EV commands high prices as luxury is scarce

With so little new development in the East Village, the few units of luxury condominiums that hit the market sell fast and for high prices, the New York Post reported.

For example, Orange Management, which developed the 48-unit 123 Third Avenue at 14th Street, sold every unit in about a year, excepting four penthouses priced between $3.6 million and $4.525 million ($1,800 to $2,000 per square foot). And developers aren’t the only ones trying to capitalize on a shortage of luxury with high asking prices, the Post said, as John Legend is asking $2.95 million for his 1,359-square-foot two-bedroom unit at 52 East Fourth Street.

“In terms of new development, I just don’t see a ton on the horizon for the East Village, but there are a lot of strong resales there,” said Ari LeFauve, senior vice president and associate broker at MNS.

Ground will break this summer on a new, 82-unit condo at 211 East 13th Street, but the little remaining land that developers can secure are turning rental because of the strong market. The high density of students and young professionals make the East Village an up and coming neighborhood, the Post said, but they also flock to the neighborhood for the cheap rents that result from the old building stock.

LeFauve said that developers of the rental buildings are taking advantage of market conditions right now, and he wouldn’t be surprised to see them re-renovate and launch buildings as condos asking more than $2,000 per square-foot in the near future. [Post]