Riverside Drive and West End Avenue Report January 2008

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Riverside Drive and West End Avenue Report January 2008 DEANNA KORY RIVERSI D E DRIVE & WEST EN D AVENUE report Winter 2008 Edition significant price jump is in part attrib- increases on par or above city-wide fig- utable to strong activity in the high-end ures. The studio segment was the only segment of the market. This trend is exception, with median prices up 8% also reflected in the number of apart- to $448,000 by year-end as compared ment sales over $10 million which has to a 16% jump to $475,000 through- more than tripled compared to a year out Manhattan. ago. West End Avenue and Riverside Drive. The enduring appeal that Riv- Many of those high-end sales took erside Dr. and West End Ave. have for place at 15 Central Park West and the buyers is reflected in the current low Plaza where 94 units closed during the level of inventory in all market seg- fourth quarter. Yet other market indica- ments. In the studio and one-bedroom tors, including the number of sales (up categories, which represent the largest A LOOK INSIDE: 3.2% over last year), length of time on inventory of existing units throughout the market (18 fewer days than a year RSD / WEA MARKET UPDATE the city, currently there are a mere 17 ago), and level of inventory (down TO RENT OR TO OWN? units on the market as compared to 13.5% from last year), all indicate that WHEN TO RESTORE? 28 units a year ago. The asking prices sales across market segments remained THE FIREMAN’S MEMORIAL for one-bedroom units range from strong in Manhattan. WEA- ON THE MARKET $449,000 to $2,000,000 for a 1,100 sq. ft. pre-war condo on Riverside Drive. NEW HOME: West Side Properties. As compared to NEW NEIGHBORHOOD With only a few exceptions these avail- city-wide trends, demand for property SALES SAMPLING RSD/WEA able units are coops which may reflect on the West Side was extremely strong, the current high demand for condos, with prices increasing at rates beyond especially by foreign buyers who have city-wide levels. By the end of 2007 the recently flooded Manhattan’s market. MARKET average sales price of apartments on the West Side had reached $1,778,000, up Inventory in the two-bedroom catego- OVERVIEW 33% over 2006, and the median price increased 25% to $1,090,000. The The Market City-wide. Running price per square foot reached $1,308 610 WEST END AVENUE contrary to the downturn in real estate for an 18% increase over the previous markets across the country, Manhattan’s year. market saw record-breaking sales in the fourth quarter that drove the average On track with, but also out-perform- sales price to $1,489,000, up 22% from ing, city-wide trends, the West Side the same quarter in 2006. Similarly, market segment with the largest gain the median sales price of apartments was the three-bedroom plus size where rose 15% to $915,000 and the average the median price increased by 31% to price per square foot increased by 10% $2,995,000. City-wide the year-to-year to $1,138. As is indicated by the larger increase in this segment was 8% with increase in average price as compared to the median price at $2,705,000. One- Rare Old-World Classic 7 the median price, the fourth quarter’s and two-bedroom categories also saw $3.995M Web # 1146146 Deanna E. Kory Tel. 212.937.7011 Fax 212.230.8191 - www.deannakory.com - [email protected] MARKET NEWS ry, currently with 11 units on the mar- ket, is also well below levels of one year Recent Notable Large Apartment ago when there were 21 two-bedroom & Townhouse Sales apartments for sale on Riverside Drive and West End Avenue. Again, of the units that are available, only one is a Townhouses condo as compared to 5 condos on the market last year. Asking prices for two- Address Status PPSF Sale Price Size bedroom units currently range from 352 RSD Sold $1,761 $16M 26‘ Wide $899,000 to $2,695,000 for a pre-war 333 W. 88 In Contract $1,704 $11.250M 20’ Wide coop on West End Avenue. The average sale price for the 13 units currently in contract (all coops) is $1,510,000. 