Manhattan Residential Development

[antinimby]

...close to another large project planned by Edison Properties LLC and designed by Robert A. M. Stern Architects that will include 869 condominium apartments in two towers at 501 West 17th Street.

Where did this one come from and by Stern? Wow.

[TonyO]

NY Sun
3/30/06

Garment District Is Seen As the Next Residential Frontier

By DAVID LOMBINO, Staff Reporter of the Sun

Once the booming manufacturing area where consecutive waves of immigrants made up the engine of the American apparel industry, the garment district is now one of the most depressed parts of Midtown, and area leaders are pressing for changes in an attempt to revive it.

With most textile manufacturing relocated overseas, business and property owners are seeking zoning changes that would preserve some of the area's roots while refashioning it as a 24-houra-day, seven-day-a-week community.

The city is also studying options that would add flexibility for development and use of space within the Garment Center Special District, which roughly encompasses the area between 34th and 40th streets and Sixth and Ninth avenues. Under current restrictions, residences and hotels are not permitted in about half of the district, particularly on side streets, and conversion to office space from manufacturing is severely restricted.

A plan advocated by the local business improvement district, called the Fashion Center, envisions a livelier mixed-use neighborhood on the model of SoHo or the Lower East Side.The executive director of the Fashion Center, Barbara Randall, said the plan would stop an exodus of young designers to other parts of Manhattan and keep the fashion in the garment district.

"Let's figure out how much space manufacturing needs in 2006, not 1960 or 1970," Ms. Randall said.

The plan envisions limiting the amount of space devoted to production, and bringing attractive groundfloor retail to the area,particularly boutiques and small cafes.

Lower floors of mid-block buildings, Ms. Randall said, could be dedicated to production,and the top floors,which include the loft-like spaces that have been so popular on the residential market, would be converted to apartments.

So far, Ms. Randall said, "The city is so reluctant to even work with us on some kind of plan."

A spokeswoman for the city's Department of Planning, Rachaele Raynoff, said that the department is studying the issue but would not make any changes that cost the city jobs.

The special garment zoning district was created in 1987 with the goal of keeping apparel production in Midtown and as a way to curb rapidly declining manufacturing employment within city limits. For many years, the zoning was under-enforced, and much of the space was illegally converted into office space.Based on a Bloomberg administration initiative in 2005, enforcement has been stepped up.

Ms. Randall said the newly increased enforcement is not having the right effect.

"Zoning has not been a preserving mechanism," she said. "Zoning didn't stop the global pressures. If labor is cheaper in China, then it's cheaper in China."

She said that about 9 million square feet of space is currently reserved for production, and she would like to see that number reduced to about 1.5 million square feet.

Data provided by a nonprofit that aims to keep the garment business in New York, the Garment Industry Development Corporation, showed that in 2005, 175 manufacturing firms employed about 1,700 people within the boundaries of the traditional garment district.

A project manager for the nonprofit, Magda Aboulfadl, is surveying all the

district's buildings to get an accurate idea of the current uses and how much is currently devoted to manufacturing.

"Every factory I've asked, they say they have to be there,or else they will go out of business," Ms. Aboulfadl said. "They say it's a different business that goes on in Brooklyn than here.They have to be where they are because of their business model and their customers."

She added that most of the production that remains is for high-end fashion products that could not be made overseas.

"The really high-end stuff, if it could be done in China, it would already be going on in China," she said.

Still, Ms. Aboulfadl said her organization would support a proposal that would allow greater development flexibility in exchange for a guarantee that garment manufacturing would permanently occupy 1.5 million square feet of space in the district. She said, however, that the changes would be difficult to implement.

A 2003 report by the Real Estate Board of New York, which supports a change in the zoning, said that the garment district's zoning is costing the city millions of dollars each year in lost tax revenues because the regulations lower the value of buildings. It said the special district rules have resulted in lost income for building owners, and failed to retain manufacturing jobs, which are plummeting.

The president of the economic development consulting firm Appleseed, Hugh O'Neill,did a study on the area in 2003 and said a zoning change would not necessarily lead to the development of exclusively luxury residential units to replace factories. He suggested that a light manufacturing zone would encourage other activities that have already taken root in the area, such as the performing arts.

"Removing the special zoning doesn't necessarily mean the fashion industry will disappear from the area. Would it accelerate the decline of manufacturing in the area? It might, but on the other hand it doesn't seem to have much of a future anyway," Mr. O'Neill said.

