Are developers playing "chicken" with the market?

David Goldsmith

All Powerful Moderator
Staff member
Marketproof, Inc. © 2023

2022 NYC NEW DEVELOPMENT MARKET REPORT & TOP SELLING BUILDINGS OF THE YEAR​

January 3, 2023​



  1. After a record-setting 2021, demand declined mid-year, but PPSF remained stable throughout the year
  2. Aman New York Residences struck the largest deal of the year at nearly $76M
  3. Manhattan’s The Solaire inked the largest number of contracts, 84, while Brooklyn’s H7 Condominium sold 92% of its units
  4. Brooklyn and Queens chipped away at Manhattan’s dominance in new development market share
  5. New development inventory sits at roughly 12.7K units at year’s end, representing a $35B+ market opportunity

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New development activity rose 20% in 2022 compared to the pre-pandemic 2015-2019 average. Sponsors reported 3,278 contracts, representing aggregate sales of $8.3B at projects across the city, up from the $7.1B average.
The median asking price was $1.6M (+6%) and $1,696 PSF (+12%).
Manhattan reported 1,701 deals (+15%), Brooklyn had 1,213 (+20%), and Queens had 364 (+51%).
Though 2022’s numbers appear strong, this is because the first six months of 2022 continued the unsustainable strength seen in 2021, with nearly two-thirds of the year’s activity occurring in the first half of the year.
The current new development inventory sits at roughly 12.7K units, representing a $35B+ market opportunity and nearly five years of inventory.



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“At year-end, most metrics we track at Marketproof are higher than their pre-pandemic 2015-2019 average. But don’t let the numbers fool you. The market’s energy ran out in July, and activity levels dipped in the second half of the year. We expect, though, that demand will return to pre-pandemic levels by mid-2023.

For the buildings of the year, we have winners in four categories, towers, midsize, boutique, and top deals. Congrats to the teams at The Solaire, The Cortland, 208 Delancey, and Aman New York Residences for their #1 finishes. ”

Kael Goodman - Co-Founder and CEO of Marketproof, Inc.


LUXURY​




The luxury segment, deals at $4M and above, echoed the increased demand witnessed in the broader market in 2022 compared to the period 2015-2019. Signed contracts were up 17%, from 432 to 507. Aggregate contract volume increased from $3.6B to $4.0B, a gain of 10%.
Although demand increased, the median luxury contract price dipped by 6% to $6.0M, and the median PPSF increased modestly to $2,690.
Like its total market counterpart, luxury in 2022 can be described by the dichotomy between the first and second halves of the year. Demand was well north of the pre-pandemic average during the first six months but slipped below that average during the second six months.

MANHATTAN​




Compared to the pre-pandemic 2015-2019 average, demand for new development product increased in 2022. The number of signed contracts rose 15% from 1,484 to 1,701, with aggregate volume increasing 11% from $5.5B to $6.1B.
Median figures for the last asking price and last asking PPSF for contracted units increased as well, the former by 2% to $2,410,945 and the latter by 6% to $2,096. With a greater number of new dev offerings in Brooklyn and Queens at lower prices, Manhattan conceded some market share to the other boroughs.

BROOKLYN​



In 2022, there was significantly more demand for new developments compared to the period 2015-2019, with signed contracts up 20% to 1,213 from an average of 1,009. The growth in the aggregate value of contracts signed was even more pronounced, increasing by 44% from $1.3B to $1.9B.
Median figures for the last asking price and last asking PPSF for contracted units increased significantly as well. The asking price was higher by 16% to $1,196,118, and the asking PPSF increased by 19% to $1,405.

QUEENS​



As compared to the pre-pandemic average, the uptick in demand for Queens far outpaced that of its fellow boroughs. The result of more new developments and a number of buyers choosing Queens over Manhattan led to 51% more contracts being signed in 2022, bringing the tally to 364. Contract volume also increased 40% to $338M.
Although the median asking price for signed contracts dipped 6% to $817,500, the median asking price per square foot increased 10% to $1,300.


TOP SELLING BUILDINGS OF THE YEAR​


Marketproof created three categories – towers, midsize, and boutique – to highlight the buildings that inked the most contracts in 2022. We created a fourth category, “top deals,” to recognize those developments that closed the largest deals of the year. Congratulations are in order to the teams at The Solaire, The Cortland, 208 Delancey, and Aman New York Residences for their #1 finishes in each of their respective categories. Although it did not move enough inventory to make the cut, H7 Condominium is an honorable mention for selling out 92% of its units in 2022.

TOWERS (201+ UNITS)​



https://newdev.marketproof.com/share/yjpzxc1fl8
The Solaire
84 deals, representing 29% of all units
Developer: Albanese Organization
Architect: Pelli Clarke Pelli Architects and COOKFOX Architects
Sales: Corcoran Sunshine Marketing Group


Brooklyn Point
80 deals, representing 17% of all units
Developer:Extell
Architect: Kohn Pedersen Fox Associates and SLCE Architects
Sales: Extell and Serhant


Skyline Tower
78 deals, representing 10% of all units
Developer:Risland U.S. Holdings, United Construction & Development and FSA Capital
Architect: Hill West Architects
Sales: Modern Spaces and Nest Seekers International


MIDSIZE (101 - 200 UNITS)​



https://newdev.marketproof.com/share/es0uieclct
The Cortland
49 deals, representing 34% of all units
Developer: Related Companies and Mitsui Fudosan America
Architect: Robert A.M. Stern Architects and SLCE Architects
Sales: Related and CORE


111 Montgomery
47 deals, representing 29% of all units
Developer: CIM Group and LIVWRK
Architect: Fischer + Makooi Architects
Sales: Tamara Abir, Jacqueline Gill & Carrie McCue of Compass


Greenwich West
39 deals, representing 23% of all units
Developer: Cape Advisors, Strategic Capital and Forum Absolute Capital Partners
Architect: AAI Architects
Sales: Kane Manera, Asaf Bar-Lev & Nicole Hechter of Corcoran Sunshine


