Central Park Tower In Manhattan Sets Record As Tallest And Most Expensive Condo Project
Extell Development is currently building the tallest luxury condo building in Manhattan Island, called the Central Park Tower. The development comes at a time where the city's high-end construction boom has seemingly come to an end as evident in the market's gradual slowdown.
The development is the sequel to Extell's highly successful One57 luxury building. Based on data released by the company, the 1,550 feet-development will be the most expensive condo tower in the United States.
Extell president Gary Barnett recently mentioned in an interview that sales of the company's ultra-luxury condominiums have significantly slowed down when compared to the initial sales of its One57 project more than seven years ago.
Barnett explained that they were previously the only high-end luxury condo developers during that time. However, more players have since entered the luxury condo space, driving revenues down across the board.
The developer's Central Park Tower currently boasts a relatively low 179 units for sale. However, the high-end apartments do have a combined value of over $4 billion. This essentially makes it the most expensive condo project in the US.
One of the most expensive units in the development is a five-bedroom 7,074-square feet apartment that costs $63 million. For billionaires on a budget, Central Park Tower is selling two-bedroom units for $6.9 million.
While the project may be the most expensive in the country, the prices of its units do pale in comparison to the units being sold by neighboring competitor Vornado. The competing developer's Central Park South project recent set a record when Citadel founder Ken Griffin bought a unit in the building for $238 million.
With the added competition, Extell is facing added pressure to sell off its more expensive inventory. Buyers now have quite a lot of options, particularly in the Billionaire's Row, the Manhattan corridor well-known for its plethora of high-end luxury towers.
For the second quarter of 2019, developers in the Billionaire's Row have reported their biggest decline in closed contract values. Compared to the same period last year, the median price of pending purchases has declined by as much as 91 percent to $5.14 million.
Despite the apparent slowdown in the high-end luxury condo space, Extell is still confident that it will generate a profit from the project. Barnett did decline to reveal the actual number of units it has sold since it began pre-selling last year.
However, reports have revealed that most of the units and commercial space had already been sold since August. Nordstrom has reportedly also bought out space at the base of a building to open one of its stores, which is set to open next month.