Extell Scaling Back At Record-Breaking Multifamily Tower
Extell is retreating from its plan to rent 38 of its units at One57 and instead will try its luck at selling them.
The company will start the One57 bidding at $3.45M/unit—the low end of what’s considered luxury in Manhattan.
The move comes amid slipping demand for luxury rentals, along with a supply glut, as out-of-town investors buy luxury apartments and then put them up for rent, Bloomberg reports.
“The weakest segment of the rental market is luxury rentals,” Miller Samuel’s president Jonathan Miller says, as the top segment of the luxury rental market saw prices fall 3.5% in March from a year earlier.
The Big Apple isn't the only place seeing a luxury slowdown. Miami is also in the midst of a luxury slowdown, with global market turmoil weighing heavily on foreign funds that were flooding in until recently. [Bloomberg]