Ritz-Carlton NoMad penthouses snag peak neighborhood prices

Hotel/condo property has closed deals for 12 of 16 penthouses

25 West 28th Street (Google Maps, Getty)

Sheridan Wall

Jun 13, 2023, 8:00 AM

UPDATED June 13, 4:30 p.m.: “Hotel-branded residences, in my opinion, for the luxury buyer, is their Ozempic,” Nikki Field of Sotheby’s International said last month. “It’s their drug. It’s a fast means to their goal without any hard work.”

One property that appears to be backing up the top broker’s prediction of the next hot product on New York City’s residential market is the Ritz-Carlton NoMad, which has been trading units for peak neighborhood prices.

The hotel and condominium last month closed the sale of PH43A for $8.2 million — the priciest deal for a two-bedroom in the neighborhood, according to a spokesperson for the Douglas Elliman team heading sales at the building. The closing price does not include the fixtures, furniture and equipment package outlined in property filings, which brings the unit’s price to $8.8 million.

An LLC associated with venture capitalist Aneel Ranadive paid $4,706 per square foot for the penthouse, which is the second highest price per square foot in NoMad, preceded only by Jeff Bezos’ assemblage at 212 Fifth Avenue.

“Buyers are happy to pay the premium for an offering that ticks every box on their list,” said Douglas Elliman’s Erin Boisson Aries, whose team is handling sales.

The property previously claimed a narrow record around the time it debuted its unique ownership structure.

A TRD Pro analysis found last summer that another of the Ritz’s residences, PH42A, was poised to crack the price peak when it entered contract for $7.8 million, or $4,457 per square foot. The unit, PH42A, closed in April for $7.4 million.

The property at 25 West 28th Street — which quietly launched sales in the fall of 2021 before officially listing units in March 2022 — has deals on the books for 12 of its 16 units, with another expected to hit records soon, according to a spokesperson for the sales team. The remaining three units are in contract.

“Nearly half of our buyers are international and the rest are true pied-a-terre users who want ease, flexibility, and exceptional services and amenities,” Aries said.

The building by Paul Kanavos’ Flag Luxury Group limits owners from staying in the units for more than 120 days a year and for only 29 days at a time. The tradeoff is the property allows them to rent their apartments as hotel rooms while they’re away.

With this provision, penthouse owners are able to skirt the state’s short-term rental restrictions, which require owners or tenants to be present when renting out a unit for less than 30 days.

“That feature has sealed the deal every time,” Aries said.

Nightly rates for the one-bedroom units range from $4,000 to $20,000, and $9,000 to $25,000 for the two-bedrooms.

Ranadive’s condo spans 1,750 square feet and has two bedrooms and two bathrooms. Nic Bottero, a member of Aries’ team at Douglas Elliman, had the listing.

Ranadive is the founder and managing partner of Soma Capital. His father, Vivek Ranadive, is the founder of business intelligence software company TIBCO Software and the majority owner of the Sacramento Kings NBA team.

This article has been updated to include the fixtures, furniture and equipment costs in the deal for the Ritz-Carlton NoMad unit price.

New York