Tag Archives: newdevelopments

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

Waterline Square construction update

Waterline square the 3 building development on the West side from the exterior looks to be finished. The buildings are designed by the starchitects Rafael Vinoly, Kohn Pedersen Fox and Richard Meier.

Prices start at just over $1.8 million for 1 bedrooms with occupancy expected in Spring of 2019.

Previous coverage of Waterline Square

Available properties in Waterline Square

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

 

LincolnSquare, Listings, Luxury, New Developments, RiversidePark, Upperwestside

50 Riverside boulevard aka One Riverside Park availability

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The Extell Development building built in 2015, with a 20 year tax abatement, and 50,000 sqft of amenities currently has 9 units for sale. They are all resales, averaging approximately 10-20% more than their sold prices in 2015. The averge price per square foot is $1,878 per square foot. The average days on the market is 181 and if you remove one listing that has been for sale for 451 days, it goes down to 150 days on market.

There have been 4 sales this year and none in the last 3 months. That’s an average of 1 sale every 2 months which means the inventory would last about 18 more months.

The two resales sold this year were sold for a 100,000 or 6% profit and a $1.2 million loss, suggesting the building is roughly valued very close to the 2015 levels or less in the case of the larger apartments purchased from the sponsor.

Given that there are many more years left in this tax abatement, this might be the right time to get into this building with it’s amenity suite including the La Palestra athletic club, bowling alley and lounge, rock climbing wall and 75 foot lap pool.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

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

Thinking of buying a Manhattan luxury property for investment?

This is 3rd part of the series focusing on the purchase of Manhattan properties for investment. In this part, we take a look at the luxury market and it’s opportunities.

According to the latest study from streeteasy.com 2018 is the year of the discount for luxury property, roughly defined as $4mm and up by the study. 59% of the properties that closed were discounted and median discount was $980,000. This is up from 36% of the properties in 2016 and also up from 2017’s number of 54%.

One way to take advantage of the Manhattan luxury market is to buy and hold the property. Right now, the luxury market is in the 3rd year of buyer’s market. Less product is coming on the market, and land sales have slowed. Once this inventory is absorbed, then we will again see a shortage of inventory in the luxury market and the prices will rise again.

Also, luxury rentals will be more and more in demand. Take for example 1 Hudson Yards. It is a building with luxury amenities, liklap pool, salt water pool for children, cold plunge pool plus a bowling alley and lounge with kitchen, penthouse party room, and tons of outdoor space. In addition, there is an gym similar to an Equinox, a basketball court, and plenty of outdoor grills for barbecuing. In a neighborhood that is developing with construction everywhere, take a guess how many rentals are available in this 178 unit building. Zero! All rented. 1 bedrooms were $4800, 2 bedrooms $9,000 + and 3 bedrooms $15k and up. The rental market also for the last 2 years, has been oversupplied and this will change in the next 1-2 years. In 20 years of real estate brokerage, I have seen several cycles.

Take an apartment in Waterline square as an example. A 3bd/3ba in 1 Waterline Square aka 10 Riverside boulevard is asking just over $5 million. Due to the tax abatement, the monthlies for this 1824 sqft (169.4m2) apartment is $3,642 including the taxes.  A 3 bedroom/3bath of about the same size rented for $14,000 in 50 Riverside boulevard back in June of this year. Let’s do the numbers on this purchase assuming an asking price purchase.

$5,000,000 purchase
$14,000 rent monthly
$3,642 monthly charges
$10,358 net or $124,296 annually
2.5% return 

The 2.5% return does not take into account the market price of this apartment in the future as well as tax benefits such as depreciation. Let’s say in 5 years, the apartment is worth $6 million. Your rate of return then would be 5.6%.

Additionally, the monthly net income could support approximately $2 million in mortgage which could lower your necessary cash outlay to $3 million from $5 million. This would raise your rate of return in 5 years to 15%!

The luxury market is full of these type of deals where you can take advantage of the slowdown in demand and get in on the market before the market turns up again. If you understand that the tech and finance sectors are not going anywhere and also understand that Millenials might find it harder to purchase and many may decide to rent luxury instead of buying then you can take advantage of the opportunity that not everyone sees.

 

Part 1 of the Manhattan investment buying series

Mansion Global coverage

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

 

Harlem, New Developments

New condo building launching sales soon in Central Harlem

BRP Companies is getting set to launch sales at The Rennie on the site of the former Renaissance Ballroom at Adam Clayton Powell and 137th street need Harlem’s Striver’s Row. Prices will be approximately $530k to $1,700,000. The building will feature a tax abatement obtained under the former framework of the 421a program. 20% of the 130 units will be affordable. Amenities include children’s playroom, gym, rooftop deck, resident’s lounge, garden and 24 hour doorman.

Full coverage here

Real estate

New developments selling well in the right neighborhoods and for the right price

With approximately 6,000 units of new development in the market throughout NYC, there is an obvious glut. But some developments like 250 W 81st street are raising prices. In the Robert A.M. Stern designed building, the largest units were the first to sell and the buyers are coming from the local market with zero foreign buyers. In addition, the location on Manhattan’s upper west side, has a scarcity of new development.

Most developers believe that within 2-3 years, most of the existing inventory will be gone so now is a good time for them to begin the process knowing full well the market may swing in the favor by the time they are ready to start selling.

Commercial Observer coverage

Billionaire'sRow, Luxury, Marketreports

29 Luxury contracts signed last week

Last week was another strong week of sales of Manhattan property listed at $4 million and above as 29 contracts were signed according to the Olshan report. The most expensive contracts were a couple of resales ,units 71A and 71B, at 432 Park avenue which were asking a combined $68.5 million, nearly $10 mm above their 2016 sold price.

This continues to show the dichotomy that is the Manhattan resale market. A recent report showed overall number of sales year over year is down but each week the $4 million and above apartments keep notching a steady amount of contracts. Interest rates rising, the recent tax reform and a very weak rental market are having a more pronounced effect on the lower end of the market than on the luxury sales. However, DOM continues to be at around 300 days for luxury and negotiation is the norm within the market of around 6% or so.

Read the full coverage

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.