The Real Deal New York

Green space means more green for developers of luxury units

Some terraces trade for higher per square price foot than indoor space
March 21, 2014 11:05AM

Developers are taking advantage of New Yorkers’ desire for green space by maximizing the amount of “outdoor living” a space offers — and then charging a premium for it.

Luxury condominiums tend to sell for a higher price if they include a terrace, the New York Times reported. Downtown luxury condos that come with terraces sell for an average of $8.3 million. By comparison,  apartments in the same area without terraces sell for an average $6 million, Manhattan-based Vanderbilt Appraisal told the Times.

The industry has responded by upping the cost per square foot of outdoor space. Terraces used to be worth 20 to 50 percent of the interior square footage — but now, they’re equal in value or are priced higher per square foot than inside the apartment, according to the paper.

At Alexico Group’s jenga-like 56 Leonard Street, for example, which was designed to give each unit an outdoor space, a duplex penthouse with about 1,200 square feet in terraces recently went into contract for $47 million, about $6,000 per square foot, as previously reported. Other developments selling decks at a premium include Witkoff Group’s 150 Charles Street and Walker Tower at 212 West 18th Street[NYT]Angela Hunt