Zhu Mengyi’s Hopson Development Holdings has acquired 131-141 East 47th Street from Bentley Zhao’s New Empire Real Estate Development for $115 million. The Hong Kong developer is planning to construct a 34-story condo tower spanning 183,310 square feet, with 200 units.
- Worth Noting: Hopson is pegging the cost of the total project, including the acquisition at $225 million. Construction is expected to start next year with sales beginning in 2021. The developer is projecting $600 per foot in hard and soft costs. Should be interesting to see how much of the condo market will be absorbed by then.
- Extell’s CEO Sush Torgalkar to Bisnow on the soft condo market: “New supply has stopped. I mean, there’s really no new supply. So I think it’s a classic cycle where, you know, as now that new supply stopped, demand continues to slowly burn off the inventory. You’ll then have a market that starts to recover again.”
- New player on the block: This deal marks Hopson’s first overseas acquisition: “The company wishes to expand its property investment globally through investments in high quality property projects in major cities in order to improve the group’s allocation of assets.” Hopson is looking for an $11 million preferred equity investment in the project, according to Mingtiandi who first reported the news.
- Flashback: Zhao paid $81 million for the site at 131-141 East 47th Street in 2015, and subsequently demolished the four existing buildings to make way for a tower, which never got off the ground, TRD noted.