Archives for category: New Development Manhattan

Manhattan Real Estate market had a mixed year 2016 with closings dropping 11% (13,605), inventory reaching 5,865 units (+16%), but still well below pre-2008 levels (8,500 units) and 2009 Peak (11,500). Prices are keeping their upward trend with an average price of $2.045M (+12%), Median of $1.1M (+11%), and average PPSF of $1,841 (+12%). Prices have been skewed by closings of super and ultra luxurious condos of the like of 56 Leonard and 432 Park Avenue, which contributed to the 206 sales over $10M and 35 sales over $25M. With a pipeline of 4,200 new development units hitting the market this year, we may continue to see rising inventory levels in 2017, but a sustained and healthy activity within the mid-market/entry Luxury segments of New Developments.

For more information, please consult the Manhattan New Development Memorandum here!

Advertisements

Hi,

2016 started on different paths for Manhattan and Brooklyn. Manhattan became more expensive than ever while experiencing a slowdown in number of sales, while Brooklyn keeps cruising with strong fundamentals to back up some sustainability to this trend.

However, some hope remains for the Manhattan buyer! This Newsletter will show how the pipeline of Q1 2016 approved condominium plans will bring a drop of the average price for future products. While some developments remain very high profile, entry level and mid-luxury developments are demonstrating signs of resistance.

To that extend, I’ll bring some thoughts about where to look for some of these values in Manhattan now and for products being delivered in the next couple months.

Finally, Brooklyn will get a focus on Dumbo, an area which development model is inspiring the rest of the Borough’s up and coming neighborhoods.

I truly hope that this newsletter will be beneficial and informative while shaping your real estate plans. I remain available to consult with you at your convenience.

Cheers!

 

 

Breaking News! New York City recently fell down the list of nation’s priciest Zip Codes, owning only 2 spots versus 6 a year ago! Something must be happening! This 3rd quarter 2015 newsletter will support some signs of a possible slow down in the Manhattan Market based on the price level/inventory and sales volume data.
On the other hand, Manhattan’s best neighbor, Brooklyn, is pursuing its growth stage supported by an escalating demand for properties ranging from entry level to luxury apartments.
Finally, the New Development pipeline section will focus on the number and quality level of units scheduled for delivery from 2016 to 2018 in Manhattan, which could spark some worries in the Super and Ultra Luxury products offerings.
I truly hope that this newsletter will be beneficial and informative while shaping your real estate plans. I remain available to consult with you at your convenience.
Cheers,

Last year I covered the residential, commercial and residential expansions of the area below Chambers Street covering three distinct neighborhoods: Financial District, South Street Seaport and Battery Park City. We can now observe significant changes and an even more positive outlook for the years to come.Residential Q1’14 vs Q1’13 figures look very healthy. Condos average ppsf increased by 25% to $1,106, and the median price by 36% to $968K. The increasing demand for larger units (3-bed) with an average price that amplified by 30% to $2.350M is partially responsible for driving the prices upward. New Developments with 225 Rector as a Star product following by the W Downtown (pic below) and 75 Wall Street have a ppsf that increased on average by 30% to reach $1,391/sf and a median price who increased by 48% to $1,214M.

W Residences

Once stalled mixed-use luxury condo/retail developments such as 50 West Street is finally going up after securing a $400M debt/equity deal mid2013. The Top 30 floors of the iconic Woolworth tower are being converted into condominiums that will average over $3,000/sf. The Four Season hotel and residences on Church and Barclay Street is under construction (below) and 22 Thames Street is slated to become the tallest residential tower in Downtown.

FourSeason_Downtown

Knowing that the cap of residential construction has been reached in BPC, and the Financial District residential inventories have dropped by 42% in the past year, these developments will help accelerating the residential life in the neighborhood.The retail activity and prospects are showing signs that very few New Yorkers could have ever imagined just a couple of years ago or even months following Sandy: on the Battery Park City side, Brookfield Place $250M renovation is revamping the entire market place of the World Financial Center (see rendering below) and is now connected underground with the World Trade Center Path Train Station and Fulton MTA transit center. Le District, a French food marketplace is slated to open later in 2014, along with Umami Burger.

