Five glass-walled condominiums at 1055 Park Avenue on the southeast corner at 87th Street "that challenged the traditional pre-war look of upper Park Avenue have been sold after the building struggled for more than a year to find a market," according to an article in today's edition of The Wall Street Journal by Josh Barbanel.
"The buyers all closed on the same day under orders from a bankruptcy judge, as the building at 1055 Park Ave. worked out a foreclosure threat. A sixth and final apartment in the building on the corner of East 87th Street also is due to close in the next few weeks for more than $5 million, according to court records," the article said.
"The condos, in a very narrow 12-story glass tower just outside the boundaries of a historic district, were sold Friday," the article said, "at a deep discount to the original asking prices, brokers said. The original asking prices were drawn up before the financial crisis, when prices were rising and glass-box buildings were the rage. The idea behind the development, by Trevor Davis, was to produce a finely detailed, downtown-style glass tower in an uptown building with stately views down Park Avenue. The glass walls brought it light and added to a sense of space in a building that was only 19 feet wide. The building was designed by Kohn Pederson Fox Associates with interiors by CetraRuddy."
The article noted that some neighbors objected to the modern design, "and in the end the building appeared to have more appeal to non-New Yorkers: at least four of the six apartments were purchased by buyers from outside the U.S., including Peru."
"The first buyer to sign a contract in the building," the article said, "a Peruvian businessman, paid $3.8 million for a two-bedroom duplex that was originally listed for $9.3 million, but was cut in stages to $5.3 million, brokers said. The contract was signed in December, but the closing was delayed because of the bankruptcy filing. Tristan Harper, a broker at Prudential Douglas Elliman who represented the buyer, said he was looking for a pied-?-terre for his family in New York. The first buyer then convinced several overseas friends and associates to check out the building and they bought as well, he said."
"Mr. Davis bought the site in 2005," the article noted, "and for years struggled to complete the project. Following a dispute with his lenders, he filed for personal bankruptcy in December. Despite the fall in prices, Mr. Davis was unable to close on sales in the building below the minimum prices set in loan documents dating back to the boom market of 2007. But as the market picked up this spring, brokers at Prudential Douglas Elliman, were able to find buyers for all the units in the building, including a ground-floor apartment that was originally designed as a superintendent's unit."
The bankruptcy court ordered that the five condos be sold on the same day, providing the $18.2 million needed to pay off the first mortgage, the article said, adding that "court records show the sale of the sixth apartment will provide $4.5 million to the holder of a second mortgage, who will in turn release Mr. Davis from any personal guarantees....Mr. Davis said it was a 'great building' and that 'currently there are five very lucky owners.'"
"The buyers all closed on the same day under orders from a bankruptcy judge, as the building at 1055 Park Ave. worked out a foreclosure threat. A sixth and final apartment in the building on the corner of East 87th Street also is due to close in the next few weeks for more than $5 million, according to court records," the article said.
"The condos, in a very narrow 12-story glass tower just outside the boundaries of a historic district, were sold Friday," the article said, "at a deep discount to the original asking prices, brokers said. The original asking prices were drawn up before the financial crisis, when prices were rising and glass-box buildings were the rage. The idea behind the development, by Trevor Davis, was to produce a finely detailed, downtown-style glass tower in an uptown building with stately views down Park Avenue. The glass walls brought it light and added to a sense of space in a building that was only 19 feet wide. The building was designed by Kohn Pederson Fox Associates with interiors by CetraRuddy."
The article noted that some neighbors objected to the modern design, "and in the end the building appeared to have more appeal to non-New Yorkers: at least four of the six apartments were purchased by buyers from outside the U.S., including Peru."
"The first buyer to sign a contract in the building," the article said, "a Peruvian businessman, paid $3.8 million for a two-bedroom duplex that was originally listed for $9.3 million, but was cut in stages to $5.3 million, brokers said. The contract was signed in December, but the closing was delayed because of the bankruptcy filing. Tristan Harper, a broker at Prudential Douglas Elliman who represented the buyer, said he was looking for a pied-?-terre for his family in New York. The first buyer then convinced several overseas friends and associates to check out the building and they bought as well, he said."
"Mr. Davis bought the site in 2005," the article noted, "and for years struggled to complete the project. Following a dispute with his lenders, he filed for personal bankruptcy in December. Despite the fall in prices, Mr. Davis was unable to close on sales in the building below the minimum prices set in loan documents dating back to the boom market of 2007. But as the market picked up this spring, brokers at Prudential Douglas Elliman, were able to find buyers for all the units in the building, including a ground-floor apartment that was originally designed as a superintendent's unit."
The bankruptcy court ordered that the five condos be sold on the same day, providing the $18.2 million needed to pay off the first mortgage, the article said, adding that "court records show the sale of the sixth apartment will provide $4.5 million to the holder of a second mortgage, who will in turn release Mr. Davis from any personal guarantees....Mr. Davis said it was a 'great building' and that 'currently there are five very lucky owners.'"
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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