An ultra-exclusive condominium tower in the heart of Manhattan’s elite real estate market has been forced to sell apartments at discounts of up to 50 percent after selling just half of its units.
Though the penthouse is considered by millions to be the home of Succession’s Kendall Roy, 35 Hudson Yards is now offering discounts of up to 50 percent on its multi-million dollar homes.
Recent sales include a quadruple room that sold for $8.5 million — 46 percent off its original price of $15.725 million.
The Hudson Yards neighborhood was conceived by developers Related Companies a decade ago to attract high-profile residents from around the world. But it has been denounced as sterile and soulless.
Hudson Yards is home to a swanky mall that’s plagued with problems of its own. The Neiman Marcus department store had to be closed as the main tenant after only 16 months due to declining sales and the Corona crisis.
And outside the mall stands The Ship – a cleaving metal sculpture that you can climb but will remain closed indefinitely after four people died by suicide by jumping off it.
The posh 35 Hudson Yards would become one of the most luxurious condominium towers in NYC. One of the apartments that starred in the hit series Succession (pictured) recently sold for $35 million
Decades ago, the Hudson Yards area was an abandoned railroad yard, and the livelier neighborhoods of Hell’s Kitchen and Greenwich Village drew larger crowds within walking distance.
Realizing the promise, Related seized the space to convert it into a new home for the city’s elite and erected two towers, 15 and 35 Hudson Yards, with the intention of becoming the “new Park Avenue.”
But major designs have stagnated since then, and as of the last week of June, about 50 percent of units in 35 years were still unsold, according to the Wall Street Journal.
More than four years after the launch of the condos in the luxury high-rise, sales have been struggling, resulting in Related units being offered at a fraction of their staggering price.
Sales recorded in June averaged 30 percent below their original prices, while some active listings were discounted by up to 50 percent. Notably, the same deals aren’t offered at 15 Tower, where sales have been far better.
In order to lure residents into the 35 Tower, prospective residents are also offered a number of rare amenities, including buyer tax waivers and closure costs.
The development seemed disastrous for Related, as the company signed a roughly $1 billion lease with the Metropolitan Transportation Authority in 2010 to begin construction.
As of June 2023, the company still has over $1 billion worth of condos for sale in Hudson Yards.
On the popular real estate site Zillow, the currently cheapest apartment is valued at $4.8 million.
Hudson Yards was conceived as Manhattan’s “new Park Avenue” and attracts the world’s wealthiest real estate seekers. The 35 Hudson Yards Apartments is shown on the left. Hudson Yards is known as one of Manhattan’s most luxurious areas, but the glass skyscrapers have given some a lifeless and boring feel to the HBO show Succession, which serves as the base for Kendall Roy. Actor Jeremy Strong is pictured on the rooftop of the show
While many in New York dream of snagging one of Hudson Yards’ exclusive apartments, some don’t attribute poor sales solely to the outrageous cost.
The area has barely built a reputation as a party town, as the abundance of office space, luxury designer shops, and pricey restaurants do little to bring it to life.
Notably, much of the calm in the area is intentional, as elite residents look for an easier route home compared to nearby Times Square. To improve this, Related even pays a private security company to monitor Hudson Yards.
And while the noise-canceling glass skyscrapers haven’t helped sales, the area’s ship structure — once one of its main selling points — is another eyesore.
The $200 million sculpture has seen multiple suicides since it opened in 2019 and remains closed while officials try to figure out how to bring it back safely.
The ship building at Hudson Yards has become an eyesore as it remains closed after a string of suicides. The 35 Hudson Yards building, seen behind Hudson Yards, was packed with designer shops and high-end restaurants to lure elites, but some have complained that it lacks the vibe needed to attract apartment-seekers
For residents looking to sell and real estate agents struggling to shed cash, the troubles of the opulent area are beginning to take a toll on their wallets as well.
Ann Cutbill Lenane, a real estate agent at Douglas Elliman who lives in a $4.84 million condo at neighboring 15 Hudson Yards, owned several properties in the two buildings but says she will now face big losses.
With her children moving out, Lenane wants to sell, but knows she will suffer a great loss if she separates from the unit.
As a real estate agent, she said she was embarrassed about losing money on a property, but added, “I can’t kid myself… There’s always a risk going into a new product.” That’s just the nature of the nature of the animal.’
“It’s a very dramatic area that came out of nothing,” Manhattan real estate agent Donna Olshan told WSJ. “It’s high-rise buildings, commercial properties and a mall. It has less of a residential feel.”
In the hostile New York housing market, where rents are notoriously volatile, 35 Hudson Yards’ huge cuts stand out.
“The actual real estate market doesn’t see nearly that kind of discount,” said Jonathan Miller, appraiser at Miller Samuel.
The building’s penthouse where Kendall Roy lives in Succession sold for $35 million in September. Four years after the spacious apartments came onto the market, half remain empty. The master bedroom has an en-suite bathroom with a wet bar, two dressing rooms and windowed bathrooms with deep soaking tubs. This private penthouse yoga and meditation space features high walls with metal structure and central light, as well as modern furniture. The 10,171-square-foot penthouses offer spacious and private spaces, like this lounge for housed storage to simulate a golf course. The fitness center with stretching and yoga studio, tranquil meditation room at The Equinox Hotel
In September, the magnificent skyscraper made headlines when his penthouse sold for $35 million to a mysterious buyer.
The unit was the home of Kendall Roy on the HBO series Succession and was originally listed for $59 million before declining due to general disinterest.
It offers some of the most opulent amenities money can buy, not least the scenic views of the World Trade Center and the Statue of Liberty.
The five-bedroom apartment has a sprawling 10,171 square feet with a 454-square-foot outdoor deck that was the tallest private sitting area in Manhattan at the time of its construction.
While many see the penthouse as an impossible dream, the developer is reportedly planning to build a casino in the area, which some residents warn could attract unwanted crowds.
In response to criticism of the casino plan, Related said in a statement, “If we are fortunate enough to be one of the successful bidders for a gaming license, we will deliver a world-class resort with amenities, dining, retail and entertainment.” Will continue to enhance the Hudson Yards offering and make the experience for the neighborhood, residents and office tenants even greater than it is today.”