The Real Deal New York

Living room-heavy East Village rental building lists at a discount

Turns out, living rooms marketed as bedrooms are highly lucrative
August 11, 2015 09:40AM

Having a living room-laden building in the East Village is a huge disadvantage, as the owners of an eight-story 33-unit rental tower are discovering.

The recently-constructed tower at 316-318 East Third Street is on the market for $26.3 million and will likely sell at roughly $1,100 per square foot, far lower than that of older walk-up buildings nearby, which are selling for around $1,300 a square foot, according to Crain’s.

The difference, according to listing broker James Nelson, of Cushman & Wakefield, is that the older buildings have converted much of their living space to “winged” bedrooms. In other words, the living rooms are marketed as bedrooms, which command bigger prices. That’s not an option at 316-318 East Third Street, dubbed “The Robyn” by its owners.

“Living rooms don’t create revenue, but bedrooms do,” Nelson said. “That’s why my building is unexpectedly cheaper. It has living rooms.” [Crain’s]Ariel Stulberg