BOUTIQUE (31 - 100 UNITS)​



https://newdev.marketproof.com/share/vidpo-ybqs
208 Delancey
50 deals, representing 59% of all units
Developer: New Empire Real Estate
Architect: ODA Architecture and S M Tam Architect
Sales: Ian Slater & Andi Li of Compass


The Edison Gramercy
47 deals, representing 87% of all units
Developer: Urban Development Partners and SD Second Avenue Property
Architect: Issac & Stern
Sales: Fredrik Eklund, John Gomes & Ellis Bachman of Douglas Elliman


Forena
45 deals, representing 90% of all units
Developer: Landsea Homes and DNA Development
Architect: Morris Adjmi Architects
Sales: Fredrik Eklund, John Gomes, Skyler Rhoten, Justin Tuinstra & Glenn Davis of Douglas Elliman


TOP DEALS​



https://newdev.marketproof.com/share/ri3cfdzfln
Aman New York Residences - Unit 20A
$75,891,560 ($11,161 PSF) - 4 Bed / 5 Bath
Developer: OKO Group
Architect: Dennison, SLCE Architects and Warren & Wetmore
Sales: Aman New York Sales Gallery


220 Central Park South - Unit PH75
$72,000,000 ($14,340 PSF) - 3 Bed / 4.5 Bath
Developer: Vornado Realty Trust
Architect: Robert A.M. Stern Architects
Sales: Corcoran Sunshine Marketing Group


Aman New York Residences - Unit 22A
$56,164,524 ($8,921 PSF) - 4 Bed / 5 Bath
Developer: OKO Group
Architect: Dennison, SLCE Architects and Warren & Wetmore
Sales: Aman New York Sales Gallery


Report Methodology​

  • The period 2015-2019 is used as a normalized benchmark for comparison as it is the most recent period unaffected by the COVID pandemic
  • Report is based on reported contracts and may not represent all contracts signed
  • Prices are based on the last asking price before a unit was put into contract
  • New development contracts are sponsor stage (sponsor controlled) projects that are eligible to sell units
  • Data as of 1/1/2023

 

inonada

Well-known member
C’mon, don’t be such a sourpuss! It’s their best year yet:

“It was the first supertall luxury building to go up in the area, and not only has it influenced several other big developers to plan large-scale projects nearby, but it’s found unprecedented success,” the site said. “Of note, sales velocity increased from 6.4 sales/month when sales commenced in late 2016 to 10.2 sales/month in early 2022, the third-highest in the city.
 

David Goldsmith

All Powerful Moderator
Staff member

Here’s how 2019’s hottest projects fared​

Three years rocked NYC development, spelled mixed results for supertall, waterfront plans​


A photo illustration including several of the planned 2019 development projects (Getty, Vornado Realty Trust, Rudin Management, River Ring)

A photo illustration including several of the planned 2019 development projects (Getty, Vornado Realty Trust, Rudin Management, River Ring)
Developers had big plans at the end of 2019.
From supertalls that would push Manhattan’s skyline even higher to waterfront developments bridging the Big Apple with the beach, the hottest proposals of the pre-pandemic period promised to break records and precedent.
The three years that have followed ushered in a lifetime’s worth of change, and mixed results for the renderings we crowned the hottest of the time.
Here’s the latest on where those projects stand:

Macklowe’s legacy​

A rendering of Tower Fifth (NYT)

A rendering of Tower Fifth (NYT)
Developer Harry Macklowe rang in 2019 by unveiling plans to top his 432 Park skyscraper with a 1,550-plus-foot Midtown office tower that would be the second-tallest building in the Western Hemisphere.

The developer in October 2019 landed a $192 refinancing package for three parcels, two of which are part of the assemblage intended for the proposed the billion-dollar supertall, dubbed Tower Fifth.
Demolition was later put on hold, New York YIMBY reported in Nov. 2020. The outlet reported new renderings at the time showed the tower set on a pedestal, which would house access to elevators and retail tenants.
The potentially record-breaking development appears to have made no headlines since.

An homage to the Shard​

350 Park Avenue (Vornado Realty Trust)

350 Park Avenue (Vornado Realty Trust)
No ground has been broken for this project, which would pay homage to London’s iconic Shard tower, but the prospect of a new, 1.7 million square foot tower in Midtown East got a major bump earlier this month when Ken Griffin’s Citadel committed to the master lease of the building.

The project calls for the demolition of the buildings at 350 Park Avenue and 40 East 52nd Street.
Under the terms of the deal, Citadel will master-lease Vornado’s 585,000-square-foot 350 Park Avenue for 10 years, with an initial annual rent of $36 million. Citadel will also master-lease Rudin’s adjacent 390,000-square-foot property at 40 East 52nd Street.
Vornado will form a joint venture with Rudin to buy 39 East 51st Street for $40 million and will combine that site with 350 Park Avenue and 40 East 52nd Street.
The deal gives Griffin the option to acquire a majority interest in the joint venture or exercise an option to buy the site outright for $1.4 billion and go it alone on development.

Disney comes to Hudson Square​

4 Hudson Square (SOM)

4 Hudson Square (SOM)
The Walt Disney Company applied in Aug. 2019 to construct a 19-story, nearly 1.3 million-square-foot building at 4 Hudson Square.
Construction has since plodded along at the building designed by Skidmore, Owings & Merrill and developed by Silverstein Properties, New York YIMBY reported in April. The 338-foot-tall structure, which is set to include 1.2 million square feet of office, production and retail space, is expected to be completed sometime this year.

Breath of Fresh Air​

A rendering of Pier 97 (Credit: Hudson River Park Trust)

A rendering of Pier 97 (Credit: Hudson River Park Trust)
New York City might be expensive, crowded and dirty, but it increasingly has the green space to make up for it, thanks in part to a new waterfront park in Hell’s Kitchen.
Work started last November and is “well underway” to transform Pier 97 into a landscaped oasis filled with walking paths, a playground, art and an all-ages slide, among other amenities, the Hudson River Park Trust said. A representative for the trust said the park should be open to the public by this coming fall, slightly behind schedule due to supply chain issues.

