New York—Luxury residential development is showing no signs of slowing down in Manhattan. High-end developer Extell Development Co. is making a splash on the island, with its recent announcement that it has brought on a foreign investor for its $3 billion development of Central Park Tower, which will become the largest residential building in the Western Hemisphere. The partner, SMI USA, is the U.S. subsidiary of Shanghai Municipal Investment, which is known for its Shanghai Tower, the world’s second-tallest building.
“This strategic alliance with SMI brings together two international industry leaders with a track record for creating iconic global skyscrapers. SMI has developed the tallest building in Shanghai, and we look forward to our partnership as we jointly develop the tallest building in New York City,” said Gary Barnett, founder & CEO of Extell Development. “We believe the superb location, views, design and quality of Central Park Tower will make it the most important residential building ever to be built in New York City and expect it to be a great success for Extell and SMI.”
SMI’s investment is expected to receive a return of 20 to 30 percent annually over the course of the project.
Rising 1,550 feet, the tower will fittingly be located on Billionaire’s Row in Midtown Manhattan, at 225 W. 57th St. Adrian Smith + Gordon Gill Architecture—which designed the world’s tallest building, the Burj Khalifa in Dubai, and the future world’s tallest building, Kingdom Tower in Saudi Arabia—also designed Central Park Tower. The tower is slated for completion in 2019, with sales launching later this year.
In addition to the luxury residences, the tower will be the home of Nordstrom’s first full-line New York location and its flagship store. Nordstrom’s second-largest store is set to open in 2019. Extell declined to provide further details on the project.
Extell’s other notable high-end communities include luxury condominium One57, which CityRealty named Manhattan’s most expensive condominium in 2015.
SMI has also been active in the New York City residential market, with its purchase of 520 Fifth Ave. last year with partner Ceruzzi Properties. The joint venture plans to turn the site into a mixed-use tower with frontage on Fifth Avenue and $1 billion worth of condos.