All posts by Brian Silvestry

I have been in the real estate industry first as a licensed agent and as a broker since 1999. I have sold in every Manhattan neighborhood though do work a lot on the Upper west side where I live and upper Manhattan. I speak French,Portuguese, and Spanish.
New Developments, Real estate

NYC condos playrooms go luxe

With the increased inventory of new construction condos in or soon to be in the market in Manhattan, developers are trying to one up each other on the amenities offered. With the trend of more families staying in NYC, parents are looking for playrooms and interior spaces for their children to enjoy. Several developments such as 50 West, 70 Vestry, 160 Leroy, Manhattan House and the Kent in Yorkville, are offering over the top playrooms that are a far cry from a small room in the basement that we were accustomed to in the past.

Some buildings such as Artemis’ Circa Central Park even offer tween rooms.

 

 

 

Real estate, Taxes

Thinking of buying a tax abated NYC apt?

I am constantly searching for apartments for clients and occasionally come across buildings that are tax abated. Generally speaking apartments above 96th street had 20-25 year tax abatements and below 96th street the length of the abatement was only 10 years. As a result, in the last several years, the abatement is phased out, and the taxes go up substantially.

When the monthly numbers are lower, buyers will pay more for the apartment which helps developers of new condos make more profits. But how do you analyze the value of a condo with a tax abatement expiring shortly and how much time is enough that is left on a tax abatement?

Let’s look at an example of a well known building on the west side- The Atelier which is located at 635 W 42nd street. This building has 1 year left on its abatement. Note the below table and all numbers are monthly taxes and for a certain unit with about 800 sqft(75m2)

2016 $600
2014 $400
2012 $200
2010 $28
2017 ???

As a result, and after looking at this example, I would not recommend buying into a tax abated building with less than 5 years left on the abatement unless you are fully aware of the risks associated with purchasing and factor that into your offer. Additionally, think of the tax abatement like the wind that pushes the sailboat either forward or in the case of headwind stops you in terms of appreciation. If you are buying at this time when the market is close to a peak, and you buy in a building with an expiring tax abatement, you may take a loss to sell if you need to liquidate in less than 5 years.

Here’s another example- 100 Riverside boulevard aka The Avery is an amenity rich building located at 100 Riverside boulevard right in front of Riverside Park. See the below example of the monthly taxes of an apartment with slightly more than 1000 sqft (92m2), and  2bd/2ba.

2016 $1000
2015 $680
2014 $374
2009 $200
2019 $1700 or more?

Accordingly, the taxes would be $21,000 or $1700 per month without the tax abatement. So an apartment with 1000 sqft 2bd/2ba, $1100 in common charges plus $1700 in taxes for a total of $2800 is going to be a tough sale if you need to sell soon.  As a result, said apartment has stayed on the market for more than 4 months with the current broker and in 2014 was on the market with another broker for 8 months. despite the current ask being a reasonable $1500 per sqft.

Based on these numbers, what do you think? Does it make sense to purchase in a Manhattan condo with less than 5 years left on its tax abatement? How much would you adjust the price for the expiring abatement if you are selling?

 

Buying tips for your NYC apartment, New Developments, Real estate

Thinking of buying a Manhattan new construction condo?

With new construction condos above $4 million already in a balanced market, now may be the time to make your purchase. Let’s assume you have decided to pull the trigger on a condo purchase in a new or converted building in Manhattan what should you look for? Here’s a checklist. Continue reading Thinking of buying a Manhattan new construction condo? →

Central Park, Real estate

Central Park’s North Woods work being done

The North woods, the area around the Pool (aka the Lake) inside Central Park, in the West 100’s,  is getting some work completed. It appears that a grant has been given to do some restoration and infrastructure improvements as per the signage. About 2 weeks ago a fence went up and for a day or two a dark windscreen was up as well. The windscreen was removed but the fence remains. This is the area frequently photographed by residents and tourists alike.

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The North woods seen during a winter snowstorm in 2016
The North woods seen during a winter snowstorm in 2016

 

 

Real estate

Free Wi-Fi replaces NYC payphones

LinkNYC is in the process of replacing 7500 pay phones across the 5 boroughs with Free Wi-Fi stations that will have a tablet for internet browsing, free superfast Wi-Fi and a vonage app for placing free calls.

