Extell's residential portfolio includes 535 West End Avenue, The Lucida and The Avery in Manhattan. The company has also restored and updated a number of buildings in landmark neighborhoods, including the former Stanhope Hotel at 995 Fifth Ave. and The Belnord on the Upper West Side. Its commercial developments include the W Times Square hotel in New York City and the $200 million redevelopment of Chicago's Insurance Exchange.
New York City-Wall Street, more specifically-was in some ways the epicenter of the economic downturn. Planning for One57 took place during the depths of the financial meltdown in 2008 and 2009. Despite that, Extell went ahead with its plans to build a glass tower, with units starting at $3 million apiece.
"Gary Barnett, the head of Extell, is a real cowboy. He takes chances," says Sheftell. "And they pay off."
No Recession In NYC Housing Market
Anxious buyers lining up ours in advance for an open house, ready to write deposit checks for an apartment they have not even seen. Couples in bidding wars, offering as much as 35% over the asking price.
While much of the nation's housing market remains depressed, these scenes are typical anywhere in Manhattan where luxury housing is for sale.
"This spring has been just incredible for all of us," says Fredrick Eklund, managing director of Prudential Douglas Elliman and a cast member of Bravo's Million Dollar Listing New York reality show. "It's surprising to me to see just how much cash has been sitting on the sidelines for so long."
Nationally, the real estate market for high-end homes fared far better than the rest of the market, and compared with the rest of the country, the market in the city that never sleeps took probably the shortest nap.
"New York certainly did take a little bit of a hit; it was probably the last metropolitan area to be hit," says Jeffrey Rogers, president and chief operating officer of Integra Realty Resources. "Manhattan is not for everyone, but overall, for the amount of money you're willing to spend, it's the most desirable place in the U.S. to live or have a home. ... If you want to be at the top of the game, you have to be in New York."
Of those areas with large concentrations of ultra-expensive properties, Southern Florida has probably suffered the most over the past four years, according to real estate experts. Rogers estimated high-end housing values remain down as much as 40% from the peak in that state, although that is still better than the rock bottom of a few years ago. The main problem in Florida and elsewhere is a glut of properties due to overbuilding.
"All the coastal cities are still trying to recover," he says. "Back in 2010, we saw a lot of international investment in Florida, especially from Canada, but as the recovery was not very robust, that dropped off."