Extell Development is offering to fast-track portions of brokers’ commissions at three of the firm’s new condo projects, according to a report in The Real Deal. The move is an effort to bolster sales momentum at a time when the market has slowed for luxury apartments.
“It’s pretty unusual,” Douglas Elliman broker Michael Graves told the magazine.
Typically, brokers get their cash once a sale closes, which could be months or even years after a contract is signed. Extell represents itself with an in-house team when selling units in its new buildings. But if an outside broker brings a buyer who ends up signing a contract, the firm will pay half of that broker’s commission up front. The incentive will apply to One Manhattan Square on the Lower East Side, 70 Charlton in Hudson Square and the Kent on the Upper East Side, and last until the end of April, according to The Real Deal.
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Extell has tried this before with varying results. In 2010, it sued to recover advance commissions at its Lucida condo project on the Upper East Side. There, apartments that went into contract never actually closed as the market tanked, according to The Real Deal. Major brokerages either returned the advances or reached settlements with Extell.
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Extell Development is offering to fast-track portions of brokers’ commissions at three of the firm’s new condo projects, according to a report in The Real Deal. The move is an effort to bolster sales momentum at a time when the market has slowed for luxury apartments.
“It’s pretty unusual,” Douglas Elliman broker Michael Graves told the magazine.
Typically, brokers get their cash once a sale closes, which could be months or even years after a contract is signed. Extell represents itself with an in-house team when selling units in its new buildings. But if an outside broker brings a buyer who ends up signing a contract, the firm will pay half of that broker’s commission up front. The incentive will apply to One Manhattan Square on the Lower East Side, 70 Charlton in Hudson Square and the Kent on the Upper East Side, and last until the end of April, according to The Real Deal.
Extell has tried this before with varying results. In 2010, it sued to recover advance commissions at its Lucida condo project on the Upper East Side. There, apartments that went into contract never actually closed as the market tanked, according to The Real Deal. Major brokerages either returned the advances or reached settlements with Extell.
474-unit affordable project coming to South Bronx (New York YIMBY)
Discovering the lost coast of Queens (The New York Times)
$50 million penthouse at Mandrian Oriental sells for 22% discount (The Real Deal)
De Blasio budgets less for adult shelters as census grows (Politico New York)
Long-ago Brooklyn brewer left vaults, mystery (The New York Times)
To live near a New York City landmark, pay up (The Wall Street Journal)
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