Archives for posts with tag: Downtown
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,
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Hi,

Another quarter and another record breaking set of numbers for Manhattan and Brooklyn real estate.

The boom of the luxury and super high end condos have pulled the average price of a Manhattan apartment to an all-time high $1.81M and also helped trigger a rise in inventory with the sales commencements of several high profile New Developments across the borough.

Brooklyn also gets its share of records with the average price per square foot breaking a 7-year high to reach $704/sf. The historically low inventory has risen over the last quarter but in proportion far from the levels that a market requires to reach equilibrium.

In addition to the traditional Corcoran Manhattan and Brooklyn market reports, this newsletter will touch base on the current relationship between Manhattan inventories, price level and the effect of New Developments in the borough. To follow, the impact of Global Wealth and its potential contribution to New York Real Estate along with the consequences of China’s economy will present data that could help developers keeping their cool in regards to the rise in super high end properties hitting the market. Finally, Brooklyn’s alarming lack of inventory may show a swift in current developers’ strategy to anticipate a change of plans and bring more products for sale quicker than expected to feed a demand starved of choices.

I truly hope that this newsletter will be beneficial and informative while shaping your future real estate plans. Please feel free to contact me should you want to consult on your real estate projects.

Cheers,

Q2_2015_Newsletter

HI,

I hope you are having a great start of 2015 and wish you great health and success for this exciting new year!

2014 has seen several records shattered in many market segments and locations. A recap of the Manhattan Q4 2014 report is bringing new insight about what moved the market over the past 12 months with some perspective on the current level of inventory.

With the upcoming of about 6,500 new units on the market (almost 50% already in contract), I also found it necessary to talk about the concept of New Developments, explain what they are, and which segments of the market they’ll be affecting in the next year.

Finally, Brooklyn’s sellers’ market is becoming more and more challenging to navigate with a highly competitive pool of buyers, increasing prices, low inventories, and only a few New Developments scheduled to hit the market. (Brooklyn Q4 2014 included)

I truly hope that this newsletter will be beneficial and informative while shaping your future real estate plans. Please feel free to contact me should you want to consult on your real estate projects.

Cheers,

Q4_14_Newsletter

The area below Chambers street defined as the Financial District has experienced a tremendous transformation since the 9/11 attacks, which plunged the area into darkness for almost a decade. Subsequently, the residential, commercial and retail booms have revived the area with more to come.

In the early 2000’s, the area attracted renters in quest for a better bang for their bucks. The 24/7 full service doorman building lifestyle has its perks and despite the limited nightlife options at the time, the 10 subway lines available within 5 min walk from wherever you stand in the Financial District allow residents to quickly exit and be in the hottest nightlife spots or commute to work within minutes. Then, the real estate boom brought top of the line condominiums to the neighborhood such as 20 Pine Armani Casa, which was the first cross marketing condo development pairing a fashion designer with residential real estate. It was and still is a success.

The commercial landscape changes happen upon the 2008 financial crisis when the neighborhood witnessed many firms closing their offices, downsizing or simply relocating. Similar to the residential boom, non-typical Wall Street companies in need of more space for their money started to migrate to the area and enjoy class A building near a major transit hub. Ad agencies, tech and media firms among others have now replaced financial firms. The new World Trade Center also anchored a major tenant Condé Nast acting as a snowball effect since most of his midtown located vendors are now looking to move near the new headquarters. Proximity remains an important factor to maintain efficient relationship.

The retail has been the biggest challenge and is now seeing the expansion this area needs in order to become an all-star venue for locals and visitors. As mentioned in my May 8th 2014 Blog, Brookfield place along with the gallery under the Oculus will bring the most prestigious fashion brands and eateries to satisfy a demanding local clientele who often have to shop outside their neighborhood to find quality products.

