CPN (commercial property news)
Central Park West $1B Complex Banking on Hot Condo Market
August 11, 2005
By Colleen Corley
After securing $900 million in construction financing yesterday, plans are getting off the ground to develop a 200-plus unit condominium complex on the former Mayflower Hotel site in Manhattan's Upper West Side.
The development's two condo towers, anchored by a private courtyard between them, will reach 231 feet and 550 feet, respectively, on the city block between 61st and 62nd streets.
In a neighborhood known for large commercial or not-for-profit tenants like the YMCA and the Lincoln Center for Performing Arts, a nearly $1 billion residential development--and a condo investment, at that--is an attention-grabbing investment.
Though the buildings will include a five-story retail component, the residential presence will be noticed in the neighborhood. "There aren't many (luxury apartments) on Central Park West," noted Nicholas Sardone, senior vice president at Corporate Real Estate Service Advisors, which is not involved in the deal.
But the developers of property at 15 Central Park West are banking on the persistence of the hot condo market. Sales of high-end residential units in Manhattan are up to as much as $1,500 per square foot in some places, Sardone said. "Commercial rents don't support that kind of value," he said. "This is a unique asset."
According to a New York Times report on the buildings,
one-bedroom units in 15 Central Park West will go for at least $2 million, although those with terrace views of the park could go for as much as $45 million--the builders are currently showing plans to community leaders. But market watchers will have to wait until the complex opens in 2007 to see its tenants will still be willing to pay those prices.
The complex will be built by a partnership between Zeckendorf Development LLC, Whitehall Street Real Estate Funds and Global Holdings.