With the cost of land increasing and assembling of multiple parcels of land more and more difficult, Manhattan skyscrapers on Billionaire’s Row and throughout have continued to go up but are now getting skinnier. Typically, developers will buy a site but then also buy the air rights from neighboring buildings which allows them as of right to go into the stratosphere. Success of buildings like One57 which is home to most expensive sale for a residential apartment at just over $100mm are buoying this trend.
111 west 57th street is one of the newest entrants to this field with a width to height ratio of 1:24 according to engineers for the project. Developers get more more money for helicopter views so this trend figures to continue.
The Author- Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.
As we celebrate the last few days of 2015 and face the uncertainties of the new year ahead, at least we can look back on 2015 as the year that several records were broken or even shattered in NYC real estate. We saw the most expensive residential sale in Manhattan’s history take place at Extell’s One57 on Manhattan’s Billionaire’s Row of West 57th street. $100.47 million dollar was the sale price of the two floors totaling just over 10,000 square feet. A few floors down two floors another apartment known as the Winter Garden with a 2500 square foot atrium also sold for over $90mm.
Co-ops, and townhouses also broke records including Woody Johnson the owner of the NY Jets’ sale of a co-op which sold for $77.5mm for a duplex at 834 Fifth avenue.
Will this pace continue? Will 2016 see more records? What is your opinion?
Brazilian Billionaire Edson Bueno who sold most of his stake in his insurance and hospital company to UnitedHealth Group for $4.9 billion 3 years ago, purchased his 80th floor crash pad in One57 for $53M. According to NYDN, he bought it under a corporation. The apartment is 6240 sqft with 4 bedroms and 4 bathrooms and is located in the building that holds the record for most expensive residence sale at $100.47M. The apartment will be used as a pied-a-terre when the family is in NYC.
This sale is the ninth most expensive of all time in NYC but will likely be pushed lower on the list with several new condos being built in around Billionaire’s Row including 220 CPS which has already over $1 billion in sales according to reports.
From the same team that brought 15 CPW comes this 54 story building with ony 31 units. Zeckendorf development together with the starchitect of starchitects, Robert A.M. Stern bring this 54 story limestone building to life on Park avenue. Well, the building is on the side street but the address thanks to air rights bought from the church gained the address 520 Park avenue.
Prices start around $16mm for one floor and duplexes around $67mm according the CurbedNY. The penthouse is set to ask a cool $130mm. The building is trying to recreate the success the developer and architect had at 15 CPW which recorded sales over $2 billion and started this whole new construction with prewar exteriors.
The amenities are not that different than 432 Park avenue with a fitness center, garden, lap pool…
Sales are supposed to start this year. It will be interested to see if this building can recreate the success of 15 CPW. That was a different market and 2015 will be the year with much more competition for new luxury developments in Manhattan. 6500 units altogether are set to come to the market in all price points.
Much has been made of the luxury movement currently underway in Manhattan and 432 Park avenue to be finished this year will be the tallest residential building in the Western Hemisphere at 1396 feet tall and 96 stories. It was topped out late last year and can be seen from not only other boroughs but from other states. It is reported that the penthouse is already spoken for at $95mm. Continue reading 432 Park avenue Tallest residential building in NYC→
According to Streeteasy.com apartments priced at $10mm and more spent an average of 147 days on the market as compared with about half as many days a year earlier. This is no surprise for several factors. Here are a couple:
1- More inventory- Inventory has increased nearly 100% in the luxury market in the last year. On Billionaire’s Row aka 57 street, there are 4 projects coming to the market or already in the market that will compete with One57. There are 6500 units total coming to the market in 2015 with roughly 1/3 asking $2300 per sqft or higher.
2- Strengthening dollar- Foreign buyers are seeing their money is not going as far.