The Extell Development building built in 2015, with a 20 year tax abatement, and 50,000 sqft of amenities currently has 9 units for sale. They are all resales, averaging approximately 10-20% more than their sold prices in 2015. The averge price per square foot is $1,878 per square foot. The average days on the market is 181 and if you remove one listing that has been for sale for 451 days, it goes down to 150 days on market.
There have been 4 sales this year and none in the last 3 months. That’s an average of 1 sale every 2 months which means the inventory would last about 18 more months.
The two resales sold this year were sold for a 100,000 or 6% profit and a $1.2 million loss, suggesting the building is roughly valued very close to the 2015 levels or less in the case of the larger apartments purchased from the sponsor.
Given that there are many more years left in this tax abatement, this might be the right time to get into this building with it’s amenity suite including the La Palestra athletic club, bowling alley and lounge, rock climbing wall and 75 foot lap pool.
The Author- Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.
One Manhattan Square, Extell’s new ground construction at 252 South street began selling last year in Asia first and according to the developer 80 units are already in contract. There will be 815 units with approximately 700 of them being either 1 bedroom or 2 bedrooms. The 823 foot tall tower will be full of amenities including a full size indoor basketball court. Gary Barnett, of Extell, grew up in the neighborhood and acknowledges the neighborhood has come a long way. This building is aimed squarely at the affordable luxury market. Prices start at around $1600 per square foot.
There are 7 seven listings on streeteasy and 2 of those are in contract. These days developers are keeping information on sales very guarded.
While everyone by now has heard about the glut of the luxury apartments in the Manhattan real estate market, what about the rest of the market? The market below $3 million continues to move well and we have seen upticks in activity of foreign buyers/investors who are looking for a safe haven for their money. The stock market right now is breaking new records but how long will this last? On the other side of the spectrum, even during the financial crisis Manhattan real estate values did not drop much except in developing neighborhoods. It just took longer to sell. Given that there is still scarcity below $3 million and especially family sized apartments, the lower end continues to move well.
Unlike during the Financial crisis of 2006-2008, Manhattan real estate developers have been only building luxury and super luxury for the last several years with only a few exceptions. Now, financing for these developments has dried up as lenders are risk averse and hesitant to lend funds to sell Manhattan super luxury apartments in an already glutted market. The below article talks about what lengths even one of the most well known Manhattan developers had to go to secure financing. Where do you think Manhattan real estate values are heading?
The Extell Development company has started construction on their Upper East side luxe 30 story tower and they are up to about the 4th floor. The building with be full of amenities including Camp Kent, a luxe children’s playroom. The Kent NYC will have 83 units and 9 units are showing as available on their site ranging in price from $2.457 mm to over $9mm for a 5bedroom/5 bath 3564 sqft 20th floor offering.
This is an excellent location at the corner of 95th street and 3rd avenue and the development will try to piggyback on the success of Carnegie Park, Related’s condo conversion one block away at 200 East 94th street. The Related condo, however had much lower prices and took advantage of the dearth of inventory catering to the affordable luxury market.
Do you think this part of the Upper east side is ready for Extell’s luxe development? See pictures below of latest construction from just over this weekend.
Gary Barnett, of Extell, the developer that brought to the market One57 is shifting gears according to Bloomberg. Extell is building a condo on the Lower East side of Manhattan and is launching sales in Asia first and will begin sales here in the US early next year. the prices for One Manhattan Square’s condos will be an un super luxury like $1 million to $3 million. At One57, a recording breaking sale closed this year for just north of $100 million.
Extell is being by smart by bringing to market a project that addresses the underserved needs of the affordable luxury market. Thanks to the fact that the land for One Manhattan Square was purchased in 2012 ahead of the spike in land prices, these apartments are going to tap into a market that is in a major shortage. Do you think that Gary Barnett is ahead of the curve again by turning his company’s attention toward a different market segment?
News about the NYC real estate residential and commercial markets provided and interpreted by an industry veteran licensed since 1999. Brian Silvestry of BSRG Inc. Licensed real estate broker