The national mega-builder Toll Brothers lost $93.7 million in the second quarter of 2008 and subsequently had part of its credit rating downgraded to junk status.
Surprisingly, the bleeding was less than the market had expected. And, helping to slow the plunge was Toll Brothers’ City Living division and its projects in New York and the metro area, including in Williamsburg and Hoboken.
In Williamsburg, the first tower at Northside Piers on the waterfront has begun occupancy with three-quarters of its 180 units pre-sold.
Now, having just broken ground, the second tower at Northside Piers will open for pre-construction sales next month.
Sales at Two Northside Piers will be a telling indicator of the current state of the luxury market in Williamsburg. Containing 270 units, the tower — which is slated for completion in just over 18 months — will be 50 percent larger than One Northside.
And while at 30 stories the second glass tower will be just one story higher than the first, it will have a wider footprint. Because it will be closer to the water and contain proportionally more units with full-on river views than its already completed cousin, prices will be generally higher.
Prices at Tower One have ranged from the low $500,000s to more than $2 million.
The second tower could benefit from the learning curve of the marketing of the first. Buyers for One Northside turned out to be younger than Toll Brothers had expected, prompting the developer to switch the unit mix, building 60 percent studios and one-bedrooms at Tower Two, compared to the 60 percent family-sized two- and three-bedroom residences at Tower One.
“Our people are singles in their late 20s and 30s, with some couples,” said Toll Brothers senior vice president David Von Spreckelsen. “There are not a lot of families so far, which may change as the neighborhood matures.” Most of the unsold units at Tower One are the bigger layouts.
While designed by the same architect as its predecessor, FXFowle, Two Northside Pier’s interiors will be a bit more modern, said Von Spreckelsen. Amenities will include an indoor pool with outdoor seating, hot tub and sauna, fitness center, children’s playroom and a private lounge with wet bar and 675-square-foot terrace overlooking the Manhattan skyline. Residents will also have access to One Northside Pier’s amenities, which include massage and yoga facilities and a screening room.
Designed by interior architect Stephen Alton, the apartments will have floor-to-ceiling windows, walnut hardwood floors, polished marble countertops, glass tile backsplashes, lacquered veneer cabinetry, Sub-Zero refrigerators and Miele appliances. Bathrooms are equipped with Lefroy Brooks fixtures, double sinks, soaking tubs and separate showers with glass tile.
The ground-floor retail will include a bistro-type restaurant with outdoor seating on the water. Von Spreckelsen said Toll is talking with “a number of restaurateurs in Manhattan who have one or two restaurants that have been successful in the Village and think that Williamsburg is a natural extension of the Village.”
Of the City Living projects in the Toll portfolio, noted Von Spreckelsen, “Hoboken is doing slightly better, because they’ve got a corner on the market. If you want a luxury condo on the waterfront, it’s going to be Toll.
“In Williamsburg, there’s quite a bit of competition. We’re sharing the wealth rather than having a corner on it.”
Still, Toll is bullish on Brooklyn. The company is working to rezone a three-acre property on the Gowanus Canal in Carroll Gardens in order to build 460 rental and condo units in six buildings, with a 2,000-square-foot community facility, 2,000 square feet of retail and a public waterfront esplanade.