Archives for posts with tag: Tribeca
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,
Finally! Spring has arrived with a blooming enthusiasm from home hunters taking on their search for a new nest and hoping for more inventories to hit the market. These hopes seem realistic at first since the market is moving ahead from a month of February 2015 that recorded a new historical low level of inventory with only half the number of condos than the pre-2008 average. However, the demand for housing has not decelerated, keeping high the challenges to buy a property in New York.
In this Q1 2015 Newsletter and moving forward, both Manhattan and Brooklyn are getting their equal share of market snapshots and reports, with a new format of the Corcoran Market reports.
This Newsletter highlights the dynamic of key real estate metrics and bring them in parallel with the economic and demographic activities that have been and keeps contributing to the emancipation of New York City.
I wish you a great Spring season and welcome your Real Estate questions.
Cheers,
Q1 2015 Newsletter

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. 

 

In the frenzy of the new luxury condominium buildings’ wave that recently hit the market, I’ll focus on those, which actually closed on transactions, and observe their relative success. 

Tribeca:

250 West Street: 

While making the headlines for having Leonardo DiCaprio checking on a $42 million Penthouse, 250 West has been doing great with the highest volume of closed transactions in the first half of 2013. Out of the 93 units put on the market in September 2011, only 2 remain available: a $10.95 million three bedroom and the Penthouse. According to records, 250 West closed sales averaged $1,588/sf.

250WestStreet

Chelsea/West Village:

607 Hudson Street, the Abingdon: 

Celebrities and big numbers are often associated with top real estate developments, and 607 Hudson Street is no exception. Indeed, infamous hedge fund titan, Steven Cohen, acquired a $23.4 million maisonette in the building, and the Penthouse went for $10 million over asked to close at $29.8 million. Originally, the building was a 200-unit nursing home, and has been converted into 10 luxury units by Flank Development who acquired the building in 2011 for $33 million. One more unit is under contract, and so far the building accumulated sales reached $136 million.

abingdon

345 West 14th Street, 345Meatpacking:

Probably one of the most successful stories for new development this year, 345Meatpacking’s 37-unit building is sold out! The building should come to completion by the end of 2013 and the results beat most expectations. Indeed, earlier surveys from the brokers’ community speculated that the average price per square feet would fetch way below $2,000. However, closed sales in the building have averaged $2,067. The site was bought and developed by DDG in 2010.

 

345Meatpacking

Gramercy

18 Gramercy Park South

Location, Location, Location! Gramercy Park is somewhat considered as an oasis steps away from one of the densest area of Manhattan (Union Square). The ultra limited inventory available and the lack of new products to be developed in this specific area surrounding a private keyed accessible park only for the resident of Gramercy Park are fundamental drivers to sky-high prices for the latest luxury condominiums at 18 Gramercy Park South. The team behind the conversion of a former Salvation Army building into a 16-unit boutique high end condominium is no other than Zeckendorf Development and A.M. Stern Architects, well known for their outstanding achievement at 15 Central Park West. So far, $80.6 million in sales closed within the first 6 months of 2013 averaging $16.12 million for the five recorded sales. In addition, seven other units are under contract, including the $42 million penthouse purchased by the Houston Rockets’ owner Leslie Alexander. 

18GPSouth_outside

18GPSouth_bed

July 13_Newsletter

As we see the 2008 financial crisis negative effects on Real Estate diminishing, stalled projects are now back on track and I selected 3 of the most impressive projects ongoing in the Downtown Manhattan.

First, 30 Park Place/99 Church street, which has been a whole in the ground surrounding by temporary walls displaying the names of cities worldwide for about 2 years. A whole that residents of 50 Murray may no longer appreciate soon, as developer Larry Silverstein is planning to build an 80 story condo/hotel branded as a Four Season Hotel and Private Residences New York Downtown which consist of 189 rooms, 157 condo units with the most expensive unit flirting with the $35 million. The projects was re-activated upon an agreement with Children’s investment Fund Management LLP for up to $660 million in construction financing.

 

30parkplacerender

Second project, located at 80 South Street, a once planned tower designed by Santiago Caltrava has experienced shifts in few ways. First, a new team of architect from Morali Architects has been hired. Their proposal brings the tower higher than the original plan (1018ft vs 760ft), will most likely be used as a mix used development featuring a boutique hotel, condominiums, and sky gardens. the project could see the light of the day in 2016 if discussions between the NY YIMBY and chief architect Anthony Morali move forward.

80 South Street

Last, but not least, 5 Franklin Place, now called Franklin Place, is one of the newest Tribeca condominium projects. The building comprises of 53 units and its first round of listings have been released just 15 days ago on Streeteasy. The project, which started in 2008, initially had an uneasy design drawn by Ben Van Berkels, but developer El Ad Group manifested some ambition and hired ODA to re-design the building. Since the sales office open in April 2013, over 30% of the units have been sold while only 5 out of the 20 story have been built so far. Completion is expected for Fall 2014.

5franklinplace