Home News The Quest to Sell Out Skyline, Queens’ Tallest Building

The Quest to Sell Out Skyline, Queens’ Tallest Building

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Chris Jiashu Xu and Skyline Tower

Skyline Tower apartments offer sweeping views of Long Island City and the Manhattan skyline, with alluring amenities and the prestige of being the tallest building in Queens. But 40% of them miss something important: the buyer.

4 years from the start of sales. Chris Ziashu Shuambitious condos, but only 509 of the 802 units have sold as of Aug. 18, according to Long Island City-based independent real estate consultant Patrick Smith, which is owned by the Corcoran Group. According to the data

The building’s most expensive unit is priced at over $3 million, but 36 penthouses are not yet sold, and only seven of the apartments sold have three or more bedrooms. . Buyers also closed 54 studios (starting at $600,000), 208 one-bedrooms and 240 two-bedrooms.

Still, Mr. Xu is not panicked. Quite the opposite, in fact. He recently increased the price of some penthouses.

According to the Streeteasy listing, he increased the price of the PH203 by 18%, the PH101 by 13% and the PH202 by 17%. It may seem counterintuitive, but Eddie Shapiro, brokerage firm for Nest Seekers International, said: Skyline Penthouse Marketing Please note that some of the units on the upper floors are contracted along with some on the lower floors.

Xu purchased 3 Court Square from Citigroup for $143 million in July 2015. 3 years later he $502 million construction loan The transaction was brokered by Meridian Capital Group and from a group of banks including JPMorgan Chase. His Xu partners on the project include FSA Capital’s Brian Pun, Hong Kong developer Risland US Holdings LLC and Henry Yeung.

The goal of the 67-story tower is $1.09 billion sale, according to filings with the Attorney General’s Office. This is the first condo in Queens to attempt his $1 billion sale.

The building has had its ups and downs since it opened for sale in 2018. That year culminated in November when Amazon announced it would open an East Coast headquarters in Long Island City, with 25,000 highly paid employees.

The worst came the following Valentine’s Day when Amazon abruptly canceled the project in the face of opposition from Senator Michael Gianaris, Congressman Alexandria Ocasio-Cortez and others.

Approximately 22% of Skyline Tower’s sales occurred in the last three months. But Eric Benaim, CEO of Modern Space, whose brokerage firm has sold the project from the beginning, said that for many buyers, the narrative put Long Island City on the map, so Amazon’s exit would not necessarily hurt the project. I do not say that I gave

“People were like, ‘This is good for Amazon, so maybe we should check it out,'” he said.

A year after the retail giant was bailed out, Covid arrived, causing a terrifying stretch for Skyline Tower. Contract signings bounced back to 185 last year after slowing to just 35 in 2020.

Indeed, 2020 was a year when new development sales in the city were sluggish. Reported contracts fell 24% in Queens and 28% citywide, according to Marketproof. Last year, they increased by 48% and 93%, respectively.

According to Smith data, Skyline has attracted more retail investors than its Long Island City peers, with 21% of buyers offering to rent units within six months of closing. Last year, only 9% of other buyers in the neighborhood bought.

As expected, Skyline buyers are also less likely to finance their purchases, given the high share of investors. Smith said cash buyers accounted for his 27% of Skyline’s sales last year, compared with his 17% in the rest of Long Island City.

The skyline is the tallest in Long Island City, but it has many competitors. Upscale developments in the area include RockRose’s rental portfolio, Tishman Speyer’s. jackson parkof the Wolkoff family 5 point LIC When TF Cornerstone building. Ron Zeff Carmel Partners Paid $200 Million In March, we searched for a site adjacent to Skyline and were able to build over 900 apartments there.

Condominium and rental developers betting on Long Island City have hoped that what was once an industrial district dotted with manufacturing sites will evolve into a residential area. It mostly happened. Target, Trader Joe’s, and Jacx & Co’s food hall relocated retailer He is one, and pedestrians in the area can dodge strollers.

Benaim remains bullish on Skyline. He said the project he expects to sell out by the first quarter of 2023. Benaim said his brokerage was reconciling 20 to 30 trades each month before economic factors such as interest rates took their toll.

It’s unclear what standards Bill must meet to keep lenders at bay, but the rising price of the penthouse suggests Xu isn’t thinking about offering discounts. Mr. Shapiro said he was not thinking of a bargain.

“We’ve barely tested and barely achieved all-new price points and benchmarks in Queens and Long Island City. And the developers are patient and strategic.” Nest Seekers CEO Said. “No rush, no pressure. There’s a lot of money behind the project, so there’s no stress about just doing it.”

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