Is the city’s tallest residential tower seeing a slowdown in sales? Crain’s reports that 432 Park developers CIM and Harry Macklowe have begun splitting full-floor apartments at the 1,396-foot-tall tower into two with the hopes of attracting smaller ticket buyers who can’t swing $80 million for a posh pad—but wouldn’t be opposed to shelling out $40 million. The paper adds that the move “may signal a slowdown in sales for $50 million-plus apartments,” particularly as the market gets inundated with ultra-luxe developments. “There is some concern that there aren’t enough buyers who can afford apartments priced in the tens of millions of dollars—an increasingly common figure for the latest crop of ultra-luxury condos.”
The developers’ move chops up five full-floor units on floors 91–95 into two units of 4,400 square feet and a more modest 3,600 square feet. The new layouts are being priced at $40.25 million and $39.75 million, respectively. Developers hope that more buyers will “bite” at the lower price points, although the tower still maintains several lower floor listings of comparable sizes for less than half. As it stands, 70 percent of the tower’s 106 units are in contract and they’re expected to start closing before the year’s end.
Of interest to real estate looky-loos, Crain’s also dug up some info on the types of folks planning to move into the building next year. 65 percent are American, the average buyer is about 55 years old, and several have plans to use their apartments as their primary family homes. As for names, Richard Wallgren, an executive vice president at Macklowe Properties, told Crain’s that “Because our prices start at $17 million, nearly everyone is well known.” Buyers are also so rich, several have even purchased units for their hired help.
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Neighborhoods : Midtown