The sight of national chains and tourist-friendly storefronts is no longer a surprise on 42nd Street, but the transformation of its westernmost reaches is still very much a work in progress.
Developers working west of Eighth Avenue are selling luxury beyond the once-sleazy environs of Times Square, and finding increasing interest. It’s still a remote stretch, but its distance from the subway and disjointed array of services are rapidly being countered with offerings that appeal to renters and home buyers, says Raizy Haas, senior vice president of Gary Barnett’s Extell Development Corp. and project manager for the Orion, a 61-story condo tower at 42nd and Ninth Avenue.
“We opened our sales center at the Orion in mid-March and 400 of our 550 units are sold or in contract,” Haas says. The first condominium built on far West 42nd Street in more than a decade, the ultraluxury high-rise will tower over most surrounding buildings.
“If you call for an appointment you have to wait at least a month,” boasts Haas. “We’ve had seven price increases. We started at $900 a square foot and we’re now at $1,025 or more, with some of the upper units going for $1,200 to $1,300 per square foot.”
The sudden urgent demand for ownership on West 42nd Street is no surprise to brokers serving the area, who are thrilled at the prospect of condo development along the corridor. “Customers in the rental buildings in the neighborhood call me up all the time looking for property to buy,” says Stribling agent Peter Browne, who’s sold there since 1978.
Century 21 William B. May agent Lee Karibian, a resident of the Armory, at 42nd Street and 11th Avenue, concurs. “We only have two non-rental buildings besides Manhattan Plaza [the artist housing complex] the Strand and the Armory. I’m delighted to have the Orion. This area, which is eclectic and lovely, needs some upscale stuff.”
The Orion, scheduled for completion in the spring of 2006, is the first of several large-scale luxury condo projects planned for far West 42nd Street. A development group comprised of Twining Properties, The Related Companies and Macfarlane Partners is planning to construct an 800-unit, 65-story high rise on 42nd Street between Dyer and 10th avenues. A block from the Orion, Woolworth Building owner Steve Witkoff is building a luxury 23-story condominium at 43rd Street and Eighth Avenue.
Developer Joseph Moinian just bought the 60,000-square-foot Verizon site at 11th Avenue for $120 million. It’s “such a number,” figures Nancy Packes of Halstead Leasing Consultants, “that he can only do condos there.” One block west, at 12th Avenue, Jules Dabchick is building a 46-story condominium tower.
Meanwhile, Silverstein Properties, which built the pioneering 900-unit rental project River Place at 650 West 42nd Street, is selling a parcel at the eastern end of 11th Avenue that has the capacity for an 800,000-square-foot build-out. The New York Times reported recently that Silverstein has had talks with Hyatt about a possible hotel and condominium complex..
Silverstein learned early that the area’s transportation deficit sometimes calls for a bit of initiative. After he built One River Place in 2000, he had to start running a shuttle bus to the 42nd Street subway station to lure renters. The complex filled up as the Internet boom ended, and now it’s a tougher sell, with a 10 percent vacancy rate.
But developer Alex Twining thinks successful development along the strip is a no-brainer. “The area is one of the last frontiers on the island that hasn’t been updated,” says Twining. “The natural forces are at work pushing in all directions: north from Chelsea, west from prime Midtown and south.”
If the Orion is any indication, the condos are aiming for ultra luxury. The first curtain wall residential tower along the corridor, the building has three levels of amenities on its center floors, containing the 8,200-square-foot La Palestra fitness center, with onsite trainers, nutritional/lifestyle counselors and physician; a double-lane lap pool; saunas; treatment rooms; and a Jacuzzi that seats 25, all with a remarkable view. Other amenities include a business center with conference room, screening room, several outdoor terraces, breakfast bar, indoor parking and personal concierge service.
The apartments offer hardwood floors, floor-to-ceiling windows, Italian Valcucine kitchens and bathroom fixtures by Waterworks (“Not cheap,” says Haas.) Studios are priced at approximately $495,000; one-bedrooms, $643,000; two-bedrooms, $925,000; three-bedrooms, $1.7 million.
Far West 42nd Street has a long way to go, but that influences its emerging character. Fashion designer Ming Wong, an owner at the Armory says, “This isn’t a trendy place right now. The restaurants are neighborhoody, but not fabulous. The people who are here are long settled not a group of younger buyers ready to come here and set up a home.”
Much of the developer interest is speculative, based on hopes that the long-discussed extension of the No. 7 train to 10th Avenue will happen, as well as visions of a massive revitalization following the recent rezoning just south on the West Side. Right now, “they’re selling blue sky,” says Packes.
But it’s a solid bet and values on existing housing reflect the optimism. According to Lindy Bondy, a Klara Madlin agent who lives at the Armory and has sold 40 units there, “I have an exclusive on 43rd Street, a townhouse I sold to the current owner five years ago. The place has tripled. Real estate here is on a fast track, but it’s a good investment because there’s still room to grow.”