May 30, 2024
New Real Estate Developments in NYC: More Floors, Fewer Apartments

At the Benson, a 210-foot, limestone-clad tower on the Upper East Aspect finished final calendar year by the developer Naftali Team, there ended up 15 units, ranging from $12.75 million for a 1,770-sq.-foot a few-bed room to $35 million for a much more than 6,600-sq.-foot penthouse, according to the developer. The constructing is marketed out, mentioned Donna Olshan, the president of Olshan Realty, which tracks the luxurious industry.

“It was a wild success,” she reported, but also a dangerous method, for the reason that the investment was tied up in so several models. The advancement site, which made use of to be a row of prewar condominium properties, could have supported up to 83 residences, according to zoning calculations.

Builders have minimal incentive to squeeze in so quite a few units on assignments in affluent marketplaces, simply because more substantial models command greater rates, claimed Ryan Schleis, a senior vice president at Corcoran Sunshine Internet marketing Team, a enhancement guide and marketing and advertising agency. “Space is the supreme luxurious,” he explained, with leading-greenback units on the Higher East Facet exceeding $4,000 a square foot.

In addition, most of these tasks are developed “as of correct,” on sites that never call for zoning adjustments or public overview that may possibly in any other case need the builder to match or exceed the number of models beforehand on the internet site, reported George Janes, an urban planner who has examined a variety of the new towers.

“You have a scarce useful resource of ground space that could be used for housing men and women, and it is staying employed, effectively, for individuals who are tremendous rich,” he reported.

Builders say they are chasing the greatest return on their financial investment.

“It’s a extremely straightforward answer: It’s the market demand from customers,” claimed Miki Naftali, whose agency, the Naftali Group, is making numerous superior-rise condos in Manhattan with few units.