My month was spent looking at New Developments both in New York and Israel.
More specifically, Tel Aviv in Israel and on the West Side in Chelsea and Clinton.
I know that I’m a New York City broker, but my week in Tel Aviv was eye opening, in terms of views these towers offer, the incredible amount going on in and around Tel Aviv, and the general buoyancy of the Real Estate market there.
I’ve been told by various real estate professionals, whose opinions I value, that the market there is overheated.
However, given the higher mortgage rates, the very high downpayments, and the strength and profile of high end buyers there- there seems to be far less speculation, or at least more qualified speculation.
The “Meier on Rothschild,” among many other striking towers along the water, may receive animosity from locals, but the process and change were moving to watch.
Now, back to New York City.
I was among the first brokers shown the sales office at 151 West 21st Street
– First, this is the first sales office I’ve been in, apart from the One57 sales office, since 2009, which took place in an off-site location.
That is, one may be in a mock-up of a kitchen or bath, but not actually in the building.
Closings will take place late 2013
In this case, not only was I standing in a sales office, but I really had no feeling for what the building was going to look like.
I walked the block, which is on West 21st between 6th and 7th avenues- a nice location across the street and over from a large rental building, an historic tiny cemetery, and other condominium constuction.
Essentially, the asking prices range from $1000 per square foot on lower floors, and $1250 for lower floor 2bedrooms, up to about $1300-1400 per square foot for higher floor one-bedrooms and two-bedrooms, onto $2000 per square foot for the highest floor three-bedrooms.
How is this pricing derived?
There is a huge shortage of product to purchase, to the point where the sales staff was really selling off of a floorplan.
I had to shake my head, and remind myself what year I’m in.
No, not 2007, but 2012.
Amazing!
The building bills itself as green, getting LEED certification and using elements which are really quite nice for owners.
There are air purification and water purifications elements which hermetically seal (not literally) apartments from one another, to keep smells and smoke completely enclosed.
Purified water, etc.
My verdict?
$1250/square foot for new development which one must wait 18 months for?
Seems about right.
The $2000 per square foot, though, when one can’t be sure of views?
That will likely take more time to sell.
The finishes are nice, but simply du jour finishes.
Nothing to drop your jaw over.
I see this as speculative purchasing, for someone who takes a view past the presidential election of inflation, or a view that the Euro is going way down.
I’ve made recommendations on the lower floor 1bedrooms, but don’t see the high floors as the best options available right now.
We’ll see more as construction develops!