Back in the days when developers needed only to announce a New York condo project in a hot neighborhood or a design by a celebrity architect, buyers snapped up fresh units amid the city’s real estate boom.
As the go-go days recede into pricey memory, these developments, which transformed both the housing market and the geography of many neighborhoods, have, in fact, stood the test of (a short) time, and are still fetching healthy resale prices. The Real Deal investigated the fates of six boom-time condo developments and found that after the buzz faded, re-sales still boomed, according to figures provided by the brokerages that marketed them.
Lion’s Head Condominium
121 West 19th Street, Chelsea
The 67 units at Lion’s Head sold out within two months of opening in March 2005, says Joel Breitkopf of developer Alchemy Properties, which marketed the units in-house. Condos sold for $500,000 to $2.75 million and range from 765 to 3,950 square feet. He says 78 percent of the units are now occupied. Those looking to resell are asking 20 to 30 percent higher than the purchase price, Breitkopf said. An 800-square-foot one-bedroom that originally sold for $750,000 was resold recently at $825,000, for a 10 percent profit. A 2,300-square-foot three-bedroom that originally sold for approximately $1.75 million was put on the market for $2.9 million, a 66 percent increase if sold at the asking price.
231 10th Avenue, Chelsea
The 22-unit condo sold out in October 2004 in a day-and-a-half, according to the New York Times. Two- and three-bedroom units range from 1,420 to 2,500 square feet, and initially sold for $1.1 million to $3 million, according to the Corcoran Group. Re-sales in 2006 averaged 44 percent, or $802,000, higher than their buying price, Corcoran said.
505 Greenwich Street
505 Greenwich Street, Hudson Square
Opening prices in March 2004 ranged from $495,000 to $3.3 million for the building’s 104 units, ranging from 720 to 2,400 square feet. Re-sales in 2006 have averaged 66 percent, or $660,000, more than the original purchase prices, according to the Corcoran Group.
516 West 47th Street, Midtown West
The project by GPG Equities sold its 148 units within eight days of opening. The development features studios, one- and two-bedrooms with bamboo flooring and energy-efficient air conditioning and heating systems. The $80 million condo opened in June 2005, with prices ranging from $320,000 to $775,000, according to the Corcoran Group. Re-sales have averaged 23 percent, or $120,000, higher than their buying price, according to Corcoran.
60 Broadway, Williamsburg
Converted from a 10-story musical-instrument factory, the Gretsch contains 130 lofts ranging from studios to three-bedrooms. At its opening in July 2003, prices ranged from $239,000 to $2.37 million. In 2006, re-sales have averaged 45 percent, or $345,000, higher than the buying price, according to the Corcoran Group.
350 West 42nd Street, Midtown
The 61-story condo tower by Extell Development was the first in a spate of condo towers built on far West 42nd Street. Opening sales in February 2005 ranged from $409,000 to $1.5 million, according to Corcoran. Re-sales in 2006 have averaged 38 percent, or $205,000, higher than buying prices.