Fueled by 20% discounts, sales of Manhattan luxury co-ops heat up

$22M San Remo unit and Paul McCartney’s former penthouse top another busy week for the borough’s luxury market

English singer-songwriter Paul McCartney's penthouse triplex at 1045 Fifth Avenue went into contract last week (Getty Images, Douglas Elliman Real Estate, iStock)
English singer-songwriter Paul McCartney's penthouse triplex at 1045 Fifth Avenue went into contract last week (Getty Images, Douglas Elliman Real Estate, iStock)

As Manhattan’s luxury market ploughs ahead, soaring discounts saw co-op sales tick up last week.

The market remained busy with 47 luxury deals inked last week, compared to 50 the week before, according to the Olshan Report, which tracks contract activity for Manhattan homes asking over $4 million.

The median asking price across the 47 deals was nearly $6 million. The average discount from the original ask to the final one was 8 percent and condos (31) once again outsold co-ops (10), though the margin narrowed compared to recent weeks.

Donna Olshan, the author of the report, said uptick in co-op sales was a function of deepening discounts. Last week’s 10 co-op contracts were last listed at 21 percent below their original asking prices, on average.

“More things moved in the co-op sector because of the price,” said Olshan.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

The priciest co-op sold was at the San Remo on the Upper West Side. The 10-room apartment, asking $22 million, features a 30-foot living room, library and dining room overlooking Central Park. The sellers were Kevin Kennedy, the former president of the Metropolitan Opera, and his wife, Karen.

Another notable co-op deal was for the penthouse at 1045 Fifth Avenue formerly owned by musician Paul McCartney. The Beatle and his wife bought the triplex unit for $15.5 million in 2015 and it went into contract last week asking $10.5 million.

The most expensive contract of the week was at Chelsea’s Walker Tower, where a duplex unit asking just shy of $25 million found a buyer in an off-market deal. The four-bedroom apartment was being rented out for $55,000 per month by owner Steve Hafner, CEO of the online travel agency Kayak. Hafner paid $24 million for the unit in 2016. The brokers handling the sale declined to comment on whether the buyer was the tenant.

Read more