The Real Deal New York

In rare instance, Soho building has Artist-in Residence requirement waived

Move thought to boost value of the Mercer Street condos

November 14, 2012 09:00AM
By Katherine Clarke

111 Mercer, Fredrik Eklund and John Gomes

A new Soho condominium, at 111 Mercer Street, has received an unusual special permit circumventing its Artist-in-Residence Certification, a move could increase the property’s value up to 15 percent.

For years, Soho’s famous loft-style residences have been reserved by the city exclusively for working artists thanks to city zoning laws. The requirement that all of these buildings’ units, spanning five dozen blocks north of Canal Street, serve as homes only to artists has been a thorn in the side of property owners and brokers across the city, who complain that the rules limit the audience for potential new developments. Non-artists have moved into these units over time, signing a waiver with the sellers consenting that if the city comes knocking, the liability falls with the buyer.

“This is huge for us,” Fredrik Eklund, who is marketing the property alongside fellow Prudential Douglas Elliman broker John Gomes, told The Real Deal. “The entire process took 18 months and involved numerous city agencies with approvals at every level.”

The Landmarks Preservation Commission and Department of City Planning required developer Veracity Development to complete a Class A renovation of the building in support of the application, incorporating historically accurate materials, a spokesperson for Veracity said. Closings at the four-unit property will begin in the spring of 2013. Two of the units are already in contract.

The artist rule has been in play for three decades. It was instituted to permit artists to use formerly industrial spaces as private residences. The rule has been more strictly enforced in recent years.

Kirk Rundhaug, another Elliman broker with a listing in the adjacent building, said 111 Mercer’s values are significantly higher than those at the building in which his listing is located, at 115 Mercer Street.

Rundhaug’s listing, a 2,000-square-foot two-bedroom, is asking $3.49 million. Meanwhile, a 2,000-square-foot two-bedroom unit next door is asking $4.5 million. Rundhaug said the AIR waiver, in addition to the new construction and high-end finishes, could be contributing to the difference in price.

The penthouse at 111 Mercer is asking $12.5 million, according to Streeteasy.com.

2 Responses to “In rare instance, Soho building has Artist-in Residence requirement waived”

  1. November 14, 2012 at 9:08 am, 3CPO said:

    Kirk…thats not the reason for the difference in pricing…and first of all they are only listing which you should know by now don’t mean a thing…its just better and much newer product…..the AIR issues don’t mean a thing and shouldn’t account for any discount….Have been selling in this market for 15+ years and if they ever got rid of the non-artisans SOHO would be empty….do you really believe this is the case?…and do you believe they would have to sell to airtist at 25-50 percent of todays market value?…Lets get real….deal?

  2. November 15, 2012 at 8:16 am, jpl555 said:

    Over the years, numerous Special Permits have been granted by CPC and supported by LPC to waive the JLWQA requirement. Our office has done 8 Special Permits.

comment form

You must be logged in to post a comment.

MENU