Compute this: Michael Dell revealed as buyer of record $100.5M One57 penthouse

Deal remains NYC’s priciest-ever closed sale
February 22, 2018 08:22AM

One57, Michael Dell and Gary Barnett (Credit: Getty Images)

It’s been one of the greatest mysteries in the residential world for three years: Who was the buyer behind the city’s most expensive closed residential deal, the $100.5 million penthouse at One57?

The code – no pun intended – has now been cracked. It is Michael Dell, founder and CEO of Dell Technologies, according to the Wall Street Journal. The nine-figure deal puts the technology mogul in a club of one – until far pricier deals at 220 Central Park close.

The sale at the Extell Development property was announced in May 2012, but closed in December 2014, city records show, at about $9,200 a foot. Department of Buildings filings spotted by the Journal show that Dell tapped Miró Rivera Architects to oversee a renovation of the 10,923-square-foot penthouse, which spans the 89th and 90th floors. The deal broke a 2012 record set by the $88 million purchase of Sanford Weill’s 15 Central Park West penthouse in 2012 by fertilizer tycoon Dmitry Rybolovlev’s daughter, Ekaterina Rybolovleva.

Dell, 52, has a net worth of $23.3 billion, according to Forbes. Earlier this month, he confirmed chatter that he was considering taking Dell Technologies public again, after going private in 2013.  Dell’s private investment firm, MSD Capital, is an active real estate investor, backing projects such as Sharif El-Gamal’s 45 Park Place and picking up stakes in properties such as  Grand Central Terminal. And Dell is no stranger to fancy personal real estate either. In November, he entered contract to buy a penthouse at what will become Boston’s tallest residential tower. That deal, too, could set a new record in the city. He also owns the so-called Raptor Residence in Hawaii, a three-lot property recently assessed at $64.7 million.

Leighton Candler represented Dell in the One57 deal, according to the newspaper. That gives the Corcoran Group broker the distinction of handling the city’s record sale, though the deal is expected to be topped by one or more deals at Vornado Realty Trust’s 220 Central Park South. A penthouse there is reportedly in contract to sell for over $200 million to hedge funder Ken Griffin.

It’s apt that Dell has been outed now. Tomorrow is his birthday.  [WSJ]Hiten Samtani

See retail’s shattered dreams in the West Village: MAP

Editors note: in the interest of keeping a fair and unbiased assessment of real estate values and market conditions throughout the NY/NJ Metropolitan area, we post this story which largely and negatively depicts conditions in the West Village. Of course, opinions and circumstances vary, but we post for our readers to discern.
Vacant storefronts are spreading in once-vibrant neighborhood

February 02, 2018 04:00PM

If sections of Bleecker and Christopher streets look a little post-apocalyptic, you can blame the retail real estate market.

Amid skyrocketing rents and competition from e-commerce giants like Amazon, a growing number of stores and restaurants in the West Village shut down in recent years. Photojournalist Ben Fractenberg walked through the neighborhood to map vacant storefronts, which seem to be everywhere.

“Everything is gone. I don’t know how a business could spend that much money,” one resident told Fractenberg. “This whole area used to be more little shops. It’s sad.”

The New York Times broke down Bleecker Street’s retail vacancies last year, but the epidemic is also spreading to nearby Sixth and Seventh avenues and other side streets.

The Real Deal previously mapped retail vacancies on the Upper East Side and in Soho. [Medium] — Konrad Putzier

Manhattan office rents saw first annual decline since Great Recession

Average asking rents dropped as landlords lowered prices, expensive blocks leased up

By Rich Bochmann| January 08, 2018 07:00AM

Manhattan’s average asking rents fell in 2017 for the first time in seven years.

Manhattan’s office market saw average asking rents fall in 2017 for the first time in seven years, as landlords lowered prices and more expensive spaces left the market.

Average asking rents declined slightly by 0.7 percent to $72.74 per square foot compared to 2016, according to Colliers International, marking the first annual decline since the Great Recession.

