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.
Make my Cake will close their location on West 116th street and St.Nicholas avenue after 22 years due to rising rents. However, they will open a new location on Manhattan’s Upper West side at 795 Columbus avenue in the Columbus Square shopping center. They will take over the space that was occupied by Crumb’s.
This 19 story Upper west side condo sits at the corner of 97 street and Central Park west and originally featured studios to 2 bedroom apartments. Some combination apartments are even larger. One of the main reasons that buyers choose the Vaux condo is because of the low monthly charges which are approximately $1 per square foot. Additionally, the building features a concierge, live-in-super, on site management, gym, childrens’ playroom, plenty of outdoor seating areas and parking! Parking is on waitlist which is currently about 3 years.
In one of the only retail locations on Manhattan’s Central Park west, a cleaners has just put signage for a soon to be opened store. The location was previously rented by a CPA that was there for many years. The cleaners will be two doors down from a new deli that opened last year on Manhattan’s upper west side near West 100th street.
In between the two stores, there is one more empty storefront.
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.
Right now due to the new tax laws, some parts of the real estate market will be see price depreciation. See previous coverage.
However, some developments like the Upper West side’s Park West Village may see continued price stability and appreciation. The reason is that real estate taxes and SALT (state and local taxes) will no longer be deductible beyond $10,000. So if you have the funds to purchase an apartment and your cap is below $2.5 million, paying $22,000 per year in taxes may not seem as appealing. Or let’s say your budget is $1.5 million and knowing that in one apartment you will pay $15,000 per year in taxes, most of which will not be deductible or $3600 per year in taxes? Which apartment will you gravitate towards?
This is why Park West Village which is a 4 building condo development built in early 1960’s and other developments with tax abatement may see a surge in activity as the upper middle class purchasers get more discerning due to the lack of subsidy from the eliminated deduction.
Park west Village is located between West 97th street and West 100th street, Central Park west and Columbus avenue. Each of the four buildings has just over 400 apartments, concierge, gyms, storage, children’s playroom, live-in-super and parking available. Average common charges and taxes combine for a very low $1 per square foot. Apartment sizes range from studios of about 540 sqft (50m2) start at about $800k, to 2 bedroom/2bathrooms of 1140 sqft(106m2)which start at $1.5 million.
According to The Real Deal the church at 361 Central Park west, which was once slated to be converted to condos was purchased by the Children’s Museum of Manhattan for $45 million. The site was purchased by the developer in 2014 for $26 million and after hitting roadblocks with the approval process to convert to condos, they decided to sell. The community will have a chance to be part of the approval and design process as the Museum will need to go through the city approval process as well.
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.
Apartment 7K has entered the market and features just over 900 sqft with a 18 foot south facing terrace. Kitchen and bathroom were updated and crown moldings were installed. The South facing apartment receives tons of light and can be purchased by an investor or end user. It is currently rented out for $3400 per month.