– A penthouse unit at Central Park Tower in New York City has gone under contract for more than $100 million.
– The unit is selling for less than the initial asking price of $149.5 million but still “quite a bit” over $100 million.
– The duplex spans the building’s 107th and 108th floors and features 30-foot ceilings and floor-to-ceiling windows with views of Central Park, Midtown, Downtown, and the East and Hudson Rivers.
– This sale is one of the rare nine-figure deals in New York City in recent years.
– The tower’s top penthouse, originally listed for $250 million, has been discounted to $195 million.
– Demand for trophy properties has led to fewer inventory options for those interested in new construction.
– The median sales price for luxury properties in Manhattan rose 4.9 percent year over year during the fourth quarter of 2023.
The duplex at Central Park Tower marks one of the rare deals in New York City that has commanded nine figures in recent years. When it was first listed in early 2023, the unit asked $175 million.
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Gary Barnett, the founder and chairman of Extell, did not disclose exactly how much the unit is selling for, but he did confirm it was less than the asking price (most recently $149.5 million) but still “quite a bit” over $100 million.
“It’s the most expensive residence we’ve ever sold,” Barnett said.
Extell Marketing Group and Corcoran Sunshine Marketing Group held the listing, while Kent Wu, John Gomes and Fredrik Eklund of the Eklund | Gomes Team at Douglas Elliman represented the unidentified buyer.
The duplex, which spans the building’s 107th and 108th floors, initially went to market asking $175 million in early 2023 and underwent a $25.5 million price drop in the fall. The property spans about 12,560 square feet and includes seven bedrooms and two terraces. It features 30-foot ceilings and floor-to-ceiling windows on four exposures that display views of Central Park, Midtown, Downtown, and the East and Hudson Rivers.
The penthouse’s sales price has become something of a rarity in New York City in recent years. Although the luxury market has commanded its fair share of eight-figure deals, nine-figure deals have become more hard to come by compared to certain cities in California and Florida.
Hedge funder Ken Griffin’s $240 million purchase of a penthouse on Billionaires’ Row in 2019 remains a highlight of the city’s luxury market, which also maintains the record for the country’s priciest home sale. A deal that came somewhat close to that one was the $190 million sale of investor Daniel Och’s former penthouse overlooking Central Park in 2021.
Palm Beach and greater Los Angeles have seen far more nine-figure deals in recent years, however, including Beyoncé and Jay-Z’s $190 million purchase of a Tadao Ando-designed property in Malibu last year, which set a new record for the state of California. In Palm Beach, luxury car dealer Michael Cantanucci and his wife, Kimberly Cantanucci, paid about $170 million for a waterfront property last year, setting a new record for the city.
Central Park Tower is currently the tallest primarily residential building in the world, although a luxury tower in Dubai that’s under construction is slated to ultimately surpass Central Park Tower’s 1,550-foot height. The Billionaires’ Row property was completed in 2022 and features a private members club on the building’s 100th floor.
Sales were launched at a different time for real estate, in 2018, before the pandemic put a pause on the luxury market. Since then, Extell has discounted units throughout the building by 10 percent to 20 percent, according to Barnett. “Truthfully, we priced at the beginning in a different market,” he said.
The tower’s top penthouse, a triplex that was originally listed for $250 million in 2022, has since been discounted to the slightly more reasonable price of $195 million. “And hopefully that will be our next record sale,” Barnett said.
Demand for trophy properties has spurred a rise in sales activity recently, according to Barnett, leading to fewer inventory options for those interested in new construction. “The inventory has gotten eaten up,” Barnett said, “so I think we have a good chance to sell well.”
The median sales price on luxury properties in Manhattan rose 4.9 percent year over year during the fourth quarter of 2023 to $6.125 million, according to appraisal firm Miller Samuel. The number of closed sales, meanwhile, dropped 5.9 percent year over year.
Property Chomp's Take:
The sale of a penthouse unit at Extell Development's Central Park Tower in New York City for over $100 million marks a rare deal in the city's real estate market. Although the exact selling price was not disclosed, it was confirmed to be less than the asking price but still significantly over $100 million.
The duplex unit, which spans the 107th and 108th floors of the building, initially hit the market with an asking price of $175 million in early 2023. It underwent a price drop of $25.5 million in the fall before finding a buyer. The property features 12,560 square feet of space, seven bedrooms, two terraces, 30-foot ceilings, and floor-to-ceiling windows offering stunning views of Central Park, Midtown, Downtown, and the East and Hudson Rivers.
In recent years, nine-figure deals have become increasingly rare in New York City compared to other cities like California and Florida. The luxury market has seen its fair share of eight-figure deals, but deals exceeding $100 million are becoming more elusive. However, hedge funder Ken Griffin's $240 million purchase of a penthouse on Billionaires' Row in 2019 still stands as a highlight of the city's luxury market.
The sale of the penthouse at Central Park Tower is a testament to the demand for trophy properties. Despite the challenges faced by the luxury market due to the pandemic, there has been a rise in sales activity, leading to a decrease in available inventory. This scarcity has driven up prices and made it more difficult to find properties of this caliber.
Central Park Tower is currently the tallest primarily residential building in the world, standing at 1,550 feet. It features a private members club on the 100th floor and has become an iconic part of the New York City skyline. The tower's top penthouse, a triplex originally listed for $250 million, has also seen a price reduction to $195 million.
As the market continues to evolve, developers like Extell are adapting to the changing landscape. The old way of doing business is no longer effective, and developers must be willing to adjust prices and offer incentives to attract buyers. Despite the challenges, there is optimism that the luxury market will continue to thrive, especially with the increasing demand for trophy properties.
In conclusion, the sale of the penthouse at Central Park Tower for over $100 million is a rare and significant deal in New York City's real estate market. It showcases the demand for luxury properties and the willingness of buyers to invest in high-end residences. As the market evolves, developers must adapt to meet the changing needs of buyers and offer attractive deals to stay competitive.