22 Mar Manhattan’s Luxury Apartment Market Flourishing
Manhattan’s luxury market continues to gain heat, as new buildings asking $6,742 a foot are selling at sky high prices well before completion. The demand for luxury apartments in New York City ensures success for EB-5 investors whose funds are going to US Immigration Fund projects The Charles and Bryant Park.
Comparable properties to the Charles and Bryant Park include 432 Park, with a total asking price for its 126 units of 2.7 billion, according to a filing with the New York attorney general. This price reflects a 13% increase over July 2012. Just a few blocks to the west is a likeminded high-rise, known as One57. Also in Midtown, a group of investors just purchased the building for $1.1 billion and are planning on turning the development into condos. A collection of 61 luxury apartments known as the opulent Baccarat Hotel and Residences is being developed by New York-based TriBeCa Associates and is under construction in Midtown as well.
Big ticket supply is dwindling, and demand for high-end units is skyrocketing. At a downtown Manhattan luxury project called 56 Leonard, $450 million in contracts were signed in the first few weeks of development, including over half the 145 apartments, according to Corcoran Sunshine Marketing Group.
Because condo developers in New York often begin marketing units years before completion, buyers are able to put contracts down and reserve their property, paying off the balance when the apartment is completed. The developers of the previously mentioned 432 Park were allowed to begin selling units in July 2012. Since then, unit prices have increased three times over.
US Immigration Fund looks forward to equal if not higher rates of success with the development of The Charles and Bryant Park. Both projects already show a high aptitude for performance, as they have been backed by some of New York’s best development companies and the country’s best banks.