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Hudson Yards effect driving development, apartment sales on Manhattan’s West Side

Real Estate Weekly // Aug 24, 2018

As the pieces of the city’s next big neighborhood begin to come online, nearby developments and businesses are reaping in the benefits of being so close to Hudson Yards.

The entire campus is expected to be complete in 2025, but construction has been moving along with several buildings topping out and public amenities in the works.

The massive development will introduce The Shops & Restaurants of Hudson Yards with more than 100 storefronts, the multimedia art center The Shed, the zigzagging art installation The Vessel, and more than 14 acres of public open space.

With these attractions expected to be complete by this year or the next, neighboring properties and restaurants are seeking spikes of interest due to the highly-anticipated Hudson Yards.

“Before this, the West Side was a lot more spaced out,” Sarah Patton, Bold New York’s head of development, said. “But now you have this great velocity of people who are coming to check it out.”

Bold has been in the Chelsea/Hell’s Kitchen/Upper West Side market for a while, and is currently leasing The Moinian Group’s Sky building at 605 West 42nd Street and more recently, Oskar at 572 11th Avenue.

“In terms of marketing and people visiting the Hudson Yards buildings, we’ve seen that uptick happen in our buildings as well,” Patton said. “We’re seeing the office tenants who are relocating to Hudson Yards and not necessarily wanting to live right across from their office but may have a five-minute walk instead.”

Patton said their buildings offer an alternative for those who looking to get away from the commercial feel of the newly designed neighborhood.

“[Our buildings] have a very high design aesthetic and Oskar is not a massive tower, so I think both of those things bridge the gap between Hudson Yards and Hell’s Kitchen,” Patton said.

And even closer to Hudson Yards, 550 West 29th is also fulfilling the role of offering a home away from where you work.

“We have a lot of interest from people whose companies have moved to Hudson Yards and they don’t necessarily want to live in Hudson Yards but to live close by,” said Christian Rogers, a CORE Real Estate broker on the sales team for 550 West 29th. “They don’t want to live in a glass tower but want to live in something with more of an intimate scale and homelike feeling of bricks and mortar.”

The 19-unit building designed and developed by Cary Tamarkin would offer a more timeless design and lifestyle for those looking to move into the Hudson Yards area but not the buildings themselves, according to Rogers.

And right down the block, CORE is also in charge of the sales at the 11-story 15-unit Five One Five building designed by SCDA at 515 West 29th Street.

“This block of 29th Street is all residential development so we’re on the cusp of the gateway of Hudson Yards,” Adie Kriegstein, the CORE broker doing sales for Five One Five, said. “We’ve had a wonderful response with lots of interest, especially because of the proximity to Hudson Yards.”

Kriegstein emphasized that the green space that Hudson Yards will be bringing is a major selling point. On top of being near the new parks within the development, she said Five One Five is only steps away from the High Line and Hudson River Park.

“From a sales perspective, we’ve been able to watch all the development go on there and see the neighborhood turn into what it’s going to be,” Kriegstein said. “As we get closer to that, people are realizing it’ll be a huge impact on the city and will be a wonderful place to own or live.”

Kriegstein, alongside the other brokers leasing nearby new buildings, said there’s enough room for all the new developments, whether they’re within Hudson Yards or just outside its boundaries.

“There’s a property for everyone,” Kriegstein said. “If people want to live in a tall skyscraper in the middle of Hudson Yards, it’s going to be different from living in a boutique luxury building.”

And it’s not just new developments that are expecting more foot traffic, restaurants in the area expect the flood of tenants and workers to seek good local food.

“When you take a look at what’s happening around us up to 65th Street, with a lot of new development and condo buildings, a lot of the residents were calling for a nice restaurant that would be an extension of their dining rooms,” Enrico Livanos, the general manager at Ousia, said.

Ousia, at 629 West 57th Street, is part of the Livanos Restaurant Group, and is situated strategically alongside other Livanos busineses to offer the influx of new residents a strong neighborhood dining experience.

“When we got here, it was nothing but beams and cranes,” Livanos said. “Now its beautiful luxury buildings and movie theaters. It’s all part of this rebirth happening here and we’re excited to be a part of it and to pioneer the way.”

Alongside the new retail, office, residential space, the Hudson Yards campus will also include a 750-seat public school, an Equinox hotel with more than 200 rooms, while creating 23,000 construction jobs in the process. Billed as the largest private real estate development in the country, Hudson Yards is even propping up its nearby competition with its impressive offerings.

“I always think that it’s good to have a bit more competition in the neighborhood,” Patton said. “As we get more population to this area, more amenities, more retail, more parks, more public spaces, that’s only good for real estate.”

“It is still a bit early to determine what the residential character of Hudson Yards will look like in the long term,” said Grant Long, senior economist at StreetEasy.

“Many of the condo buildings in the area are still under construction, as are many of the public amenities and commercial buildings. As construction wraps up, we expect the neighborhood to get more attention as a destination in and of itself, and not just the terminus of the High Line or a group of buildings with easy access to Penn Station.

“The area has a lot of promise, but there is not much that distinguishes buildings there with those a few blocks to the north or south. For the time being, proximity to Penn Station is a much more attractive selling point for an office development than residential buildings.”

Original Article: Real Estate Weekly