Mansion Global

Penthouse on the Bowery Could Shatter Neighborhood Price Records

In-contract residence listed at $17 million could eclipse current $5.5 million high

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The three-story penthouse at 347 Bowery is now in contract.

Rendering: Hayes Davidson
The three-story penthouse at 347 Bowery is now in contract.
Rendering: Hayes Davidson

Times are changing for the Bowery.

A penthouse at the 347 Bowery condominium could set a price record for the Manhattan neighborhood. The residence, which was listed for $17 million, is now in contract after just five days on the market. If the deal closes anywhere near its asking price, it will be the most expensive residential sale on the Bowery — by a lot. A penthouse at the condominium 250 Bowery, which sold for $5.5 million last year, currently holds the record, according to Curbed.

Set on the corner of East 3rd Street, 347 Bowery is the latest residential project from architect Annabelle Selldorf. The 13-story tower consists of the three-story penthouse and four duplex townhomes. Retail space will occupy the first and second floors.

The building’s transformation — from a former Salvation Army shelter to an upscale condominium — is a testament to the neighborhood’s transition. In the 1960s and 1970s, the Bowery was known as New York’s “Skid Row,” but is quickly becoming a destination for luxury homebuyers.

“The Bowery is simply a dividing line between NoHo and the East Village and Lower East Side,” said listing agent Leonard Steinberg, who is handling sales and marketing for 347 Bowery, in an email. “The Bowery Hotel changed everything forever. The Lower East Side is what SoHo was 20 years ago, with a splendid mix of restaurants, boutiques and art galleries.”

In its recent Wealth Report, the London real estate consultancy Knight Frank named the Lower East Side one of three hot neighborhoods to watch, citing new infrastructure, amenities and restaurants as driving price growth in an area where more luxury developments are starting to emerge. Just yesterday, residences at the 45-unit condominium 150 Rivington hit the market, with prices ranging from $995,000 for a one-bedroom apartment to $3.8 million for the four penthouses.

The Lower East Side “is the only neighborhood in New York that has yet to see a wave of development,” Sofia Song, executive vice president of Douglas Elliman, previously told Mansion Global (she assisted Knight Frank in selecting the Lower East Side for the firm’s Wealth Report). “It has the potential to become the next destination,” she said.

Write to Gina Faridniya at gina.faridniya@dowjones.com