Residential skyscrapers rise above a Manhattan neighborhood of sprouting luxury towers dubbed 'Billionaires' Row.' The government of Canada has moved to purchase a US$6.6-million condo for Canada’s consul general in the area.Bebeto Matthews/The Associated Press
The realtors involved in the purchase of a US$6.6-million condo for Canada’s consul general in New York defend the move as a good deal, saying it is consistent with prices in Manhattan and reflects long-term planning.
Erin Boisson Aries and Thomas Aabo of Douglas Elliman represented the Canadian government in the transaction, according to their spokesperson. The New York-based luxury real estate company works across the United States, with US$34.4-billion in sales and rental transactions annually.
“A $6.6-million sale doesn’t usually get much attention because, in the world of Manhattan real estate, it isn’t a significant price,” Ms. Aries said in a statement Monday, responding to questions from The Globe and Mail.
“Properties are selling for a lot more,” added Ms. Aries, who is described on the company website as a “foremost expert in ultra-luxury, full-service branded residences.”
Questions have been raised about the high cost of the three-bedroom apartment purchased earlier this summer, which Global Affairs Canada (GAC) has said will be Consul General Tom Clark’s official residence as well as a location for receptions, briefings and hosting discussions with business and political leaders. The department has said it opted to relocate rather than spend on renovating its long-owned existing residence.
In the Douglas Elliman statement, Mr. Aabo said governments are rethinking their real estate portfolios in New York to focus on long-term strategy as opposed to short-term needs.
“Purchasing a diplomatic residence in the Landmark portion of 111 West 57th Street checks all of the boxes: desirable location, security, attractive purchase price and long-term appreciation potential,” he said.
But the purchase has prompted a hearing of a Commons committee of MPs, with a further hearing of the government operations and estimates committee scheduled for next month expected to feature witnesses including Mr. Clark, the deputy minister of GAC and a panel of New York real estate agents.
In their statement, the Douglas Elliman realtors noted that the property, located in an area called Billionaires’ Row, was purchased for $1,700 a square foot, which is 70-per-cent less than peer buildings in the neighbourhood.
They noted that the most expensive contract signed in the past week was a $26.9-million tower duplex in the same complex.
Asked about the Douglas Elliman perspective, Conservative MP and ethics critic Michael Barrett denounced “some in the media” and the luxury real-estate market for making excuses for Prime Minister Justin Trudeau purchasing the condo.
“Conservatives will continue to stand up for the taxpayers who were forced to fund this unnecessary and extravagant purchase,” says a statement issued Monday by the office of the Leader of the Official Opposition on Mr. Barrett’s behalf.
During last week’s hearing, the government operations committee supported a motion advanced by Conservative MP Kelly Block to look into the issue. She said the matter of the condo is consistent with lack of spending controls by the federal government on such projects as the ArriveCan app for cross-border travellers.
GAC has said the consul general’s current residence was purchased in 1961 and last refurbished in 1982. It is now being readied for sale and is expected to exceed the purchase price of the new unit, GAC spokesperson Jean-Pierre Godbout said last week.