The seller of a luxury condo apartment on Manhattan's Billionaires' Row took a loss of at least $12 million to offload the property, according to public filings.
The 4,500-square-foot condo at 157 W. 57th St., or One57, went into contract last week after being listed for $22.5 million, according the Olshan Luxury Market Report, which tracks Manhattan sales contracts. The purchase price is unknown, and brokers declined to comment on price or the identity of the buyers or sellers.
The apartment was purchased by the seller in 2014, at the peak of the Manhattan real estate craze, for $34 million. Assuming that it sold for below the listing price — which is likely in the current market — the seller took a loss of about $12 million or more.
"This is the best buyer's market I've seen," said broker Ryan Serhant, who advised the buyers and recently launched brokerage and advisory firm Serhant. "The smart purchasers are taking advantage."
The multimillion-dollar loss highlights the dramatic declines in value and the wealth destruction experienced by buyers who paid top dollar for the glamorous super-towers built in midtown Manhattan. One57 was the king of condos in 2014 — it was the tallest residential building in the city at the time, soaring more than 1,000 feet, with a screening room, art atelier, private fitness center and a Park Hyatt on the lower 18 floors. The penthouse of One57 was sold in 2014 for $100.5 million to tech billionaire Michael Dell.
Even before the pandemic, One57's fortunes were turning. An even taller condo tower was rising next door and there was a glut of new condo apartments in midtown. State and local tax changes in 2017 made things even worse. Resale prices at One57 began to slide. Then came the coronavirus pandemic, and New York City residents moved to the suburbs. Apartment sales in Manhattan fell 46% in the third quarter, with average prices dropping anywhere between 5% and 10%.
An apartment on the 88th floor sold in May for $28 million, which was $19 million less than the seller paid in 2014.
The unit that went into contract last week, 58A, on the 58th floor, has three bedrooms and 4½ bathrooms, with a sweeping living and dining room overlooking Central Park. It's been on the market for more than six months with the listing price dropping from $24.8 million to $22.5 million.
Serhant said the buyers are New Yorkers.
"They're local," he said. "They're excited about the prospect of buying a trophy home at a discount."