Extell Development Co. has inked a joint venture agreement to build the 95-story with SMI USA, the U.S. subsidiary of state-run Shanghai Municipal Investment, to build the 1,550-foot Central Park Tower luxury condominium skyscraper, the tallest residential building in the Western Hemisphere, in Midtown Manhattan’s Billionaire’s Row.
With the JV agreement nailed down with SMI, which built the 2,073-foot Shanghai Tower, the world’s second-tallest building, New York-based Extell announced it will launch condo unit sales at the $3 billion project at 225 West 57th St. later this year.
Extell, headed by CEO and founder Gary Barnett, has a portfolio of 20 million square feet and developed of the nearby 75-story One57, is targeting a 2019 completion for the project after starting development with EB-5 financing in 2014. The developer said SMI's investment will have first priority, with its investment is expected to receive a return of 20% to 30% annually over the course of the project.
"We are excited to be able to participate in the development of the tallest residential tower in New York City, on a conservative high return basis. We look forward to a long lasting relationship with Extell, one of the top development companies in the United States," said Tom Tao, President of SMI USA.
SMI has successfully completed 80 megaprojects ranging from a comprehensive reconstruction of the Bund on Shanghai's waterfront to the Shanghai Yangtze River Tunnel.
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