First Mover​

A rendering of 270 Park Avenue (ATCHAIN)

A rendering of 270 Park Avenue (ATCHAIN)
JPMorgan Chase is proceeding with another project that will transform the Midtown skyline, though there’s nothing new since April, when the bank unveiled plans for the building.
Plans call for a supertall 1,400-foot, 60-story skyscraper with net zero operational admissions, powered entirely by renewable energy. It will house up to 14,000 employees and will use AI, advanced water storage and triple-pane glazing to minimize energy usage.
https://eb2.3lift.com/pass?tl_click...7964861&ts=1673570609&bcud=424&ss=12&cb=30485
The project, which will yield 2.5 million square feet of office space, is expected to be completed in 2025.

Fifth Avenue zen​

A rendering of the Crown Building conversion (OKO Group)

A rendering of the Crown Building conversion (OKO Group)
The ink has barely dried on the record sales at the Crown Building, but billionaire owner Vlad Doronin is already reportedly considering selling the property, where the top 20 floors are being converted into 22 luxury condos and an 83-room hotel. If he goes through with it, he could get $600 million for the property.
https://eb2.3lift.com/pass?tl_click...7964861&ts=1673570613&bcud=362&ss=12&cb=61600
Doronin’s OKO Group in June closed on $754 million in refinancing for the project, which in August reeled in the most expensive condo sale in Manhattan, when a unit went for $53.4 million.
Doronin and developer Michael Shvo bought the property in 2015 for $475 million. Shvo was sidelined from the project in 2017 after being indicted on tax evasion charges, but retained an equity stake.

Banking on the Bronx​

Renderings of Brookfield’s Bankside in the South Bronx (ArX Solutions)

Renderings of Brookfield’s Bankside in the South Bronx (ArX Solutions)
Brookfield released renderings in Nov. 2019, showing its megaproject on the Mott Haven waterfront would include a seven-building spread and a 34,000-square-foot park.

The developer broke ground on the project, dubbed Bankside, in late 2019 and it has been steadily rising since. The development is slated to deliver more than 1,400 units, a third of which will be designated as affordable.

Whimsical Williamsburg​

A rendering of Two Trees’ Williamsburg project designed by Bjarke Ingels (James Corner Field Operations and BIG)

A rendering of Two Trees’ Williamsburg project designed by Bjarke Ingels (James Corner Field Operations and BIG)
A new master plan designed by Bjarke Ingels and landscape architecture firm James Corner Field Operations aimed to make life on the Williamsburg waterfront a beach, complete with two mixed-use towers, a park and circular breakwater that doubles as a promenade

The city in Dec. 2021 greenlit the project, dubbed River Ring, clearing the way for more than 1,050 apartments, 263 of which would be affordable, office and retail space, along with communal outdoor spaces.
 

David Goldsmith

All Powerful Moderator
Staff member
45 East 22nd Street has a totally unique amenity:
Residents get access to an app which chooses the tune which the building whistles (let's see who gets that one!).

Eichner’s Madison Square Park saga enters final act​

Developer asking $20M for final unsold unit at tower after long and windy road​

The saga of Ian Bruce Eichner’s Flatiron condo tower may finally be coming to a close.
A nearly 6,000-square-foot duplex at 45 East 22nd Street hit the market last week at $20 million, or roughly $3,400 per square foot. The listing for the final unsold piece of the 83-unit Madison Square Park Tower comes after eight years of legal challenges, sluggish sales and lender drama at the development.
Eichner previously lauded the project — which was a joint venture between the Continuum Company founder and his equity partners, Fortress Investment Group and Dune Real Estate Partners — as a standout from other luxury condos on the market.

“I’ve got a tall building. I’ve got views. I’ve got five floors of amenities. I’ve got parking,” Eichner told The Real Deal during a visit to the tower’s sales center in 2015. “I’m feeling OK.”
But the developer’s path to sell out the Flatiron condo hasn’t been straightforward.
The 65-story tower was Eichner’s comeback project in New York after what he called his 15-year “exile to the desert.” On the heels of some high-profile losses in the Big Apple, he went to Las Vegas, where he developed, and then lost to foreclosure, the $3 billion Cosmopolitan casino project.

At 45 East 22nd, instead of purchasing the space outright, Eichner started by buying the air rights of a co-op in the middle of the block before approaching the owner of the neighboring building to make an offer for the first piece of land.
“I went to the guy next door and I said, ‘We’re in America, and I’m in a position to pay you more than anyone else in America,’” Eichner told TRD in 2016.

Eichner bought $100 million worth of air rights and pieced together seven properties to take the development site from 50,000 square feet to 260,000. With $85 million from Fortress and Dune, $61 million from his own pocket and $343 million in construction loans from Goldman Sachs, he kicked off construction.

Sales launched at the condo tower in January 2015 to some early success. About half of the development’s 83 units were in contract by October of that year, with the first units selling for $4.2 million and $5.9 million.
But by the following year, sales started to slow as the luxury condo market cooled. Corcoran Sunshine was bumped from sales in favor of the Fredrik Eklund and John Gomes team at Douglas Elliman.

When construction concluded in the summer of 2017, more than a third of the condo’s units remained unsold and Eichner went on the hunt for additional financing.
At the time, the asking prices of condo units ranged from $2.7 million to $45 million, with several of the unsold ones on the tower’s more expensive end.
Months dragged on with low sales. By the spring of 2018, Eichner was in danger of losing the project. His agreement with Fortress and Dune required temporary certificates of occupancy for two condo units before March 31, 2018, or else he’d have to give up control over the development’s day-to-day operations.

In a lawsuit filed in New York State Supreme Court, Eichner claimed his partners blocked his efforts to refinance by refusing to release funds necessary for construction and preventing him from purchasing one of the units.

Under the terms of their agreement, Eichner only makes money on the development once Fortress and Dune recoup their $85 million investment, plus their preferred return at an annual interest rate of 22 percent. Eichner alleged his partners wanted to cut prices and offload condos, preventing him from recovering his $61 million investment.
Fortress and Dune argued in response that Eichner missed the September 2018 milestone to sell $500 million worth of units and only filed the complaint because he was still $110 million short, despite a six-month extension.