“It’s the first time since 2010 that at the year-end mark, the average asking rent was down compared to the previous year’s end mark,” said Franklin Wallach, managing director of the research group at Colliers. “However, pockets of Manhattan did have their asking rent averages increase in 2017.”

Lower Manhattan stood out as the lone market where asking rents increased year-over-year (up 6.8 percent to $63 per square foot), as all five of its submarkets recorded gains.

The submarkets of Soho, Murray Hill, Hudson Square, U.N. Plaza and the Hudson Yards/ Manhattan West area also saw price increases. In fact, Hudson Yards/Manhattan West supplanted the Plaza District as Manhattan’s most expensive submarket, though its small size – 7.74 million square feet compared to the Plaza District’s 55.3 million square feet –makes it much more sensitive to shifts in pricing.

But both Midtown and Midtown South saw average asking rents decline last year due to a combination of three factors. Landlords with large blocks of space at pricey buildings such as 9 West 57th Street and 399 Park Avenue lowered asking rents, as they face competition from areas like the Far West Side and Lower Manhattan.

Blocks of space like the sublet space the New York Times is offering at its headquarters at 620 Eighth Avenue and the square footage the union 1199/SEIU is leaving behind at 330 West 42nd Street hit the market at below-average pricing.

And finally, large blocks of expensive space priced above the market average – such as the 471,000 square feet New York Presbyterian leased at 237 Park Avenue and the 226,000 square feet Shiseido leased at 390 Madison Avenue – came off the market, skewing the average lower.

“Really in 2017, it was a case of all three,” Wallach explained.

Despite the annual drop in asks, market fundamentals remained strong. Leasing activity was up 10.9 percent on the year to 37.05 million square feet, the second-highest total since 2003. Net absorption – or the difference between space leased and new space added to the market – was positive at 1.26 million square feet, according to Colliers’ metrics. The availability rate ticked down slightly to 10 percent – a figure that’s widely considered to be the equilibrium between a landlords’ and tenants’ market – and sublet availability remained stable at 1.8 percent.

Wishes for a New Year 2018

As we enter another New Year, our thoughts go to those looking to for better leadership in our nation and the higher goals needed in such leadership. We live in precarious, volatile times. Not since the 50’s and 60’s have we as a nation been forced to face our fears about everyday living, what the future will hold and simple survival. We hope that the basic needs of humanity and inalienable rights are addressed by those in power. Lets not spoil the air, dirty the water or threaten our very existence in the name of greed and profits. We can learn to achieve all our goals and still respect the plight of the underprivileged and the oppressed. Lets truly make America great again. Not just as a political by-line, but rather in our thoughts, actions and convictions.

Thank you and Happy New Year from all of us at Fortis.

Dom Marino, Managing Partner



Architect John Portman dies at 93

He believed being an architect also meant being a real estate developer

December 30, 2017 05:54PM

Architect John Portman among the buildings of his signature project, Peachtree Center
in Atlanta. (Photo © Michael Portman, courtesy 2011 press kit)

Known for his towering atrium designs with transparent glass elevators, notably in hotels, John Portman viewed development as an integral part of being an architect. He died, at the age of 93, on Friday, according to the New York Times.

Portman founded his firm, John Portman & Associates, in 1953 after getting architecture degree from the Georgia Institute of Technology. Originally from Atlanta, he was born in 1924 and believed in managing the financing of his projects through acquisition and securing loans.

His breakout project was the Peachtree Center in his hometown – a massive project that covered 14 blocks and consisted of retail, hotel and office towers. His approach to “urban renewal,” a much touted-goal of many projects at the time, raised his personal star power and created a style that, though both revered and criticized, changed hotel design.

“You want to hopefully spark their enthusiasm. Like riding in a glass elevator: Everyone talks on a glass elevator,” he said in 2011. “Architecture should be a symphony.”

His other notable projects include The Marriott Marquis in Times Square, the Westin Bonaventure in Los Angeles and Hyatt Regency hotels in Atlanta and San Francisco to name a few. His designs live on across the U.S. and throughout Asia from Shanghai to Mumbai.

Portman never retired and most recently spoke at The Real Deal’s Shanghai event last month.

