Top 50 Priciest New York Neighborhoods in Q3 2023: Brooklyn Breaks into the Top 3 for the Second Time This Year

In the third quarter of 2023, residential property sales in New York City continued to experience a gradual decline, with both sales numbers and median prices dropping compared to the same period the previous year. By the end of September, the median sale price in NYC stood at $750,000, which was a 1% decrease from the third quarter of 2022. However, the most significant decline was seen in the number of sales, as there were 24% fewer residential transactions in the city compared to the previous year, resulting in approximately 2,400 fewer closed deals in the third quarter of this year.

On a positive note, quarter-over-quarter sales numbers showed an increase of 418 transactions, indicating a seasonal trend similar to 2022 and 2021, where third-quarter sales surpassed those of the second quarter. During the same period, the median sale price remained relatively stable. Nevertheless, the year-to-date data through September revealed a 28% decrease in the number of closed residential deals in NYC compared to the same timeframe in the previous year, with a total of 20,833 sales recorded. Notably, among the top 50 neighborhoods (which included 56 neighborhoods due to some ties), 24 were from Manhattan, 23 from Brooklyn, and nine from Queens. Notably, none of the Bronx neighborhoods made it to the list this quarter, despite the Bronx’s historic appearance in the top 50 during the first quarter of the year. The median sale price in the Bronx was $362,000, marking a 6% decrease from the previous year, which was the most significant year-over-year decline in median sale price among the four boroughs. Across all four boroughs, median sale prices experienced slight declines compared to the previous year, with Queens following the Bronx with a 2% drop, and Brooklyn and Manhattan both seeing 1% decreases. Similarly, overall sales activity decreased in each borough, with Brooklyn experiencing a 26% drop, Manhattan and Queens both recording 24% decreases, and the Bronx seeing a 22% decrease compared to the third quarter of 2022.

Unsurprisingly, Manhattan continued to host some of the most expensive neighborhoods in New York City, with seven out of the top 10 spots. Brooklyn also made its presence felt in the top three, securing two spots. Among the top 10 neighborhoods, seven saw an increase in the median sale price, while sales activity decreased in seven of them. Hudson Yards remained the most expensive neighborhood in NYC with a median sale price of $8,150,000, marking a substantial 39% increase from the previous year. This increase can be attributed to the larger average square footage of properties sold in the third quarter of 2023 compared to the previous year. However, Hudson Yards saw an 8% year-over-year decline in the number of residential deals during the quarter. SoHo secured the second spot with a median sale price of $4.2 million, surpassing TriBeCa in the second quarter of 2023. The median sale price in SoHo was 77% higher than in the third quarter of 2022, although the number of sales decreased significantly by 48% during the same period. Brooklyn’s DUMBO took the third position, with a 60% year-over-year increase in its median sale price, rising from $1,775,000 in the third quarter of 2022 to $2,833,000 in the third quarter of 2023. Hudson Square, TriBeCa, Flatiron District, Red Hook, Little Italy, Theatre District-Times Square, and Greenwood Heights completed the top 10. Manhattan’s median sale price was $1,125,000, while Brooklyn’s median reached $805,000 by the end of the third quarter, with more than half of Brooklyn’s neighborhoods experiencing a drop in median sale prices compared to the previous year.

Notably, DUMBO’s 60% increase in median sale price made it one of the top three neighborhoods, marking the second time a Brooklyn neighborhood achieved this since the first quarter of 2023 when Vinegar Hill held the position. DUMBO’s success can be attributed to 15 of its 33 sales taking place at Olympia, a condo building that significantly influenced the median sale price, with condos at Olympia selling for a median price of $4.95 million. Red Hook returned to the rankings after a year, recording nine residential sales above the $2 million median price threshold. Its median sale price also increased by 30% on a quarter-over-quarter basis. Greenwood Heights, previously ranked #23, climbed to the 10th position this year, experiencing the fourth-highest increase in median sale price year-over-year in the third quarter among the top 50 neighborhoods.