The partners originally granted Eichner 36 months to hit the $500 million mark. A TRD analysis around the time of the lawsuit showed luxury developers took on average about 14 months to sell $500 million in units.
The partners claimed Eichner’s plan to purchase one of the units included buyer perks that would reduce the price to $17.5 million, and the closing wouldn’t be complete by the March 31 deadline. (The developer ultimately closed in Nov. 2018 for $19.5 million.)

The judge granted Eichner a temporary injunction preventing his partners from declaring him in default.
Eichner’s luck began to turn in June 2018 when Madison Realty Capital agreed to a $167.5 million condo inventory loan, ending the legal battles with his partners. Along with the influx of cash, sales at Madison Square Park Tower finally began to pick up again as five units went into contract in the weeks ahead of the loan’s closing.

Another major win came in February 2020 when a buyer — described by Eichner as a high-net-worth individual from Asia — claimed the two penthouses atop the building. The penthouse duo was initially priced at $77 million in 2014 then lowered to $52 million. The deal eventually closed at $44 million.
At the time of the penthouse sale, Eichner said about 90 percent of the building had sold, including two units that traded for $13 million.

Though Eichner told the Wall Street Journal in 2020 that he had “no plans to do another residential condominium in New York City for the foreseeable future,” the developer has not given up on his hometown.
In 2021 he signed a contract to buy the Community Church of NYC in Midtown for $70 million in a residential condo play. The congregation’s former Murray Hill building and four adjacent brownstone rentals are slated to give way to 150 luxury apartments.
 

David Goldsmith

All Powerful Moderator
Staff member
Sales launch date July 2015

How would you feel if you bought 5B 02/17/2017 for $3,076,401 and were trying to sell it now
https://streeteasy.com/building/90-lexington-avenue-new_york/5b

But the developer was still selling units almost 8 years after the sales launch and had 10B on the market for less than you paid?
 

David Goldsmith

All Powerful Moderator
Staff member

Inside Bjarke Ingels’s Stunning Pair of Twisting Condo Towers in New York City​

One High Line takes up an entire block in West Chelsea with incredible Hudson River views. Here's a look inside.​

If you’ve been patiently awaiting the completion of One High Line, you’re not alone. The highly anticipated Manhattan condo project, a pair of twisting towers in the city’s West Chelsea neighborhood, is nearly ready for its grand debut this summer.
While there’s no shortage of incredible architecture and residential towers in New York, One High Line takes up an entire block of one of West Chelsea’s last pieces of prime real estate. The condo, designed by Danish architect Bjarke Ingels, founder of BIG architecture firm, will officially welcome residents this summer. There are 236 units within the 36- and 26-story towers, as well as the second-ever Faena Hotel, office buildings and retail spaces.

The long-awaited opening comes after some financing issues that resulted in a halt in construction, change in developers and total rebrand. One High Line, formerly the XI, was sold to New York–based developer Witkoff Group and Access Industries in December 2021 for $900 million after HFZ Capital Group, the original developers, ran out of money, stopped construction and sold the property in a foreclosure sale. Witkoff kept all of the original architects and designers on board, including interior designers Gabellini Sheppard Associates and Gilles & Boissier, who each designed a residential tower.

Ingels, one of the most sought-after urban architects, didn’t overlook any details when conceptualizing the towers. The travertine facade is an homage to Gordon Bunshaft’s Solow and Grace buildings, and the windows are reminiscent of those in Meatpacking and Chelsea neighborhoods. While the twisting aspect certainly has an aesthetic purpose, the towers have been perfectly engineered so that each residence has unblocked views.

“The geometry of the two towers is a direct response to the site’s context and each other,” Ingels tells Robb Report. “The reason these buildings have this striking form is so they do not stand in each other’s way. In return what we’ve essentially provided is a series of incredibly framed views of the skyline of Manhattan; the movement of the buildings gives each residence these unique panoramas all their own. The two towers transform and adapt to their surroundings and each other as they rise from the ground, reorienting themselves to respond to the High Line, the Hudson River and the surrounding arts district. The twisting geometry at the corners of the towers reduces the overall bulk of the buildings and creates additional separation between them.”
One High Line has views in every direction. From the East Tower, there are uninterrupted views from several units of the Hudson River and downtown Manhattan, while the West Tower has views of Midtown. The building also overlooks the High Line and will have its own entrance so residents can take advantage of the urban park.

“One High Line occupies a full city block between the High Line and the Hudson River,” Alex Witkoff, co-CEO of Witkoff Group, says. “It was a blank slate in downtown Manhattan’s best location and required a true visionary to create a project that could command the public’s imagination while being an approachable and desirable place to call home. Ingels cracked the code with two iconic towers that are steeped in New York tradition yet also completely fresh and unique. His understanding of how to design the towers to not only take advantage of the cinematic views of the Hudson River and New York skyline, but to enhance those views, is a true gift to One High Line’s future residents. At street level, he has turned this full block into a connected community and a center of calm in the city.”
Residences range from one-bedroom to five-bedroom layouts with pricing from $2 million to $50 million. Arranging floor plans and layouts was no small feat, as the twisting nature of the building meant that further customizations were necessary.

“Very often a building is simply a floor plan extruded ‘X’ amount of times,” Ingels says. “I think there are certain situations where that makes sense but especially in a city like New York where the surroundings and the context is not a flat condition, it’s three dimensional, the right thing to do on the ground floor is maybe not the right thing to do on the 10th floor and it may not be the right thing to do on the 35th floor. In this case, the perfect floor plan had to be different at different levels, and the buildings reconfigure themselves as they rise from the ground to the penthouse levels. That simple realization makes me proud: That you’re in a three-dimensional city like New York City and therefore the ideal thing to do changes as you go up. That’s essentially what we’re trying to do with One High Line. And of course, within this framework, you suddenly have different canvases for different types of interior designers. It creates some very exciting residences.”

Residences in the West Tower, designed by Gabellini Sheppard Associates, have seven-inch-wide oak plank floors, custom Bulthaup Grey Larch cabinetry, honed White Princess quartzite countertops and Taj Mahal quartzite floors and walls in the bathrooms. Meanwhile, the residences in the East Tower, designed by Gilles & Boissier, feature custom Molteni Larch cabinetry, European oak plank floors and Arabescato Vagli marble flooring and African St Laurent marble walls in the primary bathroom.
Amenities include a 75-foot pool, gym, steam rooms and saunas, a golf simulator, a billiards and game room, a playroom and a full-time concierge. The buildings are also connected via a unique glass-enclosed, double-height bridge lounge. Residents will also have access to Faena’s luxe amenities, such as dining, housekeeping, laundry and event planning services, as well as preferred hotel spa booking.