[NYT] — Erin Hudson

Trump Soho no’ mo’: The Trump name is off the building, company says

The exit deal still allows the company to get a revenue cut, however

November 22, 2017 03:45PM

Trump SoHo (Credit: Getty Images)

It was one of the Trump Organization’s most tortured projects and also one of its most notable, but now the family firm is checking out of Trump Soho for good.

According to the New York Times, the president’s namesake real estate company has signed a deal with Trump Soho’s owner, CIM Group, to drop its licensing agreement and remove its name from the troubled 46-story lower Manhattan hotel-condominium tower.

The Trump Organization, which manages the building, can leave by the end of next month. Although framed as the Trump Organization walking away, CIM is actually paying the company to leave with years left on its contract. Under the exit terms, Trump still gets a cut of the hotel’s revenue. (However, according to the Times, the contract also requires the Trump Organization to pay CIM if the property fails to hit certain performance measures.)

A buyout allows CIM to rebrand the building, buy additional condo units and expand the hotel before selling the property, the Times reported.

The building has struggled to thrive since the time it was in pre-development more than a decade ago, wracked by community opposition and lawsuits, including a squashed criminal probe into what some investigators thought constituted sales fraud by members of the Trump family.

CIM took control of the 391-unit Trump Soho in 2014. It was originally developed by a partnership of Bayrock Group and the Sapir Organization, with the Trump Organization providing branding and management. The Times reported earlier this year that Trump Soho’s financials were faring poorer than they had prior to the 2016 presidential election, citing sources familiar with the business.

According to the Times, Donald Jr. and Eric Trump made the decision to exit the property, along with several senior executives at the firm.

CIM, a secretive firm that is one of the biggest condo developers in the city, has partnered with Kushner Companies on a number of real estate deals in the city, including the repositioning of the Watchtower building in Brooklyn.

CIM did not immediately return a request for comment. The Trump Organization put out a press release announcing the buyout, but did not answer The Real Deal’s questions about how the deal was struck.

Brooklyn home inventory hasn’t been this low in a decade

Absorption in BK and Queens remains at “blistering” speed, according to Q3 report
By Miriam Hall | October 12, 2017 09:00AM


Clockwise from left: 17 Prospect Park West and 13-33 Jackson Avenue #7D

Demand for homes in Queens and Brooklyn continued to outpace supply throughout the third quarter of 2017, pushing residential prices to new highs.

In Brooklyn, the median sale price hit $790,000, which is $5,000 below the record price hit in the borough last quarter, according to the quarterly report from Douglas Elliman.

Brooklyn inventory reached 1,826, a 30 percent decrease on this time last year and the lowest level since the second quarter of 2008, the report found. The luxury median sale price, which represents the top 10 percent of the market, remained the same at $2.5 million, the report said.

The absorption rate in the borough hit 1.9 months, a rate Jonathan Miller, the CEO of appraisal firm Miller Samuel and author of the report, describes as “blistering.” By comparison, in the third quarter of 2016 absorption in Brooklyn was at 2.9 months. The number of sales hit 2,914, a year-over-year increase of 6 percent.

“The market is trying to find its peak, it doesn’t appear to be close to it yet,” said Miller. “We’ve seen the same old story for the last several years — it’s very tight and fast moving.” He added the borough is “on the cusp” of seeing the average sale price break the $1 million threshold. The average hit $981,623 in the quarter.

A report from the Corcoran Group that examined the same time period found that market-wide closed sales in Brooklyn were the strongest they’ve been in 9 years, up 31 percent. Contracts signed increased by 15 percent year over year, according to the brokerage.

Townhouses in the borough hit an average price of $1.2 million, according to a separate report from Brown Harris Stevens, a 16 percent increase on last year.

In Queens, the median price hit $550,000, a 10 percent increase on the same time period last year and a record high. The borough is seeing similar trends to Brooklyn, with rising demand, tepid supply and increasing prices. The borough is benefiting from buyers who have been priced out of Brooklyn, according to Miller.

