Archives for posts with tag: Immobilier New York
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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IMG_Woolworth Lobby 886_2 Woolworth Lobby Woolworth_Interior1 woolworth-building_views   

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).

Woolworth_Unit_Mix WoolworthCoverPhoto

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.

The neighborhood of West Chelsea extends approximately from West 14th to West 30th street from 8th Avenue to the West Side Highway.

In the past 5 years, West Chelsea has drawn worldwide attention notably through the success of the High Line elevated parkway: a 1.43mile former railroad line (west side line) running along the lower West side of Manhattan from 14th to 29th Street (shown below). The repurposing of the park was inspired by the famous Promenade Plantée in Paris and has spurred many new real estate developments along the 9th and 10th Avenue rows, where multimillion dollar condominiums are burgeoning. The proximity to the High Line park along with the quality of mom and pops stores, art galleries and Google’s economic boost to the area  have been attractive factors for home hunters. 

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To better enjoy such quality of life, buyers have been flocking to one of the best place to contemplate in the city: the Seminary block. Located on West 20th Street between 9th and 10th Avenue, this exclusive street block is home to the 1800’s Episcopal seminary that is supported by the church. For the story, in 1878, the new appointed Dean Eugene Augustus Hoffman led the expansion program of the seminary which included the construction of new campus facilities based on an Oxford model with neo-gothic buildings facing onto a central quadrangle. More recently, upon the opening of the Desmond Tutu Center 2007, the western part of the seminary facing 10th Avenue operates primarily as a hotel and conference center. The seminary has been maintained impeccably and the area is pristine.

GTS_Vintage_Postcard

For buyers in need of a large home (3,500sf +) the options available in condominiums remains very limited and…expensive. At this time, there are only 8 condos with 4+ bedroom available in the area at a median price of $15.950M, an average ppsf of $3,415 and size of 3,825sf. Any current condos over 4,000sf will cost more than $16M with maintenance and Real Estate taxes approximating more than $10K/month.

With so few options, my attention drew toward the townhouse alternative and more specifically to the Circa 1853, Anglo-Italianate style 5-story townhouse listed at 438 West 20th Street by townhouse specialists Paul Kolbusz and Sara Gelbard. The house is currently asking $8.580M and offers close to 4,800sf of exquisite space, light and luxury. After my visit, I was stunned by how much more a homeowner could get out of a townhouse compare to a condominium. To expand on this idea, I compared and put into perspective the main attributes of both property types.

Facade

Cost of ownership.

As mentioned above, buyers should expect to pay in the $15M range for a 4,000 sf condominium in this area. The monthly cost of ownership of such condominium range in the $9 to 11K/month or over $100K/year. Comparatively, at $8.580M, the townhouse looks like a bargain. In addition, the average yearly cost of ownership ranges in the $10-14K which include real estate taxes, insurance, fuel/gas/electricity and basic repair and upkeep. The townhouse alternative would leave no less than $100K in the owner’s pocket every year on top of $6M on the purchase! Certainly a budget that can be used for other investments or lifestyle upgrades.

Full Service and amenities: the condominium alternative will bring all the services as soon as you walk in which should justify the $6K+ of common charges to be paid each month. The doorman will be there to greet, the gym should have the state-of-the-art fitness equipment, the common areas such as rooftop and lounge would be kept in great conditions and offer additional space for gathering or relaxing. Most likely a dry clean service will be available (at an additional cost of course) and maybe valet parking will be available.

On the other hand, the townhouse lifestyle can bring these 6K+/month into better use. This could translate into hiring a housekeeper or nanny for instance. With so much space in the house, there is the possibility to have a live in house staff to occupy the garden level space so that the owners can keep their privacy through the rest of the house. To substitute for the gym and stay active, the townhouse has also enough space to build a private workout area, and host a private trainer. Still not convinced?

The no-doorman alternative keeps the owner’s privacy to its highest, which many people value in New York City. With a valet parking across the street, this townhouse location really make it simple and effort less to come and go whenever you need.

As far as outdoor space, 438 West 20th Street offers a beautiful and large garden, as well as two terraces each on the 3rd and top floor, that can be re-arranged at the new owner’s taste. The top floor overlooks the Chelsea skyline with no vis-à-vis: a wonderful place an homeowner could appreciate in many ways. Finally, with 5 floors boasting high ceilings, the elevator will allow for quick rides up and down the house and be a wonderful asset for visitors with limited mobility.

The townhouse exclusivity:

Let’s take a walk through the house now and show the townhouse shines a lifestyle and exclusivity that no condominium, no matter how expensive they are, will offer.

This house is currently set up as a 6 story single family with 6-bedroom 3.5 baths, which had undergone a complete and tasteful renovation that preserved its unique character since its 1853 origination. Among the 6 stories, The ground floor has a living area and guest room which provides a sense of autonomy from the separate street entrance and access to the rear garden (see pics below).

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As you open the cast iron gate and walk through the front garden, the house welcomes you into a beautiful first floor foyer assorted with one of the five wood burning fireplaces built with marble mantles: think about the cold/rainy/snowy days of NY and how cozy the feel of coming into a warm house hearing the wood fire cracking noise. Passing the foyer, the house leads you to a fully renovated kitchen featuring a Bertazoni oven and Carrera marble counter tops that opens to a casual dining room with access to the rear garden. In an instant, you can disconnect from the outside and any nuisance you want to escape.

Foyer Kitchen CasualDining Garden2 Garden1

One flight up through the beautiful staircase with coffin corners or using your private elevator will lead to the parlor floor which opens up on the light filled living room overlooking the seminary. On the other side of the parlor floor lays a formal dining room overlooking the private garden. Both rooms are separated by a wet bar with a fridge, a great feature that became handy in this grand space built for entertaining.

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As you reach out to the third floor, the master bedroom sanctuary features a grand fireplace, and connects to the bathroom through a large customizable walk-in closet. The master bedroom is a gem: dual sink with Delta facets and a jetted, freestanding tub. To complete this oasis of relaxation, the floor benefits from a home office/ lounge area with direct access to a calm and quiet back terrace.

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Bedroom view

The fourth floor brings two additional bedrooms, a full bathroom and a washer dryer. This floor could also be reconfigured as a laundry room, a recreation area or a cinema. It is certainly a floor that opens to ideas for tailored space configurations.

2ndBed 

Reaching the fifth floor will bring an owner’s wildest thoughts into perspective. A top floor gallery with a terrace boasting incredible views of Manhattan. The floor has plumbing for a full bathroom or an outdoor hot tub/Jacuzzi (just a thought), and can be used as an additional entertaining space, an art or music studio, or a projection room among other things.

Gallery Gallery2 Terrace terrace2

Urban sophistication: 

To conclude, the choice of living at 438 West 20th Street reflects a modern, subtle, and sophisticated lifestyle. This townhouse is one of the best accomplished mix of historical grade property with modern features that bring a unique atmosphere and experience that the future owners will be able to embrace for many years ahead.   

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