A current resident in the Michael Shvo’s Mandarin Oriental residences has closed on a second apartment, a 3,374-square-foot condo for $17 million – at a steep discount from its last asking price of $22 million.
The three-bed, three-bath unit sold for $5,038 per square foot, which Douglas Elliman’s Jade Chan, leading sales at 685 Fifth Avenue, said was a special price for the return client.
“It’s not about slashing prices, by any means,” Chan said. “If you want to buy another apartment in the building, I’m happy to give you a deal as well.”
But even if the building sold units to all its existing residents, it still would fall short of selling out its 65 units.
As of last month, the Mandarin Oriental had 50 unsold units, for which the Northwind Group provided a $120 million inventory loan. Shvo’s eponymous firm and co-developer Deutsche Finance America added cash equity as part of the financing.
Construction finished
Construction on the building finally finished at the end of this summer with the opening of the rooftop pool, and Chan thinks that being able to showcase its hotel-style service and amenities will be a difference maker for potential buyers.
“You walk in the door and the concierge is taking your suitcase and bringing it upstairs and putting it on your luggage rack,” Chan said. “If we know you get your oat milk latte every morning at 9 a.m., your doorbell is ringing at 9 a.m. with your hot oat milk latte.”
The units come fully furnished and residents have access to an exclusive restaurant run by celebrity chef Daniel Boulud.
Chan said she has put two more units into contract in the past 10 days, and being able to sign and close and sleep in an apartment all in one day “is a huge sell” to prospective buyers.
In March, the purchasers of 15A had bought unit 17A for $8.3 million, which they’d been using as a pied-a-terre.
Not every Mandarin client has been eager to expand at the Midtown condo building. In March, residents John and Diane Goodman sued Shvo and BSD, the shell company that developed the property, claiming construction defects.
Last week a judge dismissed the claims against Shvo as an individual, ruling there was not enough evidence for him to be held personally liable. The judge also dismissed portions of the claim against BSD that were not included on the punch list, which the Goodmans previously approved.
Chan said that 17A is one of the most expensive in the building. Last year, a penthouse in the building sold for just under $20 million, or over $6,000 per square foot. Also last year, the building sold the most expensive studio in the city for $3.88 million, or $5,615 per square foot.
That studio is back on the market asking $4.35 million.
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