White Boxes Replacing Designer Penthouses In High-End Markets

By Jeffrey Steele

Not that long ago, it was de rigueur for developers of high-end big market abodes to commission acclaimed interior designers to decorate and stage their buildings’ costliest penthouses. The problem: High-net-worth prospective buyers all had their own ideas of what constituted beauty and livability in the homes of their dreams.

Result? Increasing numbers of developers are showcasing their penthouses as white boxes. They are serving up blank canvases that buyers can tailor to their own particular design sensibilities, guided by the architects and designers of their preference.

The approach must be paying sales dividends, because the appetite for trophy New York City properties has been on an upsurge since mid-spring. Home sales topping $10 million recently notched their most successful week since last fall.

Not long ago, the Compass 2023 Ultra Luxury Report stated, “the standards for the quality, amenities and services expected keeps rising. The checklist is long, and few properties qualify,” prompting developers to offer discerning buyers new customization options.

“White box residences are inherently unique as they provide unparallelled customization opportunities, empowering buyers to shape interiors to their precise preferences in collaboration with their chosen interior designers,” says Matthew Breeden, vice president of development and marketing at SJP Properties.

200 Amsterdam

SJP Properties is the developer of 200 Amsterdam, the second-tallest tower on Manhattan’s Upper West Side. The $40 million, four-bedroom, four-bathroom penthouse the developer recently brought to market, located on floors 51 and 52 at the highest reaches of the skyscraper, is available as a white box.

SJP Properties carried the white box concept at 200 Amsterdam a bit further by creating an array of renderings depicting two distinctive design options for the penthouse. One hews to traditional design, while the other leans toward a more contemporary aesthetic. “From layout to finishes, every facet of the 6,347-square-foot duplex penthouse can be tailored, presenting endless design potential,” Breeden remarks.

Added Peter Zaitzeff, Serhant new development sales director: “Luxury developments appeal to the distinct clientele who are often acquiring their second or third residence. The discerning purchasers at 200 Amsterdam often bring in their own lauded interior designers to complement the exceptional finishes offered at the building, which inspired us to offer this penthouse as a white box opportunity. This hands-on approach to customization is gaining prominence in the latest wave of luxury developments targeting ultra-high-net-worth buyers with exacting design tastes.”

A number of other developers are also turning to white boxes as a sales tool. Read on for several additional examples.

One Bennett Park

The architectural firm Robert A.M. Stern Architects (RAMSA) has enjoyed substantial success with white box residences, as reflected in the $238 million record sales price for an unfinished box at its 220 Central Park South in 2019. It shouldn’t come as a shocker, then, that at its One Bennett Park in Chicago, purchasers were given the option to acquire the tower’s full-floor penthouse as a colorless quadrangle. RAMSA provides buyers complimentary consultations to provide collaborative design ideas, which adds appeal to the offer of customizable white box spaces.

99 Hudson Street

The 79-story Jersey City, N.J. tower serves up light-filled condominiums, a triple-height lobby and panoramic views of the Manhattan skyline. The recent sale of a white box penthouse there notched a new Jersey City record of $4.4 million. That narrowly surpassed the previous city-wide record of $3.9 million, not coincidentally held by another 99 Hudson Street white box penthouse.

Madison Square Park Tower

The Kohn Pedersen Fox-designed residential tower in Manhattan’s Flatiron District established a distinctive approach to the marketing of its penthouse. Prospective purchasers were given the opportunity to select a design scheme provided by designers Lee Mindel, Ryan Korban and Thomas Juul-Hansen, each of whom came up with a single distinctive approach. Alternatively, they could opt for a white box strategy and hire their own designers.

Via Forbes