[londonlawyer]

When I heard about this on NY1, I hoped that it would include the stretch of B'Way in the mid to high 20's. That stretch has some absolutely magnificent buildings, but it's utterly neglected. If a few sites with lousy buildings were redeveloped as hotels and apartments, it would be stunning. It is astounding that this area is not being redeveloped given the shortage of housing and hotels.

[krulltime]

Survey: Sales prices keep luxury tenants renting


By Tom Acitelli
March 29, 2006

More than 56 percent of luxury renters in Manhattan rent rather than own because of the high price of city apartments, according to a recent survey.

The strength of the Manhattan housing market, where the average apartment sales price remains over $1 million despite recent dips in sales activity and prices, was the main reason why tenants in luxury Manhattan apartments aren't moving to their own co-ops, condos, or townhouses, a survey by the Gotham Organization showed.

But 57 percent of those surveyed said they do plan to buy a home in New York City within the next five years - although, only 7 percent of these said they intended to start looking within a year.

The Gotham Organization in late January and early February polled 1,000 tenants in its three luxury Manhattan rentals -- the Atlas New York on West 38th Street, the Nicole on West 55th Street, and New Gotham on West 43rd Street. Rents at these buildings range from $1,700 some studios to $6,000 for some two-bedrooms.


Copyright © 2003-2005 The Real Deal.

[lofter1]

Hmmmm ... don't know what to think about this one. Granted this block, on both sides of Lafayette, needs something to happen. I have no problem with the contemporary design, however ... the balconies or, uhhh, excuse me, OUTLOOKS (yikes) ...

Whatever you call them I guess they will offer good views of the shelter across the street to the south (I wonder how long the new residents of the these blocks will want THAT to remain in their midst??). Also the sights and sounds of the auto repair shop right next door to the north (a site that is basically unbuildable as the block narrows at the north end and is very narrow at that end). At the very least it will probably mean an end to the car guys using the sidewalk for parking that Corvette.

Another “contemporary” building for Bond Street in NoHo



... a 6-story residential condominium building at 8-12 Bond Street on the northwest corner at Lafayette Street.

... The Committee further objected to the cut out corners, which provide for balconies ...

... To accentuate the connection between the regularity of the grid on Bond Street and the geometry of the lot on Lafayette Streets, balconies or outlooks are inserted to link the facades and the recognize the structure’s habitability.”

[ablarc]

IMO, "outlooks" accomplish exactly what is claimed for them. I find this a very satisfactory terminus to the block.

I might feel otherwise if I knew what this building was replacing. Can anyone tell me?

[lofter1]

Replacing a former horrible gas station now basically an empty site with a large billboard above and surrounded by a rotting plywood enclosure.

Maybe we should save it as is?

[lofter1]

This stretch of Lafayette near Bond has an interesting HISTORY --

"The elegance and beauty of this section cannot be surpassed in the country," exclaimed one New York newspaper in 1835.

Bond Street, near Lafayette 1830s:


Originally the street (then called "La Grange Terrace") terminated at the block to the north and this stretch up to Astor Place was a very elegant street, exemplified by the remaining buildings known as "Collonade Row" (originally 9 buildings of which only 4 remain) just across from The Public Theatre (the former Astor Library).

Collonade Row, La Grange Terrace


Later the roadway was cut thru to create a continuous thoroughfare and connecting it with Lafayette from Bleecker St. to the south -- resulting in the raw edges of buildings along Lafayette and the oddly configured little sites, especially on this block.

In the 1880s, the city extended Lafayette Place south to the City
Hall area, cutting a rude swath from Great Jones through the middle
of Bond and Bleecker Streets. Noisy wagons and other commercial
traffic rumbled through the once-serene streets of the Bond Street area.
St. Bartholomew's moved uptown in 1872 and the Middle Dutch Church
was demolished in 1884; the once elegant houses became stores, and
manufacturing lofts dominated the area.

[czsz]

Much of downtown used to be as elegant as central Boston or Philadelphia. It changed radically when the industrialisation of Manhattan began.

[krulltime]

Union Square area is getting hotter...


Plans at Union Square To Enhance Its Place in History as a Gathering Place


By MICHAEL STOLER
March 30, 2006

For nearly 170 years, Union Square has been a gathering place for commerce, entertainment, labor, political events, and recreation. The park owes its name to being at the intersection, or union, of two major roads, Bloomingdale Road (now Broadway) and Bowery Road (now Fourth Avenue). In 1997, Union Square Park was designated as a National Historic Landmark because of its significance in American labor history. For 20 years beginning in the 1970s, the Union Square area saw hard times. Over the past decade, the area has seen a resurgence and become a major hub of residential, retail, and hospitality.

