Home Business Manhattan apartment seller takes $12 million loss on Billionaires’ Row condo

Manhattan apartment seller takes $12 million loss on Billionaires’ Row condo

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Manhattan apartment seller takes  million loss on Billionaires’ Row condo

One57 constructing within the skyline of New York Metropolis as seen from the Rockefeller Middle Commentary Deck.

Roberto Machado Noa | LightRocket | Getty Photographs

The vendor of a luxurious rental house on Manhattan’s Billionaires’ Row took a lack of a minimum of $12 million to dump the property, in line with public filings.

The 4,500-square-foot rental at 157 West 57th Avenue, or One57, went into contract final week after being listed for $22.5 million, in accordance the Olshan Luxurious Market Report, which tracks Manhattan gross sales contracts. The acquisition worth is unknown, and brokers declined to touch upon worth or the the identification of the patrons or sellers.

The house was bought by the vendor in 2014, on the peak of the Manhattan actual property craze, for $34 million. Assuming that it bought for beneath the itemizing worth — which is probably going within the present market — the vendor took a lack of about $12 million or extra.

“That is the very best purchaser’s market I’ve seen,” mentioned dealer Ryan Serhant, who suggested the patrons and lately launched brokerage and advisory agency Serhant. “The good purchasers are taking benefit.”

The multimillion-dollar loss highlights the dramatic declines in worth and the wealth destruction skilled by patrons who paid high greenback for the glamorous super-towers in-built midtown Manhattan. One57 was the king of condos in 2014 — it was the tallest residential constructing within the metropolis on the time, hovering over 1,000 toes, with a screening room, artwork atelier, non-public health heart and a Park Hyatt on the decrease 18 flooring. The penthouse of One57 was bought in 2014 for $100.5 million to tech billionaire Michael Dell.

Even earlier than the pandemic, One57’s fortunes have been turning. A fair taller rental tower was rising subsequent door and there was a glut of recent rental flats in midtown. State and native tax modifications in 2017 made issues even worse. Resale costs at One57 started to slip. Then got here the pandemic, and New York Metropolis residents moved to the suburbs. Condominium gross sales in Manhattan fell 46% within the third quarter, with common costs dropping wherever between 5% and 10%.

An house on the 88th ground bought in Might for $28 million, which was $19 million lower than the vendor paid in 2014.

The unit that went into contract final week, 58A, on the 58th ground, has three bedrooms and 4.5 bogs, with a sweeping residing and eating room overlooking Central Park. It has been available on the market for greater than six months with the itemizing worth dropping from $24.8 million to $22.5 million.

Serhant mentioned the patrons are New Yorkers.

“They’re native,” he mentioned. “They’re excited in regards to the prospect of shopping for a trophy dwelling at a reduction.”

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