- An apartment in one of New York's most expensive buildings is heading to foreclosure.
- The unit sold in 2014 for just under $51 million to an unknown buyer.
- The luxury apartment market in New York is being hurt by an oversupply of luxury towers and a scarcity of overseas buyers.
A plush penthouse in one of New York's most expensive buildings is headed to foreclosure, signaling new troubles for the high-end real-estate market.
The 6,200-square-foot, full-floor unit at One57 is scheduled to go to foreclosure auction next month, according to Bloomberg.
The apartment, known as Apartment 79, sold in 2014 for just under $51 million. The identity of the buyer is unknown because it was purchased through an anonymous limited liability corporation called One57 79 Inc. The LLC took out a loan from Luxembourg-based Banque Havilland in 2015. When the borrower defaulted, the bank forced a sale.
When it opened in 2014, One57 was the shining symbol of a new class of luxury super-towers in Manhattan. Rising to over 1,000 feet, apartments were selling for nearly $7,000 a square foot, largely to overseas buyers. Billionaire hedge funder Bill Ackman and other partners bought the biggest penthouse for just about $90 million.
Yet starting last year, an oversupply of luxury towers and a scarcity of overseas buyers have hurt the top of the market. New development sales fell 25 percent in the latest quarter and units at One57 are selling for discounts of more than 20 percent.
The $51 million apartment is scheduled to head to auction on July 19. Another apartment that sold for $21 million at One57 went to foreclosure auction earlier this month, but there's no word yet on the result.
(Correction: Bill Ackman purchased his apartment for just about $90 million.)