Related asked $50M for this penthouse. It went into contract for $25M

Unit at Zaha Hadid–designed condo overlooking High Line among 14 luxury deals in Manhattan last week

New York /
Sep.September 21, 2020 05:40 PM
520 West 28th Street (Wikipedia)

520 West 28th Street (Wikipedia)

When it was a sketch in floorplans, the penthouse apartment at the Zaha Hadid–designed condo overlooking the High Line was priced at $50 million.

Four years and one pandemic later, the now-built unit has gone into contract asking just $24.975 million, or $3,644 per square foot.

The heavily discounted deal was one of 14 for properties above $4 million in Manhattan last week — the highest weekly total since mid July, according to the latest market report from Olshan Realty.

“I do think some of the big money is coming back into the market, but looking for really meaningful discounts,” said Donna Olshan, who authors the report.

Price cuts have been inconsistent across the luxury market since the pandemic hit. Some developers have tried to hold on to pre-pandemic pricing — often offering generous concessions instead — while others have agreed to renegotiations. At the Zaha Hadid–designed condo at 520 West 28th Street, four other units have gone into contract since March, with an average discount of 29 percent from their original asking prices, according to Olshan.

A spokesperson for Related said that the latest contract marked the most expensive sale in the West Chelsea submarket in two years. “Buyers in the market right now are seeking out exactly the kind of high quality product available at 520 W. 28th Street,” the representative said. “Bottom line, this is a great sale.”

The 6,853-square-foot penthouse features five bedrooms, seven bathrooms and a sculptural staircase. Peter Zaitzeff of Corcoran represented the developer, Related Companies. He told Olshan the buyer lived in New York and visited the unit three times.

“The story is it’s good for the building, good for the area and good for the city,” he said.

It’s also good for Manhattan’s ultra-luxury sector, which has become a symbol of the pandemic’s toll on high-end real estate, with deals few and far between these days. To put that into perspective, there have been just 12 properties above $20 million sold in Manhattan this year —including the penthouse — compared to 37 in the same time period last year.

The second-priciest deal last week was a penthouse at 744 Greenwich Street, which was asking $12.95 million, or $3,746 per square foot — down from $14 million when it hit the market last year.

The three-bedroom duplex measures 3,457 square feet and features a fireplace and a wraparound terrace.

Both parties in the deal were represented by Compass broker Jim St. Andre, who told Olshan that the buyer lived on the West Coast and visited the apartment in early September.

“The main thing is the view is so special,” he said. “It looks north and east over a corridor of the village, with views of some of the iconic buildings in Midtown.”

“It’s been a less efficient market overall,” he added, “but with that being said, we did not come down that much off price.”





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