“We have the luxury of working with the best in architecture with Ingels, the best in interior design, the best in landscape design with Enzo Enea and the best in hospitality with Alan Faena, who will do for West Chelsea what his five-star Faena Hotel did for Miami Beach,” Witkoff says. “It’s an unprecedented collection of talent and collaborators, and our buyers recognize that.”

 

David Goldsmith

All Powerful Moderator
Staff member
https://preview.therealdeal.com/
125 Greenwich is back in the game: Supertall condo lands financing
Northwind provides $313M loan; Fortress comes aboard
Northwind's Ran Eliasaf, 125 Greenwich and Bizzi & Partners’ Davide Bizzi (Northwind, Getty, 125 Greenwich)

FEB 1, 2023, 6:24 PM
By
A stalled supertall condo project at 125 Greenwich Street, one of the most hotly anticipated skyscrapers until it was mired in financing complications, is ready for its comeback.
Bizzi & Partners and Fortress Investment Group secured a $313 million loan from Northwind Group, The Real Deal has learned, allowing it to resume construction at the project after threats of foreclosure and partnership disputes delayed the 88-story tower for years.

Northwind’s loan replaces an existing one issued by Fortress, which will convert its debt into equity and become the property’s new majority investor. Fortress will also add additional money into the project, according to a source familiar with the matter, and will replace former partners Howard Lorber’s New Valley and Chinese private equity firm Cindat.
“Fortress is a leader and innovator, and we are thrilled to be working with them on this project,” said Mario Tornaghi, head of special operations, Bizzi & Partners.

A Walker & Dunlop team led by Aaron Appel and Keith Kurland arranged the debt financing,
The building, designed by Rafael Viñoly, is 85 percent complete. In addition to its rounded corners and units with floor-to-ceiling windows, the project is unique in that it plans to use the top three floors for luxury amenities rather than penthouses. Douglas Elliman is leading sales and marketing.
With financing in place and a partner with deep pockets, Bizzi hopes to rebrand the project and relaunch sales this year. It would be a comeback a decade in the making.
The condo tower was meant to be Lower Manhattan’s answer to Harry Macklowe and CIM Group’s Viñoly-designed 432 Park Avenue in Midtown, which was completed in 2015.

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Instead, it came to symbolize many of the issues facing the city’s then-oversaturated condo market.

In 2014, an investor group led by Michael Shvo, Bizzi, and New Valley paid $185 million for the site at 22 Thames Street, a former telephone factory for Western Electric. The 275-unit project was supposed to top out by 2018 and had a projected sellout of $875 million.
Cindat came on as a partner and the development group was able to raise $194 million from EB-5 investors through U.S. Immigration Fund in 2015, but Shvo was sidelined from the project after his 2016 indictment for tax evasion.
Talks to land financing began that year, and the developers finally closed on a $473 million construction loan from United Overseas and Bank of China in 2018. Less than a year later, the bank initiated a foreclosure on the property that threatened to wipe out the developers’ equity.
United Overseas sold its distressed loan to Florida-based investment firm BH3 in 2019, which then sold the loan to Fortress for $230 million the following year. Fortress, however, chose not to foreclose and instead become a partner in the project.

U.S. Immigration Fund, an EB-5 regional center operator led by Nick Mastroianni, has retained its interest in the project.
With $46 billion in assets under management, Fortress has played a role in some of New York’s most memorable real estate deals, including its takeover of Kent Swig’s Sheffield condo conversion south of Columbus Circle for under $100 million and Harry Macklowe’s $7 billion acquisition of several Manhattan office buildings from Blackstone in 2007.

 

David Goldsmith

All Powerful Moderator
Staff member
https://preview.therealdeal.com/

New condos cool in Brooklyn, but hold steady in Manhattan​

January demand for luxury units up 33% from pre-pandemic average

New York City’s new condos — the vanguard of build, style and price — are finding their footing.

The number of new Manhattan condos sold in January ticked down to land around monthly average sales recorded between 2015 and 2020 according to Marketproof’s monthly report. Overall activity tanked in recent months from the highs in the pandemic years, but some of the city’s trophy projects made up ground with a bump in high-dollar deals.
Sponsors in the borough put 104 units into contract in January, nearly equal to December’s total. The market continued to rebound from a low in October of 74 new contract signings.

Extell Development led luxury deals with a five-bedroom apartment at Central Park Tower that last asked $63.5 million, or about $9,500 per square foot. Manhattan took the lion’s share of deals asking $4 million or more, with 30 of 32 contracts.
High prices left room to negotiate, according to Marketproof CEO Kael Goodman, who said the difference between asking and closing prices was 14.9 percent.
“Pricing at certain projects in Manhattan was set in a different interest-rate environment,” Goodman said.

Related Companies notched seven new contracts at 450 Washington in Tribeca. 300 West 30th Street in Chelsea took home 10. The buildings are 15 and 20 percent sold, respectively.

Median prices for new condos in Manhattan rose two percent above pre-pandemic levels to $1,994 per square foot, while overall median prices fell five percent, to $1.99 million.In Brooklyn, asking prices increased 13 percent — to a median $995,000, and $1,231 per square foot — but the number of new contract signings sat well below the pre-pandemic average.
“Brooklyn is cooling,” said Goodman. “The big stuff is largely sold.”
As a measure of weakened demand in the borough last month, new condos made less revenue than a pre-pandemic average — despite a massive contract at Fortis Property Group’s Olympia Dumbo for $17.5 million.
CIM Group and LIVWRK pulled in six new contracts at 111 Montgomery Street in Crown Heights, which is 77 percent sold after four years. Extell’s 481-unit Brooklyn Point notched four new contracts, with more than half of inventory sold after nearly five years.
In Queens, Chinese developer ZD Jasper has sold nearly 15 percent of units at a ground-up project at 45-30 Pearson Street in Long Island City, while a condo conversion in Forest Hills, which landed developer Pinnacle Group in hot water, notched four contracts last month. The median asking price for a new condo in Queens was $795,000, or $1,424 per square foot.

