Dead Cat Bounce?

inonada

Well-known member
I think the prior price ($80M) included having the PH built out? At least that’s what the copy implies, compared to the new one which says “white box” explicitly.
 

David Goldsmith

All Powerful Moderator
Staff member
Half Eddieeeeeeeeeeeeee!!!!!
The original sellout for the project was slated to be $4 billion. What's the over/under now with discounts like this?

Central Park Tower condo sells for half its asking price​

Sponsor unit at Extell skyscraper was asking $95M, but sold for just $50M, records show​

A price chop this big might cast some doubts on the world’s tallest residential tower.
Gary Barnett’s Extell Development has sold a sponsor unit at its Central Park Tower at 217 West 57th Street for nearly 50 percent below its original asking price, property records show.

The unit, a four-bedroom, 7,984-square-foot condominium, was originally asking $95 million. It went into contract in June and sold for $49.7 million when the deal closed this month.

“The unit sold for approximately $7,000/psf and although the buyer got a great deal, we were not unhappy with the price,” an Extell spokesperson told The Real Deal.
The developer tapped Corcoran Sunshine Marketing Group in October 2020 to work with its sales team as co-exclusive brokers for the building. The unnamed buyer who landed the massive discount concealed its identity with an LLC.

The full-floor residence was once the building’s priciest listing, with a 2,000-square-foot terrace and an outdoor pool. It has since been upstaged by an 11,535-square-foot duplex that hit the market in August asking $150 million.
The tower, which rises 1,550 feet above Midtown Manhattan, launched sales in 2018 with closings beginning in February of this year. It has a projected sellout of $4 billion, making it the most expensive condo project in the city.

Barnett secured $1.1 billion in financing for the project in early 2018, including a $900 million construction loan led by JPMorgan Chase. He also landed $380 million in bridge financing for the tower earlier this year.
It's not a discount. It's not a discount at all.

Barnett: Central Park Tower will fall short of $4B sellout

Discounts abound at Billionaires’ Row supertall​

Another Central Park Tower pad has sold for far less than its original ask, and developer Gary Barnett recognizes his supertall isn’t going to achieve the lofty sellout he once envisioned.
The latest sponsor unit to sell at Billionaires’ Row’s tallest skyscraper went for $43 million, the Wall Street Journal reported , 33 percent less than the $63.8 million Barnett’s Extell Development originally sought when it placed it on the market in 2019.

The anonymous buyer lives in Singapore, according to Triplemint’s James Michael Angelo, who represented her in the deal. Angelo said he initially offered $38 million for the unit — which drew a laugh from the marketing team — but only had to come up by $5 million to close the deal.
The 7,000-square-foot condo at 225 West 57th Street offers 360-degree views of Central Park and both rivers. There’s also a library, a private reception gallery and a 1,500-square-foot salon.

In June, Barnett acknowledged that the 57th Street supertall was going to fall far short of its $4 billion projected sellout, the Journal reported Thursday. Barnett added that he expected prices to appreciate at the building once construction wrapped in the next few months.
Closings began at Central Park Tower in February 2021. An October analysis by The Real Deal found that most units that had closed in the building had sold for far less than the prices outlined in Extell’s offering plan.
Across 33 closings that had hit public records by October, condos in the tower sold for an average of 25 percent less than their offering plan target on a per-square-foot basis, for 16 percent on a per-unit basis. Asked about the difference, Barnett called it “a basic fallacy” to describe the gap between sales prices and those listed in offering plans as a discount.

“We decided to go for sales velocity rather than maximum pricing,” he told TRD at the time. “I don’t see any downside.”
The project’s $900 million construction loan was set to mature in December and Barnett, who claimed to be “within striking distance” of paying it off, expressed a willingness to cut deals to get it done.
 
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