Manhattan's Billionaires' Row is home to some of the priciest and most luxurious real estate in the world. Needless to say, buyers for properties that run $50 million + aren't a dime a dozen. With the slowdown in the economy due to the coronavirus, those buyers have all but dried up. That's why one realtor is trying a new tactic: he's putting his penthouse up for auction in December. It's a risk, as auctions are particularly popular with New York City buyers or sellers, especially on the high end of the market.
Arnon Katz is the London-based owner of the property. He's also a real estate investor and has owned this particular property since 2018. The auction has no reserve price. The property is a penthouse at 150 Central Park South at Hampshire House, a 1930s building just off Central Park with truly epic views of New York City. The penthouse comes with preapproved plans to convert the attic space above the unit. With the conversion, the penthouse will have 10,000 square feet and five bedrooms. The expanded penthouse will have 1,125 square feet of terraces, including a private terrace off the master bedroom that faces Central Park. The attic expansion plans also outline walls of glass, enormous windows, and skylights.
The property was listed for $40 million, however with the expansion, it is expected to go for around $100 million. The work would take about two years to complete. Luxury home sales in Manhattan were down 47% in the third quarter of 2020. If this auction is a success, it is likely more real estate investors will jump on the trend to sell long-held, stagnant properties.