The 80,000-square-foot headquarters of the Amalgamated Bank, founded in 1923 by the Amalgamated Clothing & Textile Workers of America, is located at 15 Union Square. The site is the former home of Tiffany & Company. The bank has retained an investment sales company to sell the property, which may fetch close to $56 million, or $700 a buildable foot. Industry leaders expect a developer to buy the property, demolish it, and redevelop it as residential condominiums or a mixed-use hotel and condominium tower.

The building on the southwest corner of 14th Street and University Place - a two-story yellow brick box with a fourstory tower enclosed in glass on three sides - was erected in 1949 as the Paterson Silk Building. The building was demolished last year, and was recently acquired by the Claremont Group, which plans to build a mixed-use building. The site is across the street from a building redeveloped by Vornado Realty Trust, the former J.W. Mays site at 4 Union Square South. In October 2004, DSW Shoes was the first retailer to open in the five-story, 193,000-square-foot vertical retail center. Prominent retailers at this location include Filene's Basement, Forever 21, and a 48,000-square-foot Whole Foods Market.

Last year, McSam Hotels, one of the city's leading developers of limited-service hotels, purchased a site at 132-38 Fourth Ave., which is also known as 76 E. 13th St., from John Catsimatidis's Red Apple Real Estate. McSam plans to build a 62,000-square-foot, 10-story boutique hotel.

At 137 E. 13th St., between Third and Fourth avenues, is a site that was recently purchased by Emmut Properties.The developer plans to build a sixstory residential condominium. Up the street, Ultimate Realty purchased from the artist and sculptor Frank Stella a single-family and mixed-use site at 126-28 E. 13th St.

***

The city's first Trader Joe's opened on March 17 in the Palladium building at 142 E. 14th St., which also houses a college dormitory for New York University. The NYU dorm was built in 2001 on the site that previously housed the Palladium, a popular dance club, and Julian's, a pool hall. East of the NYU dorm is University Hall, built in 1998 at 110 E. 14th St. University Hall was built on the site of the famous German restaurant Luchow's, which opened in 1882. In 1982, the restaurant closed and was acquired by the real estate developer Jeffrey Glick. The site was demolished in 1995.

Adjacent to University Hall at 116 E. 14th St. is a two-level P.C. Richard's, on the site of Gramercy Gym, where box ing legends Floyd Patterson and Jose Torres trained.The site used to house a city-owned parking lot.The retail store is in a building that is home to the Genesis Robert F. Kennedy Apartments, which is owned by the nonprofit HELP USA, on East 13th Street. The apartments provide housing for about 94 low-income families, some of whom used to be homeless. HELP USA was founded by Andrew Cuomo.

Last November, NYU entered an agreement with the Hudson Companies to erect a 26-story dormitory to hold about 700 students on a site at 124 E. 12th St. The tower will be on the site of the former St. Ann's Church. Hudson also acquired air rights from the Cooper Station Post Office on Fourth Avenue at 11th Street. The church was built as the 12th Street Baptist Church, later acquired by Temple Emanuel-El, and later acquired by St. Ann's, a Roman Catholic parish on Astor Place.

Across from these buildings on the north side of East 14th Street is the Con Edison building at 2 Irving Place. The Apple Bank for Savings is on the ground floor of the Con Edison Building at 4 Irving Place, a famed clocktower that was built in 1929. At 145-147 E. 14th St. is a parking lot owned by Con Edison that industry leaders expect will be sold to a residential developer.

Last year, Con Edison sold a parking lot at 101 W. 24th St., also known as 735 Sixth Ave., to a joint venture of LCOR and CalSTRS. The developers plan to build a 37-story, 191-unit condo tower.A few years ago, Con Edison sold its Waterside Steam Plant and land along the East River just south of the United Nations for $670 million to the developer Sheldon Solow.

***

Toll Brothers, America's biggest luxury homebuilder, plans to build a 21-story residential condominium tower with 77 units on the mid-block site of the former Variety Arts Theater at 110 Third Ave. between 13th and 14th streets. In addition to the theater site, the development includes the four-story building at 108 Third Ave. The theater opened before World War I and was closed in October 2004. Across from this site is another site that was acquired about 20 years ago by Milstein Properties, owners of the Emigrant Savings Bank and numerous residential rental and condominium towers in Manhattan.

