From left: Related Companies President Jeff Blau and a 51st floor residence at MiMA
The Related Companies has switched its strategy at MiMA in Midtown West, the Wall Street Journal reported, and will now lease the nearly complete top-floor units it had long been planning to sell.
Since development began on the 63-story, 814-unit building at 450 West 42nd Street near 10th Avenue, Related had said it would reserve the 151 apartments on the top 13 floors for condominium sales. But now the developer has plans to market them as ultra high-end rentals, with three-bedroom units commanding as much as $20,000 per month.
“There was more value creation by renting this up and holding it than selling the units,” said Related President Jeff Blau.
The Journal noted that the switch from condos to rentals has become more common with the strong rental market and lagging sales market, but usually only happens with buildings under some financial distress — most notably several new Financial District developments. MiMA, on the other hand, has found success, leasing about 90 percent of its 500 market-rate rentals at greater rents than initially anticipated. Rents in the previously planned condo units will range from $4,595 to $20,000 per month. [WSJ]