One57 condo unit sells at a huge loss
January 29, 2021 - Manhattan
A 58th-floor apartment at Manhattan’s One57 sold for $16.75 million — more than 50% below its previous purchase price, marking a record resale loss at the Billionaires’ Row tower.
The apartment was purchased by the seller in 2014, at the peak of the Manhattan real estate craze, for $34 million.
In 2020 alone, there were four other sales in the building in which the owner realized at least a 40% loss.
The multimillion-dollar loss highlights the declines in value and the wealth destruction experienced by buyers who paid top dollar for the glamorous super-towers built in midtown Manhattan.
One57 was the king of condos in 2014 — it was the tallest residential building in the city at the time, soaring more than 1,000 feet, with a screening room, art atelier, private fitness center and a Park Hyatt on the lower 18 floors.
The penthouse of One57 was sold in 2014 for $100.5 million to tech billionaire Michael Dell.
Even before the pandemic, One57′s fortunes were turning. An even taller condo tower was rising next door and there was a glut of new condo apartments in midtown.
State and local tax changes in 2017 made things even worse. Resale prices at One57 began to slide.
Then came the coronavirus pandemic, and New York City residents moved to the suburbs.
Apartment sales in Manhattan fell by 46% in the third quarter, with average prices dropping anywhere between 5 percent and 10%.
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