At 421 E. 13th St. between First Avenue and Avenue A in the East Village, the Ascend Group is finishing an eight-story building with 90 condominium apartments - and cabanas on the roof. The developer paid $19.763 million, or about $295 a buildable foot, for the site.

According to industry sources, a great little site for residential condominium development is at 57-59 Irving Place between 17th and 18th streets. The site presently houses a four-story garage that can be developed into a 35,000-square-foot, 10-story building.

The Daryl Roth Theater, in the former Union Square Savings Bank at 20 Union Square East and 15th Street, was built in the 1840s. This landmark building was revived as a theater by the producer Daryl Roth in 1996. In 2002, the theater opened as the 99-seat DR Theatre in the former annex of the Union Square Savings Bank.

A turning point in the redevelopment of Union Square was the erection of the four 26-story, 670-unit residential condo towers, Zeckendorf Towers, in 1987.They occupy a full block between Fourth Avenue, Irving Place, and 14th and 15th streets, including most of the S.Klein-on-the Square properties. S.Klein opened in 1921 and closed in 1975. The project was developed by a joint venture of the Zeckendorf Company, the Hirschfeld Realty Company, Kumagai Gumi Company of Tokyo, and Irwin Ackerman.The apartment towers were built atop six stories of commer cial and retail space.

In early 1997, an investment group led by Peter and Anthony Malkin purchased the 59,977-square-foot retail condo unit at Zeckendorf Towers that includes a Food Emporium, HSBC Bank, and Federal Express. The 362,000-square-foot office condo is owned and operated by Beth Israel Medical Center, which paid about $34 million for it. The building also has a 350-seat theater and a 198-space parking garage.

In 1999, the Related Companies completed the mixed-use building One Union Square South that occupies the block front on 14th Street between Fourth Avenue and Broadway. In addition to the 27-story residential rental tower, the property has a UARegal Cinema, a Virgin Records, and a Circuit City.

Over the next year, industry leaders expect greater expansion of the vibrant Union Square area.


© 2006 The New York Sun, One SL, LLC.

[Eugenius]

Soma at 116 West 22nd Street due for occupancy this spring





22-MAR-06

The Soma at 116 West 22nd Street in Chelsea has sold out and occupancy is anticipated later this spring.

A gramme is better than a damn!

One cubic centimeter will cure one hundred gloomy sentiments!

(c) Aldous Huxley

[lofter1]

Survey: Sales prices keep luxury tenants renting

The Real Deal.

MANHATTAN: MAYOR EXTENDS RENT RULES

NY Times
March 30, 2006

http://www.nytimes.com/2006/03/30/nyregion/30mbrfs.html

Mayor Michael R. Bloomberg signed a bill yesterday that extends the Rent Stabilization Law for three years, to April 1, 2009. The bill, which had overwhelming support from the City Council and Public Advocate Betsy Gotbaum, was based on a finding that a public emergency exists in the rental housing market. A survey last year by the Census Bureau and the city's Department of Housing Preservation and Development determined that the vacancy rate was 3.09 percent, below the 5 percent rate at which state law requires that rent regulation be discontinued.

SEWELL CHAN (NYT)

Copyright 2006The New York Times Company

[krulltime]

Hopoefully there won't be any cancel projects.


New Development: As the market cools
Condo development in New York City isn't what it used to be just last year; developers adjust as banks limit financing and buyers wrangle concessions


By Alison Gregor
April 2006

Taking the pulse of a changing condominium market in New York City can be a difficult proposition when so many livelihoods depend upon it. Promotion of properties spins endlessly, a process full of sound and fury, but not necessarily signifying anything.

Still, there are signs that the new development market is not as robust as it was six months ago. At least one condominium development in the city filed with the state Attorney General in February to cut prices on some units. The Beacon Tower at 85 Adams Street in Brooklyn's Dumbo, being developed by Leviev Boymelgreen, saw prices reduced on about 24 of its 79 units.

But most developers prefer to avoid price cuts at almost any cost, brokers said.

"The market is cooling," said Barak Dunayer, president and founder of Barak Realty, a boutique firm that will soon begin marketing its first new development. "What developers are trying to do is keep the price per square foot the same, but give concessions instead."


Inducements and incentives

At the Avery, nearing completion on the Upper West Side, developer Extell Development Corporation was recently offering to pay closing costs equal to as much as 3.7 percent of the apartment purchase price for buyers. Other strategies that condominium sponsors use to entice buyers include upgrades, shelling out for more expensive kitchens, finishes, or appliances, Dunayer said.

