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Harry Macklowe’s One Wall Street: A Striking Revival with a Complex Sales Journey
Edited by: TJVNews.com
Real estate magnate Harry Macklowe’s ambitious $2 billion redevelopment of One Wall Street, the former Irving Bank tower, has brought new life to Manhattan’s Financial District (FiDi). Yet, despite its gleaming restoration and highly anticipated retail additions, such as the first U.S. location of French luxury department store Printemps, the luxury condominium portion of the project is struggling to meet sales expectations. The property, which combines Ralph Walker’s iconic 1931 Art Deco tower with a 35-story annex added in the 1960s, has become a defining feature of the downtown skyline. According to a report on Tuesday in The New York Post, the project’s unsold apartments remain a significant hurdle for Macklowe, casting a shadow over an otherwise celebrated revitalization effort.
One Wall Street’s transformation included 566 luxury apartments, but since sales began in late 2021, only 112 units have closed, according to a New York Post analysis of city Finance Department records. While Macklowe has previously emphasized a “long view” for the project’s sellout, the pace of sales has been described as lackluster. The total sales so far, valued at approximately $230 million, represent just 14% of the anticipated $1.7 billion sellout value, excluding the yet-to-be-priced triplex penthouse.
Despite high-end amenities—including a private dining room, a 75-foot pool, and 100,000 square feet of luxury resident spaces—the pricing appears misaligned with market realities. Jonathan Miller, CEO of appraisal firm Miller Samuel, told The New York Post that while FiDi presents prime opportunities for office-to-residential conversions, “the limited amount of sales above the $2 million threshold and the large discounts from ask seen in many sales suggest pricing is disconnected from what the market can absorb.”
FiDi is currently grappling with an oversupply of luxury condos. According to report in The New York Post, the area below Chambers Street has over 220,000 condo units—approaching the 262,000 rental units in the neighborhood. Thousands of these condos remain unsold, including those in new developments such as 125 Greenwich Street, where 272 units recently hit the market.
The Downtown Alliance reported a noticeable dip in median prices for FiDi and Battery Park City condos, from $1.275 million in the second quarter of 2023 to $985,000 in the third quarter of the same year. The New York Post report noted that this pricing decline reflects an increasingly competitive environment, further complicating efforts to sell the high-end units at One Wall Street.
Despite its branding as part of downtown Manhattan’s residential revival, much of One Wall Street’s sales activity is tied to foreign-based buyers. The New York Post report discovered that more than half of the purchasers identified on city records appear to be from countries including Japan, China, India, and Russia. Many of these buyers likely view the apartments as investments, with some units already listed for rent.
This trend raises questions about the building’s role in fostering a family-friendly residential community in FiDi, a narrative often promoted in marketing efforts. The New York Post report describes the tension between investment-driven sales and the broader vision of a vibrant, locally rooted downtown neighborhood.
The slow pace of sales has had financial consequences for Macklowe’s project. Early sluggish sales prompted a $300 million “inventory” loan from Deutsche Bank last year to address the unsold units, as reported by The New York Post. While high-profile sales, including one unit that fetched $6.17 million, demonstrate some demand for premium offerings, most transactions have fallen within the $800,000 to $2 million range—far below the expectations for a landmark property of this scale.
The difficulty in moving these units highlights broader market dynamics. The report in The New York Post pointed out that FiDi’s condo market is saturated with inventory, placing downward pressure on prices and forcing developers to recalibrate expectations.
The most recent recorded sale, unit 1810, highlights the nuanced nature of these transactions. Purchased on November 4 for $1.4 million by “Thirdwave Corp. Fictitious Name Thirdwave Japan,” the 753-square-foot one-bedroom unit reflects the international investment appeal of the property, according to The New York Post report.
Key retail tenants are central to One Wall Street’s revitalization. A massive Whole Foods Market and a 75,000-square-foot Life Time wellness center anchor the development, while the soon-to-open French luxury department store Printemps is set to be its crown jewel. As The New York Post report indicated, Printemps will feature five restaurants and the restored “Red Room,” a landmarked former banking lobby that was previously closed to the public.
To address the lagging sales of condos, Macklowe replaced two sales brokerages—Core Real Estate and Compass—with his own in-house team. A project spokesperson told The New York Post that this change has accelerated sales, with 12 contracts signed in the past eight weeks and an additional four contracts currently pending.
The spokesperson highlighted growing momentum, saying, “In the last 90 days, we have issued contracts that span the unit mix, ranging from around $1 million to over $9 million.” While early sales skewed toward international buyers, recent activity has seen an uptick in local and even “hyperlocal” purchasers, according to The New York Post.
Despite progress at One Wall Street, Macklowe is simultaneously navigating significant legal and financial challenges. As The New York Post report said, he faces lawsuits from owners of units at 432 Park Avenue, alleging construction defects. Additionally, Fortress Investment Group is attempting to foreclose on Macklowe’s East Midtown properties, which he had planned to redevelop.
Yet Macklowe is no stranger to high-stakes recoveries. Known for his resilience, he has consistently demonstrated an ability to navigate setbacks and emerge stronger. A major dealmaker interviewed by The New York Post remarked, “Never think Harry’s down for the count,” highlighting the developer’s stellar track record and reputation for resourcefulness.
As Macklowe’s team ramps up sales efforts, the project’s broader appeal remains undeniable. The integration of historical restoration, luxury living, and high-profile retail spaces has positioned One Wall Street as a cornerstone of FiDi’s ongoing transformation. The New York Post report indicated that with recent contracts ranging from $1 million to over $9 million, there is renewed optimism about the building’s potential to overcome its early sales struggles.