7-Room Category The three-bedroom plus segment is also Address Status PPSF Sale Price Conditon limited with 11 coops and one condo 37 RSD #12A Sold $2,019 $5.25M Excellent currently for sale. At the same time last 190 RSD #8C Sold $2,400 $5,999M MINT year there were 14 coops and four con- 473 WEA #10A Sold $1,500 $3,6M Dated Reno dos on the market. Asking prices in this 530 WEA #6B Sold $4M MINT category now range from $1,249,000 to 595 WEA #12A Sold $1,482 $2,978,381 NEW $4,250,000 for coops; the one condo, 110 RSD #4F In Contract $1,456 $3,495M Needed Work on West End Avenue, has 10 rooms, 258 RSD #12A In Contract $2,000 $3M Needs Gut Reno 450 WEA #5C In Contract $1,678 $4,195M 5 bedrooms, and an asking price of 755 WEA #14A In Contract $1,406 $2,85M MINT $6,500,000. Five three-bedroom coops 789 WEA #8C In contract $1,452 $3,050M MINT are currently in contract with an aver- age asking price of $2,747,000. * Price depends on square footage, condition, building and floor height/views. Average PPSF Looking Ahead to 2008. While Man- of 7rooms is $1,400-1,600 with the high end/renovated/top buildings closer to 2000+ per sq ft. hattan’s market had a strong finish in 2007, some real estate professionals ex- pect prices to level off in 2008 rather 6- Room Category than increase dramatically. Others, however, remain optimistic that Man- Address Status PPSF Sale Price Conditon hattan real estate will continue to buck 222 RSD PH3A Sold $1,850 $3,7M Condo national trends due to factors unique to 755 WEA #2C Sold $1,069 Needed Work this market. High on the list of reasons 800 WEA #5D Sold $1,079 Needed Work to be optimistic is Wall Street bonus 246 WEA #4BC In Contract $1,650 $3,795M Mint Reno money which will total some $35 bil- 450 WEA 10B In Contract $1,298 $2,595M Good/ Fair 473 WEA #13B In Contract $1,550 $2,48M lion dollars this year, followed by the 180 RSD #10C In Contract $1,448 $2,895M Excellent huge influx of foreign buyers (one in three condo sales were to overseas pur- chasers), low interest rates, and mod- *The market for 6 rm apts remains very strong. Avg PPSF is approx $1,200-1,500 depending on condi- erately low inventory. But whether tion, building, & views. this year’s gains are dramatic or more Prime example is 505 WEA where 5B totally renovated sold for $1,862M in August & 8B (the exact same moderate, the highly desirable neigh- unit) in ESTATE CONDITION sold for $1,795M in November. On a PPSF basis, this is $1,282 ppsf for a borhoods along West End Avenue and property that needs a total gut renovation. Riverside Drive can be expected to fare at least as well if not better than the real * P/W classic-6 apts above 96th St. on WEA and RSD avg. $1,050-1,100 PPSF (unless they have a river view and depending on renovation) estate market city-wide. Deanna E. Kory Tel. 212.937.7011 Fax 212.230.8191 - www.deannakory.com - [email protected] PERSONAL PLANNING TO REN T O R TO OWN ? preciates. What is the best answer for you EXAMPLE 2 omeownership has always been tunity to live-in, or “use,” an investment The second example, a two-bedroom a major part of the Ameri- while the value grows, are compelling. luxury condo buyer who will spend more Hcan dream. Long the norm each month on a condo than a rental, il- throughout the country, a different lustrates how even a monthly expendi- tradition took hold in New York City ture that exceeds the rent of a comparable which has historically been a city of rent- rental still places the buyer ahead of the ers. During the heyday of the major real game when appreciation (conservatively estate development that took place in put at 5%) on the property is taken into Manhattan during the first decades of account. the twentieth century, the vast majority of buildings were constructed as rentals; 2 BR condo selling for $2.2M, with only a relative handful of buildings were monthly rent for a comparable unit of originally developed as cooperatives. $8,000 ($96,000/yr) $550,000 down payment (25% of pur- Over the last 20 years or so, with the Calculating the Benefits chase price) with a $1,650,000 mortgage advent of coop conversions, condo de- EXAMPLE 1 @ 6.25% velopment, rent deregulation, and low- interest mortgages, a shift has occurred The first example illustrates how a one- Monthly mortgage payment=$10,159/ in the balance of ownership vs. renting. bedroom coop buyer will spend less per mo ($121,908/yr) With so much attention paid these days month on maintenance and mortgage Cc+ret=$3,000/mo ($36,000/yr) to the building boom and soaring prop- payments as compared to renting. As- Monthly payments=$13,159/mo erty values, surprisingly, New York is still suming a modest appreciation rate of 5% ($157,908/yr) a city of renters with the lowest owner- on residential property, this purchase is Monthly payment less tax deduc- ship rate of any major American city.
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