The neighborhood also saw a 6% increase in sales activity. In addition to these three neighborhoods, nine more neighborhoods had medians above $1 million, including Cobble Hill and Gowanus, which ranked 11th and 12th, respectively. Both neighborhoods experienced declines in medians and sales activity. Cobble Hill recorded the second-largest decline in year-over-year sales activity, falling by 58%, while Gowanus saw a 35% decrease in sales compared to the previous year. The most significant increase in sales activity was recorded in Manhattan Beach, up 25% year-over-year. Despite the increase in the number of transactions, the median sale price in Manhattan Beach dropped by 5% from the third quarter of 2022 to the third quarter of 2023, standing just below $1 million. Queens saw the sharpest increase in median sale price, with Little Neck experiencing a remarkable 121% year-over-year surge in the third quarter. Little Neck’s median sale price rose from $370,000 in the third quarter of 2022 to $818,000 in the third quarter of 2023, securing its place among the top 50 priciest neighborhoods in NYC. This increase occurred despite a notable drop in sales activity. Among the 50 most expensive neighborhoods, Queens also recorded the most significant decline in sales activity, with Queensboro Hill seeing a 61% decrease in the number of transactions. The most expensive neighborhood in Queens was Hunters Point, with a median sale price of $1,205,000, which was a 14% increase compared to the previous year, although sales activity fell by 21%. Auburndale was the next-priciest neighborhood, with a median sale price of $958,000, marking a 9% year-over-year increase.

Source: Property Shark

Exploring the $9.4 Million New York Residence in Proximity to Carrie Bradshaw’s Iconic Fictional Apartment

New York’s West Village is famed for its assortment of iconic fictional properties, such as the Friends’ apartment and Carrie Bradshaw‘s residence from Sex and the City. Presently, you have the opportunity to possess a residence in close proximity to some of the city’s most renowned TV dwellings with this $9.4 million abode at 70 Perry Street—a mere stone’s throw from Bradshaw’s TV abode. This spectacular property was once the abode, individually, of three celebrities and prominent figures: renowned chef and restaurateur Jeffrey Zakarian, comedian Louis C.K., and the esteemed Associated Press reporter and editor Charlie Grumich.

All, at one juncture, were occupants within the edifice. It also served as the backdrop for The Back-Up Plan featuring Jennifer Lopez and The Brothers McMullen starring Edward Burns. This townhouse, measuring 20 feet in width, is a multi-family building encompassing four units and was constructed in 1867 by Walter Jones, who fashioned the structure in the French Second Empire style. This style is distinguished by ornamental elements, such as the mansard roofs adorning this edifice, along with iron frameworks and glass skylights. The four units are interlinked by means of a centralized staircase, and the owner’s unit, comprised of seven rooms, occupies the initial two floors of the building. The owner’s unit incorporates one bedroom, two bathrooms, a parlor adorned with ornate ceilings and a library, a living room, a formal dining room, a spacious kitchen, and a garden. The kitchen, designed in a country-style, offers an expanse with one of four fireplaces and opens up to the landscaped garden—a verdant oasis in the heart of the city. There’s a paver patio, a stone brick wall, latticework, and ample space for outdoor furnishings. The parlor room showcases exquisite molding, with ornamental 12-foot ceilings and pocket doors that lead to the library, affording views over the charming, tree-lined Perry Street.

The owner’s unit additionally features an office/study, a laundry area, and an expansive pantry. The entire building uniquely accommodates three distinct one-bedroom apartments, each equipped with kitchens, a living area, a dining space, in-unit laundry facilities, and an office. Alternatively, the building can be transformed into a unified family residence, rendering it a multi-bedroom private townhome. There are a total of four fireplaces, and each room exudes the quintessential charm of pre-war New York City.

This townhouse, designated as a landmark within the Historic District, has been affectionately preserved and boasts lofty ceilings, broad-plank floors, and expansive windows that flood sections of the residence with natural illumination. This marks the first instance in 45 years that the townhouse has been placed on the market. It is positioned in one of the most sought-after neighborhoods in New York, with picturesque, leafy avenues: West Village is renowned for its enchanting streets, upscale dining establishments, luxury boutiques, and quaint cafes. Bradshaw’s fictitious apartment is situated at 66 Perry Street, merely a stone’s throw away, and the exterior was utilized for filming scenes outside the residence—even though Bradshaw purportedly resided on the Upper East Side in the series. West Village is distinguished for its opulent real estate offerings, celebrity inhabitants, and artistic legacy.

Source: Forbes

The Financial District (FiDI)

Crackdown on Airbnb Listings Creates “Black Market” for Short-Term Rentals in New York City (Source: WIRED)

New York City’s new law banning most short-term Airbnb rentals, which came into effect in early September, has had a significant impact on the market. As few as 2 percent of the city’s previous 22,000 short-term rentals have been registered with the city. Many illegal listings have moved to social media and lesser-known platforms, with some still appearing on Airbnb itself. The number of short-term Airbnb listings in the city has dropped by more than 80 percent, going from 22,434 in August to just 3,227 by October 1, as reported by Inside Airbnb, a watchdog group monitoring the platform. However, only 417 properties have been officially registered with the city, indicating that very few short-term rentals have received permission to continue operating. This crackdown has given rise to a “black market” for short-term rentals in the city, according to Lisa Grossman, a spokesperson for Restore Homeowner Autonomy and Rights (RHOAR), a local group that opposed the law. Grossman notes that since the ban, the short-term rental market has gained traction on platforms like Facebook. She says, “People are going underground.”

