Manhattan Real Estate Quarterly Review SPRING 2014 Licensed Associate RE Broker IN THIS ISSUE CURRENT MARKET REVIEW many well qualified buyers has contributed • 150 Charles Street (Witkoff Group). This BIDDING WAR STRATEGY considerably to increased prices in these building sold out in record time. It has the CONTESTING AN APPRAISAL markets. Additionally, new development projects appeal of being on a charming West Village HOMEOWNER’S INSURANCE launched after the downturn that are gorgeously block by the water and across from the STAGING: DO I HAVE TO? LUXURY ON THE MARKET designed and accordingly priced higher are now Richard Meier glass buildings. The marketing TIPS FOR BUYERS & SELLERS beginning to close, and many of these recorded of this building preceded 56 Leonard and 2013 SALES SAMPLING sales prices have helped boost an upward over 30% of the units sold out within the first momentum. month. LAST YEAR’S VIGOR GREETS REAL ESTATES’ In the 4th Quarter, apartment sales of these • Walker Tower (JDS Development and Property new development projects experienced a Markets Group). Located at 212 West STRONGEST SEASON robust 32% increase in median price, to 18th Street, this building began closings $1.68M, from a year ago and a 19% increase in November with 21 units selling for an Most of the brokerage community believes that in average price per square foot to $1,500. For average price of $8.9M. The recent record this will be another exciting year in the world of the luxury new development market, which has sale of a penthouse at approximately $55M Manhattan residential real estate, albeit different performed exceedingly well, the median price of made many heads turn. The location was from this past year. Throughout 2013, there was apartments rose an incredible 72% year-over- not considered prime but the building itself, an incredible amount of excitement, energy and year to $7.85M, while the average price press coverage surrounding record-setting sales per square foot increased 34% to $2,661. prices and volume in several segments of the There are several gold-standard examples market. A significant dynamic that has fueled that have set the trend in luxury new the market is the status New York City enjoys development. These include the projects at: as one of a handful of ‘global cities’ viewed as attractive, stable markets in which to invest. • 157 West 57th Street (Extell). Apartments at One57 are under contract and have In addition, there are other factors which fueled sold exceptionally well. This was the first 2013 and will continue well into 2014: 1) We of the ultra-lux developments to come to are in the midst of an improving economy market since the 2008 market collapse. nationwide with New York City leading the way, Prices for high full floor units are selling 2) This last year also saw new highs in the stock for more than $90M. The lowest priced market which not only drove the 2013 real sponsor-listed apartments currently hover estate market but will continue to stimulate our at around $19M. market in 2014, 3) High demand coupled with record low inventory puts pressure on prices • 432 Park Avenue (Macklowe). The and 4) Low interest rates – which are inching up penthouse at 432 Park is in contract for 60 Riverside Boulevard - Apt. 2101 – have spurred people to borrow more allowing $95M as are two duplex units, each for more artfully marketed, is spectacular in scale them to stretch to greater price highs. than $90M. This spectacular new building and renovation detailing. The craze for new is brilliantly designed with a sales office that development aided the developer in nearly NEW DEVELOPMENT FRENZY: 12% of sales is unmatched. It is no wonder that prices per selling out within a few years after marketing Anxious to buy a piece of New York, foreign square foot are in the $4,000-$5,000 plus began in June 2012. purchasers, investors and pied-à-terre buyers range and that 50% of the building is sold as have flocked to new development and luxury of this writing. Reportedly, 50% of the buyers • 135 East 79th Street (Brodsky Organization). condominiums that have popped up all over the are foreign. Fourteen condos closed for an average city. The public and the brokerage community price of $9.07M beginning in October. This alike have been truly amazed at the high prices • 56 Leonard (Alexcio Group). Four of the is a wonderful building with a façade that and large amounts of money flowing into penthouses listed between $26M-$47M replicates a grand prewar building – totally real estate. A significant percentage of these are in contract and over 90% of the in keeping with the neighborhood. This transactions are all-cash. Tribeca-located building