212.544.9500 | arielpa.com As printed in Real Estate Weekly | Wednesday, November 19, 2014

The Lower East Side Reborn

16,312-square-foot building at 101 Delanc- ey that sold in July for $17.3 million, or $1,061 per square foot. A few blocks away, a 13,100-square-foot elevatored building at 43-45 Orchard Street sold last March for $16.1 million, or $1,229 per square foot. Prime Lower East Side Development Site | FOR SALE Essex Crossing is not the only new develop- ment pushing up values. Just north of the 141 ChRyStIe StReet, New yORk, Ny project at 100 Norfolk Street, developer 23.08-feet-wide, approximately 16,380 BSF Adam America is building a 12-story, con- dominium project. Condos in the building, which is scheduled to be completed by the end of 2015, are selling for $800,000 to over $4 million. The School House, a 117-unit rental at 371 Madison Street, recently began By Jesse Deutch renting apartments for between $2,700 and Associate Vice President, $4,300. The building includes a pool, gym, Ariel Property Advisors full-time doorman, lounge, and two out- door spaces. Although construction on Essex Crossing New development is pushing its way east isn’t scheduled to begin until the spring, from Soho and Nolita and spilling over onto the 1.9-million-square-foot residential Bowery and Chrystie Streets and south from and commercial complex in the heart of the East Village across East Houston Street. the Lower East Side is already serving as a catalyst for economic development in the The tremendous interest we’re currently same way other large scale initiatives, like seeing in a property we’re marketing at the Barclays Center in Downtown Brooklyn 141 Chrystie Street, which is a prime Lower or Columbia University’s Expansion in West East Side development site with more than Harlem, have in their communities. 16,000 buildable square feet, is a testament to this demand. In March, a mixed-use walk- In September last year, the city selected de- up building totaling 22,285 square feet sold velopers L+M Development Partners, BFC at 331-333 Broome Street & 151 Bowery for Partners, and Taconic Investment Partners $23.3 million, or $1,046 per square foot. to develop Essex Crossing. The complex will include 1,000 residential units, half afford- Driven by the neighborhood’s popular ap- able, and 600,000 square feet of restaurant, peal to tourists and the success of hotels retail, entertainment, and office space on such as the Thompson LES and Hotel on nine lots between Delancey, Ludlow, Grand, Rivington, new hotels also are in the works. and Attorney Streets. At 215 Chrystie Street, Ian Schrager has de- veloped a 370-room hotel and 11-unit con- The nine sites, commonly known as the do where a three-bedroom unit reportedly Seward Park Urban Renewal Area, have sat sold for $7.75 million, a two-bedroom unit mostly vacant since 1967 and represent one sold for $7.15 million, and a penthouse is on of most significant urban renewal develop- the market for $18.75 million. In September, ment opportunities remaining in Manhattan. a 184-key hotel opened at 171 Ludlow Street The first phase of Essex Crossing is sched- offering rooms for $295 per night, and the uled to begin in 2015 with residential leas- 24-story, 300-room Hotel Indigo LES is ing expected to begin in 2017, and the entire scheduled to open at 180 Orchard Street in complex slated for completion by 2023. 2015. Investors are clearly pricing this into the The southern part of the Lower East Side, multifamily transactions that have taken known as ‘Two Bridges’, also is seeing some place this year. According to our firm’s re- new development. Extell is planning a 790- search, the Lower East Side saw 15 multi- unit, 68-story luxury residential tower on the family sales through the first three quarters site of a former Pathmark grocery store at of 2014. While the area’s overall price per 227 Cherry Street at Pike Street by the Man- square foot hit $794, it’s worth noting that hattan Bridge, which will no doubt encour- several properties in close proximity to Es- age more new projects in that section of the sex Crossing saw values surpass $1,000 neighborhood. per square foot. These figures are all the Our Approach / Investment Sales & Investment Research more impressive when compared to 2013, The Lower East Side, a historic neighbor- People and relationships are at the heart of every real estate transaction. We’re committed when the Lower East Side saw 13 multifam- hood with worldwide appeal, is undergoing to providing clients with unmatched value by combining our relationship-driven investment ily transactions that sold for an average of one of the most dramatic transformations in sales operation with superior research and market knowledge. $449 per square foot and saw no deals over Manhattan, leading one to believe that the $1,000 per square foot. future is bright for real estate investors and longtime owners who participate in its re- Some examples of this new pricing include vival. a 7,500-square-foot mixed-use building at 104-106 Delancey that sold in May for $13.1 arielpa.com | 212.544.9500 million, or $1,747 per square foot, and a

For More Information Please Call Jesse Deutch @ 212.544.9500 ext. 18