The short-term rental landscape in New York has dramatically shifted due to this law. Individuals are turning to platforms like Craigslist, Facebook, Houfy, and others, where they can search for guests or properties without the oversight of Airbnb-like booking platforms. The increase in demand for such rentals is expected to drive hotel prices higher. A search for short-term stays on Airbnb reveals a limited number of listings across the city. Many previous listings have transitioned into stays of 30 days or longer, thus avoiding the need for city registration. AirDNA, a short-term rental intelligence firm, found just 2,300 short-term Airbnb rentals in New York City by late September. AirDNA’s data shows that long-term rentals now make up 94 percent of Airbnb’s listings in the city, reflecting the stricter requirements for short-term rentals. Hosts must meet stringent criteria to be approved for short-term rentals, such as allowing only two guests and the host being present during the stay. However, some hosts are attempting to work around these rules. Many Airbnb listings include an option for hosts to enter a registration number or claim an exemption. Despite these efforts, some entire units still appear to be available for short stays and do not seem to qualify as hotels or exempt units.

Inside Airbnb’s data shows that approximately 2,300 short-term properties have labeled themselves as exempt from registration on Airbnb, with several more not specifying their status. Another 35,000 are designated as long-term rentals. These numbers were not confirmed by Airbnb. The Mayor’s Office of Special Enforcement in New York, responsible for the registration program, has not provided an update on the total number of registered short-term rentals or whether violations have been issued for illegal listings. The law in New York City is just one example of how cities are responding to the growth of short-term rentals. Supporters of the rule argue that it will free up apartments for local residents facing high rents and housing shortages. However, some, including small landlords, believe it will eliminate a flexible source of income without significantly addressing the housing crisis. Smaller landlords are lobbying New York City councilors to revise the rules to allow them to continue renting out their units. RHOAR represents hosts who own and occupy single-family homes or homes with two dwelling units. They argue that they have been unfairly grouped with larger landlords.

Grossman states that RHOAR has met with city councilors in an attempt to change the law to permit smaller hosts to legally offer short-term rentals. Beyond Airbnb, people are posting listings and seeking short-term rentals on Facebook groups. Craigslist advertisements for rentals include weekly or nightly prices. These off-platform rentals pose risks to both guests and hosts who may not have the protection of larger companies like Airbnb. As for Airbnb, it is turning its focus away from New York City, which was once its largest market. Airbnb CEO Brian Chesky has mentioned that the company is exploring longer rentals, as well as car rentals and dining pop-ups. The company is also looking to expand its presence in Paris, its largest market and the host of the 2024 Summer Olympics. “I was always hopeful that New York City would lead the way—that we would find a solution in New York, and people would say, ‘If they can make it in New York, they can make it anywhere,'” Chesky said in September. “I think, unfortunately, New York is no longer leading the way—it’s probably a cautionary tale.”

Source: WIRED

Il caso Madison Avenue

It’s a Good Time to Make a Deal in New York Real Estate, Forbes Reports

New York City’s real estate market has responded robustly to the economic uncertainties of the first half of 2023. Many potential buyers in our market initially postponed their plans following the 50 basis point increase in the Federal Reserve rate in December (which came after several 75 basis point increases). As mortgage rates continued to rise and the stock market declined, transaction volume, which had been steadily declining throughout the second half of 2022, remained sluggish in January.

Surprisingly, February saw a turnaround, and March brought further improvements. However, the successful deals were strongly linked to price reductions or setting highly realistic listing prices. There is no room for overly optimistic pricing in 2023. The high-end market (homes priced at $10 million and above) has borne the brunt of this correction year.

During the first two months of the year, few high-end listings found buyers, and the ones that did either possessed unique features or were fortunate to connect with that one buyer whose needs aligned perfectly with the property. Owners who purchased their properties since 2014 or 2015 have had to accept significant losses to make a sale. In the $4 million to $10 million market, the Olshan Luxury Market Report, which tracks contract activity at $4 million and above, saw a notable increase from just over 16 deals per week in January to an average of 25 deals per week in February, and nearly 32 deals per week for the first three weeks of March. Nevertheless, many luxury properties with seven, eight, or nine rooms can still linger on the market for extended periods, primarily due to pricing.