Listing inventory increased by 4.5 percent from last year to hit 4,486. The absorption rate was 3.5 months, compared to 3.4 months last year. The days on market was 81, down from 92 last year and the listing discount was 2.8 percent, up from less than a percent last year. The luxury median sale price was $1.3 million, up 6 percent on last year.

“A bit part of the drive is the Brooklyn spillover…there are New Yorkers who are seeing out greater affordability,” said Miller.


EXCLUSIVE: A Conversation With The Man Who Rebuilt The World Trade Center After 9/11


September 11, 2017          bisnow staff


Sixteen years ago, Lower Manhattan changed forever. But the twisted ruins of the world’s financial hub have been reborn as a mecca for technological visionaries, creative media and young entrepreneurs. Larry Silverstein, the man who has rebuilt the World Trade Center after 9/11, sat down with Bisnow to talk about his vision for the new campus.

Click the image above to view the video.

Here’s what the $10M-$20M NYC investment sales market looked like last week

Here’s what the $10M-$20M NYC investment sales market looked like last week

Madison Realty Capital sells East Harlem rental, Veracity buys Soho walkup for $12M
By| Chava Gourarie  September 06, 2017 08:00AM

230 East 124th Street in East Harlem and 137 Thompson Street (Credit: Leslie J. Garfield)

1) In East Harlem, Madison Realty Capital sold off a rental they bought at auction, for $11.7 million. Madison bought the 20-unit property at 230 East 124th Street for $3.39 million along with an adjacent lot, in 2014. The buyer is Topaz Realty Management, a Union Square-based investment firm headed by Poonam Sachdev and Suresh Sachdev. In 2016, Topaz bought a Williamsburg rental from Madison for $22.4 million, more than double the price Madison paid.

2) Veracity Equities bought a multifamily property in Soho for $12 million. The five-story walk-up at 137 Thompson Street includes 15 residential units, three of which are rent-stabilized, and two storefronts. The seller is Russ Chinnici, whose family has owned the property since 1986.

3) In Washington Heights, a multifamily property traded hands for $11.6 million. Gideon Platt’s GP Properties sold the 42-unit building at 560-562 West 174th Street, which he bought for $6.4 million in 2014. The buyer is an entity associated with Edward Setton, who runs both Shamco Management and Shamah Properties.

4) Centers Health Care, led by Daryl Hagler and Kenny Rosenberg, expanded their nursing home empire with the purchase of the 90-bed Highbridge Woodycrest Center, a long-term healthcare facility in the Bronx, for $14 million. The 63,000-square-foot facility at 936 Woodycrest Street was run by the nonprofit Bronx-Lebanon Hospital Center. Centers owns and operates multiple centers in New York City and beyond, including a nine-story senior care facility is located at 4915 10th Avenue in Borough Park, which they recently refinanced for $78 million.

5) Greenroad Capital bought a five-story office building in Lower Manhattan for $12.5 million. The seller of the 21,520-square-foot building at 27 Cliff Street, Alpina Company, ran a print shop out of that location, and still owns Alpina Copy World on East 28th Street. David Natanov is the managing partner of Greenroad.

6) Metrovest Equities bought a two-story commercial building in Greenwich Village for $10.2 million from developer William Rainero. The 5,400-square-foot building at 309 Sixth Avenue is located between Bleecker and West 4th streets opposite the West 4th Street station.

Solving NYC’s condo riddle With bank deadlines looming and carrying costs mounting, developers scramble to pencil out condos planned in a far different (and stronger) market

By E.B. Solomont and Miriam Hall | August 01, 2017 11:00AM

UPDATED, Aug. 3, 2:35 p.m.:  T
he breakup of Linda and Harry Mackloweafter 58 years of marriage became quick tabloid fodder. With a vast real estate empire and a billion-dollar art collectionto divide, one of the more salacious details to emerge from their split was that Harry’s then-girlfriend (and now fiancée) was living at 737 Park Avenue — his condo conversion several years in the making that’s only now nearing the finish line.
Whether the love nest could have been tucked away in the building had units sold faster, however, is still up for debate.

But the project isn’t the only one that’s taking a long, maze-like path to completion.

