In the past when we’ve talked about the latest occupancies at billionaires’ row blockbuster One57 we were referring to the record-breaking $100 million condo sale (the most expensive in the city ever) or Bill Ackman’s $91.5 million flip attempt. But now those looking to get in on the city’s most expensive condo building can do so without dropping seven figures in one fell swoop.
Extell Development, after selling most of the condos at One57, has quietly listed 38 fully-furnished apartments for rent on the building’s seven lower residential floors. But don’t get too excited if you’re not in the billionaires’ club; asking prices range from $13,350/month for a one-bedroom unit to $50,366 for a three-bedroom.
According to the Wall Street Journal, “The 38 rental apartments are on seven floors sandwiched between the 94 condos with king-of-the-universe views and the Park Hyatt New York hotel on the lower floors of the 1,004-foot-high building.” The paper also points out that by offering these rentals, Extell is evading a federal law governing interstate land sales in condo buildings with more than 99 units. Plus, having rentals entitles the developer to 421a tax abatements and lower capital gains tax rates. For example, unit 37D, available to rent for $13,350 a month, will cost Extell $500 a month, or 3.8 percent of the asking rent, in taxes with the abatement. By comparison, rentals without tax abatements typically pay 30-35 percent of rents in taxes.
Perhaps in an attempt to appeal to those looking for pied-à-terres, the apartments will come fully furnished with equipped kitchens and will have hotel-like touches such as bathrobes, cocktail shakers, and oven gloves. Cathy Franklin, one of the Corcoran brokers listing the rentals, told the Journal, “It affords a very luxurious lifestyle and a luxurious home, and you don’t have to pull out all of your investments to be able to move in.” Brokers say that so far they’ve had “about 20 nibbles” on the rentals.
One57 rental images via Corcoran
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Neighborhoods : Midtown West