Since January, half of the emails received by New York agents have announced price reductions! Arguably, the most active market in the city is for lower-priced units, especially those priced at $2,500,000 and below. The rental market remains exceedingly strong, currently at its highest point in recent memory (though somewhat weaker than six months ago). Properties in the $2 million and below range tend to favor buying over renting, especially on an after-tax basis. Inventory remains limited at this level. Despite disruptions caused by the collapses of Silicon Valley Bank and Signature Bank, the New York market has experienced increased activity as spring approaches.

The Federal Reserve’s decision to raise its target rate by only 25 basis points, a repeat of its late January decision, suggests a halt to the more substantial increases that took the Fed rate from 0.25% to just under 5% within a year. Although the correlation between the Fed rate and mortgage rates is not perfect (mortgage rates are more influenced by the bond market), it’s clear that the considerable increase in the Fed rates has driven mortgage rates upward, impacting buyer confidence as monthly purchase costs rise.

Especially for younger buyers who’ve grown accustomed to the artificially low rates prevailing since the 2008 recession, a mortgage rate of 5% or 6% remains low by historical standards. The gradual acceptance of this reality by buyers has played a role in the real estate market’s gradual recovery. Several factors make it challenging to predict the second quarter accurately. The stability of regional banks remains uncertain, and the Credit Suisse merger with UBS signals that the banking crisis is not confined to the United States. Meanwhile, inventory remains tight in various segments of the New York market, and even cautious buyers often struggle to find suitable listings. Stock market volatility and inflation may continue, but the worst of the significant price declines seems to be behind us, and property costs have stabilized. Forbes reports that it’s an opportune time to strike a deal!

New York Real Estate Market: Co-ops Struggle, New Developments Forced, Brooklyn Triumphs

The decline in New York home sales has left virtually no one in the real estate industry unscathed, with particular areas of the city’s market experiencing the most acute pain. Despite the seasonal increase in property listings this fall, the market won’t escape the grip of the low-supply environment that has kept prices high, even as mortgage rates have surged, further dissuading potential buyers. For instance, on Staten Island, new property listings in August saw a 17 percent drop, and inventory plummeted by 37 percent compared to the previous year. Simultaneously, the median price rose by 3 percent, and the days a property spent on the market increased by a staggering 50 percent, as reported by the Staten Island Board of Realtors. “These are challenging times for the real estate market,” stated Sandy Krueger, CEO of the organization. “But challenges also create opportunities for those who remain attentive to the market’s signals.”

Here are three key signals to watch as the fall selling season gets underway:

Co-ops: The Losers
Co-op properties were already facing difficulties before the increase in mortgage rates impacted sales. Cheaper co-ops have been particularly affected by the rising rates. Buyers in recent years had become increasingly discouraged by the antiquated rules and bureaucracy of co-op boards. Now, with higher mortgage rates, homebuyers on the lower end of the income spectrum find themselves priced out due to co-ops’ stringent debt-to-income and post-close liquidity requirements. Just a year earlier, a couple earning $240,000 annually could borrow $600,000 for a co-op valued at $750,000 and successfully pass a board application. However, in today’s market, this is no longer possible. This situation is striking, considering that $240,000 is roughly three times the area’s median income in New York City, and $750,000 often represents the starting point for homes in many neighborhoods. Monthly charges are also rising in many co-op buildings due to Local Law 97, which caps greenhouse gas emissions in larger buildings, and Local Law 11, which mandates facade inspections and repairs for buildings taller than six stories every five years. This, in addition to rising rents, makes it increasingly challenging for lower-end and first-time buyers to enter the market.

New Development: The Losers
Developers who had been waiting for a more favorable economic climate before launching their projects may now be compelled by their loan terms to list properties this fall. Projects with units lingering on the market may be forced to offer price reductions. Developers have pre-payment milestones with their lenders and can no longer delay their projects. While some units were overpriced for the current rate environment, others missed the post-lockdown market boom due to supply and labor shortages. For instance, the last available penthouse at One Clinton Street in Brooklyn Heights recently sold for $8 million, down from the original asking price of $10.2 million. An opportunistic buyer’s broker can search for older properties that may have been overlooked, presenting an excellent investment opportunity in the city.

Brooklyn: The Winner
Brooklyn’s real estate market has remained strong throughout the year, a trend that is expected to continue into the fall. Brooklyn has been outperforming Manhattan in terms of market expediency, primarily due to the demand for more space and outdoor living. Brooklyn has been growing into a primary market for years, a trend that accelerated during the lockdown period of the pandemic. Buyers sought to avoid high-rise elevators, subways, and crowded streets. Although transit use has mostly recovered, the shift towards Brooklyn shows no signs of slowing down. “The trend for Brooklyn has been on fire,” remarked UrbanDigs founder John Walkup.

