Billionaire hedge-fund manager Steve Cohen just sold his New York City penthouse after 8 years and a 74% discount

steve cohen manhattan penthouse
The penthouse sits on the 51st and 52nd floors of One Beacon Court in Midtown Manhattan.

After eight years and a 74% price chop, billionaire hedge funder Steve Cohen has finally sold his sprawling Manhattan penthouse.

As Oshrat Carmiel first reported for Bloomberg, Cohen’s 9,000-square-foot duplex at 151 East 58th Street went into contract last week, according to an Olshan Realty market report. The sale price was not disclosed, but the penthouse was most recently listed for $29.5 million. Olshan Realty did not immediately respond to a request from Insider for more details on the sale.

Cohen, who runs Point72 Asset Management and has a net worth of $16 billion, first listed the penthouse for $115 million in 2013. Since then, the listing has gone through four brokerages and multiple price chops, per the brokerage report.

steve cohen
Steve Cohen is chairman and CEO of the Point72 hedge fund, which oversees more than $20 billion in assets.

The penthouse sits on the 51st and 52nd floors of One Beacon Court, a 54-story luxury condominium tower that’s part of the Bloomberg Tower complex, according to StreetEasy. The five-bedroom, 6.5-bathroom condo has a 2,000-square-foot master suite and 24-foot ceilings in the living room, according to the listing. At 700 feet above the city, the duplex offers views of Central Park and both the East and Hudson rivers. Cohen bought the penthouse in 2005 for $24 million, per Bloomberg.

Cohen, who owns the New York Mets baseball team, has also owned real-estate in Greenwich Village and the Hamptons. In 2016, he tore down his 10,000-square-foot East Hampton mansion to build a new one in its place after paying $62.5 million for the house three years prior.

In 2019, he sold his triplex condo in the West Village’s Abingdon building for $30 million. According to Olshan Realty’s report, Cohen is in the process of building another home in Greenwich Village. A spokesperson for the hedge-fund CEO did not immediately respond to Insider’s request for comment for this story.

Cohen has long been a fixture in the New York finance world. He founded the SAC Capital hedge fund in 1992 and ran it for years until the firm was busted for insider trading in 2013. As chairman and CEO of Point72 Asset Management, he oversees more than $20 billion in assets.

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NYC landlords are sitting on apartments because rent is getting too cheap. They’d rather keep them empty.

New York City
New York City landlords are keeping some apartments off the market.

New York City real estate is a finicky game: Apartment-hunting New Yorkers have been scoring deals left and right, but some landlords are trying to beat the discounts by holding empty apartments until prices rebound.

They’ve been yanking empty apartments off the market while demand and rent are low, a practice known as “warehousing,” The Wall Street Journal’s Will Parker reported. While warehousing is a typical approach when demand is down, Parker wrote, it’s reached new heights amid the work-from-home economy and stronger tenant eviction protections.

Parker cited data from real-estate analytics company UrbanDigs: During peak warehousing in August, landlords pulled 5,563 unrented apartments off the market. That dropped to 1,814 unrented apartments off the market in February, but the latter number was still triple the amount of apartments taken off the market in February 2020.

Landlords are likely holding these units in hopes of higher rental prices come spring and summer as the vaccine rollout continues, John Walkup, cofounder of UrbanDigs, told Parker, preventing more New Yorkers from locking in long-term deals.

New Yorkers are scoring deals on rent drops and concessions

“The pressures COVID placed on the marketplace created a unique opportunity to secure leases in prime locations and great buildings for significant discounts,” agent Ryan Kaplan, of Douglas Elliman, previously told Insider.

Rents in Manhattan, Brooklyn, and Queens all had the largest year-over-year declines on record over the last year, dropping a whopping 15.5% in Manhattan and 8.6% in both Brooklyn and Queens, per StreetEasy’s January Rental Report. The median asking rent in Manhattan was $2,750 – the lowest it’s been since March 2010, when rents dropped during the Great Recession.

Some buildings are even offering concessions of two to three months free on leases, which lowers a tenant’s net rent and can allow them to rent out a nicer building with more amenities.

Chris Schmidt, senior vice president of Related Companies, which owns luxurious rentals at buildings including The Strathmore on the Upper East Side and One Hudson Yards, where one-bedrooms can go for as much as $7,453 a month, told Insider in February that Related’s rents were trending down about 15% to 25% depending on the unit type.

Millennials in particular have been taking advantage of falling rents and discounts, upgrading to luxury apartments that suddenly fit within their budget in pursuit of more amenities, space, and the solo life.

But how long these deals will last depends on when the city fully reopens, Schmidt said, and he anticipates more real-estate momentum as vaccinations continue. “That’s going to force a lot of people seeing these steeper discounts to make a quicker decision,” he said, adding that as soon as there’s a better indication of when the workforce will return to offices, rents will start to go back up to pre-pandemic levels.

Nancy Wu, a StreetEasy economist, recently told Insider’s Libertina Brandt she doesn’t think that will happen in 2021.

“Rent will continue to be lower than they were a year ago for the full year,” she said. “Even with the vaccine coming, it’s not going to magically make the huge glut of inventory go away. Prices will continue to fall until the inventory settles a bit, more people come back to the city, more jobs are recreated from the loss of small businesses, and the city returns, somewhat, back to where it was before the pandemic started.”

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