Category Archives: New Developments

Tips for International buyers

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.


Former Upper East side NYSC site remains dormant

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 former NYSC site still dormant is at the corner of East 86th street and Lexington avenue.


952 Columbus avenue new condos update

The Ivy Park condo has 5 of the 8 apartments listed on 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.


Which NYC building was inspired by a trash basket?

Well not just any trash basket but rather a $225 Josef Hoffmann designed one was the inspiration for one of the buildings in the Billionaire’s Row area that is setting records for sales. Take a look at the below photos and see if you can spot the correct building.

The $225 Josef Hoffman designed waste paper basket that inspired one of the current record setting condo buildings in Midtown’s Billionaire’s Row.
220 CPS Vornado’s new condo near the Time Warner Center
How about this semi-supertall? Is this the right one?
432 Park avenue, the Rafael Vinoly designed building between 55th and 56th street certainly looks very square and has been selling very well according to reports.

If you guessed 432 Park avenue you are right. The building is about 75% sold and the least expensive apartment in this tower is $6.5 million which gets you a 1 bedroom of 1422 sqft or 132m2. According to the latest coverage on the building, it is selling well and they are negotiating prices and expect that by the end of next year it will be sold out.

One Manhattan Square Extell’s latest

One Manhattan Square, Extell’s new ground construction at 252 South street began selling last year in Asia first and according to the developer 80 units are already in contract. There will be 815 units with approximately 700 of them being either 1 bedroom or 2 bedrooms. The 823 foot tall tower will be full of amenities including a full size indoor basketball court. Gary Barnett, of Extell, grew up in the neighborhood and acknowledges the neighborhood has come a long way. This building is aimed squarely at the affordable luxury market. Prices start at around $1600 per square foot.

There are 7 seven listings on streeteasy and 2 of those are in contract. These days developers are keeping information on sales very guarded.

Circa Central Park construction update

Circa Central Park, the FXFOWLE designed condo at the Frederick Douglass circle is progressing with it’s construction. Currently, the South Harlem condo has 21 apartments on streeteasy of which 13 are in contract. The building will have 38 units total, many with views of Central Park.

Prices start at just over $1 million to nearly $9 million for a 3348 sqft(311m2) 5 bedroom/4bath aerie with outdoor space.




What happens when the sponsor turns over control to the Condo?

When a sponsor sells a condo, at some point they turn over control of the condo to the owners. According to Cooperator, it must happens in 5 years maximum or when 50% of the apartments are sold.

From there, the owners have to be ready to take the baton. In the article, the writer goes through the steps necessary to be ready. Among them, a team of advisers needs to be in place including lawyers, accountants and engineers. The owners must make sure that the sponsor has lived up to their requirements as laid forth in the offering plan.

There are buildings that I know of that have had facade or construction defects only a few years after they were built. Perhaps they did or did not consult with an engineer when taking control from the developer. Also, the wording in the offering plan is to protect the sponsor and not necessarily the condo going forward so a legal review of the offering plan may be necessary.

Jennifer Lawrence condo shopping in TriBeCa

Jennifer Lawrence was spotted condo shopping and reportedly was checking out a condo in Manhattan’s TriBeCa nabe in the 443 Greenwich street condo conversion. The building has an underground garage which makes it paparazzi proof according to LINK.

If she is in that area looking for a condo, one block away and with water views is 70 Vestry which is a ground up condo construction which features a porte-cochere, swimming pool and many of the apartments have water views. This building is designed by Robert A.M. Stern and features the interior design of Daniel Romauldez. Prices start at $7mm.

70 vestsry hole
70 Vestry lot goes through to Debrosses.

Developer of Upper East side luxe condo receives stop work order

A developer of an Upper East side luxury condo tower has received a stop work order from the City. Apparently, the developer of the building on 88th street near 3rd avenue got approval to create a 4 foot lot in the rear and then used the separate lot as a way to circumvent local zoning which would have allowed a smaller building than what they were about to construct according to NYT. Local opposition including politicians demanded that the Mayor’s office investigate. They did and now the developer has a stop work order. Listings were already live on streeteasy in this tower which will now need to be redesigned to comply with zoning.

180 East 88th street was supposed to rise to 50 stories with 48 units. At this point, there are still listings live on Streeteasy ranging from $3.2 million to $15mm.