Manhattan’s super-rich were on the prowl for luxury condos last quarter.
More buyers closed deals on condos in the borough for $10 million or more in the second quarter, which logged a 67 percent increase compared to the same period last year, according to Compass’ quarterly report.
The uptick coincided with a year-over-year boost in transactions across all price points and a record high share of all-cash deals, which are primarily concentrated at the top of the market.
For Compass chief evangelist Leonard Steinberg, it’s a sign that ultra-wealthy buyers are betting on “the future, not the day’s headlines.”
“By this time six months from now, a new tax bill will have been enacted, any inflation surge related to tariffs will have cooled, and there is a high likelihood rates will have come down, at which point competition increases and choice decreases,” Steinberg wrote in a statement.
Topping the list of condo deals to close last quarter was a triplex penthouse at 111 West 57th Street, which closed for $46.9 million — roughly 16 percent off its last asking price of $56 million.
The four-bedroom apartment, which traded for $6,600 per square foot, was one of a string of closings at the Billionaires’ Row supertall during the three-month period, including Unit 49 which sold for $24 million in March.
Two units at Extell’s Central Park Tower landed in the top five priciest deals last quarter. The 116th floor of the tower sold for $46 million — down nearly $20 million from the price Gary Barnett sought for it in the building’s offering plan.
The other deal was a resale for unit No. 120, which sold for $39.5 million after trading for $45.5 million in December. The seller of the apartment was an anonymous LLC registered to the address of a Hong Long-based investment company. The buyer was also shielded by a shell company.
Not so fast…
Robert Reffkin’s firm fired another shot in the war against Clear Cooperation.
Compass is disregarding the policies governing the National Association of Realtors-controlled multiple listing services, including a rule requiring agents to submit listings to MLSs within a day of public marketing.
Compass notified NAR and MLS leadership of its move earlier this week, following years of open opposition to the policy. The brokerage maintains that it has resisted complying with the rule since its inception in 2019.
“Programmatically, Compass has not followed any national, mandatory NAR MLS rules in a consistent or coordinated manner,” the message said. “Each MLS in which Compass operates has its own rules, and our agents are trained to comply with local MLS regulations, not national NAR mandates restricting client options.”
This year, Compass has doubled-down on its efforts to launch a private exclusive listing network, which allows agents to share available properties with others within the brokerage without listing a home on an MLS or syndicated platform such as Zillow.
Though Compass is a New York-based brokerage, the firm’s fight is largely one that doesn’t affect its brokers across the five boroughs. New York City doesn’t have an MLS, but instead uses a Residential Listing Services maintained by the state’s leading trade group, the Real Estate Board of New York. While many agents in the city are also members of NAR, the organization doesn’t have much sway over brokers in the Big Apple.
Still, agents in the city will need to learn to navigate a market ruled by private exclusives, as other firms such as Douglas Elliman launch their own version of the network. The switch to marketing listings exclusively within a brokerage office could harm smaller companies in the city who don’t control the inventory. But at least in Manhattan, the learning curve may not be too steep — off-market listings are already crucial to the business..
NYC Deal of the Week
The priciest deal to hit the city rolls this week was a condo at 111 West 57th Street, which closed for $21.5 million, or $4,800 per square foot. Unit 44, which last asked $23 million, spans 4,500 square feet and has four bedrooms and four bathrooms.
The Nikki Field Team with Sotheby’s International heads sales at the building, developed by Michael Stern’s JDS Development and Property Markets Group. Compass’s Neil Zaken brought the buyer, whose identity was shielded by an anonymous LLC.
Read more
Cash deals hit record high in Manhattan’s strong second quarter
Compass ditches Clear Cooperation Policy
Manhattan’s luxury market nabs a banner June