Source: TRD

Mercato immobiliare New York

Repurposing Office Buildings: American Universities’ Novel Approach to Campus Expansion

In an unexpected trend, colleges and universities across the United States have found a unique solution to their campus expansion needs by repurposing vacant office buildings. This innovative approach allows educational institutions to acquire office spaces at attractive prices in a sluggish real estate market and subsequently adapt them for academic use. However, while it effectively addresses their need for additional facilities, it doesn’t alleviate the broader problem of empty office spaces, which has been exacerbated by the shift to remote work during the pandemic.

A New Approach to Campus Expansion
For colleges and universities in the United States, acquiring office buildings has become an increasingly popular means of expanding their campuses. The availability of such spaces at bargain prices, attributed to a sluggish office market, makes this approach particularly appealing. The renovations required to adapt these structures for academic use are typically less costly and time-consuming than constructing new buildings from the ground up.

A Sluggish Office Market
While this creative approach serves the purpose of academic expansion, it doesn’t mitigate the underlying issue of a sluggish office market. The COVID-19 pandemic has drastically reduced the demand for office spaces, with the nationwide office availability rate exceeding 24%. This increase from 17% before the pandemic reflects the reduced demand for leased office space, forcing property owners to grapple with this surplus. Some office buildings have lost so much value that mortgage-holding banks have taken control of them.

Government Initiatives
In light of the current environment, there is growing interest in converting office buildings into residential spaces to address the national housing shortage. However, this transition involves overcoming various regulatory and architectural hurdles, such as rezoning for residential use, kitchen and bathroom installations, and ensuring access to natural light.

College Diversification
Colleges and universities have explored a range of real estate diversification options. In response to the increasing demand for on-campus accommodation and the limited availability of dorm space, some institutions have even ventured into acquiring hotels. However, the low costs of office buildings have proven particularly attractive to many institutions, even when they do not have an immediate use for the space.

Various Case Studies
Several institutions have embarked on this novel approach to acquiring office buildings. For instance, the University of Southern California purchased an office building in Washington, D.C., to serve as an immediate satellite campus. The University of Louisville was even offered an office building for free by Humana, a health insurance company. While these acquisitions benefit the institutions, they can also have implications for towns and cities, as colleges and universities typically do not pay taxes on their academic buildings and dorms, effectively removing these properties from tax rolls.

Overcoming Challenges
Repurposing office buildings for academic use comes with its own set of challenges. For example, buildings designed for office work may not have sufficient ceiling height to accommodate the ductwork required for improved ventilation, and large floor plans can make ensuring natural light in every classroom a challenge. This transformative approach to campus expansion showcases the ability of educational institutions to adapt and evolve within a changing real estate landscape. These creative solutions help universities grow while providing opportunities for towns and cities to revitalize downtown areas and bring life to quiet districts that have suffered due to remote work trends.

Please note that the information provided is based on The New York Times article.

New York’s Perelman Performing Arts Center: A Beacon of Culture in Lower Manhattan (source: The New York Times)

The Perelman Performing Arts Center, recently unveiled, stands as one of New York’s most opulent civic structures in years. Its official inauguration is set for Wednesday, and if you’ve been near Lower Manhattan’s World Trade Center over the past year, you likely caught sight of its construction. A floating, translucent marble cube, nestled at the base of One World Trade Center, it stands at a mere eight stories tall amidst a cluster of towering commercial skyscrapers, yet commands attention. This $500 million, 129,000-square-foot endeavor arrives at a time starkly different from its conception two decades ago. Back then, New York was consumed by grief and fear, its economy plummeting, and ground zero remained a somber resting place.

Just this week, we were reminded of the toll as the names of the thousands lost were once again solemnly recited. In the wake of September 11, focus rightly centered on the families of victims, some of whom fervently advocated for the entire 16-acre site to be dedicated as a memorial. Officials grappled with reconciling these pleas with the urgent need for economic and downtown revitalization. Shiny new office towers were heralded as defiant symbols in the face of Osama bin Laden, encircled by new checkpoints and bollards, encompassing the twin memorial pools. Simultaneously, downtown residents and others argued that a response to terrorism — and what the neighborhood needed for revival — was a hub for the arts. “The community that stayed was steadfast in supporting a cultural component,” stated Catherine McVay Hughes, former chairwoman of the area’s Community Board 1, in an interview with The New York Times in 2016. “It was important that something alive gets created here, right here, at the World Trade Center site.” A generation has passed, New York has weathered other crises, and more challenges lie ahead. Perelman debuts in a post-pandemic era, with the theater industry hemorrhaging jobs, and uncertainties about the return to office work, let alone venturing to the World Trade Center for an evening of performance. Ground zero remains incomplete, with significant plots still vacant, and Perelman is just one part of the puzzle — albeit the most prominent, welcoming piece yet, distinct from a shopping mall or a Path train station. And also the most promising. Designed by architect Joshua Ramus, the building is referred to as a “mystery box,” a nod to the three ingeniously engineered, shape-shifting theaters it houses. Small, medium, and large, they’re cloaked in modular acoustic wood panels, resting on robust rubber pads that further muffle the vibrations of subways passing beneath. They can be combined and reconfigured into over 60 layouts, with raked or flat floors, collapsible or extended balconies, movable walls, and adjustable stages.

