Investors, developers looking to Northern Manhattan

Emerging market development contingent on infrastructure: panel

TRD New York /
Apr.April 30, 2015 06:00 PM

Emerging markets like Northern Manhattan are offering real estate investors “huge potential for growth,” though such growth is dependent on continued investments in transportation and infrastructure, market players said at a Midtown panel discussion Thursday.

Developers and investors are increasingly looking to emerging neighborhoods thanks to “trends occurring that have led us to look beyond our core markets,” RXR Realty exec Seth Pinsky said at Bisnow’s “NYC’s Emerging Markets” panel.

“The core markets of the city are attracting so many people that it can’t keep up with demand,” Pinsky noted, with more commercial and residential tenants “looking for walkable, transit-oriented” neighborhoods in Northern Manhattan and the outer boroughs.

“People and businesses want to be in these places,” Pinsky added, stressing the “need to continue to invest in quality of life and infrastructure” projects to facilitate further development in such emerging markets.

Northern Manhattan was the primary focus of the morning’s discussion, with Cushman & Wakefield’s Robert Shapiro lauding Harlem’s prospects for future development.

“Fundamentally, [Harlem] has some of the best transportation in the city,” Shapiro said, with that infrastructure fostering “high value” residential developments that aimed at attracting tenants “who can afford $45 [per square foot].”

“Today we’re asking $300 a buildable square foot uptown, and we’re getting in the $200s,” Shapiro added. “It’s happening.”

While HAP Investment Developers CEO Eran Polack was less bullish, describing Shapiro’s evaluation of the Northern Manhattan market as “too expensive,” Ariel Property Advisors’ Victor Sozio agreed, noting “the fundamentals are there” for growth in Harlem.

“Development values are still not too expensive,” Sozio said. “Harlem has the infrastructure that will continue to be conducive to this growth.

Janus Property Company principal Scott Metzner noted how his company first ventured into the Harlem market “literally 30 years ago,” and how the market has transformed from one “where nobody wanted to buy” a $10,000 brownstone to one where “people are coming to Harlem to try to make money.”

Shapiro described Janus’ $135 million mixed-use redevelopment of the former Taystee Bakery as “one of the most exciting projects” in the neighborhood.

“If you haven’t walked around this area and you’re a real estate bloodhound, it smells like it’s going to be the [next] Meatpacking District,” Shapiro said.


Related Articles

arrow_forward_ios
The Coca-Cola building at 711 5th Avenue (Credit: Google Maps and iStock)

Flipped off: The inside story of Coca-Cola’s botched building sale

Vineyard Vines HQ sold in Stamford, Avon inks Rye deal & more Westchester and Fairfield real estate news

Real estate tech investor Fifth Wall launches $500M fund

New heights for Everest as insurer inks North Jersey’s largest lease deal of 2019

Numbers were down across the board (Credit: iStock)

New York’s multifamily market had its slowest first half of the year since 2011

This Westchester development site just hit the market seeking nearly $30M

Gale Brewer proposes women’s jail at Lincoln Correctional Facility (Credit: Getty Images and iStock)

Gale Brewer wants to turn “prime, trophy real estate” into women’s jail

Somerville moves forward with 31-acre transit village, Woodcliff Lake office property sold for $36M & more North Jersey real estate news

arrow_forward_ios