[NYguy]

https://www.crainsnewyork.com/real-e...uxe-moma-tower

Dispute among partners of superluxe MoMA tower


DANIEL GEIGER
February 13, 2019

A rift has opened between the partners that built the soaring ultra-luxury condo tower at 53 W. 53rd St.

Hines, Goldman Sachs, and the Singapore-based real estate investment firm Pontiac Land Group recently resorted to an arbitration process to resolve a dispute over how much the building's units should be discounted, sources said.

One source familiar with the situation said that the dispute stemmed from Hines wanting greater leeway to sharply slash prices at the 1,050 foot tall, Jean Nouvel-designed spire, where sales are widely regarded to be poor in a market saturated with newly-built, high-end offerings.

In September 2018, just over $123 million of reductions were filed. In total, roughly $167 million of price cuts have been made by the developers since the tower's initial projection of more-than $2 billion in sales was disclosed in 2014.

Market experts say a general malaise has settled over the uppermost tier of the residential market in Manhattan. Because there is a large inventory of competing projects, such as units in 520 Park Ave., Central Park Tower, One57 and 100 E. 53rd St., condo buyers have felt less urgency to pounce on deals.

At least 15% of the 145 units at 53 W. 53rd St. are in contract, rendering MoMA Tower effective. Closings are set to begin in the spring, a spokeswoman for the project said.

Other buildings envisioned as ambitious entrants to the super luxury market have also failed to impress buyers. A conversion of the upper portion of the Woolworth Building to condos has closed only three sales according to property records, despite a sales effort that began several years ago. The 31-unit residential project, which goes by the address 2 Park Pl., is being developed by a partnership led by Alchemy Properties that, so far, has held firm on prices.