has sold in 9 development sold exceptionally well and months. This project was a total hit in an momentum plus a good market allowed The powerful allure that New York’s new area that is outside of the traditional Gold prices to escalate. development and luxury condos hold for so Coast of Tribeca. Continued on page 2 Deanna Kory Tel. 212.937.7011 Fax 212.230.8191 - www.deannakory.com - [email protected] 1 market review negotiation strategy Continued from page 1 – sold extremely well and, due to condos’ ease competition from condos that offer buyers more More recently, on the Upper West Side’s of sale and flexibility, are gaining an increasing flexibility, beautifully finished units, full-services, Riverside Blvd., One Riverside Park (Extell) share of closed sales as compared to co-ops. amenities and larger and more family-friendly HOW TO WIN A BIDDING WAR began marketing units in November that won’t Condos amounted to 44% of all residential sized apartments. be delivered until the Fall of 2015. Sales took property sales in the 4th Quarter. The strength of Staying Competitive in a “Highest and Best” Scenario off immediately and the building was 70% sold the resale condo market is reflected in the 4th Townhouses above $10M by mid-December when the prices were raised. Quarter average price per square foot, which Not so long ago record townhouse sales, In a market where there are more buyers than your offer. Your financial qualifications are part Be flexible with terms This particular building is especially attractive reached an all-time high of $1,382 – a 7% most often on the Upper East Side, occurred there are homes for sale, multiple offers and and parcel of your offer. Be proactive and include Over half the transactions these days are all- as it offers a 20-year tax abatement that is increase from one year ago. The median price with some frequency, but that was prior to bidding wars inevitably erupt. Asking all bidders it with your offer to show the seller that you are cash; if possible, offer cash and then, if desired, rarely seen these days. The area is being further last quarter of $1,152M had a similar increase the most recent wave of new developments. for highest and best offers can be the most motivated and qualified to buy. finance after you’ve closed. If you are financing, developed into a real neighborhood with fine year-over-year. Once developers began building hundreds of efficient way for a seller to be prepared to waive the schools, community facilities, stores and parks. condo units from 3,000-6,000 square feet, select the offer that works best financing contingency. While luxury and new development sales have Co-ops townhouses were no longer the only option for for him. Although stressful and Other terms that can attracted a great deal of attention, it is important Co-ops in general sold well enough at the lower a large space in Manhattan. In 2013 there frustrating, highest and best sweeten the deal for to note that the luxury market is only 10% of and upper ends of the market, but much less so were only a handful of townhouse sales in the scenarios do give all bidders an sellers include putting all transactions, and in the 4th Quarter new in the mid-range of $2M to $5M. Those co-ops ‘eight-digits’. equal opportunity to have their down a large down development accounted for a mere 12% of all that did sell quickly in the mid-range had unique offers considered. payment (if financing), closings, with most of these skewed toward the qualities, were in prime locations, showed nicely Fourth Quarter sales figures reflect this trend offering to close at the higher price category. Let’s review what has and were well priced. Despite a notable lack of away from record prices, as the median sales For now, multiple offers are seller’s convenience, happened in the market as a whole. price on the Upper East Side fell the new normal, especially in and agreeing to sign the 44% year-over-year, from $8.375M the condo market. Buyers who contract within a limited MARKET SEGMENT BREAKDOWN to $4.650M, a decline of 44%. aren’t comfortable with making amount of time. The 2013 market out-paced previous Meanwhile, the Upper West Side saw highest and best offers may be years in both transaction volume and 4th Quarter prices grow by 35%, better off delaying a purchase Don’t be too sales prices. This notable uptick across and outperform the Upper East Side, until the market takes a turn demanding or picky the real estate market was aided by with a median sales price of $5.16M. and competition abates. But if Sellers want a buyer who the unprecedented gains in the new In fact, aside from the Upper East you’re a buyer who wants or is easy to work with.