Here’s the latest evidence that all is not well at Extell’s One Manhattan Square.
The Real Deal reports that the developer is now offering a “rent-to-buy” program for condo units in the 80-story monstrosity where the Lower East Side’s Pathmark store was once located. According to an email from the sales team, renters will be able to apply a full year’s rent to the purchase of an apartment. A spokesperson for the developer said, “We anticipate that after living at One Manhattan Square many will take advantage of this program and purchase in the building,”
One-bedroom units start at $4,000/month or $1.209 million if you choose to eventually buy; two-bedroom apartments are listed for $7,500 a month or $1.895 million; three-bedroom units are $10,000 a month or $3.527 million.
It’s not the first time Extell has offered incentives for buyers at the 815-unit complex lurking over the Manhattan Bridge. In April, the developer promised 10 years of free common charges. Sales began in the building in 2016, but as the New York Times reported last month, only about 20 percent of the apartments have been sold. As Curbed noted this week, 194 units have been sold with another 75 listed on StreetEasy and 43 for rent.
Rendering: Extell Development’s One Manhattan Square.
Months after sales launched in Asia, Extell Development last week kicked off the domestic marketing push for One Manhattan Square. There will be 815 condominium apartments and loads of over-the-top amenities in the 80-story tower at 252 South St.
Last Thursday evening, Extell honcho Gary Barnett hosted a glitzy party on the Lower East Side. There was a dramatic 3D model of the monstrous building that will be looming over the Manhattan Bridge. There were performances by Hamilton’s Anthony Ramos, musician Spencer Ludwig and even a “One Manhattan Square” rap from “performance poet” Rafael Casal (yes, really).
The sales office for the project is located at 220 South St., in the Manhattan Mini Storage building. A few listings have started to pop up on the project website. 1-bedroom units start at around $1.1 million. If you want to be on a high floor, it will cost you a few-hundred thousand more. 2-bedroom condos start at just over $2 million. A high-floor 3-bedroom will set you back $3.8 million.
Rendering: One Manhattan Square.
Developer Gary Barnett seems to be having some troubling pulling together the financing for One Manhattan Square, his 80-story mega-tower in the Two Bridges neighborhood. Here’s the story from Bloomberg:
Extell is hoping to complete a $463.2 million financing agreement with office landlord RXR Realty LLC to build One Manhattan Square on South Street, but that partnership was postponed for a fourth time Monday. The company still hasn’t secured a construction loan for the project, which is a condition of the deal, according to filings on the Tel Aviv Stock Exchange, where the New York-based developer sells debt.
The project, now under construction at 250 South St., is set to include 815 luxury condos. RXR has now cut its initial commitment to $300 million. It will decide later on whether to kick in another $163 million. The firm will also charge 8% interest, up from 7%.
Extell has been trying to lock in a $550 million construction loan with Deutsche Bank AG and other financial entities by the end of this month. Here’s Bloomberg’s assessment of the situation:
Extell, which ushered in Manhattan’s luxury condo boom with the construction of the One57 skyscraper across from Carnegie Hall, is now getting caught up in its aftermath. The luxury market is showing signs of a slowdown as inventory swells and interest from ultra-wealthy buyers cools amid so much competition. That has made construction loans increasingly hard to get, as lenders are wary of adding more units to a market where they do not appear to be in demand.
More from the Real Deal:
“RXR’s decision is creating a bigger hole for Extell, but it also reduces Extell’s total exposure,” Ori Eisenberg of real estate financial advisory firm One Ha’am told TRD. TheMarker and Israeli daily newspaper Calcalist reported first on Extell’s announcement. Following the announcement, TheMarker reported that bondholders were unhappy and disappointed. The bondholders held an urgent meeting Monday night to clarify the financing situation. “This shows just how challenging it is for even a leading developer to secure sizable financing,” Eisenberg said. “Loans of more than $100 million in New York are increasingly rare.”
The Extell tower is one of four gigantic projects in the works in the Two Bridges neighborhood. In total, more than 2,000 new apartments and close to two million square feet of new residential development are planned along the waterfront on the Lower East Side.
Rendering: One Manhattan Square.
While Extell Development honcho Gary Barnett is not calling it a “price cut,” the luxury apartments in his 80-story Lower East Side tower are taking a dip. The Real Deal reports on the shift at One Manhattan Square, the massive project on the former South Street Pathmark site:
Extell dropped the sellout price at One Manhattan Square by $207.3 million to a total of $1.87 billion, according to a Jan. 22 amendment to the building’s offering plan. “We’re going to be very conservative here,” Extell chief Gary Barnett told The Real Deal. He disputed the notion of having cut prices per se, instead describing the markdown as a change to early placeholder prices to better match the current market, which is showing signs of a slowdown at the top. “We priced it where we want to start and we think we’ll raise prices from where we’re starting now,” he said.