Sometimes, developers of condominiums will offer to cover a year's worth of high maintenance costs -- but will tack those excess costs onto the asking price. That way, the developer gets a high price point for marketing purposes, and the buyer can effectively finance the maintenance costs and still have a lower monthly payment.

"Developers give all types of concessions, from paying closing costs to even giving buyer credit at the closing," Dunayer said. "They can give you $20,000 or $30,000 credit at closing. They have all kinds of names for it. They'd rather do that than adjust the prices."

Adjusting the prices can mean lots of paperwork at the state Attorney General's office, which must approve any pre-construction changes. It's something developers want to avoid. Real estate brokers now notice a number of adroit moves used by condominium developers in a slower market.

"I just sold a large unit at the Barbizon/63, which is the old Barbizon Hotel, and they claim their sales are very vigorous," said Peter Schwartz, a senior vice president at Prudential Douglas Elliman. "They're releasing six or eight apartments at a time for sale, which is typical of these developers. And every time they release some, they try to put about a 5 percent price increase on the group."

For that reason, the records filed with the state Attorney General have in recent years often shown a multitude of price increases for most condominium developments. It's only in recent months that those filings have reflected price cuts.


The Big Apple factor

More speculative real estate markets, such as Miami and Las Vegas, have even recently seen some residential development projects cancelled. But the New York City market is somewhat different from those cities, experts said. Real estate pundits argue that the driving force in New York City's residential sales market is users, not investors.

"Don't forget that 80 percent of our product in New York City is co-operatives," Dunayer said. "And co-ops require owner occupants, and they don't let you speculate. But even in new construction here, people do buy to live there, if not as a primary residence, then as a secondary home.

"As much as things have slowed down," he added, "it's a strong market in a way, because it's people buying their homes -- and when you need a home, you need a home."

While in other, more speculative markets, financing for residential developments is often made contingent by lenders upon a certain amount of presales, projects in New York City receive financing for construction. With financing received up front, projects here may languish and transform, but they're rarely cancelled.

Thus, symptoms of a flagging market in New York City might be found in observing which projects have state-approved plans, but haven't yet come out of the ground. The land under these proposed projects may even be up for resale.


Slowdown builds up

There are at least 10 projects that are in a state of suspended animation, said Andrew Heiberger, founder and CEO of Buttonwood Real Estate, which recently announced the 457-unit 88 Greenwich Street, to be developed in Downtown Manhattan.

"I know of 10 jobs that are just sitting, but I wouldn't call them 'cancelled,'" Heiberger said. "They're just not started, and the reason's definitely the market and the cost of construction. Construction costs have gone in one year from roughly $335 a foot to $400 to $425 a foot."

Heiberger said he wouldn't be surprised if banks and lenders in New York City, which recently began limiting their financing to about 75 percent of new construction projects, down from about 85 to 90 percent, might eventually move toward a model where they made lending contingent upon presales.

"What we might see happen is New York City adopting Miami methodology, which is to pre-sell 80 percent of the development and then build," Heiberger said. "It takes the risk out of the job. It never happened before here because it was never necessary."

Andrew Oliver, managing director and principal of the investment banking firm Sonnenblick-Goldman Company, said some lenders have been shying away from financing new condominium developments.

"The market has definitely gotten more selective for a couple of reasons," he said. "There is more product on the market, and construction costs have increased. Because there's a lot of product coming on, a lot of lenders are full right now on their balance sheets. "They have a lot of these condo construction loans, so lenders want some of these loans to be paid off before they take on new loans."


Figuring out what works

Market watchers have different ideas about which residential developments will sell the fastest. Heiberger, who has invested in apartments at the Orion developed by Extell, said that he believes the reason that units at the Avery have recently been sold at a rate formerly seen six months ago was that the developer lowered the price per foot by about $100 to $1,275 to $1,300 a foot.

Extell's president, Gary Barnett, said the Avery's far West Side location was a big reason for the price changes.

"I do think we could have priced it $50 more expensively," he said, "but we had the room to lower the price, and we wanted to boost the velocity of the sales because this is the first of our projects [in that location]."

"We lowered from our originally intended pricing," he added. "We never filed that pricing."

Heiberger, who works closely with property developers, said he believes $1,300 is the "make or break" price that must be achieved by residential developers currently, and that smaller units priced appropriately are the ticket to success in the cooling market.

