A sampling of last week’s press coverage of CORE and CORE properties.
Art of the Deal: Condo Sales Pitches Include Pricey Paintings and Massive Murals
New York Post
One Museum Mile is one of several New York City residential properties featuring exquisite artwork to attract potential buyers.
Last week, new development project 93 Worth reached a rate of over 70% sold and in contract units, signaling the growth and demand of new development inventory in the Tribeca area. ”We are seeing an influx of interested buyers who currently live in Tribeca and are looking to buy new inventory,” said Shaun Osher. ”Buyers are drawn to the building’s exceptional restoration and its prime location where a tremendous amount of residential and commercial growth has occurred.”
23 New Developments Hitting the Market This Spring
In a Curbed property round-up of New York City new developments, 241 Fifth was featured. One of several buildings under construction in the Flatiron area, the transformation of 241 Fifth was recently documented in this time-lapsed video.
Last July, New York City’s Mayor, Michael Bloomberg, announced his adAPT NYC contest for proposals on the development and design of micro-dwellings based on the idea of accommodating the housing needs of the City’s growing population. Shortly after, CORE’s CEO, Shaun Osher, was interviewed by CNN on the contest and overall concept of micro-apartments in Manhattan.
Since then, 33 development teams submitted renderings, floor plans, and other visuals in the hopes of winning the first NYC contest focused on facing the challenges of space and a growing population within an urban setting. In early 2013, Bloomberg announced the winning group from the adAPT NYC contest which includes Monadnock Development, Actors Fund Housing Development Corporation and nARCHITECTS. The winning team’s design will be constructed on a city-owned site at 335 East 27th Street and will consist of compact residences ranging from 250-375-square feet.
Although this project hasn’t even broken ground yet, the response generated from the contest by developers, architects, real estate professionals and the general public has proved Mayor Bloomberg’s housing goal to be valid and in many ways necessary. Yesterday, the New York Observer reported that the Department of Housing Preservation and Development is hoping to have another request for proposal (RFP) out on another 2-3 micro-unit developments throughout the City this year. We can’t wait to see what the next round of proposals for micro-apartments will look like, and we’re excited about this small new development trend within one of the world’s greatest cities.
Five years ago, I told a reporter from The New York Times that Manhattan was essentially becoming one luxury neighborhood and we would start to see properties in “newer” residential areas meet the market in more established areas. With all of the residential development over the past ten years, this is now a reality, and, to the surprise of a few people, last month showed that the average price of a home was more expensive downtown than it was uptown.
Above: The Atalanta Building (one of the first TriBeCa conversions) was originally a refrigeration building with no windows.
Having sold downtown for almost 2 decades, I’ve pioneered sales and marketing in a number of these newer downtown areas. And it’s because of the pioneering developers that these neighborhoods have evolved into some of the most desirable residential neighborhoods in the City. Some of the more notable pioneers should be recognized for their vision, and for blazing a trail that benefited the adopters.
What these “downtown” developers created was a product to satisfy the demand of their generation of buyers. Conversions in loft buildings with great volumes of space that the uptown buildings couldn’t satisfy. Homes that had the amenities, services, and finishes that uptown buyers expected, but in architecturally different and historically significant buildings. New residential neighborhoods like West Chelsea, SoHo, TriBeCa, and the Bowery have now become expensive zip codes and it’s no surprise that we are currently selling a new development in Chelsea at higher prices than almost every new development in Manhattan.
-Shaun Osher is the CEO and Founder of CORE.
If you’ve been near Madison Square Park lately, you’ve probably noticed a building rising on Fifth Avenue between 27th and 28th Streets. Over the course of this past year, every time we pass by the site, we’re wowed by the building’s progress. Since no one ever stays put in NYC to watch a construction site in evolution, we’re excited to share this construction time lapse video of our new development project at 241 Fifth
You may have noticed a construction site on Fifth Avenue, between 27th and 28th Streets – its our new development project at 241 Fifth Avenue! This is the only ground-up new construction residential project in New York City’s booming NoMad neighborhood. In our “Photo of the Week”, the construction crew is busy installing the oversized windows into the homes which will have sweeping views of Fifth Avenue, one of the most coveted addresses in the City. Sales will launch soon – stay tuned!
To achieve a successful purchase, as a buyer you must first have a base knowledge of the marketplace. From there, you should find a broker to help you navigate and negotiate that successful purchase. Your broker should be able to garner information, disseminate data and provide an informed platform for you to make a decision.
However, though it is extremely important to work with a strong buyer’s broker you must also be aware of the right questions to ask to determine if a property is right for you. Questions can range from how the apartment lays out to the economics of the building- all of which should be on your “checklist” of items needed for a successful purchase.
Take a look at the standard questions and items you as a buyer should know in order to determine that the “right” property is truly the “RIGHT” property for you:
In my previous post, I went into detail on the basics of new development in New York City. With the basic information provided, here are some suggestions on how to put that information and knowledge to good use.
When to buy
There are two types of buyers in new development: investors and end users. If you are an investor, the best thing for you to do is work with a highly specialized broker who can get you in on the ground floor of a new development. For end users, any time is a good time to buy as you should look at the purchase from a long term perspective. In fact, the most important aspect for an end user is quality of life, so picking the right unit is much more important. Again, you need to be guided by an expert as you are typically buying off of floorplans and may not physically see the property before committing to it. (more…)
Residential development is playing a critical role in the changing architectural landscape of New York City. From Philip Starck’s 15 Broad Street to the Time Warner Center and the newest edition of Hudson Yards, neighborhoods are changing because of each new development. Beyond being known as eye candy or game changers, these projects are proving to be New York City most lucrative investments.
Due to limited quantities, new residential developments appreciate disproportionately higher when compared to the rest of the market. Prices appreciate for several reasons in new development: new infrastructure, no barriers of entry, flight to quality, high design aesthetic, building economics and inventory. I’d like to take a moment to scratch the surface and point out these factors that impact the market, value and your bottom line.
It’s shiny and new. The largest majority of consumers love that.
No Barriers to Entry
When buying in a new development, there is no board process. You sign a contract, submit a check, and pay the balance at closing with your associated closings cost. That’s it.
Flight to Quality
Flight to quality has been influenced by the consumers, but mainly by the financiers. Underwriting standards have changed and you have to underwrite at higher numbers than ever before. Sometimes, $2,000-plus on the base price-per-square-foot. This has forced developers to build better product in order to create equal profit margins to past developments. In essence, you can only charge more if the quality is better. The better the product, the more it retains its value and tends to appreciate higher.
After months of behind-the-scenes preparation, in a dash to the finish line, we’re excited to announce that sales have kicked off at our new downtown development project, 93 Worth. As reported in the Wall Street Journal, the market is hotter than ever in Tribeca, despite the neighborhood’s effects from Superstorm Sandy and buyers and brokers are not dissuaded.
After over a year of construction and renovations, we’re excited to share that the sixth floor model units are now ready. Buyers and brokers alike will now be able to check out the fully staged 3-bedroom, split 2-bedroom and studio model units which boast exposed steel columns, 7-foot casement windows and custom, hand-brushed patina brass fixtures throughout.
30 of the 92 units at the Tribeca development have been released and the sales office is now open. For more information, please visit www.93worth.com.
We know you’ve been waiting with baited breath for any information about our new Tribeca development at 93 Worth. There’s been a lot of buzz (including the project gracing the cover of New York Post’s fall new development preview), but not much information has been shared on this new conversion project. Amid the construction this week, we captured a mural artist painting the 93 Worth logo on the alley which will greet potential buyers as they enter the building to check out the model units.