Shokai Group picks up unsold NoMad condos for $81M

Victor Group, Lendlease sell 22 units at 277 Fifth Avenue, three years after move-ins began

New York /
Nov.November 29, 2021 05:00 PM
277 Fifth Avenue and Shokai Group's Shawn Xianyang Zhang (277 Fifth Avenue/Rafael Viñoly, Shokai Group)

277 Fifth Avenue and Shokai Group’s Shawn Xianyang Zhang (277 Fifth Avenue/Rafael Viñoly, Shokai Group)

Lendlease and Victor Group have resorted to a bulk buyer to unload condo units at 277 Fifth Avenue, selling 22 of them at a discount to the Shokai Group.

City records show the nearly $81 million sale closed at the beginning of the month. The three companies were all partners on the development of the 55-story building, with the Shokai Group serving as the primary financial backer.

On its website, the building touts that units are more than 90 percent sold. But the bulk deal for unsold units represents 17 percent of the building’s 130 units. None of the three companies involved immediately returned requests for comment on the discrepancy.

PincusCo was first to report the deal. It noted that the price works out to $2,600 per square foot and that the units total more than 31,000 square feet of built space. An analysis by The Real Deal shows the sale reflected a 20 percent discount from the units’ list prices.

The project was among the most high-profile efforts by Rafael Viñoly since his work on 432 Park Avenue. Move-ins at the 55-story, 130-unit tower began nearly three years ago with prices starting at $2 million.

Several units are listed for sale on the website, starting at $1.7 million, a 15 percent drop from the cheapest available three years ago. A penthouse unit on the 53rd floor is listed for $15.5 million, while a penthouse unit one floor above is listed for $24 million.

Residents of the building have access to two floors of exclusive amenities. Amenities include a game room, a private dining room, a fitness club and a terrace along Fifth Avenue.

Victor picked up a six-story commercial building at the site in 2015 for $35.1 million, with plans to develop a 52-story condo tower.

On its website, the Shokai Group calls itself the largest residential real estate developer in Beijing. It is also known as Beijing Capital Development Holding, or BCDH.

New York City has struggled with unsold condos in recent years, a glut exacerbated by the pandemic. But Manhattan condo sales showed signs of a rebound in the second quarter, with more closings than in any quarter since 2015.





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