The Real Deal New York

The Amazon effect created a surge in condo contracts in LIC

Buyers may still try to get out of deals that haven’t closed
February 28, 2019 09:00AM

Corte at 47-42 Vernon Boulevard in Long Island City and Jeff Bezos (Credit: Wikipedia, Getty Images, and Corte NYC)

While it may have been short-lived, the Amazon effect created a spike in contracts in Long Island City.

Between Sept. 13 and Nov. 12, LIC and Astoria had a total of 79 contracts signed for homes, the New York Post reported. Between Nov. 13 and Feb. 13, right before Amazon pulled out, contracts rose to 157.

The higher number of contracts pushed up dollar volume. During the September-to-November time frame, the dollar value of contracts was $76.53 million, according to Online Residential. That more than doubled to $160.74 million from November to mid-February.

The 85-unit Corte condo building fared particularly well, with 39 contracts signed. And 42-unit Bond, a building at 46-20 11th Street, saw 14 signed contracts.

Though these contracts are signed, the deals haven’t closed — leaving some wiggle room for buyers who many want to back out. While LIC remains a growing neighborhood, Amazon’s departure has deflated the super-charged enthusiasm for the area.

While the area will continue on an upward trajectory, it won’t be as fast the transformation Amazon would have ushered in, brokers have told The Real Deal. The company’s decision is likely to slow absorption of the flood of condo inventory and may discourage developers who were considering projects in the area. [NYP] — Meenal Vamburkar