Posted by Leonard Steinberg on May 7th, 2013
It’s music to New York’s explosive new developments market: Steinway Hall has been purchased by its next door neighbor who plans to build another super-swanky condominium tower. What was once considered a mediocre block at best on New York’s 57th Street, where the two tallest condominium towers in New York are under construction, comes news that a third skyscraper will be built with apartments perched above the city at near-record heights. Throw in the second Extell Tower being planned as well as the MOMA Tower and thats a lot of mega-highrise apartments! This area is becoming the center of the Manhattan POWER TOWER.
The buyers of Steinway Hall are in informal talks with the city’s Landmarks Preservation Commission and zoning officials about what they may build on the site, which includes the piano maker’s building and an adjacent parcel at 105-107 W. 57th St. that they purchased last year. The investors had plans for a 700-foot (213-meter) tower and now estimate that air rights acquired in the Steinway deal would allow them to go taller — potentially as Manhattan’s third-tallest residential building. Michael Stern, of JDS Development Group and the developer of 212 West 18th Street the uber-luxe condo perched above Chelsea (and the Verizon building), which agreed in March to buy the 16-story Steinway Hall and land beneath it with Property Markets Group and Atlantic Development Group said it will definitely be taller than 900 feet.
The JDS group’s project sits at the center of a high-rise construction boom in midtown Manhattan as developers take advantage of soaring luxury-condo demand. It’s on the same block as the current tallest residential building in the city, Extell Development Co.’s One57, which has set records with two condo sales valued at more than $90 million each. At 432 Park Avenue (@ 57th Street), Harry Macklowe and CIM Group are building a skyscraper on the former Drake Hotel site that’s slated to rise much taller than the Extell property which lost its claim to be the tallest residential tower in New York rather swiftly…
The site is in a special Midtown zoning district that doesn’t restrict building heights, and Park views start around 225ft above street level. This area is specifically appealing to out of town and foreign buyers seeking to be in the center of New York with the full Manhattan skyline views experience. They demand ultra-luxurious, high services and amenities buildings. One 57 is supposedly about 65% sold out at record prices, although it existed in a market when there was little or no competition. We will soon learn how deep this market is.