a new park.
Sales launched in September 2018, but they’ve been sluggish in a generally slow luxury condo market.
The project is one of the most ambitious Feldman has ever taken on, and its likelihood for success has long been up for debate, in large part due to high predevelopment costs and a $1.25 billion construction loan from hedge fund Children’s Investment Fund.
“I can’t imagine Ziel losing money. It would be unusual for him,” Compass president Leonard Steinberg previously told The Real Deal. “But I think this one is cutting it a bit close, because it’s so big.” [WSJ] – Eddie Small