 

David Goldsmith

All Powerful Moderator
Staff member
At the same time that it appears we are turning a corner and rental inventory is rising (despite tens of thousands of units being warehoused) developers are still building large numbers of new rental apartments. This one developer is building about 2,000 new units just in this one neighborhood.

TF Cornerstone lands $725M for next Long Island City megaproject​

Wells Fargo, PNC Bank led financing for 1,400-unit apartment complex
TF Cornerstone's Fred Elghanayan, 2-20 and 2-21 Malt Drive (Getty, SLCE Architects)

JAN 18, 2023, 6:03 PM
By
Research by
TF Cornerstone has landed a major financing package for its next rental project in Hunters Point.
Wells Fargo and PNC Bank led a pair of construction loans totaling $725 million for the developer’s planned 1,386-unit apartment complex at the corner of Second Street and 54th Avenue near Newtown Creek, a representative for TF Cornerstone told The Real Deal.

Wells Fargo took the lead on a $418 million loan for one portion of the project at 2-21 Malt Drive, which will include 811 units across two towers rising 25 and 38 floors from a shared six-story podium. PNC Bank led a $307 million loan for the other at 2-20 Malt Drive, a 33-story tower above a six-floor podium with 575 units.
If Malt Drive sounds unfamiliar, it’s because it doesn’t exist yet. The name — a nod to the site’s history as a beer distribution facility — will be given to a privately owned, publicly accessible street that will connect the buildings.

The buildings are scheduled to get their first certificates of occupancy in the second quarter of next year. Thirty percent of the complex’s units will be set aside as income-restricted housing.
M&T, Bank of New York, TD Bank, Bank United and City National Bank also participated in both loans.

Excavation and foundation work at the sites were underway as of late August, New York YIMBY reported at the time.

 

David Goldsmith

All Powerful Moderator
Staff member

111 West 57th Street penthouse sells for $47M​

Unknown buyer closed for $6.6M under asking
A penthouse at 111 West 57th Street sold last month for $47.2 million, down from the $53.8 million asking price listed in the condo’s offering plan, according to ACRIS.
An unknown buyer paid about $7,300 per square foot for the 78th-floor apartment at the supertall developed by JDS Development and Property Markets Group. Mansion Global first reported the sale in February but was not able to confirm it with property records at the time.

The 6,500-square-foot unit is one of a collection of eight in the building with floor-to-ceiling windows offering sweeping views of Central Park and the city skyline. It has four bedrooms and four bathrooms.
The sale of PH78 is among some of the most expensive in the building, including a 74th-floor penthouse that closed for over $50 million in October 2022, one month before Tik Tok investor Tim Gong paid $34 million for two units at the building. The developer told the Wall Street Journal in 2019 another penthouse had entered contract for $58 million.

The Corcoran Group heads sales at the Billionaire’s Row tower. The firm took over last February from Douglas Elliman.
The development of the 84-story tower ran into some controversy. In a 2021 lawsuit, JDS Construction alleged US Crane & Rigging failed to properly tie up a crane at the Midtown site, which led to it spinning out of control into glass and facade panels during Hurricane Zeta.
The developers constructed the tower above the landmarked Steinway Hall, which previously served as the piano maker’s original showroom built in 1925.
The tower is the second tallest residential building in the Western Hemisphere with the additional 1,428 feet of tower extending from the original structure. It has 60 residences, including 14 in Steinway Hall and 46 full-floor and duplex units.
 

inonada

Well-known member
I count 12 recorded closings. How about you? That’s not a lot after 4.5 years of marketing, to say nothing of the quiet pre-marketing.
 

David Goldsmith

All Powerful Moderator
Staff member
We used to own a beautiful 1908 American Empire Steinway A that was so good that Steinway didn't sell it, but instead kept it in Steinway Hall for a decade.

They have been doing closings for almost a year:
New York YIMBY
HOME 111 WEST 57TH STREET

Closings Underway For SHoP Architects’ 111 West 57th Street In Midtown, Manhattan​

111-West-57th-Street-rendering-by-Hayes-Davidson-777x792.jpg
111 West 57th Street. Rendering by Hayes Davidson
BY: MICHAEL YOUNG 8:00 AM ON APRIL 8, 2022
Closings have begun for the 46 condominium units within the main tower of 111 West 57th Street, a 1,428-foot residential supertall in Midtown. Designed by SHoP Architects and developed by JDS Development, Property Markets Group, and Spruce Capital Partners, the 84-story edifice stands as the world’s most slender building. Studio Sofield is the interior designer and The Corcoran Group is leading sales and marketing for the residences, which also include 14 homes within the restored Steinway Hall building in the podium. WSP is the structural engineer, RWDI consulted with the design of the 800-ton tuned mass damper, Jaros, Baum & Bolles is the MEP engineer, R&R Scaffolding Ltd. provided the building maintenance unit (BMU) sitting atop the crown, and BuroHappold Engineering is the façade consultant for the project, which is located between Sixth and Seventh Avenues on Billionaires’ Row.
Sales for the residences in Steinway Hall have already launched.

111 West 57th Street. Photo by Michael Young

111 West 57th Street. Photo by Michael Young

111 West 57th Street. Photo by Michael Young

111 West 57th Street. Photo by Michael Young

111 West 57th Street. Photo by Michael Young

111 West 57th Street. Photo by Michael Young

111 West 57th Street. Photo by Michael Young

111 West 57th Street. Photo by Michael Young

Residential amenities at 111 West 57th Street include an 82-foot-long two-lane swimming pool with private cabanas, a separate sauna, steam and treatment rooms, a double-height fitness center with a mezzanine terrace, paddle court, a private dining room and a chef’s catering kitchen, a residents’ lounge with an expansive terrace, meeting rooms and a study, 24-hour attended entrances, and a dedicated concierge service. There is also a private porte-cochère on 58th Street with direct access to the lobby, which features limestone, marble, blackened steel, and velvet materials, as well as the restored end-grain wood flooring from Steinway Hall.
111 West 57th Street is currently the second-tallest residential building in New York City and the Western Hemisphere, and the tallest building SHoP Architects and JDS Development have worked on.
 