These high-tech theaters are veiled by a facade composed of thousands of half-inch-thick, intricately veined marble panels, sandwiched between delicate layers of glass. The veining forms lozenge-shaped patterns that span all four sides of the building. After nightfall, when the memorial park across the street empties, and office workers head home, Perelman illuminates like a lantern. Its white stone transforms to amber. Chandeliers in the towering corridor along the center’s curtain wall cast the silhouettes of bustling theatergoers onto the radiant marble, beckoning the neighborhood back to life. Lower Manhattan didn’t succumb, it thrived after September 11, with its residential population tripling. However, the World Trade Center has remained an unfamiliar zone. An arts institution was among the early casualties of the chaos. Frank Gehry was initially commissioned to design it, but was subsequently replaced. Tenants came and went. The Port Authority imposed the Oculus, a flamboyant, extravagant showcase building by Santiago Calatrava, to house the Path station and shopping mall. As time passed, dreams of an arts center gradually faded from memory. Yet, they never vanished.

In 2015, Ramus’s marble cube emerged victorious in an international design competition held to reinvigorate the project. The following year, cosmetics mogul Ronald O. Perelman donated $75 million to bolster funding. Ramus, now 54, had previously overseen the design of Seattle’s Central Library, one of the standout buildings of the early 21st century. At the time, he was a partner with Rem Koolhaas, co-owning their New York office. The partners eventually separated, with Ramus taking over the firm and rebranding it as Rex. Seattle’s library evidently served as a precedent for Perelman, marked by a similar obsession with rationalism and its vertiginous, adaptable interiors. It’s likely that Ramus and his team also visited the splendid Chiesa di Nostra Signora della Misericordia in Milan from the 1950s, renowned for its matte glass exterior. Another clear influence is Gordon Bunshaft’s Beinecke Rare Book & Manuscript Library at Yale, not only for its translucent marble but also for its sepulchral atmosphere. In Perelman’s case, the structural challenge was building it atop four underground stories of intricate, immovable infrastructure — a labyrinth of train tracks, ventilation ducts, and truck ramps that service the World Trade Center site. The first 21 feet above the sidewalk also fell under the jurisdiction of the Port Authority, for both practical and security reasons. Ramus collaborated with Davis Brody Bond, a seasoned New York architecture firm, and Jay Taylor, a senior principal at Magnusson Klemencic Associates, the engineering firm that worked on the original Twin Towers. Amidst the tracks and ramps, they identified distant load-bearing points in the bedrock to support a system of belt trusses, which cradle the theaters. Yielding the Port Authority its 21 feet, they elevated Perelman onto a plinth of black granite, concealing an entry stair below the south wall. The cantilevered corner of the building lifts enticingly from the sidewalk, akin to a pleated skirt. This stairway serves as the closest thing the World Trade Center has to a public stoop for gathering, which it sorely needs. Hopefully, security won’t shoo away those who choose to sit on the steps. Visitors who opt for the stairs arrive at a lobby on the building’s lower level, serving as its warm, inviting heart.

Designed by the Rockwell Group, the sculptured ceiling is adorned with lights nestled into spirals of wooden ribs. This floor of the building will be accessible to the public from morning until late at night, featuring a stage, lounge, and a restaurant by Marcus Samuelsson. Additionally, a terrace provides a vantage point akin to that of the High Line, offering a view of Lower Manhattan. Exquisitely crafted, Perelman ultimately exceeded its initial budget twofold — a sum that could have supported numerous existing community arts organizations throughout the city for countless years. The majority of the funding was privately donated, with Michael Bloomberg providing the largest contribution at $130 million. New Yorkers may recall that during his tenure as mayor, he advocated for housing and schools to be included alongside offices and a smaller memorial at the World Trade Center, though his proposal was met with resistance.

