Deal May Boost Plaza's Fortunes
Momentum in
Two adjoining condos at the Plaza Hotel were sold for $19 million, another sign that buying interest in the landmark building may be perking up after the a difficult start.
The buyer is Barbara Garza, a director of Mexican bottler Coca-Cola Femsa SAB de CV, according to people familiar with the sale.
The seller was Gigi Mahon, an author and interior designer. She bought both apartments for about $14 million in 2007, according to public property records.
The deal, which closed last week, provides fresh momentum for the Plaza. The building has been plagued by unsold inventory, discounted sales and buyer complaints since the 1907 hotel was converted into about 180 units of condos a few years ago.
The Plaza has suffered in sales comparisons with 15 Central Park West at the other corner of the park and with One Beacon Court, three blocks east, where price momentum has been stronger.
While the Plaza got some positive attention a year ago when casino mogul Steve Wynn bought one of the largest penthouses in the building for $23.5 million, the good feeling didn't last long.
Mr. Wynn sold the apartment a few months later for only about $1 million above his purchase price, barely breaking even after paying taxes and fees.
Earlier this year, the Plaza regained some prestige when Russian composer Igor Krutoy and his wife bought a condo for $48 million—one of the highest prices ever paid for a
The listing broker was Emilie O'Sullivan of Corcoran Group, who didn't respond to requests for comment. The apartments were listed at $22.5 million.
The fifth-floor condos are next to each other but aren't currently connected. Each has its own terrace that looks onto the Plaza's internal courtyard and garden. The larger apartment also has views of
The Plaza's fortunes with business tenants have also been mixed.
Earlier this year, the operators of the hotel's famed Oak Room said they were closing the restaurant after a dispute with the Plaza developers.
The hotel is now in negotiations with a new tenant for the space, and it plans to expand the underground food hall run by Todd English, according to a person familiar with the matter. A spokeswoman for the Plaza couldn't be reached for comment.