David Goldsmith

All Powerful Moderator
Staff member
TRD analysis predicts Extell will come up $1 Billion short of their original sellout goal on Central Park Tower. I guess this was one of the projects Gary Barnett was talking about losing money.

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Central Park Tower duplex lists for $175M​

Penthouse follows another unit in Extell’s supertall for city’s second priciest listing
Extell Development's Gary Barnett and 217 West 57th Street (Getty, Extell Development, Douglas Elliman)

MAR 9, 2023, 1:28 PM
By
A nine-figure listing that hit the market this month has to settle for second place among New York City’s priciest listings, bested by the condominium one floor above.
The duplex at Gary Barnett’s Central Park Tower supertall listed for a staggering $175 million, or roughly $13,936 per square foot, according to a StreetEasy listing reported by the New York Post.

The 12,500-square-foot penthouse is on the 107th and 108th floors of Extell Development’s building at 217 West 57th Street. There are two terraces totaling 240 square feet, a conservatory, home office and seven bedrooms, five of which are on the second level.
Douglas Elliman’s Janice Chang has the listing.

Above that is a 17,500-square-foot triplex, which encompasses the 129th to 131st floors of the building. That unit became the most expensive listing in New York City when it hit the market in September for $250 million, or $14,250 per square foot. If it fetches that price, it would shatter the record for most expensive sale in the country, set at $238 million by Citadel’s Ken Griffin four years ago at 220 Central Park South.

Ryan Serhant of his eponymous brokerage holds the listing for that unit, which includes 1,400 square feet of outdoor space.
 

David Goldsmith

All Powerful Moderator
Staff member

Waldorf Astoria condo conversion could be “lucky” for 2025 opening​

Hilton projects 2024 completion for beleaguered development
MAR 23, 2023, 10:39 AM

Another day, another setback for the long-lagging Waldorf Astoria condo conversion.
The already-delayed project is now expected to open in 2025 at the earliest, unnamed sources told the New York Post. A year ago, it was believed the project could be done at the end of this 2023, at the earliest.

A source told the outlet work on the hotel portion of the project has only just begun. Another source told the Post that a 2025 reopening of the famed property would be “lucky.”
Hilton isn’t throwing in the towel on a 2024 completion. A spokesperson for the hotel giant told the outlet renovations would be done next year and the property was “expected” to be reopened in the second half of next year.
The conflicting forecasts are just the latest after the project has veered years off schedule.
Dajia US replaced China’s Anbang Insurance Group as owner of the property in 2018. Anbang purchased the property in 2015 for $1.95 million and started the conversion process two years later, pumping in $1 billion and shutting down the hotel.

Costs have since soared past $2 billion and the original projected completion date of 2021 feels like a distant memory.
Sales for the property’s residential condos finally launched in 2020, only days before the onset of the pandemic changed the word; the sales gallery was shut down on March 16.

Top exec’s exit latest blow to Waldorf Astoria’s lagging condo conversion
Top exec’s exit latest blow to Waldorf Astoria’s lagging condo conversion

Condo sales launch at Waldorf Astoria in crowded luxury market
Condo sales launch at Waldorf Astoria in crowded luxury market


Last year, Dajia US CEO Andrew Miller, the top U.S. executive overseeing the project, abruptly left the company after he was reportedly at odds with the parent company over cost overruns and left without a successor in place.


The pandemic and challenges with Chinese ownership have created a forgettable chapter in the history of the landmarked property, which is eventually expected to yield 375 hotel rooms and 375 condo residences.
 

David Goldsmith

All Powerful Moderator
Staff member

Extell lands $500M inventory loan at Central Park Tower​

Project’s original mezzanine loan was set to mature
MAR 23, 2023, 7:30 AM
By
Extell Development got a $500 million condo inventory loan from JP Morgan Chase, secured by apartments at Central Park Tower, according to publicly available documents.
The bank, which is also the construction lender on the project, structured the funds as a mezzanine loan, according to the lending document. Such loans are not usually secured by real estate but by ownership interests in a development.

But in this case, the collateral for the loan is 87 apartments at the luxury building, representing about half of its inventory — all unsold when the loan was made.
The project’s original $380 million mezzanine loan, provided by Sail Harbor Capital and Boston-based hedge fund Baupost Group, carried an interest rate of 14 percent and was scheduled to mature in June at the latest.

The financing has received little attention to date, perhaps because it was erroneously recorded as being only $5 million. An Extell executive signed for the loan in late January. The company did not return a request for comment.
Sales on 81 of the building’s 179 units have closed, according to Marketproof, with two more in contract — one of which was asking $63.5 million. The building, at 217 West 57th Street, has generated revenue of $1.6 billion, about 40 percent of its forecasted $4.1 billion sellout price, although Extell CEO Gary Barnett admitted last summer that that target was too ambitious.

Barnett has been selling units at a healthy discount to their 2017 offering-plan prices since at least the fall of 2021.
Baupost declined to comment on whether its mezzanine position was retired by JP Morgan’s larger loan. Sail Harbor could not be reached.

As rising mortgage rates have slowed home sales, prices for luxury real estate have softened in Manhattan. The trend has led to more demand for condo inventory loans, according to Seth Weissman, founder of private equity lender Urban Standard Capital.
“Due to slower condo inventory absorption caused by volatile market conditions, developers expecting to carry projects longer are generally looking for more runway,” said Weissman.
Unlike senior loans, mezzanine loans do not trigger mortgage recording tax, a loophole which legislators have tried to close, but which real estate interests have fought to preserve.

 

David Goldsmith

All Powerful Moderator
Staff member
What happens to the condo owners here if the rental portion gets in trouble and can't pay for it's portion of building expenses and upkeep? I haven't read the Offering Plan here, but in a "normal" condominium building unpaid Common Charges get wiped out in a foreclosure of a first mortgage.