Photo via Pac NYC

Resilience and Revival: The Future of New York’s Workspace. Read the latest article from the New York Times

In the heart of New York City, the future of offices is poised for a dynamic and exciting transformation. The New York Times paints a picture of change that carries a positive outlook for the city’s professional landscape. In trendy SoHo offices, the stage is set for a revitalized work environment. Rows of desks, once empty, are gradually filling up as a shaggy dog accompanies its owner back to work, reminiscent of the pre-pandemic camaraderie. Downtown, a burst of youthful energy infuses tech workplaces, where spirited teams rally under the banners of “Orange team” and “We’re going to kill it!” during lively in-person game nights. On the subway, commuters revel in newfound freedom, comfortably spreading their bags across two seats as they anticipate a vibrant future. After Mayor Eric Adams’ spirited call to action, encouraging workers to shed their pajamas for office attire, New York’s offices have made impressive strides. In late August, office occupancy rebounded to 41 percent of pre-pandemic levels. The year began with just 9 percent of office workers in the city returning to their workplaces five days a week.

The Partnership for New York City, a prominent business group, reports these encouraging numbers, and across the nation, remote work is seamlessly merging with the traditional office experience. For New York, the prevailing sentiment within offices is reminiscent of the city’s resilience. It’s akin to sitting on the subway, momentarily halted, yet filled with optimism about the impending journey. Passengers exchange hopeful glances, feeling reenergized and ready for action. The real estate industry is experiencing an exciting metamorphosis as companies embark on a mission to revitalize their offices. Building owners are proactively preparing for a brighter future. They are embracing innovative strategies to adapt to the evolving needs of their tenants. Amidst this transformation stands Eric Gural, whose family’s commercial real estate empire, GFP Real Estate, plays a pivotal role in shaping the city’s skyline. With ownership and management of over 55 properties encompassing 13 million square feet, they are at the forefront of a new era for New York’s office spaces. Although past economic downturns have tested the Gural family’s resolve, they remain undeterred. They draw inspiration from their unwavering commitment to providing affordable office spaces, a tradition passed down through generations. Now, in a changing landscape, they are eager to innovate and cater to the evolving needs of their tenants.

Researchers from Columbia and New York University predict a vibrant future for New York’s office buildings, with values set to soar in the coming years. The city’s diverse and dynamic workforce is poised to embrace the office experience with newfound enthusiasm. Eric Gural remains steadfast in his optimism. He believes that a broader return to the office is imminent, and he finds encouragement in the desires of the younger generation. His own children, in their twenties, yearn for the camaraderie of office life and the daily subway commute. It’s a sentiment echoed by many young professionals eager to experience the vibrancy of the city’s bustling offices. As the city grapples with change, it draws on its remarkable resilience, as seen in the enduring humor of its residents. The current challenges have prompted New Yorkers to adapt, innovate, and envision a brighter future. The commercial real estate landscape is evolving, but the future shines bright for New York’s office spaces. The city’s iconic buildings, once symbols of bustling productivity, are poised for a renaissance.

With a dash of optimism and a sprinkle of innovation, New York’s offices are set to reclaim their vibrancy and play a central role in the city’s resurgence. In this exciting chapter of New York’s history, the offices are not merely places of work; they are the beating heart of a city that thrives on resilience, adaptability, and the unwavering spirit of its people. The future of New York’s offices is bright, promising, and brimming with opportunities for a vibrant professional landscape.

Manhattan’s Luxury Real Estate: One High Line and 432 Park Avenue Lead the Way with 19 Prime Contracts Amidst Summer’s Heatwave

Last week, the luxury property market in Manhattan continued to move at a slow pace during the hot summer days. However, between August 14 and 18, a total of 19 homes were placed under contract, as reported in Olshan Realty’s weekly real estate transaction report for properties in the neighborhood with prices of $4 million or more.

The most prestigious contract of the week was awarded to a condominium located at 500 West 18th Street. This marks the fourth time that the Witkoff Group, led by Steve Wikoff, and Len Blavatnik’s Access Industries have secured the top contract of the week with their One High Line project. Unit PH32A, which was initially listed at $25 million, saw its price drop by $3 million from its launch in 2018 when it was known as the Xi. The project, consisting of two buildings – a hotel and a residential property – faced a foreclosure of over a billion dollars two years ago before being reintroduced to the market. The 5,700-square-foot apartment boasts five bedrooms and 5.5 bathrooms. Its standout features include a spacious kitchen, a 48-foot living area, and a living room that opens onto a 240-foot loggia. Residents can enjoy amenities from the adjacent Faena Hotel, such as a fitness center, a 75-foot lap pool, a golf simulator, and spa facilities.

