New Development condo inventory in Manhattan has been on a downward trend in the wake of the Great Recession. Now, four years later, the number of new development projects coming on the market have risen. The most prevalent of these new developments is that of pre-war luxury condo conversions in tony neighborhoods, which seems to be a trend at the moment. Conversions are much easier to finance than big new glass and steel buildings, although, there are a few new record breaking towers that are slated to come on to the market in the next few years as well – all serving the luxury buyer, it seems.
The New York Times and the Real Deal recently reported on new developments in the pipeline in their respective articles, “Back in Business” and “NYCs New Condo Wave.” While we wouldn’t call this level of new development activity a wave, there a number of interesting projects that have either been revived or are brand new. Much of this new inventory is in the Luxury Market Segment, so the average price of all the projects in the pipeline is expected to be at least $2,000 per square foot.
The forthcoming new development projects that we are most excited about are:
530 Park Avenue
This 119 unit pre-war conversion in the heart of the “real” Upper East Side between 60th and 61st St. on Park Avenue will be a great addition to an area where there is a dearth of condos. Prices are averaging around $3,000 per square foot and the building will be available occupancy in fall 2012. Classic Marketing LLC is marketing the project.
One Madison Park
The long-awaited resurrection of One Madison Park is finally here, as the Related Group has breathed new life into this high profile project that has been dormant for the last few years. This already-built ultramodern 50-story high-rise that “resembles stacks of glass cubes” will have 65 units. The building is located in the heart of downtown – the Flat Iron District – at 22 East 23rd St. One Madison Park is expected to re-launch in the fall 2012.
18 Gramercy Park
This gut renovation of an 18 story red brick building right on Gramercy Park is brought to us from the same developer as 15 Central Park West, the Zeckensdorfs. With only 16 units, think boutique chic on the park. Prices are reported to average $4,000 per square foot and an in-house sales office is scheduled to open in September 2012. The project is being exclusively marketed by Brown Harris Stevens Select.
Helmsley Carlton House
This rare pre-war conversion of the old Helmsley Carlton Hotel into 68 luxury condos next to Barneys and across from Hermes is destined to be a hit. This is a perfect location on Madison between 61st and 62nd Streets. We anticipate that prices will reflect its rare UES location. The property is being developed by Extell and is slated for completion in 2014.
Formerly the Whitehall Storage building on Hudson River, 150 Charles was designed by architects Cook + Fox and will include 98 units. The building will be thoroughly modern despite its historic façade. Given its location in the West Village, neighbors to the tony Richard Meier and Superior Ink buildings along the Hudson River, and all the players involved, we expect this property will be a knockout. The project will be marketed by Douglas Elliman.
737 Park Avenue
A rare pre-war conversion at East 71st St. and Park Avenue, this building is being converted into luxury condos by Henry Macklowe and the CIM Group, the same developers of 432 Park Avenue at the old Drake Hotel. Expect grand apartments with pre-war character. Completion date is unknown.
432 Park Avenue (the Drake Tower)
Slated to be the tallest residential building when it’s completed, this 81-story tower will be close to 1,400 feet high. Located across the street from the Four Season Hotel, 432 Park Avenue is expected to have 128 apartments at an average price per square foot of $4,500 (per the WSJ). To-date, the building has not received its financing, but we expect as the economy improves the building will secure the required lending, as there has been a high level of international demand for ultra-luxury condos in Manhattan. See our latest blog on the building at:
Designed by Jean Nouvel, Tower Verre, once known as the MoMa Tower, will be 78 stories tall, after having its top chopped off by the NY Buildings Department. Located between Fifth and Sixth Avenues on 53rd St., Tower Verre will feature a hotel and gallery space for the MoMa. While not many details have been released about the project, Crain’s has reported that the developer has hired Corcoran Sunshine Marketing Group to sell the building.
56 Leonard St.
Before the Great Recession, the foundation of this 57-story tower in Tribeca had been started and was to feature 145 apartments. With new equity partners, it is expected that his building may rise after all. Corcoran Sunshine Marketing is the exclusive sales agent for the building, although there are few details about when and if the property will be erected.