Stern puts rental portion of Brooklyn supertall on market​

Stern’s JDS Development selling apartment, retail piece of 9 DeKalb Ave but will hold onto condos
MAR 7, 2023, 7:02 PM
By
Brooklyn’s tallest building — part of it, at least — is up for sale in what will be a major test for the city’s investment sales market.
Michael Stern’s JDS Development has listed the rental and retail portion of the 93-story tower at 9 DeKalb Avenue and is eyeing between $600 million and $700 million, sources confirmed to The Real Deal.

The 398-unit rental part of the building will test buyers’ appetites for big-ticket assets at a time when high interest rates are complicating deals.
A representative for JDS Development did not immediately respond to a request for comment. Real Estate Alert first reported news of the listing, which is being handled by the Doug Harmon and Adam Spies team at Newmark.

Stern’s Brooklyn Tower is made up of the rental portion, plus a 130,000-square-foot retail section mostly occupied by the luxury gym chain Life Time Fitness and 143 residential condominiums. The condos are not part of the offering.
The 1,000-foot-tall building towers over Downtown Brooklyn and is the borough’s first supertall skyscraper.

Stern began developing the site at the former Dime Savings Bank in 2015, buying the property with partner Joseph Chetrit for $90 million. Stern bought out Chetrit’s stake in 2018, leading to a lawsuit last year after Chetrit claimed he was owed more money from the deal.
JDS launched sales of the condos in March of last year.

The rental portion benefits from a 35-year tax abatement and has 30 percent of its units set aside for income-restricted renters. The building is expected to get its temporary certificate of occupancy within the next 60 days.
In Manhattan, JDS and its partner Baupost Group last year sold the American Copper Buildings for $850 million to a joint venture between Josh Gotlib’s Black Spruce Management and Meyer Orbach’s Orbach Affordable Housing. It was one of the last major deals to close in the city before rising interest rates cooled the investment sales market.

 

David Goldsmith

All Powerful Moderator
Staff member
Sales here do seem strong with about 50% being sold in just one year of marketing. But I seem to remember when the market was really happening a lot of projects were almost sold out before closings even commensed.
New York YIMBY
HOME 555 WEST 22ND STREET

One Of Downtown’s Most In-Demand Residential Projects, The Cortland Continues To See Strong Sales Momentum In West Chelsea​

EXT01_Hero-West-Facade-from-Park_FINAL02-777x777.jpg
Rendering of The Cortland in West Chelsea, Manhattan. Courtesy of NOE and Associates
BY: VANESSA LONDONO 8:00 AM ON APRIL 4, 2023 This post links to a YIMBY partner / Advertise on YIMBY
Sales for The Cortland continue on a strong streak, no doubt to the new development’s architectural design and expansive suite of lifestyle amenities. Developed by Related Companies, in partnership with Mitsui Fudosan America, the 25-story condominium building is designed by Robert A.M. Stern Architects, with interiors by Olson Kundig. Located at 555 West 22nd Street in West Chelsea, The Cortland offers 144 residences and nearly 20,000 square feet of amenities and services.

Private Porte-Cochère Entrance at The Cortland in West Chelsea, Manhattan. Courtesy of NOE and Associates
“Related and Mitsui have brought together two of the world’s most celebrated architectural firms, RAMSA and Olson Kundig, to create a one of a kind offering at The Cortland,” says Shaun Osher, CORE listing agent. “The response to The Cortland offerings – from the expansive amenities to the prime West Chelsea location – has been great and demonstrates exactly what sets these homes apart.”

75-Foot Lap Pool at The Cortland in West Chelsea, Manhattan. Courtesy of Colin Miller.

Event Lounge at The Cortland in West Chelsea, Manhattan. Courtesy of Colin Miller.
Homes at The Cortland are a mix of one- to five-bedroom residences, and a collection of expansive penthouses. All feature high ceilings, open-plan living, and dining areas feature oak wood flooring in addition to floor-to-ceiling windows with views of the Hudson River. One-bedroom homes at The Cortland, start at $2.75 million and go up to $25 million for a five-bedroom home. Related Sales LLC and CORE Group are the exclusive co-sales and marketing agents for the project.

Screening Room at The Cortland in West Chelsea, Manhattan. Courtesy of Colin Miller.

The Lobby at The Cortland in West Chelsea, Manhattan. Courtesy of Colin Miller.
“We worked closely with the Olson Kundig team to design the amenities at The Cortland. The wellness amenities are modern yet classic and reflect Olson Kundig’s bold vision for the interiors at the project and the hospitality-inspired living experience constantly activated by the unparalleled Related Life lifestyle platform.” said Andrew Orchulli, senior vice president at Related Companies.
Among the unique amenities available to residents is an accredited “Harrow Court” squash court that can also can be used to play basketball in the 11,200-square-foot health club. There is also a 75-foot lap pool, a private wood-lined yoga and fitness studio, a pilates studio, and the “Crow’s Nest” lounge, which features a golf simulator and sitting area with bar. The club’s spa-amenities include men’s and women’s infrared sauna and steam rooms, and a wood-lined treatment room.
Children will have access to a double-height “Beluga Pod” children’s playroom, that draws inspiration from the marine environment that defines the western edge of Manhattan, as well as whale sightings in the river. There is also a “Sandbox Powered by Related,” a STEAM-focused maker space to create, invent, and learn; game room with lounge seating and activities including ping pong, foosball, and shuffleboard; and a leisure pool, a child-friendly pool with a glass portal looking up into the children’s playroom.
At The Cortland, residents will be able to use a brick port-cochère, which features lush landscaping and is staffed 24 hours with around-the-clock access to the property’s on-site private parking. Residents also have access to a private rooftop terrace featuring multiple seating and grilling areas, as well as a VR room and screening room with a performance stage, and an event lounge with floor-to-ceiling windows, fireplace, and a back-of-house catering kitchen.
Related Sales LLC and CORE Group are the exclusive co-sales and marketing agents for the project. For more information or to schedule an appointment, please visit www.thecortlandnyc.com.
 

inonada

Well-known member
What’s the attraction with this building? It really does not tick any boxes for me personally — location, finishes, architecture — so I’m left scratching my head.
 
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