The second-highest priced unit to go under contract last week was unit 63B at 432 Park Avenue. Originally listed at $24.5 million, the price was reduced from the $28 million it was listed for when it hit the market in February 2022. This corner unit spans 4,000 square feet and offers three bedrooms, 4.5 bathrooms, and 10×10 windows that provide views of Central Park, the city skyline, and the river. The unit features 12.5-foot ceilings and was purchased by the seller for $24.6 million in 2016. The supertall building located on Billionaire’s Row boasts 96 stories and offers top-notch amenities including a fitness center, a 75-foot lap pool, a private dining room, a garden, and a children’s playroom.

Of the 19 properties that were placed under contract last week, 14 were condominiums and four were co-op units. The only townhouse that was placed under contract belonged to the late Stephen Sondheim. The home of the eight-time Tony Award winner, located at 246 East 49th Street, was listed for sale in July with an asking price of $7 million. The combined asking price for all the properties amounted to $167.6 million, resulting in an average price of $8.8 million and a median price of $5.8 million. On average, properties remained on the market for 657 days and received a 9 percent discount.

Mercato immobiliare New York

New York City’s Urban Renaissance: from Offices to Homes, Unveiling the City’s Bold Transformations

There has been significant discussion surrounding the transformation of office spaces into residential properties in New York, accompanied by inquiries into the entities successfully executing these endeavors.

An analysis conducted by The Real Deal delved into alteration permits filed between 2022 and 2023, revealing the most substantial office-to-residential conversion projects.

The following are summaries of the five most notable ventures:

25 Water Street

Following the inauguration of Harry Macklowe’s One Wall Street in March, the mantle for the largest office-to-residential conversion in the country shifted to 25 Water Street. This project involves altering over 900,000 square feet of the building’s 1.1 million square feet. Formerly recognized as 4 New York Plaza, this 22-story office edifice previously housed notable occupants like the New York Daily News, American Media, and J.P. Morgan Chase. In the wake of the pandemic, these entities vacated the premises. The property was acquired by GFP Real Estate and Nathan Berman’s Metro Loft Management for $250 million in December. Their vision encompasses adding 10 additional floors and reimagining the interior to create open and well-lit spaces, including courtyards. Anticipated to yield around 1,200 rentals, the apartments will span from studios to four-bedroom units, accommodating approximately 50 residences on each floor. Certain units will feature 10-foot ceilings and dedicated home office spaces.

160 Water Street

The transformation of this 487,000-square-foot former office building in the Financial District is overseen by architecture firm Gensler. The project entails augmenting the existing 24-story structure by five floors. The resulting 586 rental units will enjoy access to shared amenities such as a rooftop terrace, gymnasium, co-working areas, dining spaces, a bowling alley, and a spa. The expansive redesign and expansion have secured financing through a $272.5 million loan from Brookfield Real Estate Financial Partners. Vanbarton Group, the developer, intends to reconfigure the building’s facade as part of the revitalization. Occupants are expected to begin moving in starting September 2024.

55 Broad Street

Located in proximity to the site of Lower Manhattan’s forthcoming tallest residential tower at 45 Broad Street, Silverstein Properties and Metro Loft Management are collaborating on the conversion of 55 Broad Street. This office building will be transformed into 571 market-rate rental units. The acquisition of the property, made in July from Rudin Management at a cost of $172.5 million, involved the former owner retaining a stake in the project. Recent permits filed in August have designated 49 Broad Street as the locus for a construction endeavor encompassing more than 400,000 square feet. This entails the addition of six stories to the existing 30-story structure. Among the amenities planned are a private club, fitness facilities, co-working spaces, and a rooftop pool featuring a landscaped sundeck and grilling area. The construction is slated to commence this month.

650 First Avenue

Acquired by Lalezarian Properties for $33.5 million on March 23, this eight-story office building in Murray Hill received the green light from the Department of Buildings for conversion into residential spaces. Upon completion, the property will encompass 23,000 square feet of commercial area and over 116,000 square feet of housing, according to official filings.

330 West 42nd Street

In Midtown, Resolution Real Estate is embarking on a significant undertaking involving the partial conversion of the McGraw-Hill Building at 330 West 42nd Street. As a designated city landmark with 33 stories and art deco architecture, the tower will witness the transformation of more than 560,000 square feet into 224 rental units. These units will span from studios to two-bedroom residences and will occupy floors 12 through 32. Notably, the renovation, totaling $100 million, will not impact office contracts; corporate lessees will continue to rent space on the lower floors. Prior to this overhaul, the owners expended $40 million to restore the building’s historic appearance, which included the removal of non-historical windows along one of the city’s prominent thoroughfares.


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