Serhant has taken over marketing of the 65-unit luxury condominium project and has put Peter Zaitzeff and Glenn Davis in charge. The move marks the latest attempt to sell the building, which opened in 2021 but has only moved about a third of its inventory in the four-plus years since.
In addition to the switch to real estate, there will be a notable revision in prices. Listings reflect double-digit discounts from the original asking prices set in the offering plan. A two-bedroom unit now costs $5.3 million, while a one-bedroom unit over 1,000 square feet is for sale for $4.25 million, down from nearly $6 million. The price adjustment is intended to realign the project with buyers’ expectations after previous prices failed to generate sustained demand.
The restart follows earlier signs of distress surrounding unsold inventory. In the fall, Shvo and its investment partners, including Deutsche Finance America and German pension fund Bayerische Versorgungskammer, engaged Eastdil Secured to explore a large-scale sale of remaining units. While that option has not been ruled out, the latest strategy focuses on selling individual apartments rather than an institutional exit.
Financial pressures have also determined the trajectory of the project. In September 2024, the ownership group secured a $120 million inventory loan from Northwind Group tied to the unsold apartments. At that point, only 15 units had closed, far less than the projected $340 million sellout when the project was put on the market. There are still about 45 copies on the market.
The property is located in the former Gucci headquarters at 685 Fifth Avenue, which Shvo and his partners purchased in 2018 for $135 million. During the redevelopment, office space was converted to residential use and floors were added on top of the building. Positioned as Mandarin Oriental’s first residential property on the east coast, the project offers hotel facilities including a private dining facility overseen by Daniel Boulud.
The Fifth Avenue project is set against a turbulent backdrop for Shvo’s broader portfolio.
The developer recently sold the Raleigh Rosewood Residences in Miami Beach, has defaulted on debts tied to the Mandarin Oriental in Beverly Hills, and remains involved in litigation related to both New York apartment finishes and disputes related to Core Club.
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Empire State Realty expects $350 million for Billionaires Row office building
Empire State Realty Trust has listed its 50,000-square-foot office building at 250 West 57th Street, located on Billionaires Row, for an estimated price of $350 million.
The 26-storey building is 84 percent leased; TJ Maxx will anchor the retail portion until 2041.
ESRT purchased the building in 2013 for $170 million and has invested approximately $140 million in capital improvements.
After a deportation threat, Al Sharpton’s National Action Network makes way for the One45 project
The Rev. Al Sharpton’s National Action Network left its old Harlem headquarters at 106-108 West 145th Street in late January, following an eviction notice signed by a judge.
The move resolved a dispute with landlord Bruce Teitelbaum and made way for his previously delayed One45 housing project, which is expected to include 1,000 apartments across three buildings, at least 338 of which will be designated as affordable.
Top bankruptcy attorney Jonathan Pasternak has been suspended from the Southern District of New York for three years
Jonathan Pasternak, a prominent bankruptcy attorney, was suspended from practicing law in New York’s Southern District Court for three years after receiving $260,000 in undisclosed payments from controversial real estate investor Sam Sprei during a bankruptcy case.
The payments were related to the bankruptcy of a medical office building at 261 East 78th Street, where Pasternak advised his client, Lee Moncho, to use Sprei as a buyer.
“Most difficult moment of my life”: Woman testifies about alleged attack filmed by Oren Alexander
In the second week of the sex trafficking trial of the Alexander brothers, testimony resumed with a video of an alleged assault presented in the case, which showed Oren Alexander having sex with a 17-year-old woman who says she had no memory of the encounter or recording before being contacted by authorities.
The video and two witnesses who introduced the week’s proceedings add to the growing list of evidence and women presented to the court by prosecutors who allege brothers Oren, Alon and Tal worked together in a conspiracy to lure, incapacitate and assault women.
The brothers have pleaded not guilty and deny the charges.
Read more
Serhant’s team takes over sales of Shvo’s Mandarin Oriental
Empire State Realty expects $350 million for Billionaires Row office building
“Most difficult moment of my life”: Woman testifies about alleged attack filmed by Oren Alexander
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