Three years after the condo boom swept through New York, developers citywide are sitting on unsold units. And their timing seems to be far more precarious than Macklowe’s was.

Since 737 Park opened in 2013, developers have poured thousands of new Manhattan condo units onto the market. In 2017’s second quarter, condo inventory in the borough stood at around 5,900 — up 35 percent year over year, according to Halstead Property Development Marketing (HPDM). And prices for new condos are significantly down amid a slowdown in luxury sales.

For developers who already have skin in the game, the numbers are alarming, particularly since many penciled out their projects several years ago, when the market was on a (seemingly) unstoppable upswing.

To be sure, the sector is not in the dire state it was during the last recession, when buyers attempted to back out of contracts en masse and developers citywide resorted to converting full condo buildings to rentals. But lawyers, brokers and developers who talked to The Real Deal all acknowledged that there is cause for real concern.

While there are no public numbers quantifying the outstanding (and soon-to-be-due) debt on New York condo projects, it’s undoubtedly in the billions.

Nikki Field of Sotheby’s International Realty said the pressure from lenders has ramped up in the past 18 months as the market has struggled to absorb a glut of new units.

“The banks are calling in, and developers have got to deliver. They have deadlines to hit for signed contracts, they have pressure,” she said. “The longer [a project] goes, the more it costs developers. There’s a real sense of urgency to move product.”

Manhattan-based real estate attorney Terry Oved agreed. “The clock is ticking,” he said. “You have bank obligations.”

And it’s not just banks turning up the heat. The private equity funds that ramped up lending when traditional banks pulled back are also under the gun, because their funds have strict timelines that cannot be extended.

“Remember that a lot of this equity is high-octane equity — they have to give them back the money with a return,” added one developer.

That unease has prompted some developers to turn to a variety of strategies to curtail financial damage and salvage profits, including cutting prices, dangling concessions, selling blocks of unsold units and seeking inventory loans, which use sponsor apartments as collateral.

HFZ Group’s 505 West 19th Street, and Rose Associates and World Wide Group’s 252 East 57th Street

The financial conundrum, sources say, is most acute at condos that hit the market several years ago and are now 50 percent sold or more — with closings already underway and owners moving in. That’s the point at which developers start shouldering carrying costs for the unsold units in addition to paying back their lenders.

“The real impact of the slowdown in sales … is that it may require capital infusions,” said marketing consultant Nancy Packes.

While it’s difficult to know how many projects are caught in that quagmire, sources say the numbers are rising.

And the monetary burden is heavier on the high end — both because the cost of running those buildings is higher (think rooftop pools and high-end fitness centers that need staffing) and because they often take longer to sell.

“If you’re an ultrahigh-net-worth individual and own five homes, you don’t need another,” Packes said.

Behind closed doors, this new reality has led to something of a standoff between developers and their lenders — who may have competing interests.

On the one side are lenders, whose top priority is getting paid back (with interest) on time. On the other side are developers who often want to hold out for higher prices to maximize profits.

David Blatt, CEO of investment banking firm CapStack Partners, said both sides are more anxious than they were a year ago.

“What is unsettling is that we’ve been in such a long bull run relative to history,” he said. “Inevitably, the music has to stop.”

Getting to the closing table

Most of the new condos that developers are trying to unload today were conceived in a starkly different market when buyers were first jumping back into the real estate game. To meet that renewed interest, developers were scrambling to get condos out of the ground.

But some are now questioning whether that development blitz went too far.

Related: Who’s winning condo marketing’s game of musical chairs

In 2015, roughly 6,500 new condos were unleashed in Manhattan — nearly triple the 2,500 units launched the year before. As of last count this year, there were nearly 6,000 units on the market.

Developers are already seeing a slowdown in deal volume —  new-development contracts dropped 23 percent during the second quarter, according to HPDM.

“Every developer is worried,” said one sponsor who asked to remain anonymous to avoid inciting further concern in the market.

“A developer has to sell — the entire project hinges upon one thing: selling and hitting the numbers,” added the sponsor.

That, however, is easier said than done.

