Left behind: 5 NYC condo projects that were thrown overboard Joe Chetrit joins Ross, Milstein, Leviev & others in abandoning major condominium plans
The best-laid schemes of mice and developers oft go awry.
Yesterday, The Real Deal exclusively reported the Chetrit Group sold the Sony Building – the site of a planned ultra-luxury condominium – for more than $1.4 billion. The company’s boss, Joseph Chetrit, had proposed a 96-unit office-to-condo conversion, topped with a penthouse that would list for as much as $150 million. The new owners, Saudi-based Olay上海龙凤论坛sh1f an Group, are expected to scrap that plan entirely and maintain the tower as offices.
The news followed months of reporting on softening in the city’s ultra-luxury condo market, due in part to an overabundance of supply on “Billionaires’ Row” in Manhattan.
TRD decided to fire up the office time machine and look back at five major Manhattan condo projects that developers ultimately abandoned.
Leviev Clock Tower (5 Madison Avenue)
Africa Israel Investments
Offering Price: $703.7 million
Lev Leviev’s Africa Israel Investments bought the Clock Tower at the former MetLife building on Madison Square Park for $200 million back in 2007. Leviev submitted a 55-unit offering plan – “Leviev Clock Tower Condominium” – the following year, with a total projected sellout north of $700 million, an ambitious figure for the Flatiron District.
Although the plan was accepted in 2009, the company began rec爱上海同城手机版 ording major losses across its international portfolio that year, leading to the sale of many of its U.S. properties, including the Clock Tower. Leviev ultimately traded the building to Marriott International in 2011. The Clock Tower is now part of the Edition luxury hotel, developed in partnership with famed hotelier Ian Schrager.
Liberty Luxe and Liberty Green (200 and 300 North End Avenue)
Offering Price: $675.8 million
Developer Howard Milstein filed this two-building, 471-unit plan two months after the collapse of Lehman Brothers in 2008. As the housing market plummeted, so did the fate of the Battery Park City condo development. Milstein opened a sales office for the project in 2010, but sparse foot traffic prompted him to abandon the offering plan and go with luxury rentals at the building instead.
The change didn’t dampen Milstein’s optimism about the property: in 2012, the developer wanted nearly $30,000 a month for the penthouse at Liberty Luxe. According to OLR, the penthouse unit rented for $25,000 a month as recently as December 2015.
165 East 66th Street
Offering Price: $337.5 million
Miami-based developer Sonny Kahn’s Crescent Heights bought this 150-unit Upper East Side rental building in 2013, and filed plans to convert it to condos. In late 2015, Kahn withdrew the plan before it had ever been approved for marketing, perhaps due to tough competition from other buildings planned near the Second Avenue Subway.
It wasn’t the first major condo project the Kahn ha[……]Read More »