For decades a city of rentals and co-ops, New York now has condos across town. And that trend figures to accelerate.
New York has condos in the sky and shaped like a sail. The future promises still more as lawmakers let a property tax break for rentals expire but kept the abatement for condominiums.
However, after a rip-roaring start to 2022, sponsor unit sales cooled as the Fed hiked interest rates and mortgage rates followed suit. The high end was largely unaffected as the ultra-rich continued to purchase in titanic projects such as the Aman New York, but merely-well-off buyers were more sensitive to financing costs.
As the 421a tax break expired in June, developers largely stopped fundraising for new rental projects and figure to build condos or nothing as their 421a pipelines peter out. Developers say it is almost impossible to make multifamily rental developments pencil out without a property tax abatement, and some, like Douglaston’s Jed Resnick, don’t expect one any time soon.
Using plans filed with the attorney general, as well as data from city repositories Pluto and ACRIS, The Real Deal looked at the 10 most expensive condo projects filed this year, ranked by the sales projected by their developers. (Actual results may vary, of course.)
The top spot goes to Gamma Real Estate and JVP Management’s Sutton Tower at 430 East 58th Street. With a projected sellout of $873.3 million, the building contains 121 apartments, including a duplex penthouse. Designed by Danish architect Thomas Juul-Hansen, the 850-foot tower is made of Bavarian limestone and rises just south of the Ed Koch Queensboro Bridge.
The developers plan to ask $72 million for the 9,000-square-foot penthouse. The one-bedroom, one-and-a-half-bath units start at $2.4 million. In the amenities space race, the building offers four floors — 22,000 square feet — of shared playspace including a spa, golf simulator and screening room.
The tower was subject to years of squabbling over debt and a rezoning. Gamma purchased the site out of bankruptcy after the spectacular failure of Joseph Beninati’s Bauhouse Group.
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The second-most valuable condo project is from JVP Management as well. Nicknamed “96 + Broadway,” the Upper West Side development is also designed by Thomas Juul-Hansen and also uses Bavarian limestone drawn from quarries that are apparently converted into owl habitats.
The development’s apartments range from one-bedrooms to five-bedrooms. Compass is handling sales at the building. Some of the 96 + Broadway’s selling points include a hybrid squash and basketball court and a 75-foot saltwater pool.
JVP has its hand in many pots. Thirty blocks south, it has partnered with Extell on 50 West 66th, a controversial 69-story condo.
A 191-unit tower in Midtown East by Hopson Development rounds out the top three. Hopson is aiming for a $294 million sellout at the project, which was designed by Ismael Leyva Architects and Neru & Hu.
Hopson bought the site from Bentley Zhao’s New Empire Real Estate in 2019 for $115 million. In May, it took on a $156 million construction loan from Fortress as Josh Schuster’s Silverback Development left the project.
Below is the full list of the 10 most valuable Manhattan condo filings of 2022:
1. 430 East 58th Street | Gamma Real Estate and JVP Management | $873M
2. 250 West 96th Street | JVP Management | $459M
3. 131-141 East 47th Street | Hopson Development | $294M
4. 111 West 56th Street | GFI Realty | $246M
5. 2688 Broadway | Toll Brothers | $166M
6. 222 East Broadway | RoundSquare Development, Optimum Asset Management and Ascend Group | $157M
7. 100 Claremont Avenue | L+M, Lendlease | $133M
8. 64 University Place | Argo Real Estate and Bsafal | $128
9. 7 West 57th Street | Soloviev Group | $75M
10. 441 West 54th Street | Yaus Special Clinton District LLC | $64M