Trending

Seller who tried to flip two 56 Leonard penthouse pads will take a loss

First unit closed for $19.6M while second pad is under contract for less than original sale price

56 Leonard Street (Credit: Getty Images)
56 Leonard Street (Credit: Getty Images)

An anonymous investor who paid $53 million for a pair of full-floor penthouses at 56 Leonard Street looks very likely to take a loss on his or her massive spread.

An LLC called “South Shore Investments” went into contract for units on the 54th and 53rd floors of the Alexico Group-developed glass tower in 2013 and closed in 2017, paying $29.1 million for the larger penthouse on the 53rd-floor pad, and $23.98 million for the floor above. In total, the units span 12,000 square feet and feature terraces throughout.

But the owner is heading for the exits, with the smaller apartment selling to an anonymous buyer for $19.6 million ($3,550 a square foot) on Monday, and the other in contract for below its original sale price. The 53rd floor apartment was last listed for $27 million, and has been priced as high as $35 million.

Sources said the buyers for the pair of apartments are different.

Sign Up for the undefined Newsletter

Speaking generally, Compass’ Toni Haber who sold the 54th floor pad, said that luxury buyers are no longer in a “wait and see” mode. But she also said that there are few luxury units closing at asking price now. “There’s a lot of inventory out there,” Haber said.

Douglas Elliman’s Sahar Ziv, who represented the buyer on the 54th-floor unit, declined to comment, as did Compass’ Clayton Orrigo, the agent who was tapped to sell the 53rd floor apartment.

The Alexico Group-developed building, known as the “Jenga Tower,” launched sales in 2013 with a projected sellout of $1.27 billion.

In January, a trust linked to Spark Capital Partners CFO Paul Conway bought a 3,700-square-foot penthouse in the Tribeca building for $15.46 million, a 13 percent discount.

Recommended For You