NEW YORK | Parker New York - 118 West 57th (vertical addition) | 400+ FT | 37+ FLOORS

[chris08876]

A More Affordable Billionaires’ Row: Allen Gross’ $420M Bet on the Parker New York

GFI Capital Resources Group and Elliott Management Corporation made a $420 million bet on Billionaires’ Row last week, acquiring the Parker New York with plans to renovate the 38-year-old hotel and build 67 luxury condominiums on top of its 729 rooms. Bank OZK financed the purchase with a $350 million debt package.

The Central Park South area has seen a slew of luxury condos cropping up over the past few years, from Extell Development’s One57 (also home to the high-end Park Hyatt New York) and Central Park Tower to JDS Development’s 111 West 57th Street. It’s also been the poster child for “luxury condo market slowdown” headlines, with an oversupply of eye-wateringly expensive inventory.

But, GFI and Elliott aren’t following the path of other developers who have aimed for the ultra-ultra-luxury condo market. Instead, the new owners of the Parker are carving out their own niche, offering more affordable units (by Billionaires’ Row standards) coupled with the perks of hotel living.

“We came up with a new concept, and it’s probably unique for the 57th Street market,” Allen Gross, GFI’s chairman and CEO, told Commercial Observer in an interview at his office during the snow squall last week. “Most of our units are going to be small—between 500 and 800 square feet—and you’re going to be able to buy a condo starting at $1.5 million, which is unheard of in that market. When I see people selling condos for $40 million, $50 million, $200 million? We’re not interested in that.”

The exception to the affordability rule? Two 4,000-square-foot condo units at the top of the building with 10,000 square feet of outdoor space between them overlooking Central Park. Those two will fetch north of $20 million (“Their outdoor hot tubs will start at $1.5 million,” Gross said with a laugh.)

Parker New York’s starting numbers, although still pricey by the city’s wider standards, will give GFI’s condo units a vastly lower price per square foot than neighboring buildings on Billionaires’ Row.

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https://commercialobserver.com/2019/...rker-new-york/

[NYguy]

I thought this was more of a conversion than an addition.