One57 saw its best quarter since the end of 2016 — largely because every unit was sold at a discount.
Extell Development sold five apartments totaling $73 million in the first three months of 2018, according to a filing on the Tel Aviv Stock Exchange. Extell president Gary Barnett told Bloomberg that each of the units came with a price chop.
“If our competitors are giving discounts, and that’s what people really want, that’s how you’re going to move the product,” Barnett said. “We could just hold it — the market will come back. But we have Central Park Tower coming up … Clear the deck for that.”
The price cuts ranged from single-digit percentages to more significant discounts and perks. In some cases, Extell paid the buyer’s closing costs. A three-bedroom on the third floor that was listed for $29 million came with all the artwork and furniture envisioned by Jeffrey Beers International, a company Extell hired to provide custom interior design and furnishings. A larger apartment on the 52nd floor didn’t come with furniture but was listed at $29.95 million after Extell initially priced it at $31.75 million.
Extell still has 36 units to sell in the tower. The developer is also competing with condo owners in the building who are willing to sell their units for less than what they paid in order to cut a deal.
One of the last remaining sponsor units — a 5,129-square-foot duplex — hit the market in March for $29 million. [Bloomberg] — Kathryn Brenzel