(Bloomberg) -- Extell Development Co., the builder that spearheaded a billionaires’ condo district in midtown Manhattan with the construction of One57, said it’s teaming up with a Chinese firm to build a luxury skyscraper on West 57th Street.
The company formed a joint venture with SMI USA, a subsidiary of Shanghai Municipal Investment, to develop the $3 billion Central Park Tower, according to an e-mailed statement Thursday. The building, slated to be New York’s tallest residential property at 1,550 feet (472 meters), will house the city’s first Nordstrom store at its base.
Under the deal, SMI’s investment will priority over Extell’s, meaning it would collect profits from the project first, according to the statement. SMI is expected to receive a return of 20 percent to 30 percent a year over the course of the project, the firms said.
The deal moves forward another luxury project in Midtown at a time when the market is already flooded with high-priced choices and wealthy buyers are holding back. Sales at Central Park Tower, at 225 W. 57th St., are expected to begin later this year, the firms said. Completion of the building -- a block away from One57, where a penthouse sold for a record $100.5 million -- is slated for 2019.
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