Fortress Investment chairman buys steeply discounted Zaha Hadid penthouse

Deal closed for $20M West Chelsea condo, which is $30M less than original asking price

New York /
Oct.October 01, 2020 07:10 PM
Wesley Edens and 520 West 28th Street, Unit PH37 (Getty, Compass)

Wesley Edens and 520 West 28th Street, Unit PH37 (Getty, Compass)

UPDATED Oct. 16, 2020, 2:22 p.m.: Related Companies’ sale of a penthouse at its Zaha Hadid-designed condominium in West Chelsea may become the poster child for Manhattan’s strong buyers’ market.

The developer first listed the top-floor unit at 520 West 28th Street in 2016 for $50 million, or $7,296 per square foot. Four years later, amid a global pandemic, the 6,853-square-foot condo has sold for $20.2 million, 60 percent less than Related was initially seeking, public records show.

The buyer, Wesley Edens, chairman of private equity firm Fortress Investment Group, paid $2,947 per square foot and closed on the unit in 10 days. He purchased the unit through a Delaware limited liability company, Rock Springs Arete, but he signed the deed using his own name.

The five-bedroom apartment overlooks the High Line and spans three levels with a 2,550 square feet of outdoor space, including a landscaped roof deck, according to the unit’s listing.

The condo was on and off the market over the past four years, with prices falling each time it reappeared. It was last asking $24.9 million. Corcoran Sunshine Marketing Group and Related are handling marketing and sales at the 39-residence building, and Peter Zaitzeff was the unit’s listing agent along with Corcoran Group brokers Julie Pham and Steve Gold.

Edens is one of three founders of the New York-based Fortress, which was acquired by SoftBank Group for $3.3 billion in 2017. He is also a co-owner of the Milwaukee Bucks basketball team.

Related, Corcoran Sunshine and Peter Zaitzeff declined to comment. Fortress did not respond to request for comment.

Despite the steep discount, the deal wasn’t a wash for Related, though some could argue it’s a race to the bottom. The sale is the largest residential deal to close in the West Chelsea submarket in two years, according to The Real Deal’s analysis of data from OLR. It surpasses the previous record holder, a heavily-discounted penthouse at Walker Tower, which sold for $18.25 million in August.

The building’s other two penthouses have yet to trade, but one appeared on the market in January asking $13.95 million.

Other West Chelsea properties have absorbed major price reductions of late, including the Getty condominium and the Andres Escobar-designed townhouse at 357 West 17th Street.

Update: After publication, Pham and Gold’s involvement in the deal was confirmed.





    Related Articles

    arrow_forward_ios
    Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)
    Related is the latest developer to target the Rockaways
    Related is the latest developer to target the Rockaways
    Steve Cohen and One Beacon Court at 151 East 58th Street (Corcoran, Getty)
    Manhattan luxury market sees best week since 2013
    Manhattan luxury market sees best week since 2013
    Solow Building Company chairman Stefan Soloviev, CEO Michael J. Hershman and vice chairman Hayden Soloviev (Solow Residential, Fairfax, LinkedIn)
    Stefan Soloviev, Sheldon Solow’s son, reorganizes family firm
    Stefan Soloviev, Sheldon Solow’s son, reorganizes family firm
    This Brooklyn Heights home went into contract at $2,184 per square foot. (Compass)
    $14M house topped Brooklyn’s luxury listings last week
    $14M house topped Brooklyn’s luxury listings last week
    Ai Weiwei with 708 New Forge Hallow (Getty, Compass)
    Ai Weiwei–designed home sells for $5M
    Ai Weiwei–designed home sells for $5M
    Assemblyman N. Nick Perry and Sen. Brian Kavanagh (Getty, iStock, NY State Assembly)
    New bill would force co-op boards to explain rejections
    New bill would force co-op boards to explain rejections
    The state has opened 52 more investigations into potential fair-housing law violations tied to the Newsday report (iStock)
    Agents named in discrimination exposé face discipline from state
    Agents named in discrimination exposé face discipline from state
    Vorea's Peter Papamichael. (Google Maps, Vorea Group)
    LIC development site under contract
    LIC development site under contract
    arrow_forward_ios

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

    Loading...