According to The Real Deal, the last remaining holdout in a battle with CIM Group over the construction of the new 432 Park Avenue withdrew their motion for an injunction this past week, freeing CIM Group, the super-tall tower’s developer, to accelerate construction of the reportedly 1,300-foot tall mixed-use building – the tallest residential building in all of New York City.
According to an October 19, 2011 Wall Street Journal article, building plans “show a 1,300-foot tall, slender condo and retail complex designed by Rafael Vinoly” that would be comprised of “128 condos with more than 12-foot high ceilings; a 5,000 square foot, partially covered, driveway to ensure privacy; and amenities like golf training facilities and private dining and screening rooms.” The bottom floors of the building are likely to have a hotel component as well.
On December 8, 2011, Elitedaily.com reported “the building will feature its entrance on 57th street right across the street from the Four Seasons. Expected time to be completed [is] 2015-2016. The building will feature prime views of Central Park and will over-tower the Four Season[s] by almost three times its size. Rumor [i]s that each unit will be sold for $6,000 a square foot.” If this rumor proves true, prices would be about the same as One 57, which is now averaging around $6,000 per square foot.
While anyone walking by the site can tell that construction has commenced over the last few months, we don’t expect at this time that a 100+ story building could be delivered before 2016. According to the Wall Street Journal, there is no scheduled completion date and, as of January 3, 2012, the building had not yet lined up the hefty $700 million construction loan needed to build this super-tall tower. While the project will likely find financing as the economy continues to improve, according to the Wall Street Journal, “[e]ven with financing, CIM’s tower of Park Avenue trails a competing 1,000-foot residential project on West 57th street [One 57] from Extell Development Co. That skyscraper is nearly 30 stories above ground and counts an Abu Dhabi fund as a partner.”
The Drake Hotel, built in 1926, once stood at the site of the new Drake Tower, but was demolished in 2007, the same year developer Harry Macklowe defaulted on the loan. CIM Group, a California-based private equity firm, purchased the site at a seemingly bargain price of $305 million, when only a few years earlier it was sold to Macklowe for $460 million.
Once the building obtains financing, we expect 432 Park Avenue will perform quite well, as demand for ultra-luxury condos in Manhattan has been very strong over the past year. In fact, 2011 saw record prices at 15 CPW and 25 Columbus Circle. As the US economy continues to improve, we expect that the 128 condos won’t have too hard a time finding buyers. The building’s super-prime location and superb views, combined with the healthy appetite of foreign buyers of trophy New York Luxury Properties make the Drake Tower (or 432 Park Avenue) a likely success.
432 Park Avenue Update May 31, 2012
According to a recent WSJ article, pricing is expected to be around $4,500 per square foot, which is 20-25% less than One57, a lot lower than the rumored $6,000 psf. The article also indicates that the building will house 128 units from 1,390 to 8,000 square feet. CIM, the developer, expects to sell 40 units pre-sale with closings expected in October 2014 and completion by the second quarter of 2015.
432 Park Avenue Update September 6, 2012
We were recently gifted with a long awaited preview of 432 Park Avenue. By all accounts, this project is destined to be extraordinary. Slated for completion in 2015, this will be the tallest residential building in Manhattan at close to 1,400 feet (far surpassing One 57 by almost 400 feet). While the showroom won’t be ready until later this year (most likely in November), we now have the inside scoop on prices, sizes, heights, and amenities. Let’s us know if you would like more information about New York City’s new record setting, ultra-tall trophy building.