"From the plans that I reviewed, one of the mistakes that a lot of these new projects have made, if they actually get built, is they did not build the right-size units," Heiberger said. "They're not coming in at the right price point. They're coming in over $1.5 million -- and there's going to be trouble there."

The market is not a luxury market, he said. "One of the positive things right now is there is definitely a market here," he said. "On conversions, it's $1,000 to $1,150 a foot. On new construction, it's $1,300 to $1,350 a foot. It's studios, one-bedrooms, and two-bedrooms less than $1.5 million."


Interest leaves questions

Interest rates will play a big role in the viability of that market in future months. Schwartz disagreed with Heiberger regarding which sector of the market will thrive, saying those units priced below $1.5 million are the most interest-rate sensitive. Those priced above that will continue to move, he said.

"Any apartments that are selling at about $1.5 million or less, which is a pretty good chunk of the market -- that's small two-bedrooms and under -- are going to be affected by what's going on with interest rates," Schwartz said. "More people will be excluded from being able to buy as long-term interest rates go up."

Those people may opt to rent instead. Either way, there will be fewer buyers for more units, which signifies a marketing shake-up. Already, attendance of open houses for resale apartments has shrunk, Barak said. And those brokers who represent buyers in the market say those buyers feel they have the upper hand -- even if many sellers don't yet want to acknowledge that.

Real estate agent Jared Wiener at Gumley Haft Kleier recently finessed his buyers through a three-month standoff over a furnished two-bedroom apartment at 40 East 61st Street. The sellers didn't want to budge from the $1,995,000 asking price initially, and when they finally did, the buyers almost lost the deal over a difference of $12,500.

"We finally settled at $1,812,500," Wiener said. "A year ago, this apartment would have sold instantly. It was amazing, because when we visited the apartment, the buyers were speaking directly to the sellers' broker saying, 'Have you read the newspaper articles about the softening of the condo market? This apartment is way overpriced.'"



Copyright © 2003-2005 The Real Deal.

[krulltime]

First rush of condos hits market at foot of UWS
New projects in emerging area west of Time Warner Center come online as overall sales slow


By Anjali Naik and Stuart W. Elliott
April 2006

The first spate of condo projects is hitting the market at the foot of the far Upper West Side, part of a flood of residential development planned for the area.

The Element, Hudson, and 10 West End Avenue condos -- all on a single square block -- have started sales, along with the Avery a few blocks away. They are the first entrants into a race for buyers in the area as apartment prices soften and construction costs rise in Manhattan, making the prospect of new development less attractive than a year ago.

Developers now squaring off against one another and against later projects that will follow in the neighborhood say they have the upper hand because they already have shovels in the ground. Construction of at least a dozen projects has been planned or proposed within the next few years in the far West 50s and 60s.

Apollo Real Estate Advisors is developing 10 West End Avenue on a full block-front between 59th and 60th streets. The 33-story, glass-clad tower will feature 173 apartments, and is a second, smaller foray into the neighborhood for Apollo, which is a big believer in the area -- it developed the Time Warner Center along with the Related Companies just a few avenues to the east.

Apollo's new condo project is next-door to the Hudson Condominiums at 225 West 60th Street and Brack Capital's Element condo at 555 West 59th Street. Nitin Karnani, a partner at Apollo, said he believes the project will stand apart.

"We're clearly behind the Hudson in construction but we believe we're offering a higher-quality product," he said. "We're ahead of the Element in terms of construction, and we have much better views of the Hudson River."

Future projects in the area, Karnani said, are likely going to be more costly because of rising construction and land costs. "They will have to attract a significant premium," in terms of sales prices in order to work, he said.

The 10 West End Avenue project is already one story out of the ground, and completion is expected in spring 2007. Apollo bought the site for the project about a year ago, after the Time Warner Center project, which helped transform the neighborhood, was completed. The site was purchased from Cambridge Development and Construction, who had planned a condo there and remain part of the development team.

Studios start at 600 square feet and the biggest units cap out at four bedrooms with 2,700 square feet of indoor space and 2,200 square feet of outdoor space. Prices range from $750,000 to $4.5 million. Hudson River proximity is one of the major selling points.

"Buyers can purchase a unit on the park at $3,000 a square foot at 15 Central Park West," said William Mack, founder and senior partner of Apollo, "or pay half the price for a river view as opposed to a park view."

