Extell Development announced that it’s cutting condo prices at One Manhattan Square by up to 20 percent. As of January, it was reported that 223 of the building’s 815 units had been sold, 39 were in contract, and 553 were still available. The Lower East Side development offers a 20-year tax abatement and low common charges.
- Staggering decrease in sales velocity for deals over $4 million: There were 13 contracts signed in the last five weeks totaling $102,495,000 in volume compared to 109 contracts and $862,674,699 in volume in the same 5-week period last year.
- Reading the tea leaves: Extell has decided to cut prices at this specific project, which caters to the lower end of the market… A tacit acknowledgement of the reality in the high-end luxury market.
- Uncertain environment exacerbates existing problems: Developers are now conducting virtual sales appointments giving prospective buyers a virtual look inside the building with tours of the residences, views, finishes, floor plans, and amenities.
- Be Smart: Extell secured a $690 million refinancing package from Blackstone in August, 2019. The debt consisted of a $553.5 million senior inventory loan and a $138.2 million mezz loan. Both carry an interest rate of LIBOR plus 4 percent, and are due on September 22, 2022. Extell is projecting a sellout of $1.9 billion.