New construction, at the moment,
is drawing stunning levels of interest.
As I mentioned in my last post, we’re seeing construction at levels
unvisited since 2007, despite a spike in land prices of nearly 300%.
The result is an exclusive
focus
on the high end.
A few data points:
- I’m counting more than forty Downtown projects –
on the market or set to roll out in the next 1-3 years – asking $2500-10,000 per square foot
– excluding the
Hudson Yards projects!
The Seymour on West 25th Street in Chelsea
- Midtown and Uptown are just as robust, with rental buildings across the Upper West Side set to convert to condominium, and new construction hitting the market in plum locations on the East Side at staggering prices.
I’ll focus on 261 West 25th Street, just to give you a flavor of what’s hitting the market right now.
The Seymour,
named after an historic Chelsea club (also, coincidentally, my grandfather’s name) will be twelve stories, with 46 units comprising the entire development.
Its developers
are offering 1-, 2-, and 3-bedrooms units.
Some of the low floor units will be offered at $1700 per square foot.
They are delivering a building that they claim is inspired by a hotel.
Isn’t most NYC construction reminiscent of a hotel, to a degree?
I digress.
The palette brings together some interesting ideas.
Solid slab marble backsplashes in the kitchen, attractive oak cabinetry, floor-to-ceiling casement windows, leather handles in the kitchen meant to improve
with age.
The tiled baths are done simply and thoughtfully – in my view, they seem to feel that
attention to
very high quality in the kitchen (Bertazzoni oven and cooktop, Subzero Fridge, etc.) allowed a bit more cost-consciousness in the baths.
I don’t think the result suffers at all.
The light will be nice here, and the higher floors there should
offer
some nice views, too.
Mid-block South should result in some lovely city aspects.
Penthouses will hit the market in the $2300+ per square foot range.
A Seymour Kitchen
What surprises me are the common charges and taxes.
Since this building isn’t tax abated, we’re seeing charges in the range of $1900 for a one-bedroom on a monthly basis, $5200 per month for the 2000-square foot
penthouse (which seems more plausible).
Does that seem high to you, before mortgage considerations?
For an investor, even a rent of $4500 per month for a one-bedroom will result in an annual return of 2.5% –
without a mortgage.
Food for thought.
I don’t expect pushback on the charges, but it is a curious situation for public reaction.
Otherwise, there are so many pluses here.
Cary Tamarkin clearly made an impact on the new development scene, and this scene approximates something he would do.
I’ll keep the reviews coming as I have the opportunity to view what hits the market!