A shift in the market for luxe apartments is already leading some developers to switch up their marketing teams.
In the first of what insiders say is likely to be a string of broker swaps at prominent new developments, Corcoran Sunshine will take over from its main rival Douglas Elliman at 100 Barclay, Magnum Real Estate Group’s massive condominium conversion of the Verizon Building Downtown.
The $915 million project had comprised a large chunk of the $6.2 billion in total new development listings marketed by Elliman, according to The Real Deal’s most recent count.
Ben Shaoul, the CEO of Magnum, said the swap wasn’t a reflection of Elliman’s performance or a sign of slow sales at the building. Rather, he wants some fresh marketing ideas as the conversion approaches completion, he said. The property, designed by Ralph Walker, just received its first temporary certificate of occupancy, meaning move-ins can begin for some of the units.
“There’s nothing wrong with mixing it up,” Shaoul said. “Since I bought the building to today, the neighborhood has changed so much. You want a fresh set of eyes on your product when so much is happening all around you.”
The model unit at 100 Barclay
Shaoul declined to comment on exactly how many of the 157 units have sold since the offering plan was first approved by the New York State Attorney General’s Office last year, saying only that he was “very happy” with the pace of transactions.
A spokesperson for Corcoran didn’t respond to a request for comment.
Vickey Barron, one of the brokers who marketed the property on behalf of Elliman, also led sales at two separate Ralph Walker-designed buildings, Walker Tower in Chelsea and Stella Tower in Hell’s Kitchen, on behalf of developers JDS Development Group and Property Markets Group. At Walker Tower, she broke the record for Downtown’s priciest sale with a $50.9 million penthouse deal in late 2013. She will remain on 100 Barclay as a consultant.
Barron said there were no hard feelings about the switch, adding that while she has a “thriving resale business” which takes up a lot of her time, a team from Corcoran can be on the project full-time Monday through Friday.
Corcoran Sunshine has perhaps a more established track record in Tribeca, where it led the sales effort at projects such as 30 Park Place and 56 Leonard, Shaoul said.
“I continue to have a very strong relationship with Elliman,” he said. “Vickey did an amazing job for us and I’m going to be working with her again.”
Magnum bought the top floors of the building from Verizon for $274 million in 2013 and snagged the retail space downstairs for $40 million the next year.
Previous sales at the property have averaged $2,534 per square foot, or $6.59 million, according to StreetEasy.
Observers say uncertainty in global economic markets and sky-high prices have slowed sales of ultra-luxury condos in recent months.