The project will be competing for families as buyers, though Mack said the project will cater to singles as well. The building will have a children's playroom designed in consultation with the Children's Museum of Manhattan, a swimming pool on the ground floor, a gym, a bicycle room, and on-site parking.

Brack Capital's Element condo, a 35-story sleek glass tower with 198 apartments, is also clearly targeting families with a seemingly endless array of amenities. Construction is expected to be completed in mid-2007.

Besides boasting a children's swimming pool and a playground, kids will also have access to an indoor playroom accessorized by FAO Schwartz, according to Debra Derella-Dheren, sales director at Corcoran, which is marketing the project as well as another identically named project Brack is developing in Miami's South Beach.

Other features will include a 60-foot indoor swimming pool, a whirlpool, an indoor basketball and racquetball court, billiard table, massage table, full-service gym, yoga center, business center, residential lounge, WiFi access, parking garage, and a 12,000-square-foot outdoor space with a great lawn and a meditation garden on the third floor of the building.

Perhaps due to the fact that smaller units are selling better than bigger units these days, marketers here too are not just emphasizing families as buyers of the one- to four-bedroom units. "We're trying to appeal to couples who want a pied-a-terre in the city," said Derella-Dheren, "couples who may want to check out the Theater District, couples who have children in the city, and young professionals who are thinking about families down the line."

Other developers are running neck and neck with these projects. The Hudson Condominiums, being marketed by the Developers Group and Halstead Property, got a jump on the competition by being the first to hit the market, unveiling an ad campaign to lure Wall Street bonus money when bonuses were being distributed among the major firms earlier this year.

And, several blocks north at 66th Street and Riverside Boulevard, Extell Development has already started marketing the Avery, a 32-story condo with riverfront views and direct access to Riverside Park. Backed by private equity firm the Carlyle Group, Extell took New York by storm last year with its record-breaking purchase of 77 acres of Upper West Side land from Donald Trump and a Hong Kong-based consortium. Corcoran is marketing the project, which will feature one-bedrooms starting at $750,000 and penthouses for about $3.9 million.

Brokers say to expect major change at the far western foot of the Upper West Side. "This entire area is going to see an enormous transformation and add tremendous value to the neighborhood," said Joe Lops, managing director for Citi Habitats. "Many families are choosing to stay in Manhattan, and they are approaching condos in this neighborhood."

But not everyone is pleased.

"That's all you see nowadays, condos and condos and condos," said Batya Lewton, vice president for the Coalition for a Livable West Side, a community group. "Already we're seeing an increase in traffic, smog, and congestion, and residents have started complaining."


Copyright © 2003-2005 The Real Deal.

[krulltime]

New Residential Developments


Chelsea
Verde Chelsea
125 West 22nd Street
Brooklyn-based Basile Builders Group is developing the 13-story, 33-unit condominium. Designed by H. Thomas O'Hara, the building will feature no more than three homes per floor, with layouts offering between 778 and 1,838 square feet. All residents will have access to a 1,045-square-foot garden. Sales for the one- and two-bedrooms were expected to start in early April, with prices ranging from $695,000 to $2.85 million. Occupancy is expected in spring 2007. Corcoran Group Marketing is the building's exclusive marketing agent. Contact: 212-627-1255, www.verdechelsea.com.

Chelsea
Slate
165 West 18th Street
The 29-unit Andres Escobar-designed building is now under construction. It will have a glass facade and glass balconies. The 12-story condominium is offering 700-square-foot one-bedrooms starting at $700,000, and the 2,200-square-foot three-bedroom penthouse is $3 million, according to the New York Post. Amenities include a garage and a pet spa. Sales were expected to open in mid-March. Contact: 212-627-5283, www.slatecondos.com.

Chelsea
241-245 West 19th Street
Ginsburg Development Corp. bought two small apartment buildings at the site, has already demolished them, and will build a 12-story condominium project, the Post reported. The previous owners, a local partnership, first devised the condo scheme, but decided to sell instead. Ginsburg will now go ahead with the plans, which call for a 38,358-squarefoot structure.

East Village
254 East Second Street
The seven-story rental building has 47 studio, one- and two-bedroom units ranging in size from 410 to 950 square feet. Designed by Architecture & Design Group, the building sits on top of the Eastside Tabernacle Church. Prices range from $1,500 to $4,700 per month. Homes will be available for occupancy by the end of April. Core Group Marketing is the exclusive marketing and rental agent. Contact: 212-726-0709, www.coregroupmarketing.com.

