A taste for the “grit-tastic” is what differentiates the new generation of buyers

Developers in New York, Los Angeles, Boston and San Francisco are all taking note

New York Weekend Edition /
Dec.December 10, 2017 03:28 PM

(Pixabay)

The story of comparatively wealthier residents moving into rundown, low-income areas and beginning gentrification is a well-known story.

However, now there’s a whole new class of developers who aren’t waiting for buzz to begin about a neighborhood, according to the Wall Street Journal. These developers are buying in early and erecting luxury condos long before speculation begins — and their units are selling.

The difference in approach apparently comes down to the average buyers’ generation.

“Values in Gen X and Y buyers are different from previous generations. They have a higher tolerance for crime and grit, so long as amenities, culture, services, transit and jobs are proximate,” says Trumark Urban’s Arden Hearing.

Hearing’s development company launched sales for their Los Angeles Ten50 building in 2016 and condos went from between $500.000 and $4 million.

“We have projects that are gritty and fantastic. We talk about them being ‘grit-tastic’.”

It’s a trend UCLA real estate lecturer Paul Habibi has noticed as well: “Developers are selling authenticity and the urban experience, which is more in favor than 15 years ago, when suburbia was viewed as the utopia,” he says.

In fact, New York’s own Hudson Yards project might be the best example of high-end development moving into a formerly undesirable area and transforming it.

Habibi says most buyers will be young people or foreign buyers — neither a group concerned about surrounding schools or other amenities essential to conventional family life.

[WSJ] — E.K. Hudson


Related Articles

arrow_forward_ios
(iStock)
Rents in New York and South Florida metros surged more than 30%, led nationwide rise
Rents in New York and South Florida metros surged more than 30%, led nationwide rise
Children’s Magical Garden at at 157 Norfolk Street (Google Maps, Facebook)
Children’s Magical Garden claps back against developer who claimed defamation
Children’s Magical Garden claps back against developer who claimed defamation
432 Park pad trades for $26M, supertall’s priciest deal since 2019
432 Park pad trades for $26M, supertall’s priciest deal since 2019
432 Park pad trades for $26M, supertall’s priciest deal since 2019
312 West 43rd Street, National Real Estate Advisors CEO Jeffrey Kanne and Taconic Partners' Paul Pariser and Charles Bendit (Google Maps, National Real Estate Advisors, Taconic Partners)
Taconic JV lands $204M loan for Hell’s Kitchen luxury rental
Taconic JV lands $204M loan for Hell’s Kitchen luxury rental
25 Park Avenue in Larchmont (WilliamPitt)
Estate famed for turtle soup has new distinction: $11M sale price
Estate famed for turtle soup has new distinction: $11M sale price
Travis Soukup and Yongxing Deng with Fifth Wall's Brendan Wallace (Aloft/Zack Phillips, Jeff Newton, iStock)
Appraisal startup Aloft closes $20M Series A led by Fifth Wall
Appraisal startup Aloft closes $20M Series A led by Fifth Wall
1439 Ocean Avenue in Brooklyn (Google Maps)
New York’s “worst landlord” pays the piper in $235K city settlement
New York’s “worst landlord” pays the piper in $235K city settlement
Now streaming: TRD’s podcast Deconstruct on what’s next for Surfside
Now streaming: TRD’s podcast Deconstruct on what’s next for Surfside
Now streaming: TRD’s podcast Deconstruct on what’s next for Surfside
arrow_forward_ios

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

Loading...