SUMMER 2015 PARK AVENUEnewsletter DEANNA KORY Licensed Associate RE Broker www.deannakory.com [email protected] 212-937-7011 SPOTLIGHT ON PARK AVENUE’S LISTINGS ON THE MARKET RESIDENTIAL REAL ESTATE MARKET As of this writing, there are currently 126 available units on Park Avenue across all sizes, IN THIS ISSUE development and condo listings accounted for with one-quarter or 32 units consisting of 7 to the largest percentage of the new inventory. 8.5 rooms. MANHATTAN MARKET OVERVIEW While condo inventory grew and sales slowed, PARK AVENUE SNAPSHOT demand for co-ops remained consistently high Studio to five-room apartments:There are 53 partly because the prices per square foot have listings with 2 to 5.5 rooms (studios, one and BROKER SPOTLIGHT been and continue to be 10-25% lower than two bedrooms) on the market, which may seem LIVING ON PARK AVENUE condo prices. As such, the inventory of co-ops high but is not surprising as this sector of the RECENT SALES SAMPLING fell to a historic low. These trends set the stage market is generally less dependent on the spring for 2015’s spring season. selling season. This size apartment also appeals There are very few exceptional residential avenues in Manhattan that compare to the Given a slow start in the first grandeur of Park Avenue, especially north of quarter, in part due to inclement 60th Street. Since the turn of the 20th century, weather, the second quarter Park Avenue has consistently been regarded as stayed on trend with 4,235 a thoroughfare with a rich history and cultural sales closed and another 4,188 heritage. The area features some of the most contracts signed. Manhattan renowned architecture and cultural institutions. inventory grew 12% in Q2 Formerly train yards 113 years ago, Park 2015 over last year, however Avenue’s transformation has become ingrained it is important to note that this in the consciousness of New Yorkers and is increase is based on a previous legendary worldwide. Because of its uniqueness, near historic low figure (for homes on Park Avenue are highly sought-after reference, there were 11,216 and property values reflect that demand. listings on the market in Q2 2009 and 5,773 in Q2 2015). While Some familiar qualities of Park Avenue real estate inventory increased, the number include gracious prewar layouts, larger-sized, of available listings remained low enough to to those looking to purchase a second home. For apartments, high ceilings and a predominance cause supply shortages in nearly all segments of many, the summer becomes an ideal time to visit of cooperative buildings. However, with the the market. the city and make such a purchase as a pied- influx of new development and conversions on à-terre. the Upper East Side–of which Park Avenue has Although new development is increasing in only a few–the landscape on the Upper East prominence citywide, the majority of residential Six- to eight-room apartments: More than Side is changing while Park Avenue remains ownership and sales on Park Avenue are half of the 46 homes with 6 to 8 rooms on the largely the same. cooperative units (96% of resale sales in the past market are north of 72nd Street. Average asking 6 months were co-ops). prices for these listings are out of sync with The Manhattan Market Overview what has closed over the last 6 months. This Park Avenue Market Snapshot Last year there was a steady increase in disparity is partially due to the fact that current inventory throughout Manhattan marking the To better understand the Park Avenue market, we inventory includes a few penthouses which will first sustained upward trend in inventory quarter focus our analysis on the first 6 months of 2015 command premium prices and others that are over quarter in the last four years. To put this providing a snapshot of the market from 42nd priced perhaps too aggressively. Of these, 15 are in perspective, inventory dropped to a 14-year to 96th Street: listings currently on the market, in beloved Carnegie Hill buildings such as 1111, low by the end of 2013. The increase was not properties that are now in contract, and those 1120, 1130, 1185 Park and others. consistent across all market segments as new that have closed since January 2015. [continued on page 2] Deanna Kory Tel. 212.937.7011 Fax 212.230.8191 www.deannakory.com [email protected] 1 [continued from page 1] Nine-room or larger apartments: There are 20 buyers are rather sensitive about price and would Nine-room or larger apartments: For larger apartments that are currently listed with 9 to 11 quickly purchase an apartment that is priced apartments, there are currently 10 in contract. rooms with an average of 186 days on the market well compared to others in the same category. 