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Ian Schrager Scraps Plans for $80 Million Penthouse

Is the developer of 160 Leroy in Manhattan’s West Village ceding to the cooling luxury market?

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Original plans for an $80 million penthouse at 160 Leroy in New York City have been scrapped to give way to two smaller and less expensive units.

Douglas Elliman
Original plans for an $80 million penthouse at 160 Leroy in New York City have been scrapped to give way to two smaller and less expensive units.
Douglas Elliman

In what is likely a response to buyers’ lower tolerance for price growth in Manhattan’s luxury real estate market, the developers at the forthcoming 160 Leroy Street condominium have decided to scrap plans for a much-talked-about $80 million penthouse. Ian Schrager, behind the ultra luxury condominium in the West Village, is dividing the original 12,200-square-foot penthouse into two units of approximately 7,700 square feet and 4,800 square feet, with price tags of $48.5 million and $29.5 million, respectively, reported The Real Deal. Schrager isn’t alone. Other developers at high-profile developments, including 432 Park and 10 Sullivan Street, have also modified floor plans to give way to smaller and less expensive units. Also See:Ashley Olsen In Contract to Buy Greenwich Village CondoLuxurious Homes to Buy in and Around Cannes Alan Lightfeldt, a data scientist at StreetEasy, has been tracking what he sees as increasing ‘buyer fatigue’ in New York’s property market.   “While ‘buyer fatigue’ isn’t strictly quantifiable, we look at several key market indicators as our basis for understanding buyers’ tolerance for price growth,” he said to Mansion Global via email. And the indicators—the time a property sits on the market, the share of all listings that are discounted, and recent price growth—show buyers are just becoming more averse to increasing prices.   The median resale price of homes in Manhattan’s luxury tier grew by 0.2% in the first quarter from a year ago to $3.25 million, according to a report by StreetEasy released this week. At the same time, high-end properties spent 113 days on the market over the same period, an increase of 22 days from the first quarter in 2015. In comparison, all homes in Manhattan that went into contract in the first three months of the year waited 63 days for a buyer. “Buyers aren’t biting as quickly as they once did,” said Lightfeldt.  “The reality now is that developers have to adapt their offerings and their expectations to the more sober luxury market.” MORE From Mansion Global: