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Atlas Capital and Zeckendorf Development have revealed some details of their latest contribution to Manhattan's ultra-luxury residential market, filing permits for the building they are planning to build on the Far West Side.
The developers bought 570 Washington St. in February, paying $340M to Westbrook Partners. Last week, Atlas principal Andrew Cohen filed plans for a 170K SF building that will rise 19 stories, The Real Deal reports.
The aim is to sell the units for $5K per SF, which would be a record price for downtown, the New York Post reported in February. At the time, the developers were rumored to be pursuing a 36-story project — making this development the latest example of Manhattan developers building less densely than they are allowed in the pursuit of higher prices.
Extell Development, Vornado and Naftali Group were all reportedly interested in buying the site, now a 1.3-acre empty lot between Houston and Clarkson streets on the West Side Highway, overlooking the Hudson River. The Baupost Group is also a partner on the deal, and Blackstone agreed on a $322M loan to the partnership in July.
The luxury market in the city had suffered from significant oversupply in recent years after a major rush from developers to build new condo towers across New York.
The market rebounded well after the first year of the pandemic, but rising mortgage rates have begun to take their toll. In September, the annual decline in newly signed contracts continued for the sixth month in a row, according to Miller Samuel data.
The 570 Washington St. purchase isn't the only flashy investment the Zeckendorfs have made this year. The developers, known for building the famed 15 Central Park West, acquired a 61-unit development known as The Hayworth for roughly $250M from the former owner’s lender. The property was in the hands of the Children’s Investment Fund, a UK-based lender, at the time.
The lender took over the building in 2019 when the original developer, Ceruzzi, which had been looking at a $375M sellout on the project, fell behind on a construction loan.
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