With the cost of land increasing and assembling of multiple parcels of land more and more difficult, Manhattan skyscrapers on Billionaire’s Row and throughout have continued to go up but are now getting skinnier. Typically, developers will buy a site but then also buy the air rights from neighboring buildings which allows them as of right to go into the stratosphere. Success of buildings like One57 which is home to most expensive sale for a residential apartment at just over $100mm are buoying this trend.
111 west 57th street is one of the newest entrants to this field with a width to height ratio of 1:24 according to engineers for the project. Developers get more more money for helicopter views so this trend figures to continue.
The Author- Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.
The final phase of the Riverside South project that started in 1974 is due to complete construction in late 2019. The 3 buildings will be a mix of rentals and condos with an amenity space that includes a tennis court, and a swimming pool. The developers have a food hall by the Cipriani Group that will take up a portion of the retail and a park in between the starchitect designed buildings known as 1,2 and 3 Waterline Square. Prices start at $1.83 million.
A development site on the northern side of West 96th street on Manhattan’s upper west side is for sale for $45 million. Permits have been filed for a 22 story building with a community use facility on the bottom 5 floors and apartments starting on floor 6. The apartments are to average just north of 2000 sqft each. So perhaps the developer has not gone forward yet due to fears of a frothy luxury market.
Apparently, there is a contract to sell the community use facility for $29.8 million according to West Side Rag.
I do not recommend to walk into the sales office of new development in Manhattan without an experienced buyer broker. Sales have slowed for new development and make sure you choose a buyer broker is proactive in being able to negotiate on your behalf as well as to give advice as to other buildings that will be going up nearby that may affect views and quality of life. It’s not always a given that there will be no negotiation on price/terms considering current market conditions in Manhattan especially in a buyer’s market.
An Upper west side Church has begun developing the lot next to them on Amsterdam avenue on the western side of the street. The building will rise 14 stories and include market rate rents and a commercial tenant on the ground floor according to Patch.com.
Across the street, there is a building on the corner of West 100th street which has a 7-11 and still some empty spaces as this is not a very busy retail corridor. Over on Columbus avenue, you have the Columbus Square development which has a Whole Foods, Michael’s and TjMaxx.
If you are an international buyer looking for an investment property in the confusing Manhattan real estate market, there are many things to consider but here we have one simple tip. Consider buying in a new construction building that is tax abated.
A tax abated building will give you a higher rate of return of your investment due to the low monthly charges in comparison to a similar building without the abatement. A 20 year tax abatement will mean you pay probably around $100 or so per month instead of nearly $1500(at least). By year 12, the taxes begin to adjust upwards with each 2 year cycle the taxes going up as per the below.
Year 12 20% of fair market taxes
Year 14 40% of fair market taxes
Year 16 60% of fair market taxes
Year 18 80% of fair market taxes
Year 20 100% of fair market taxes
So for example a $3mm apartment with 2 bedrooms/2.5 bathrooms with common charges of about $1800 and 1300 sqft (120m2) of living space might rent for about $7000. With a tax abatement, your monthly return is about $5100 or $61,200 annually assuming taxes of $100 per month. Your rate of return is just above 2% on the $3mm investment. These would be the numbers for 50 Riverside boulevard aka One Riverside Park on Manhattan’s upper west side. Now if the building was not tax abated and you were paying $1500 per month in real estate taxes then your monthly return goes down to $3600 or $43,200 annual. The rate of return of approximately would be approximately 1.4%. Over the course of 10 years, the savings from a tax abatement would be approximately $170,000.
So if you are an international investor or even a local real estate investor purchasing new construction in Manhattan, take a look at tax abated buildings. Certainly, there are not a ton of them but they do exist and will increase your rate of return both now and long term.
The construction at 2230 Broadway the Friedland Properties building rising at the corner of West 80th street and Broadway on Manhattan’s upper west side is moving along. It will have 3 floors of retail on the lower levels and apartments above. It is unknown if it will be condos or rentals at this time.
It was about 1 year that NYSC closed their doors at East 86th street and Lexington avenue on Manhattan’s Upper East side. The site still remains quiet and unfortunately gives the northern side of the street a rundown quality to it. Will the developer push forward with condos in this ever changing market?
The Ivy Park condo has 5 of the 8 apartments listed on streeteasy.com in contract. The new condo will have a total of 15 units and prices start just under $900k. Located at 107th street and Columbus avenue, Ivy Park will have a courtyard, roof deck and in unit washer/dryers. Prices are a blended $1337 per square foot. This pricing and mix of units is aimed directly at the affordable luxury market which is under supplied and as a result 5 units are in contract in less than 2 months on the market.
News about the NYC real estate residential and commercial markets provided and interpreted by an industry veteran licensed since 1999. Brian Silvestry of BSRG Inc. Licensed real estate broker