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New York’s luxury residential market is swimming in product, and it appears that Related’s upscale condominium along the High Line is feeling the effects.
Just 16 of the 39 apartments available at the Zaha Hadid-designed building at 520 West 28th St. have been sold two years after it opened, Crain’s New York Business reports.
All three penthouses are still sitting on the market, and there were only two transactions last year at the building and none in 2019, Crain's reports. The building has a $162M mortgage, and there have been just $132M in sales.
"It's the timing," Douglas Elliman broker Frances Katzen said. "The building came to market just as buyers were starting to pull back."
Others suggested that the new Hudson Yards development — opened officially with much fanfare last week — will push sales in the area. The neighborhood had been lacking amenities, they said, but not anymore with a roughly 1M SF shopping mall several blocks away.
"Buyers were concerned because there weren't options for shopping, food and entertainment," said Corcoran Sunshine Marketing Group broker Dan Cordeiro, whose firm is leading sales at the condo. "But now that's here, and we have noticed a big uptick in activity."
Many sponsors have been cutting prices and offering deals to move product in the last few years as the luxury residential market has become increasingly flooded with offerings.
The industry is also concerned about the looming threat of a potential pied-à-terre tax, which many say will drive away high-end buyers.
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