Stern deserves a medal. He builds icons in NY.
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An interesting - but rarely mentioned - aspect of this project other than the architectural merits; is the question of the financial viability at this point. Roughly speaking; 60 units sold at $15 million each would have a total sell out value of $900 Million. My guess is that the total construction cost of this building is well over 1 billion. Architectural design success; but seemingly a financial disaster. I don’t know the actual figures; so any more informed input would be welcome. I think the above video of the Hindenburg blimp may be the perfect analogy for the financials on this project; wondering if that was the hidden ‘message’ of that post.
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I think the average price is higher than 15, but yes overall the margins seem quite slim.
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PH74 alone is listed at 57m. In fact out of the current listings the cheapest is 16m.
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Some will sell at 7 some at 40 ; bet it averages out to about 20 million per unit. So, your right. Another interesting question: what was the timeline from Design-to-completion. I am presume, based on random facts picked up here, that we are looking at about 8 to 10 years end-to-end. Construction in NYC is probably like no other place in the world; so I understand how these this happen - but wow.
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Yes, but what about the other 50 units: much less. In this rapidly declining market for lux condos may wild guess will be an average unit price of 20 Million. My point: this will be a break-even or loss as a real estate investment. Theses things are shrouded in secrecy, so I don’t know the real numbers.
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I think it just demonstrates how classy Stern and the rest of the team at JDS are.
Because you’re right, I’ve thought about it before as well, and it doesn’t seem like the total net on this project will be that much. My guess is they’re looking at a total profit of around $100 million, which pales in comparison to what 220 CPS and 15 CPW supposedly made (roughly $1 billion profit on both if I recall correctly.)
I truly think a big personal reward for Stern and JDS is delivering outstanding projects to NYC and forever leaving their mark on the skyline. My guess is that is worth more to them than value engineering a project and making an extra $100 million or so.
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I appreciate the beauty of the Architecture; and what they have done with the final product. However, the truth is that the projected construction estimates and timeline were wildly off the mark: resulting massive cost overruns, This was not a deliberate act for the sake of Art and Architecture and a refusal to accept any ‘value engineering’ compromises. I like the sentiment and the fact that we get this Architectural Icon when all is said and done.
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https://www.instagram.com/p/B8j9XbOn76A/?igshid=1h3o6lsdgle2k
https://www.instagram.com/p/B8fdib9Jg1H/?igshid=18ff7sjdq9a7d
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Just out of curiosity will this tower have lights on the terracotta that was rendered? Also what color glass (besides the terracotta) does this tower have?
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Posted on SSC! - YouTube
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