New York City’s Mandarin Oriental to reduce some condo prices by about 20%

[NEW YORK] Some condos at New York’s Mandarin Oriental development will be put up for sale with reduced pricing after years of struggling to find buyers.

Residential brokerage firm Serhant New Development is set to lead a revamped sales effort at the Mandarin Oriental residences at 685 Fifth Ave, which includes cutting the asking price of remaining units on the market by 20 per cent on average, according to Serhant broker Peter Zaitzeff, who was recently tapped to be the new sales director for the building.

“We will be implementing the price reductions to gain absorption and move units more quickly,” said Zaitzeff, who will be leading the efforts to reposition the building and sell the remaining sponsor units.

The investor group behind 685 Fifth Ave includes developer Michael Shvo, Deutsche Finance America, a unit of Munich-based investment firm Deutsche Finance Group and German pension group Bayerische Versorgungskammer. Around a third of the condos have been offloaded since sales first launched in 2021.

BVK declined to comment. Representatives for Deutsche Finance and Shvo did not immediately respond to requests for comment. The Real Deal first reported the news.

The group tapped brokerage firm Eastdil Secured last year to explore a potential bulk sale of the remaining units at the building. The owners purchased the upper floors of the former Gucci Building for US$135 million in 2018.

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The owner secured a US$120 million loan to help with the carrying costs of unsold units from Northwind Group in 2024, agreeing to add more cash equity. BLOOMBERG