911 Park Avenue is recording its fourth sale and 7 listings with 12 or more rooms. There are 2 Interestingly, nearly every listing in this segment over the last 12 months. Often such turnover maisonettes, each at 765 and 1001 Park. There that is currently in contract is a co-op with only is attributable to opportunistic selling following are 7 duplexes at 535, 740 (where there are 2 for one resale condo. a strong sales price in the building, as was the sale), 829, 925, 975, and 1185 Park. case here. In addition to getting larger square footage in a maisonette or duplex, the CLOSED PARK AVENUE SALES owner has the benefit of townhouse With 77 sales on Park Avenue during living with the conveniences of a the first 6 months of 2015 it is not doorman building. surprising that the majority of these sales are in co-ops, comprising 96% of LISTINGS IN CONTRACT total transactions (new development and Studio to five-room apartments: conversions excluded). The number of There are currently 22 apartments in closed transactions is on track to match contract with 5 rooms or less. Of note, last year; 2014 had a total number of there are two stunning one bedrooms 186 sales for the full year. at 1082 Park, a charming boutique building. Each of these apartments Throughout the city the media has loved has a terrace and a unique duplex to focus on the fast-paced market, which layout. is largely attributed to new development condos. On Park Avenue, however, the Six to eight-room apartments: market was moving at slower pace: Interestingly, the largest segment of on average, it took 141 days for Park Park Avenue listings with a signed Avenue apartments to have a signed contract over the last few months contract. Only one-third of the 77 sales were in the 6- to 8-room category. had a contract signed within a month’s There are currently 26 apartments in time. contract, yet only 8 of them sold fairly quickly with the contract signed within Studio to five-room apartments: one month of listing! Of those eight There were 28 one and two bedroom listings, some were in mint condition, apartments sold over the last 6 months, but others were in fair condition. This seven of which were in the Beekman strongly suggests that a relatively House, an elegant building that provides quick sale is largely attributed to a hotel-like services. correct asking price. At present, [continued on page 3] Broker Spotlight Ileana Lopez-Balboa Ileana Lopez-Balboa is a senior member of the Deanna Kory Team and specializes in Upper East Side sales, particularly on Park Avenue. Her knowledge and passion for the area is enhanced by the fact she has called the neighborhood her home for over two decades. Her deep knowledge of Manhattan real estate is only elevated by her 20 years in executive level sales and client service roles in the hedge fund industry. She has mastered the skills necessary for complex negotiations, and the subtle nuances to successfully complete complicated transactions. Ileana is an invaluable team member and has worked on all property types on the East Side from co-ops, condos and new development to townhouses of every size. The Deanna Kory Team was named #1 East Side Sales Team of the Year at Ileana Lopez-Balboa Deanna Kory Corcoran for 2013 and 2014 and consistently ranks among the top 3 teams. [email protected] [email protected] 2 Deanna Kory Tel. 212.937.7011 Fax 212.230.8191 www.deannakory.com [email protected] Record Park Avenue Sales [continued from page 2] What to Expect in the Near Term With the possibility that interest rates might Six to eight-room apartments: The Last summer, there was a record co-op sale at 740 highest turnover was in the 6- to 8-room increase in the fall, buyers appear to be more Park Avenue for $71M ($22M over ask), one of 3 co-op category up and down the Avenue. Year-to- cautious and discerning. Pricing conservatively, sales last year between $70M and $80M. In the last 6 date, 10 apartments closed in the 6-room relative to other comparable homes, will most months, there have been 2 co-op sales and one new category, and another 19 units closed in likely attract buyers and could encourage a bidding development sale between $28M and $35M (778, 775 the 7- to 8-room category. In general, we war. Additionally, staging a property and making and 737 Park Avenue). The next luxury sale jumps are witnessing a $1 million price difference it “show ready” is well worth the time and money down in price to $14.5M at 1021 Park Avenue.