The first spate of condo projects is hitting the market at the foot of the far Upper West Side, part of a flood of residential development planned for the area.
The Element, Hudson, and 10 West End Avenue condos — all on a single square block — have started sales, along with the Avery a few blocks away. They are the first entrants into a race for buyers in the area as apartment prices soften and construction costs rise in Manhattan, making the prospect of new development less attractive than a year ago.
Developers now squaring off against one another and against later projects that will follow in the neighborhood say they have the upper hand because they already have shovels in the ground. Construction of at least a dozen projects has been planned or proposed within the next few years in the far West 50s and 60s.
Apollo Real Estate Advisors is developing 10 West End Avenue on a full block-front between 59th and 60th streets. The 33-story, glass-clad tower will feature 173 apartments, and is a second, smaller foray into the neighborhood for Apollo, which is a big believer in the area — it developed the Time Warner Center along with the Related Companies just a few avenues to the east.
Apollo’s new condo project is next-door to the Hudson Condominiums at 225 West 60th Street and Brack Capital’s Element condo at 555 West 59th Street. Nitin Karnani, a partner at Apollo, said he believes the project will stand apart.
“We’re clearly behind the Hudson in construction but we believe we’re offering a higher-quality product,” he said. “We’re ahead of the Element in terms of construction, and we have much better views of the Hudson River.”
Future projects in the area, Karnani said, are likely going to be more costly because of rising construction and land costs. “They will have to attract a significant premium,” in terms of sales prices in order to work, he said.
The 10 West End Avenue project is already one story out of the ground, and completion is expected in spring 2007. Apollo bought the site for the project about a year ago, after the Time Warner Center project, which helped transform the neighborhood, was completed. The site was purchased from Cambridge Development and Construction, who had planned a condo there and remain part of the development team.
Studios start at 600 square feet and the biggest units cap out at four bedrooms with 2,700 square feet of indoor space and 2,200 square feet of outdoor space. Prices range from $750,000 to $4.5 million. Hudson River proximity is one of the major selling points.
“Buyers can purchase a unit on the park at $3,000 a square foot at 15 Central Park West,” said William Mack, founder and senior partner of Apollo, “or pay half the price for a river view as opposed to a park view.”
The project will be competing for families as buyers, though Mack said the project will cater to singles as well. The building will have a children’s playroom designed in consultation with the Children’s Museum of Manhattan, a swimming pool on the ground floor, a gym, a bicycle room, and on-site parking.
Brack Capital’s Element condo, a 35-story sleek glass tower with 198 apartments, is also clearly targeting families with a seemingly endless array of amenities. Construction is expected to be completed in mid-2007.
Besides boasting a children’s swimming pool and a playground, kids will also have access to an indoor playroom accessorized by FAO Schwartz, according to Debra Derella-Dheren, sales director at Corcoran, which is marketing the project as well as another identically named project Brack is developing in Miami’s South Beach.
Other features will include a 60-foot indoor swimming pool, a whirlpool, an indoor basketball and racquetball court, billiard table, massage table, full-service gym, yoga center, business center, residential lounge, WiFi access, parking garage, and a 12,000-square-foot outdoor space with a great lawn and a meditation garden on the third floor of the building.
Perhaps due to the fact that smaller units are selling better than bigger units these days, marketers here too are not just emphasizing families as buyers of the one- to four-bedroom units. “We’re trying to appeal to couples who want a pied-a-terre in the city,” said Derella-Dheren, “couples who may want to check out the Theater District, couples who have children in the city, and young professionals who are thinking about families down the line.”
Other developers are running neck and neck with these projects. The Hudson Condominiums, being marketed by the Developers Group and Halstead Property, got a jump on the competition by being the first to hit the market, unveiling an ad campaign to lure Wall Street bonus money when bonuses were being distributed among the major firms earlier this year.
And, several blocks north at 66th Street and Riverside Boulevard, Extell Development has already started marketing the Avery, a 32-story condo with riverfront views and direct access to Riverside Park. Backed by private equity firm the Carlyle Group, Extell took New York by storm last year with its record-breaking purchase of 77 acres of Upper West Side land from Donald Trump and a Hong Kong-based consortium. Corcoran is marketing the project, which will feature one-bedrooms starting at $750,000 and penthouses for about $3.9 million.
Brokers say to expect major change at the far western foot of the Upper West Side. “This entire area is going to see an enormous transformation and add tremendous value to the neighborhood,” said Joe Lops, managing director for Citi Habitats. “Many families are choosing to stay in Manhattan, and they are approaching condos in this neighborhood.”
But not everyone is pleased.
“That’s all you see nowadays, condos and condos and condos,” said Batya Lewton, vice president for the Coalition for a Livable West Side, a community group. “Already we’re seeing an increase in traffic, smog, and congestion, and residents have started complaining.”