Broker Dolly Lenz said some buyers who signed contracts before the market turned are now trying to renegotiate.

“We’re seeing some buyers … bringing in big guns like law firms and asking [brokers] to do all types of market data analysis, and they are getting a discount,” she told a room full of residential brokers at TRD’s annual Showcase & Forum in May.

According to appraiser Jonathan Miller, some buyers who signed contracts in 2014 or 2015 are now sitting on units that are worth 20 to 25 percent less on average than the prices they agreed to pay.

“Buyers willing to pay 2014 prices are in short supply,” he said. “If the developer doesn’t come down to meet the buyer, there is no sale.”

For those developers trying to avoid prices cuts so that they can maintain comps at their buildings, a host of other concessions are in play to ensure that buyers make it to the closing table.

“They’re giving closing costs, storage, maybe some parking,” said Compass’s Toni Haber. “They’re trying to [maintain] the prices. It gives the sponsor more leverage on people paying more in the future.”

The tug-of-war over prices and concessions can be traced directly back to how much developers and their backers have spent on these projects to begin with.

Many developers bought land at the top of the market around 2015 — when prices for developable dirt in Manhattan hit a record $1,200 per square foot. Although they made those purchases — and obtained loans — under the assumption that they’d be able to sell condos for premium prices, that reality has been turned on its head.

“Many find that even after they sell out completed buildings, they’re not going to make money — or could lose money — because the construction costs were higher, debt costs have gone up, and sales prices have corrected 22 percent,” said Andrew Heiberger, the CEO of Town Residential.

Between 2013 and 2015, construction costs did indeed jump by 5 percent, and last year those expenses increased by another 4 percent, according to the New York Building Congress.

A first line of defense for many developers is to shake up their marketing teams.

That’s what Forest City New York and Greenland USA did just last month at their 278-unit Brooklyn condo 550 Vanderbilt, where sales started strong but slowed to a trickle last year. Two years after launching, the project is about 65 percent sold.

Still, the developers have refused to cut prices at the tower because they’ve counting on the building to establish a high price bar for other buildings at their Pacific Park megaproject.

“We’ve made a deliberate decision to hold at a certain point, because it’s going to set the market — not just for the building — but the neighborhood we’re invested in,” said MaryAnne Gilmartin, president and CEO of Forest City’s New York office.

That could come as welcome news to 550 Vanderbilt’s early buyers. Generally speaking, those who’ve snapped up units early can get jittery if the rest of the apartments in a building don’t move fast, fearing that the sponsor will cut prices or start renting out units, making it tougher to refinance and sell.

Buyers at 100 Barclay Street — Magnum Real Estate and CIM Group’s 157-unit condo that launched in 2015 — have been anxious to see the building sold out, brokers said. The developers were not available for comment, but so far 89 units have closed, according to public records.

“I had many of them calling saying, ‘Now what?’” said Corcoran Group’s Vickey Barron, who marketed the building when she was at Douglas Elliman and has also represented buyers there.

Barron said she told them not to worry. She also explained that the toughest time to sell a building is midconstruction.

“It’s like catching a woman with curlers in her hair,” she said. “Then the curlers come off, and it’s like, ‘She’s beautiful!’”

Mitigating risk or eating profits?

For lenders, a building that gets stuck at the half-sold mark raises major red flags.

While banks typically don’t want to get paid back too quickly — interest payments drive earnings, after all — they also don’t want developers to exercise their option to extend loans (which generally run between two and seven years) to, say, 10 years.

“Lenders are about risk mitigation,” said David Eyzenberg, who launched an eponymous Manhattan-based real estate investment bank last year. “They want a certain chunk of them sold. You don’t want to be sitting on a broken property as collateral.”

While developers can typically repay their loans once the project is half sold, most lenders collect a portion of the proceeds from each individual sale. “Certainly lenders are running the analysis of how many units need to be sold and closed to be repaid in full,” said CapStack’s Blatt.

Some lenders have become more aggressive in the last few months about pushing developers to make compromises.

