Extell’s One Manhattan Square launches rent-to-buy program

Earlier this month, a StreetEasy report highlighted just how bad NYC’s luxury condo glut is: An analysis of properties on the market showed that more than 25 percent of condos built in the past six years remain unsold. Many of those are on the Lower East Side, thanks in part to Extell’s 80-story One Manhattan Square, which has 815 apartments that represent three-fourths of the neighborhood’s inventory.

Now, as The Real Deal first reported, Extell is launching a rent-to-buy program at the Lower East Side skyscraper in the hopes of selling more units. “Lease a luxury residence at NYC’s top-selling building and experience 100,000 square feet of amenities, endless views and the finest designed homes,” the building’s website reads. “Should you purchase your residence within 12 months, Extell will credit a full year’s rent towards your purchase price.”

It’s not the first time Extell has tried wooing potential buyers with some form of discount or other concession; last year, the developer waived common charges at One Manhattan Square and its other new developments.

Closings began at the skyscraper earlier this year, but according to the New York Times, as of August, only 20 percent of its apartments had officially sold. City records show that 194 units (of 815) have been sold at the development. There are 75 units for sale and 43 for rent currently listed on StreetEasy.

One-bedrooms at the building start at $1.38 million, two-bedrooms at $2.135 million, and three-bedrooms at $3.838 million. The cheapest one-bedroom currently listed on StreetEasy is renting for $3,750/month while the most expensive one, a three-bedroom, is renting for $10,000/month.

“We anticipate that after living at One Manhattan Square many will take advantage of this program and purchase in the building,” spokesperson for Extell told The Real Deal.

Meanwhile, even more tall towers are planned for the Two Bridges neighborhood, with thousands of market-rate units eventually coming online.