Seven Floors of One57 Hit the Market for $250 Million
It may not be the penultimate $100 million penthouse, but an investor with enough dough can still make headlines buying into the city’s most expensive condo tower. According to the Journal, Extell is selling a block of 38 rentals in its blockbuster One57 for $250 million. The paper writes that unloading the units will bring the developer $3,800 a square foot, or an average of more than $6.5 million per apartment—more than double the $1,800 average of Manhattan condos sold during the third quarter.
The rental units sit on floors 32 through 39 atop the building’s Park Hyatt Hotel at the base and just below the 94 top floor condos. A number of the apartments offer partial Central Park and skyline views, and all come fully furnished (including bathrobes, cocktail shakers, oven gloves and glassware) without tenants.
Extell head honcho Gary Barnett told the Journal that the listings—which were very briefly put on the rental market (then going for $13,350 a month for a one-bedroom to $50,366 a month for a three-bedroom)—were pulled because he wanted to keep “units vacant, in preparation for a sale, in case a buyer wanted to move quickly to convert them into condominiums.” Currently all 38 apartments in the deal are held as a single entity, and the new owner can subdivide and sell them as condos to individual owners if they wish.
By setting up the sale this way, Extell will benefit from a number of tax benefits, including being taxed at the capital gains rate versus ordinary income. “Proceeds from the sale of a real-estate investment can often be reinvested in real estate, deferring taxes on the gain,” writes the Journal. Last week, One57 surpassed 15 Central Park West as the priciest condo building in the city. The average 12-month sales price hit a whopping $6,010 per square foot.
[via WSJ]
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