AIG Building Could Soon Be Luxury Condos

In an ironic twist of fate, New York’s AIG building at 70 Pine Street will soon be converted to luxury condos.  The developer, Young Woo of Youngwoo & Associates, purchased the downtown building in May 2008 for $150 million and plans to turn the top 40 stories of the 66-story building into luxury residences.

“If we can create that perfect trend lifestyle for this building, for our targeted audience, we are not afraid to achieve $2,000 a square foot,” Woo said.

Although, this may be an overly optimistic target, one thing is for sure: there will be an upside.  According to the Wall Street Journal, the conversion to residential condos could equate to a $600,000 profit for each unit sold, assuming $1,000 sq/ft. basis.

Rob Stevenson, an analyst at Fox-Pitt Kelton, says that “any selling price north of $1,000 per square foot would drive more than $500 per square foot of pure profits (after selling costs) according to our educated ‘guestimates,’” .

The Art Deco building is the fifth tallest building in New York and had been owned by AIG since 1976 before changing ownership last year .

The Only Family Living in 32-Story Tower

Sometimes peace and quiet can be creepy – especially when your family lives alone in a 32-story luxury condo. This is the story of Victor Vangelakos who bought a condo in Oasis Tower in Fort Myers, Texas to be used as a vacation home for his family.

However, the property never reached occupancy as buyers pulled out with the softening market. As a result, any buyers that were able to close, swapped their condo for a unit next door at Oasis Tower II. Viktor’s bank (JP Morgan Chase) wouldn’t allow this, so he got stuck.

On the plus side, Victor and his wife and three children have access to the building’s amenities, including a  swimming pool and clubhouse, all to themselves.

UAE’s Bukhatir Group Launches Massive Tunis Sports City Project

SCI (Sports City International), a subsidiary or UAE-based Bukhatir Group (the company behind Dubai Sports City), has recently announced the start of a massive $5 billion sports-themed development in Tunisia, dubbed Tunis Sports City.

The project will cover a total of 256 hectares and is estimated to be completed by 2025. The first phase, “Cedar”, of Sports City includes the development of a first-class residential golf community comprised of high-rise apartment towers, villas, low-rise luxury residences, shopping mall and a PGA-certified golf course. The initial phase is slated to be completed in 5 years.

According to the SCI’s CEO, Paul Crosetta, 90% of the tower’s apartments have already been sold during the first week of sales.

Condos Now Available at New York’s Legendary Apthorp Building

New York’s legendary Upper West Side residential building, the Apthorp, now has 32 condos available for sale starting just above $1.5 million — a price reduction of 50%. The Apthorp occupies the entire block between Broadway, West End Avenue, 78th and 79th streets and will be undergoing a $30 million renovation in the upcoming months during a condo conversion process.

The prestigious building, once home to celebrities such as Al Pacino, Conan O’Brien and Nora Ephron,  has a September 15 regulatory deadline to sell 25 units (15% of the building’s inventory) otherwise the condo conversion process will be halted and the building will be reverted back to rentals.

“This is a once-in-a-lifetime opportunity to own a part of New York’s history at below market prices that will never be seen again – once we reach our conversion goal in September, prices will most certainly go up,” said Prudential Douglas Elliman chairman Howard Lorber in a statement last Tuesday.

“Once we reach our conversion goal in September, prices will most certainly go up,” says Lorber.

Whether this is true or not, garnering enough demand to keep the condo conversion afloat will be far from easy under the current market conditions in Manhattan.

Billionaire Trying to Back Out of $25M Condo Deal

According to the NY Post, Canadian billionaire, Alex Shnaider, is trying to sneak his way out of $25 million condo purchase. Shnaider who has lost almost 70% of his net worth (down to $1.3 billion), had put down a $5 million deposit to buy the entire penthouse floor at The Brompton condos in the Upper East Side.

In an attempt to get his deposit back, Shnaider filed suit in Manhattan Supreme Court last month and claimed the Brompton’s developer, The Related Companies, misrepresented the penthouse views, the height of the floors and a promise of direct access to a street-level gym.

Shnaider, a Ukrainian immigrant, has commercial real estate projects in Ukraine and Russia and previously partnered with Donald Trump to build Trump International Hotel and Tower in Toronto.

Murano Luxury Condos Unload 40 Units

The Murano Condominiums held their long awaited auction on Saturday, auctioning off 40 units at deeply reduced prices. The new building owners will enjoy a centrally-located residence in Philadelphia’s Center City with 24-hour concierge, a sixty-foot swimming pool, state-of-the-art fitness center, sun deck and massage room.

The Murano’s building owner, the Thomas Properties Group, will use the final bid prices from saturday as a basis to reprice the remaining 136 units in the building.

Accelerated Marketing Partners was responsible for completing the auction.

Terranea Resort - New Oceanfront Hotel and Spa

Terranea Resort, a new $480 Million oceanfront luxury resort in Ranchos Palos Verdes, CA recently opened their doors.  The southern California resort is  managed by Destination Hotels and Resorts and includes a total of 582 rooms, three swimming pools, eight restaurants, a nine-hole golf course and majestic views of the Pacific.

Terranea recently received a unanimous $8 Million stimulus package from the city of Rancho Palos Verdes to assure the opening.  The arrangement between the developer, Lowe Enterprises, and the city of Rancho Palos will allow Terranea to retain 10% of the hotel tax paid by customers for 27 months or receive $8 Million, whatever happens first.

The Residences at the Ritz-Carlton, Philadelphia - Now Open

The new 48-story, 270-residence Ritz-Carlton Residences in Philadelphia recently held a dedication ceremony to celebrate their opening. Prices for the condos range from $500,000 to $12 million and include signature Ritz-Carlton services and five-star amenities. The property is the tallest and most expensive residential building in the city, located on Avenue of the Arts.

Welcome to the CondoGala Blog!

Welcome to the CondoGala Blog. Here we will be posting news and happenings about luxury condos, international properties, resorts and hotels… and whatever else is newsworthy in the world of real estate.  Feel free to share your comments and join the conversation!