“The lender can cross their arms and say, ‘Go sell it for a lower price,’” said Robert Dankner, co-founder of Prime Manhattan Residential, who has worked on a number of new development deals.

But because dropping prices ultimately cuts into sponsors’ profits there’s often pushback on that.

Generally, sources say, sponsors aim to be 40 percent sold by the time closings start.

Put another way: A developer who discounts prices by 20 percent will be able to pay back the debt, but there isn’t enough money for the developer to hit their promote — their share of profits.

Cheshire Group and Sterling American Property’s Devonshire House condo conversion and Extell Development’s One Riverside Park

As a result, some developers have reason to wait for the market to improve.

“While the developer is banking on absorption picking up, the expense of the deal is reducing the overall profitability, which is typically in the last 30 percent of sales,” said Robin Schneiderman, HPDM’s director of new business development.

Specific terms of the deal and the developer’s cost basis, of course, dictate the course of action.

To contend with slow sales at 252 East 57th Street, which launched sales in 2014, World Wide Group and Rose Associates opted to cut asking prices and began offering higher-than-average commissions to buyers’ brokers.

In addition, this year, Gary Barnett’s Extell Development shaved 10 percent off asking prices at five of the remaining eight apartments at the 68-unit Carlton House, a condop on East 61 Street. The developer did the same for unsold units last year at the 219-unit One Riverside Park, which launched in 2013.

Meanwhile, in January, developer Ziel Feldman’s HFZ Capital Group and his private equity partner, the Carlyle Group, came to an unusual agreement at 505 West 19th Street, where four sponsor units were lingering on the market.

When Feldman resisted cutting prices, Carlyle paid HFZ $44.1 million for the condos and then relisted them for sale. It’s since sold one of the units for $14.7 million, a $700,000 discount from its most recent price and about 23 percent less than its original 2014 asking price of $19 million.

Other investors are assessing their options as anxiety spreads.

At a May meeting of about 40 Israeli bondholders who have bankrolled projects like One57 and One Manhattan Square, some expressed concern about Extell’s ability to repay its debt, sources told TRD.

The bondholders were pushing to force Extell to immediately pay them back — even though the first $180 million payment isn’t due until December 2018.

The building, which has only unloaded four of its remaining 47 sponsor units so far this year, has already seen two owners fall into foreclosure. That kind of distress is never good for values in the building or the surrounding market.

Just down the block on Billionaires’ Row at 111 West 57th Street, developers Michael Stern and Kevin Maloney are battling one of their own investors, Ambase Corporation, which alleges that project is facing a $100 million shortfall.

JDS Development Group and Property Markets Group announced in March 2016 that they were delaying sales to better time the market.

The developers have denied a shortfall, blamed Ambase for holding their refinancing hostage and said they’re relaunching sales this fall.

The heavy cost of carrying a building

Developers with half-sold buildings know they must move fast.   

In addition to paying interest on the construction loan, common charges for unsold units can set a developer back $2 to $4 per square foot.

And those fees can add up.

At One Riverside Park, the monthly carrying cost for a six-bedroom penthouse currently listed for $16.5 million is $6,910 — or $82,920 a year.

At 252 East 57th Street, World Wide Group and Rose budgeted $11.8 million to cover the building’s first year of operation, according to an offering plan filed with the state attorney general’s office. That sum included an estimated $360,000 to maintain the fitness center and pool, $116,000 for security and $1.5 million to pay the building’s 26 staffers, including lobby and elevator attendants, porters, handymen and a resident manager.

Over the past 18 months, an increasing number of developers have gotten more aggressive.

In an effort to reduce his debt at Madison Square Park Tower, his 82-unit condo at 45 East 22nd Street, developer Bruce Eichner considered a $125 million inventory loan to help repay $340 million in construction financing from Goldman Sachs, according to news reports.

But he managed to jump-start sales at the building — which hit the market in 2014 and has recently been stalled at around 75 percent sold — and avoid that lifeline.

Last month, Eichner also took concession-making to the next level, announcing that he’d throw in two studio apartments and two parking spots for any buyer willing to shell out $48 million for the building’s 7,000-square-foot penthouse. (According to StreetEasy, the monthly carrying cost for the unit is an estimated $25,500 — or about $306,00 a year.)

Although Eichner avoided an inventory loan, Macklowe and others have gone down that road.

Macklowe landed a $52.8 million inventory loan in April 2016 from First Republic Bank for the commercial unit and 11 unsold condos at 737 Park. The project had closed about 88 percent of its units as of last month, and a representative for the developers said only two units are left to sell.

Aaron Appel, a managing director at JLL and co-head of the real estate investment banking practice, said inventory loans are on the rise in New York as sponsors look to lower financing costs and then “take out additional leverage at a cheaper rate, and be able to pull out some of the equity from the deal.”

Unlike during the last recession, when developers triggered their Plan B — converting condo buildings to rentals — this time around most developers have a cost basis that’s too high to do that.

Compounding matters is that even the priciest rentals and condos are vastly different, said Town’s Heiberger.

“The problem with underwriting as a rental is that the unit mix has to be different,” he said.

In addition, there’s softness in the rental market — as Extell discovered at One57. The developer attempted to rent 38 lower-floor units but shifted gears when that didn’t work. It then shopped them as a bulk condo offering for $250 million before reimagining them as “midmarket” units in April 2016, starting at $3.5 million.

Bulk offerings are, however, making their way into the market, too.

Last year, under orders from their lender, Cheshire Group and Sterling American Property sold a block of 33 rent-regulated units at their Devonshire House condo conversion in Greenwich Village to Aby Rosen’s RFR Realty for $32 million.

The developers had already converted 70 of the building’s 131 units, and they planned to wait out the market and then convert the rest. But the lender pressed the shot-clock buzzer.

“The [developers] said, ‘Look, we’re crying, but equity says to sell,’” recalled Mark Zborovsky, whose eponymous firm brokered the sale. “With equity funds, the life of the fund expires and it doesn’t matter whether the market is great or terrible, they have to complete the fund.”

It’s nice to have deep pockets

Not every developer is racing the clock.

Those with a low basis may be able to ride out the current market, especially if it means capturing higher prices during the next upswing.

Zeckendorf Development — whose 50 United Nations Plaza is not sold out after four years — is said to underwrite projects in such a way that they’re not penalized if a building takes longer to sell. A spokesperson for 50 United Nations Plaza told TRD that over 70 percent of the apartments are sold and that the building is debt-free.

In addition, while developers aren’t converting projects to rentals wholesale, some are leasing unsold units while they wait out the current market.

Unable to sell three penthouses at the Flynn, a 30-unit condo in Chelsea, developer IGI-USA listed the units as rentals this spring with asking prices ranging from $28,000 to $33,000 a month.

Meanwhile, Kushner Companies found a renter this year who was willing to pay $70,000 a month for one of the six penthouses at the top of the Puck Building.

“If you have deep pockets, you can do that,” said Compass President Leonard Steinberg.

In some cases, lenders also see the virtue of waiting.

“I don’t want to leave somebody at the end of the cliff,” said Shawn Safdie, managing director of S3 Capital, a private lending platform associated with Spruce Capital Partners that has backed small and midsized condos in Brooklyn. “We know construction can take longer than expected.”

The investors backing 160 Leroy and 111 Murray are also holding out. Both buildings have a handful of units remaining, including some penthouses.

There’s very little benefit for them to rush sales, said Elliman’s Michael Graves.

“They’re basically saying, ‘We can’t deliver for two and a half to three years. Why are we rushing sales now when we can get bigger and higher prices down the line?’” he said.

And the softness in today’s market isn’t scaring all lenders off. Some are already betting on New York’s next economic cycle.

Sources speculated that JPMorgan Chase is doing that with the $900 million construction loan it has agreed to give to Extell for the developer’s Central Park Tower project, which will have 20 units priced at $60 million or more.

Until then, nobody is “giving away the store,” said Prime Manhattan’s Dankner.

“But time on market erodes everyone’s profits, so the objective is speed,” he said. “That’s the puzzle everyone is trying to piece together.