Brookfield place

On the other side of the highway, Westfield, who owned the retail space of the WTC recently announced the signature of Eataly at 3 WTC, which follows high end designers (Breitling, Canali, Montblanc) setting up retails next to the 17,000sf Victoria Secret store in the 365x115ft long main hall known as the Oculus (see bottom pic), described as “an elliptical fish-tank-like area with a movable glass eyelid on the ceiling”. Tom Ford, Tiffany and Armani are also eyeing space at 3 WTC

Calatravas-Oculus

Westfield place

The commercial landscape is also transitioning: the high rent and low vacancy rate of Midtown and Midtown South have pushed startup firms in need of quick, cheap and efficient set up to the Financial District that has been deserting by financial services and is now being invaded by tech, media, and Internet companies. Several drivers have pushed to this direction. First, the MTA Fulton transit hub converges more than 10 subway lines which will facilitate the commute of the many Brooklyners employed by these creative companies. Second, the price of $52.49/sf versus $66.24/sf for midtown south combined with flexible workplaces is an attractive feature. Also, some tenants are acting as magnets such as Conde Nast’s media empire who has taken over 1 million sf of office space at 1 WTC, the hot ad agency Droga5 who settled on 90,000 sf and collaborative space provider WeWork who took over 300,000sf on Wall Street. Finally the area has 20 new hotel projects under construction which will bring about 1,700 rooms to facilitate tourism and business travelers’ needs. 

 

The long awaited project of the Second Avenue subway line dubbed “T Line” has recently shaken the real estate activity on the Upper East Side, east of 3rd Avenue. The T Line – which will eventually run 8.5 miles from 125th Street to Hanover Square – has been in the plans for decades and long been awaited by commuters on the overcrowded Lexington 4,5,6 line. Now that the project finally broke ground, and is getting some momentum, with an anticipated opening date of 2016 for the stretch of 86th Street to 63rd Street, we can witness an increasing interest for properties located on the east side of 3rd Avenue among prospective buyers.

According to data provider CityRealty, the average sales price of Upper East Side condo east of Third Avenue was $1.57M compared to $2.34M for the entire Upper East Side. Activity in 2013 suggests that the gap is narrowing. Indeed, average price per square foot (ppsf) for condos on and eastward of Third Avenue increased 11.4%, above the 10.4% for the overall neighborhood. Similarly, co-ops average ppsf increase 7.7% compare to 5.3% for the entire area.

One of the most noticeable developments highlighting this trend is the condominium building at 515 East 72nd Street, where half of the 142 one-bedroom apartments closed between summer 2012 and 2013. Overall 90% of the 329 units have been sold which brought the building to the list of the 10 best-selling New York City building of 2013. This “spa-like” condo offers outstanding services and wellness amenities such as a pool, yoga rooms, rock climbing wall and fitness center which have been a major draw for prospective buyers. Over the past 12 months, sales averaged $1,318/sf and currently available apartments are asking $1,638/sf on average.

Another influential development which also made it to the list of the 10 best-selling New York City building of 2013 is the Manhattan House. A 513 unit luxury condominium conversion located on 66th Street off 3rd Avenue, where sales averaged $1,713/sf in the past 12 months while currently available apartments are asking $2,107/sf. The building offer five star hotel concierge services, full-time residence manager, valet, parking service, rooftop Manhattan Club with 10,000 square feet of interior and exterior entertainment space, Exhale Mind Body Spa & Fitness club, yoga studio, a bike storage, and children’s playroom designed by Roto.

Many of the high rise condominiums on the East side of 3rd Avenue offer sweeping river and city views but without the premium of their Midtown and downtown counterparts. It’s also an area that is not so congested, offers access to major food merchants, big box retailers, restaurants and located a few blocks away from Madison Avenue shopping strip

Corcoran Sales Market Report – 1st Quarter 2014

You wonder how the market did last quarter?
You would like to prep yourself and get into the NY real estate game?
Open the file below to get started.

January14_Newsletter