Big-name buyers opt for small luxury buildings

New York /
Jan.January 21, 2014 12:10 PM

More high-end buyers in New York City are opting to live in buildings with fewer — but spacious — units, according to agents and developers.

Although big apartments in small buildings are common stock in Europe, it wasn’t until rezoning in places like Lower Manhattan limited how high developers could build that smaller buildings became popular, according to the Wall Street Journal.

But the units don’t come cheap. Take, for instance, the 18-story 18 Gramercy Park, which ranked the highest-priced new project in 2013 averaging more than $4,000 per square foot. Once made up of 200 studio apartments, the building was converted by William Zeckendorf into 16 luxury units, including a mansionette. When they hit the market, prices started at a whopping $9.5 million, according to the Journal.

However, it may be a better deal for developers than buyers. Buildings with fewer units usually offer fewer amenities. Moreover, the cost of those amenities, like the salary of a doorman, are higher since they’re spread across fewer tenants, the Journal reported. The same problem arises when dealing with the cost of repairs.

If “there’s something wrong with the structure, you’re dividing it by a smaller number of people that have to pay,” Donna Olshan, head of Olshan Realty, told the Journal. [WSJ] — Angela Hunt


Related Articles

arrow_forward_ios
15 East 90th Street and 325 West Broadway (Getty, CityRealty, Streeteasy)
Thanksgiving-week buyers gobble up 15 luxury Manhattan homes
Thanksgiving-week buyers gobble up 15 luxury Manhattan homes
Unit 124 at 217 West 57th Street and Gary Barnett (Extell Development, StreetEasy)
“124th floor” at Central Park Tower tops Manhattan luxury contracts
“124th floor” at Central Park Tower tops Manhattan luxury contracts
Argo Real Estate's Mark Moskowitz 64 University Place (Argo Real Estate, Bsafal)
Argo’s Greenwich Village condo sees quick-fire sales
Argo’s Greenwich Village condo sees quick-fire sales
464 Greenwich Street, Mickey Drexler (Getty, Corcoran)
Quirky homes top Manhattan’s luxury contracts
Quirky homes top Manhattan’s luxury contracts
Sotheby’s Nikki Field with 740 Park Avenue (Sotheby’s International Realty, Google Maps, Getty)
Buyers spurn NYC’s storied co-ops
Buyers spurn NYC’s storied co-ops
A photo illustration of Joseph Chetrit and 215 East 19th Street (Getty, Google Maps)
Chetrit-developed Gramercy condo leads Manhattan luxury contracts
Chetrit-developed Gramercy condo leads Manhattan luxury contracts
Joseph Chetrit and 260 East 72nd Street (Getty Images, Google Maps)
Chetrit plans Upper East Side condo development
Chetrit plans Upper East Side condo development
Eldad Blaustein with 525 6th Avenue (Google Maps, Core NYC)
Izaki files condo plans for West 14th Street
Izaki files condo plans for West 14th Street
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...