Apartments will still start at about $1 million. There are two $13 million penthouse units. According to the Real Deal, one of them is in contract. Buyers in Asia are getting the first crack at the 815 apartments at One Manhattan Square.
Developers showed several revised renderings of the 205-unit affordable tower at 229 Cherry St.
Extell Development’s 80-story luxury tower in the Two Bridges area has definitely not been welcomed with open arms within the community. Concerns about construction noise, gentrification and the shear size of the project have all come into play. But the worst part for many locals was the loss of the Pathmark Supermarket that formerly occupied the development site. Last night, at a quarterly construction meeting with the Extell team, there was renewed talk of a replacement market as part of the new residential and commercial complex.
After the Pathmark store closed in 2012 and was demolished, Extell said it was committed to establishing a new full-service grocery on the site. During a 2014 community meeting, Extell chief Gary Barnett intimated that it would be an affordable market, in keeping with the overall neighborhood’s low- and middle-income demographics. But people have been skeptical.
Raizy Haas, the executive managing the project, said yesterday that an operator had not yet been selected but she hopes the grocery will open in early 2018. That’s when a 205-unit “below-market” building going up alongside the larger project is slated for completion. The grocery will take a 25,000 sq. ft. space in the affordable tower. She made no promises, but said it would be the goal.
On another topic, Haas said Extell is working with consultants on plans for the plaza area along the east side of the project site. The plaza itself is owned by the Two Bridges Neighborhood Council and Settlement Housing Fund. They also control Two Bridges Tower, a neighboring building. Extell intends to present design ideas to both the owners and the tenant association at Two Bridges Tower in the coming months. Haas said they’re thinking about creating a “green wall” between the two properties, as well as “architecturally pleasing pavement” and new lighting in the area.
This morning, Victor Papa of the Two Bridges Neighborhood Council said there’s interest in meeting with Extell about the plaza. “We would welcome such a meeting,” he said, “not so much to emphasize a divide, as to improve the plaza area.” Papa also said he hopes to meet with Extell executives soon about plans for the new supermarket and about damaged caused by construction.
Overall, the meeting was a cordial affair. A couple of residents from Two Bridges Tower thanked Extell and its general contractor, Lend Lease, for promptly responding to their concerns. The session was moderated by Trever Holland, tenant president at Two Bridges Tower with help from Community Board 3’s Susan Stetzer. The only hiccup: a new policy at the Manny Cantor Center, which prevented people without identification from attending (it won’t happen again for CB3 events, said Stetzer).
Construction managers said the pile driving operation, the noisiest part of the project, has now been completed. They are in the process of installing a large crane for the superstructure. That will be completed Saturday morning (Pike Street will be shut down during the final installation). They repeated early pledges to repave sections of Cherry Street torn up due to construction and to fix all damage they’re responsible for causing in neighboring buildings.
Finally, the executives were asked about hiring locally for both construction jobs and positions within the commercial businesses created by the project. Haas said Extell and Lend Lease are willing to consider hiring any qualified candidates who contact them via email (250SouthSt@lendlease.com). The project is, however, a union site. Val Jones, a local resident, urged the developers to take more proactive steps — reaching out to local groups about employment opportunities. Preliminary conversations have taken place with the LES Employment Network, a consortium of local job placement centers. That group, however, isn’t equipped to deal with union construction jobs — only permanent positions in the completed project.
The big 80-story tower, including 815 apartments and crazy amenities, is scheduled to open in 2019.
A few weeks ago, Extell Development announced that it would be giving buyers in Asia the first crack at luxury apartments at the firm’s new 80-story tower on the Lower East Side. Now a fancy sales brochure has been made available from Jones Lang LaSalle Inc., the firm handling overseas marketing. It’s packed with jaw-dropping renderings of the project, called One Manhattan Square.
For some time, we’ve known that Extell’s massive complex on the former Cherry Street Pathmark site would be loaded with amenities. But the brochure outlines in great detail each and every perk of buying one of these apartments alongside the Manhattan Bridge (prices range from about $1 million-3 million).
The 800+ unit complex is described as “a modern garden square, offering an unprecedented 100,000 square feet of indoor and outdoor amenities,” which “fosters physical wellness, social recreation and tranquility.” A highly regarded landscape architectural firm, West 8, has designed the gardens. They include a tree house with fire pits, a putting green and a covered dog run. There are outdoor dining areas, a cellar bar, a 70-seat movie theater, fitness studios, a bowling alley, a dog spa and a cigar room. Have a look at the brochure below.
By the way, Extell Development will be holding its quarterly meeting with residents of nearby buildings to discuss construction concerns. It will take place December 15 at 6:45 p.m. at the Manny Cantor Center, 197 East Broadway.
One Manhattan Square Brochure by The Lo-Down