Extell’s One Manhattan Square targets Asian investors

/ The Edge Property
November 19, 2015 10:00 AM SGT
New York real estate developer Extell Development has struck a partnership with JLL for the international marketing of its upcoming luxury condominium project, One Manhattan Square. Extell is most famous for the record-breaking US$100.5 million achieved for a penthouse at its One57 luxury condominium tower.
JLL, a dominant player in international marketing of residential property, has sold more than 4,300 units in London worth US$4 billion over the past three years. “Investors are looking to diversify their investment portfolios,” says Scott Latham, JLL’s vice-chairman of New York capital markets group. “Asian investments have predominantly been in London. But I think the next logical venture is into the US, and markets like Tokyo and Australia.”
Beyond diversification, the strengthening US dollar versus Asian currencies is another pull factor, notes Latham. With property values expected to increase, Asian investors could also benefit from currency gains as the US dollar continues to strengthen, he adds.
Thus One Manhattan Square will be launched in Asia first, in the middle of November. Marketing in the US will start only in early 2016, says Anthony Mannarino, executive vice-president of development at Extell, who was in Singapore on Oct 19. Singapore will be the first stop in the Asian launch, followed by Malaysia and China.
The sweet spot for most Asian investors seems to be around US$1 million ($1.4 million) to US$3 million, and that’s the range in which Extell is pricing the majority of its one- to three-bedroom units at One Manhattan Square. “That’s really the market that’s underserved,” says Mannarino. “There’s tremendous demand, both domestically and internationally, for this kind of product — whether you want to buy as an investment, to live in, as a pied-à-terre or for your children.”
Higher and higher Many of the units being marketed in New York today are luxury units priced in the US$10 million to US$20 million range, says Mannarino. “It was One57 that really set the bar for luxury developments in New York and created what’s known as the billionaire’s row,” he adds. And it was also One57, at 90 storeys and 1,004 ft tall, that spawned a race to build the tallest luxury condominium skyscraper in Manhattan. Since the sale of the penthouse at One57 for US$100.5 million last year, other real estate developers in New York have also muscled in with asking prices for penthouses from US$100 million to US$150 million.
At Extell’s One...