September 25, 2023

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

At the Benson, a 210-foot, limestone-clad tower on the Upper East Aspect concluded final 12…

At the Benson, a 210-foot, limestone-clad tower on the Upper East Aspect concluded final 12 months by the developer Naftali Team, there ended up 15 models, ranging from $12.75 million for a 1,770-square-foot a few-bed room to $35 million for a much more than 6,600-sq.-foot penthouse, in accordance to the developer. The creating is marketed out, explained Donna Olshan, the president of Olshan Realty, which tracks the luxurious industry.

“It was a wild success,” she mentioned, but also a risky method, due to the fact the investment was tied up in so several models. The growth internet site, which made use of to be a row of prewar apartment structures, could have supported up to 83 flats, according to zoning calculations.

Builders have small incentive to squeeze in so quite a few units on jobs in affluent markets, since larger models command better rates, mentioned Ryan Schleis, a senior vice president at Corcoran Sunshine Promoting Team, a development advisor and marketing and advertising firm. “Space is the best luxury,” he mentioned, with prime-dollar models on the Upper East Side exceeding $4,000 a sq. foot.

Moreover, most of these initiatives are built “as of ideal,” on web-sites that really don’t require zoning alterations or public overview that could normally require the builder to match or exceed the amount of units formerly on the site, reported George Janes, an urban planner who has examined a quantity of the new towers.

“You have a scarce useful resource of floor location that could be utilized for housing folks, and it is being utilised, primarily, for people who are super rich,” he said.

Developers say they are chasing the very best return on their financial investment.

“It’s a pretty very simple reply: It is the market demand,” reported Miki Naftali, whose agency, the Naftali Team, is building quite a few significant-rise condos in Manhattan with several models.