It is now in the Beta stage and I saw this one on the Upper West side on Broadway near West 79th street.

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Central Park, Upperwestside

Central Park Cherry Trees blooming

If you are thinking of catching the bloom of the Cherry Trees in Central Park, now would be the ideal time to do it. See the below galery of pictures that were taken today on the west side of the Reservoir.

Harlem, New Developments, Real estate

Looking for an apartment with a view of Central Park?

If you are looking for an apartment with a view of Central Park and also do not want to spend super luxury prices of $10mm or more, then perhaps looking at the northern edge of the park in Circa Central Park would be a good move. Circa Central Park is at the Frederick Douglass Circle and the north west corner of the park and will have 38 units. Many of the units will have views of Central Park views in this FXFOWLE designed building. The developer is the same one who did One Morningside Park aka 321 W 110th street which sold very quickly and had just short of 60 units.

Current availabilities range from just under $2m for a 2bd/2ba to $7.477 million for a 5bd/4.5ba with 2771 interior sqft plus a private terrace. The amenities include on-site parking, a study and tween room with Macs and game station plus a roof terrace and fitness center.

20 units are posted on streeteasy.com, 11 of which are in contract. Occupancy is expected in early 2017 for the tax abated condo located in South Harlem. Brown Harris Stevens is handling the marketing for the developer.

Available apartments in Circa Central Park

Circa Central Park rear of the building on W 111th street
Circa Central Park rear of the building on W 111th street

 

 

 

Central Park, New Developments

220 Central Park south construction update

While Vornado and Steven Roth are not divulging information about their sales pace of late, what is obvious is the project is rising on one of the few if any remaining sites that is on the park. The condo will have a tower rising to 950 feet and a 13 unit sister building, the Villas with extravagantly expensive apartments. The architect Robert A.M. Stern has designed many other condos including 15 CPW which also had a tower and a house separted by a porte-cochere.

It is well documented that the luxury market is experiencing an anticipated glut and sales have slowed at 220 CPS as well as many of the other super luxury buildings throughout Manhattan.

220 CPS Vornado Realty Trust's condo designed by Robert A.M. Stern
220 CPS Vornado Realty Trust’s condo designed by Robert A.M. Stern

 

Real estate, Upperwestside

711 West end avenue upper west side building to have 9 story addition

A nine story addition addition will be soon be added to 711 West end avenue. The developer of the 9 story building above 711 WEA will add 64 condos to the building between 94th and 95th street on Manhattan’s upper west side. It is a joint venture with the building’s owner who will retain ownership of the underlying building and gain an equity stake and eventually apartments in the new building.

There are 130 rent stabilized apartments in 711 WEA and tenants and local leaders have fought the addition and are concerned that this may set a precedent.  The project has passed approval of the Department of Buildings and awaits the closure of the school year and a site inspection to begin construction.

 

Buying tips for your NYC apartment

Where to buy and not buy right now in NYC…

Brick Underground spoke to real estate brokers to get their take on what neighborhoods you should or should not buy in right now. I would say that there takes are interesting and varied.

I would add Harlem to their list both East and West as a great place to find more space for your money. I think going up further uptown to Hudson Heights or Inwood is also desirable because of express subway stops plus parks. For investors, tons of money is pouring into the Bronx especially the South Bronx. It’s just too close to Manhattan to not be expensive and I think you will see a sharp appreciation in time for the next boom.

Where not to buy is not really a simple answer as it really depends on your situation. I think you have to analyze the purpose of your purchase be it investment or primary residence and how long you will live there. I think that making a purchase of $4 million plus you need to look at the location and what you are purchasing very carefully. If the location has a great view like water, or a park or a superior neighborhood like Tribeca or Soho, then you can rest assured your investment will be safe. However, if you are looking at a sizable investment in Midtown around Billionaire’s row you may not see the appreciation that you imagine since that is more dependent on foreign buyers who have receded from the market and the strength of the dollar.