With so much going on, real estate developers have been able to move forward with stalled projects by securing additional funding, that precedent events froze. Luxury condos are already in the area, but ultra luxury are not…yet. With land prices fetching $900 to $1000/sf and development costs reaching the $600-$800/sf for a decent product, a developer starting a project with these constraints would have to sell at $3,000/ft to see the risks worth the reward. To create a better spread one could look at either searching for a cheaper acquisition or reducing construction costs. The latter one is harder to handle with rising labor and material costs that a developer can’t always control. The first one is where developers can get creative and search for alternatives (i.e: cheaper) sites to build in, on or upon. It is definitely worth the challenge – keeping in mind the high demand for ultra exclusive and luxurious New York Real Estate. We can find a good illustration of this strategy by looking at Alchemy Properties project involving the Woolworth Building.

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Located at 233 Broadway, the Woolworth building is a National and New York City historic landmark designed in the neo-gothic style by Cass Gilbert and built in 1913. It consists of about 58 stories reaching 792ft (241 meters) in heights that earned it the title of the tallest building in the World from 1913 to 1930. In 1998 the building traded hands for $137.5M to a partnership of Witkoff Group and Cammeby’s. Most recently, Alchemy Properties bought the top 30 floors totaling 106,000sf for $68M, or just about $640/ft. The price point is great, but the quality and uniqueness of the product acquired is even greater. The site is classified National landmark, boasts original and historical details that traditional new developments can’t replicate. Looking at the unit mix below, the development will offer 34 units (33 + 1 Penthouse).

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The average ppsf excluding the penthouse is expected to fetch around $3,440/ft. The crown jewel will be the 8 level (Floor 50th-58th) Penthouse dubbed the Pinnacle (see floor plan below). The Penthouse is asking over $11,000/sf or $110,000,000, one of the priciest listing to ever hit the Manhattan market. The plans currently show the Penthouse as a 3-bed 3-baths with 3 powder rooms. The more than 4,700sf contains between the 50 and 51st floor will host the dining and living rooms. The subsequent floors will be arranged to have media room, library and an observation deck among other luxury features. Naturally, a private elevator will help navigating this 8-story sky-high mansion.

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.

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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. 

 

September 2013 Newsletter

Shopping for a high-end rental in Noho (above $10K, 2-bed minimum)? Chances are that you will be frustrated with the lack of inventory available. Indeed, only 8 apartment rentals, in just 4 different buildings show up as being on the market and they are all in condominium buildings (as per 09/19/2013). This low inventory shows a median price of $14,500, size of 1,591sf and price per square feet of $126. Fortunately, for the prospective renters looking for that special rental in Noho, a new rental building located at 37 Great Jones will be opening its doors very soon. Indeed, a model apartment should be available to tour in the next couple of weeks, while first residents will be able to move in January 2014. 37 Great Jones Street is a 95-year-old landmark building, recently conceptualized as “modern luxury residences with historic significance”.

This new rental building is bringing a new and competitive product to the Noho luxury rental market. The 4 new units coming on the market will feature a $25,000, 3,602 sf 3-bed 3-bath duplex Penthouse, and $10-12,000, 2,165 sf 2-bed on lower floors. Looking at these numbers, the trophy unit carries a rental price per square feet 34% cheaper and a surface more than twice the median range of values offered by the current listings.  Noticeable residences’ features include a complete Chef’s kitchen with a 22-bottle Jenn-Air Wine Cooler, Caesar Stone Countertop and Thermadore appliances; the master bathroom will be equipped with Kohler fixtures throughout, and decorated with imported Italian designer tiles.  The living/great room will boast French doors with balconies, and 10.5-16 ft ceilings. While the service and amenities include keyed elevators to open in private apartments and in-residence washer and dryer, the choice of a virtual doorman was preferred to a real one, and there is no sign of a gym, or rooftop access. Small things, but at this price point it may weigh on prospective renters’ decision making process.  However, if the goal is to preserve the few residents’ privacy; then, this set-up could work out just fine. 

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