Shaoul launching mid-market condos ahead of expected glut

Developer wants to sell moderately-priced inventory before more supply "comes around in 2017"

Ben Shaoul Magnum Real Estate
From left: Ben Shaoul, 389 East 89th Street on the Upper East Side and 385 First Avenue near Gramercy Park

Ben Shaoul is kicking off sales at two mid-market condo projects this month in a bid to get ahead of the competition for condo inventory priced at less than $3 million.

The developer’s Magnum Real Estate Group is set to open sales at 389 East 89th Street, on the Upper East Side, and the Luminaire, at 385 First Avenue near Gramercy Park.

Shaoul bought the former rental towers in 2014 and commenced renovations with an eye to converting the properties into moderately-priced condos, according to Bloomberg.

Two-bedroom units at 389 East 89th Street start at nearly $1.6 million, while the cheapest three-bedroom apartment is listed at just under $2 million. The priciest residence at the 156-unit tower, a 1,860-square-foot penthouse, asks $5.25 million.

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At the 103-unit Luminaire, two-bedrooms will range from $1.75 million to $2.73 million while one-bedrooms start at $950,000. The priciest unit at the building, a 1.982-square-foot three-bedroom with a 1,265-square-foot terrace, is listed at $4.95 million.

Shaoul told Bloomberg his business plan for the buildings is “velocity” – noting his intention to “sell the buildings out this year, be done this year, deliver this year” in an effort to get ahead of similarly-priced inventory coming to market in the next few years.

“This product is not available right now in the marketplace, so let’s get it delivered in 2016 before anyone comes around in 2017,” he said. [Bloomberg]Rey Mashayekhi