Harry Macklowe struggles as luxury condo sales stall in FiDi
- Harry Macklowe's $2 billion luxury condo project at One Wall Street has sold only 112 of its 566 units since sales began.
- The unsold apartments have compelled Macklowe to secure a $300 million loan to cover costs, as sales remain sluggish.
- Although recent weeks show improved sales activity, the overall performance raises concerns about pricing strategies and market absorption.
In the United States, Harry Macklowe's ambitious conversion of One Wall Street, the former Irving Bank tower, into luxury condominiums has not met sales expectations since its launch in late 2021. Although Macklowe invested over $2 billion, only 112 of the 566 apartments have sold, accumulating around 14% of the anticipated $1.7 billion total sales. This sluggish performance occurred in a market flooded with new condo units, with the median prices in the Financial District dropping significantly. Many of the buyers appear to come from foreign markets, hinting at an investment strategy rather than a residence plan. Despite these challenges, Macklowe has recently shifted strategies, removing two sales brokers and moving the marketing in-house, which he believes will accelerate sales moving forward. Some signs of optimism have emerged, as recent weeks witnessed an uptick in activity, with contracts signed for units across various price ranges. However, until a greater proportion of the inventory is sold, the overall outcome remains uncertain, reflecting broader trends in the condominium market in urban settings. The extensive amenities and the attention to restoring the building's historic features underscore Macklowe's commitment to creating a desirable residential experience, yet sales figures starkly demonstrate a disconnect between market pricing and what buyers are willing to pay.