The Daily Dirt: What’s causing One57’s resale slump?

TRD on the spate of recent discounts at the Billionaires’ Row tower

The Daily Dirt Digs Into a Multi-year Slump at One57
Central Park Tower, 520 Park Avenue, One57, 432 Park Avenue and 111 West 57th Street (Getty, Godsfriendchuck, CC BY-SA 4.0, via Wikimedia Commons, Godsfriendchuck, CC BY-SA 3.0, via Wikimedia Commons)

A pioneer of Billionaires’ Row has found itself in a resale slump in recent years. And the cool market for luxury sales is likely not the only cause.

In November, One57’s PH88 closed for $31.5 million, a considerable markdown from its initial listing of $45 million. 

The price tag was enough to raise some questions about aspirational pricing. But the number was below the 2015 sponsor sale by Extell Development, which pulled in almost $48 million.

PH88’s resale woes are not isolated; they reflect a larger trend within One57. Other units within the tower have similarly failed to yield positive returns for their owners.

A few weeks ago, PH83 went into contract for $34 million, well below the 2016 sponsor sale price of $45 million. And it’s not just a recent problem at 157 West 57th Street. In 2021, Robert Herjavec, of Shark Tank fame, paid just over $34 million for a unit that had sold for $47 million six years earlier. 

So, what gives? Easy. One57 is the oldest Billionaires’ Row tower. The building represented the absolute peak of luxury when it went on the market in 2014. But now, buyers have plenty of newer, arguably nicer options up and down the street.

“One57 had first mover advantage,” said Corcoran agent Ryan Kaplan. “Within one market cycle, it went from being the first option to the fifth option.”

Consider the location, too. One57 sits on West 57th Street, two blocks from the park. Two blocks might not seem like much, but those with enough money to splash on a Billionaires’ Row penthouse can live wherever they want. That may be across the street from the park.

The initial allure of buildings like 15 Central Park West (which is not quite on the Row) and One57 has waned as taller trophy properties, such as 432 Park Avenue, Central Park Tower and 220 Central Park South, have emerged nearby.

Of course, things aren’t exactly peachy at those buildings, either. Almost a quarter of all Billionaires’ Row sponsor units are still unsold, Curbed reported last month. Throw in resales, and availability could be closer to half.

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What we’re thinking about: Are recent sale prices on Billionaires’ Row mostly a result of a slow market? Or could it be that the super-luxury market, once believed to be expansive, is more finite than developers anticipated? Send a note to david.westenhaver@therealdeal.com.

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Closing Time

Residential: The priciest residential closing recorded Friday was $10.7 million for a condo at 70 Vestry Street in Tribeca.

Commercial: The most expensive commercial closing of the day was $32.8 million for an apartment building at 1009 Park Avenue on the Upper East Side.

New to the Market 

The priciest residence to hit the market was a condo at 845 United Nations Plaza PH88B in Turtle Bay at $16.5 million. Corcoran Group has the listing.

A thing we’ve learned: New York is home to the smallest plot of privately owned land in the world. Known as Hess Triangle, the tiny parcel is set into the sidewalk in West Village. The oddity was the result of a property dispute more than a century ago.

Elsewhere in New York

— The House of Representatives officially expelled George Santos today, making him the sixth person in history to be kicked out of the legislative body, Gothamist reported. A special election will be held to fill the seat for his district, which covers parts of Queens and Long Island.

— Bronx Community Board 11 voted to form a committee to consider demoting two leaders, Albert D’Angelo and Bernadette Ferrara, amid controversy over D’Angelo’s disparaging remarks about Black people, according to The City.