Midtown
Southwest corner of Madison Avenue and 53rd Street
Developer Harry Macklowe plans to raze five old brick structures for a new hotel and condominium development. Macklowe will build a tower of several hundred thousand square feet, the Post reported. A hotel will occupy roughly the lower third of the tower and luxury condos will be on the upper floors.

Murray Hill
m127
127 Madison Avenue
The 12-story condominium conversion took the inspiration for its name from the city bus system. Prices start at $1.5 million for one of the 1,700-square-foot floor-through lofts, and at $3.5 million for the 2,500-square-foot duplexes, the Post reported. Creative agency The Apartment is in charge of the interiors, marketing and branding. Stribling & Associates will begin selling the apartments this fall. Contact: www.stribling.com.

Upper East Side
Barbizon/63
140 East 63rd Street
BPG Properties has converted the Barbizon Hotel into a luxury condominium. Architect Nancy Ruddy of Cetra/Ruddy designed the interiors. One- to three-bedroom units and five penthouses range in size from 680 to more than 5,000 square feet. Occupancy is slated for winter 2007. Prudential Douglas Elliman is the exclusive marketing and sales agent. Contact: www.barbizon63.com.


Construction Update

East Village
188 Ludlow Street
Edison Properties broke ground in February for the 23-story mixed-use building. The 210,000-square-foot, 243-unit project will be constructed with Hunter Roberts Construction Company acting as general contractor. Costas Kondylis & Associates is the architect. The $90 million project was financed with tax exempt bonds under the state's 80/20 program.

Greenwich Village
Site near 13th Street and Eighth Avenue
A developer wants to build an 11-story, 70,000-square-foot glass building with 32 units on the site of a parking lot. Preservationists and elected officials asked the Landmarks Preservation Commission to reject the application last month, according to the New York Sun.

Lower East Side
Blue
105 Norfolk Street
Construction of the 32-unit condominium has reached the halfway mark, with eight stories of the total 16 completed. The project is expected to top out in early May; occupancy is scheduled for fall 2006. Contact: 212-533-8822, www.bluecondonyc.com.


Sales Update

Battery Park City
The Verdesian on the Park
211 North End Avenue
The first tenants moved into the Albanese Organization's 26-story, 254-unit "green" rental last month. The building was nearly half-leased prior to occupancy. Units range from 500-squarefoot studios starting at $2,350 per month to 1,400-square-foot three-bedrooms starting at $6,500 per month. Contact: 212-227-0222, www.verdesian.com.

Harlem
The Lenox
Lenox Avenue between 129th and 130th streets
Five of the 17 units priced at more than $1 million in Harlem's first fully market-rate condo development in decades had been sold as of March, even though occupancy is several months away, the Sun reported. The building has 77 units total, with prices ranging from $490 a square foot for three-bedrooms to $668 a foot for the penthouses with terraces. Contact: 212-234-8888, www.thelenoxnyc.com.

Harlem
The Rhapsody
2056 Fifth Avenue
The condominium's 22 units will go on the market in April, according to the Post. The building was formerly the Gospel Temple Church of America.

Murray Hill
The Aurora
556 Third Avenue
Sales of the 4,000-square-foot penthouses are under way, with prices starting between $3.4 and $3.8 million. All buyers will have views of the city from four balconies and a private rooftop garden. Mitchel Maidman is the developer. Shvo Marketing is the sales agent. Contact: 212-994-4556, www.aurora.shvo.com.

Upper East SideCielo
83rd Street and York Avenue
A model residence and sales center were unveiled last month at JD Carlisle's 28-story condo. The newly furnished two-bedroom, two-and-a-half-bath model was designed by interior designer Alex Chapman. Occupancy is slated for spring 2006. Contact: 212-737-7200, www.cielocondos.com.


Development in Brief
Manhattan (from north to south)

2050 Fifth Avenue
The Mount Moriah Church is looking to strike a deal with a developer, according to the New York Post. Park Avenue between

121st and 122nd streets
North General Hospital is planning to sell the parking lot to a developer who will build a 15-story residential condominium tower, the New York Sun reported.

602-612 10th Avenue
A Long Island development company will build a luxury condominium on the 10,000-square-foot parking lot. The site can support 54,700 square feet.

Sixth Avenue between 30th and 31st streets
Herald Square Development bought the 33,500-square-foot plot and may build up to 335,000 square feet of space, including 247,000 square feet of residential, Crain's reported.

27 West 19th Street
Later this year, Skyway Development Group plans to begin construction of a 15-story residential condominium, the Sun reported.


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