Several luxury residential developments have sprouted around Madison
Square Park in recent years, transforming the neighborhood into a
highly coveted destination. First, there were the condo conversions
including 76 and 50 Madison Avenue; then there was One Madison Square
Park, a new upscale project that sold out in almost a year with only
the penthouse remaining. And, now Versace is designing 55 units at 5
Madison Avenue.
In a Webcast interview last month, The The Real Deal’s Jen
Benepe spoke to two residential brokers about the status of sales at the Madison Square Park area projects they are working on and about whether future developments in the vicinity will be hampered because of the city’s new economic realities.
Log on to www.therealdeal.com to see the full interview and to access the archives. Check back every week for a new edition of The Real Deal’s Webcast, featuring exclusive interviews with industry insiders.
First,The Real Deal speaks to Wendy Maitland, senior vice president of Brown Harris Stevens and managing partner with ID Marketing Group.
The Real Deal: You and Wilbur Gonzalez as a team sold out One Madison Avenue in just about a year. What was the sales process like, and why did it sell so fast?
Wendy Maitland: It was the highest velocity of sales that we experienced since our inception. I think it sold out because … of air rights that allowed the developers, Ira Shapiro’s Slazer Enterprises, to assemble over 600 feet high in the air [and create] an all-glass building with unprecedented views.
TRD: So height is a big factor here?
WM: Particularly in this area. You know, it’s such a historic area for skyscrapers, and it’s really being restored to its original splendor, when buildings like the MetLife Clock Tower, the Flatiron Building [and] the Empire State Building [were built]. So this is now the tallest building between Midtown and lower Tribeca.
TRD: The penthouse has not been sold yet. Have you tried to reduce the price on that?
WM: No, we don’t feel like we’re going to need to reduce the price. It’s very special.
TRD: The next development that you’re marketing is 23 East 22nd Street, which was designed by Rem Koolhaas. How would you say that that building compares to this one, and when do sales start?
WM: Sales start very soon. It’s absolutely beautiful, and it’s very special because it’s Rem Koolhaas’ very first condo project in the world.
TRD: We’re hearing that prices are going to be somewhere around $4,000 per square foot. Do you think that’s doable in this economy?
WM: Yes. There are less than 20 homes, and each one is unique.
TRD: So the economy hasn’t affected either the way you do sales or some of the people you’re selling to?
WM: Of course it has. It has affected our entire city. But it has not stopped certain segments of the market at all.
Next, The Real Deal talks to Vicki Musso, managing director at Coldwell Banker Previews International.
TRD: You’ve been in this area for a while. What would you say are some of the critical factors that make Madison Square Park and the developments around here so successful and so desirable?
Vicki Musso: I think one of the things, obviously, is the park, but [also] the fact that we have such glorious architecture. Many of these buildings were built at the turn of the century. And you know, [it’s a] great canvas for the developers to come in and basically turn the neighborhood into another Gramercy Park. It would become a very exclusive enclave.
TRD: There are a number of brand new
developments coming on, such as One Madison Avenue. Do you think that with the economy slowing, we’re going to be seeing fewer of these developments because the developers can’t get financing?
VM: Perhaps. With issues with financing, that might be a factor.
TRD: And do you think that it might affect this area specifically as well?
VM: Yes and no. I still see movement. I can speak actually for a development that Coldwell Banker Previews International is handling right now at 39 East 29th Street. We came on with a big bang, [and] apartments have sold rapidly; we are somewhere between 65 to 70 percent sold out. We continue to have signed contracts every week. It’s a glorious project. I haven’t seen a slowdown yet.
TRD: That project is a little bit farther away from the park. Would you say it is priced slightly lower than some of the places around here, and is that an advantage for you?
VM: Yes, yes and yes.
Compiled by Linden Lim