Extell Development is scrapping a plan to take units on the 32nd through 38th floors of One57 off the condo market and offer them as rentals.
The developer decided the outlook for selling condos at the lower end of the luxury market is better than the market for renting luxury units. The units in question start at $3.45M, Bloomberg reports.
Rental inventory at the luxury level has spiked, in part because Manhattan condo owners are listing their units for rent in large numbers.
It’s one factor that’s pushing luxury rents down—to the tune of 3.5% this past March over a year earlier.
Last May, Extell marketed units on the 37th floor of the building for prices ranging from $13,350 a month for a one-bedroom unit to over $50k a month for a three-bedroom.
The developer also looked into selling all 38 of the rental units to outside investors for $250M. Seven of the units will be priced above $10M. [Bloomberg]
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