Trying to lure buyers who are spoiled for choice, new condo projects are offering every conceivable amenity, from private restaurants to basketball courts to indoor pine forests.
But when buyers move in, some find the amenities aren’t there to stay and may have been a mere sales gimmick.
In-house gyms are not necessarily here today, gone tomorrow, but the governance of a condo is ultimately the job of its board, not the developers who sell the units, which means things can change over time. There’s a chance, therefore, that the waterfall in your new condo lobby may not be there forever if it costs too much.
At the new Zeckendorf Development building at 15 Central Park West, a private restaurant has been included for residents only. But the offering plan, where the details of all amenities are spelled out, clearly states that after a period of time the board has the right to change the arrangement regarding the restaurant if the initial plan doesn’t work out.
The redesign at 110 Central Park South will offer a private dining room along with the services of preferred chef and caterer of choice, David Burke. The building also features valet parking and concierge services that provide everything from arranging international travel and villa bookings to running local errands.
While such luxuries may draw buyers, history shows that often boards can look at a project’s bell-and-whistles in a more negative light later on.
“Years ago, buildings offered pools to entice buyers, though maintenance and insurance added to the common charges and cash-strapped boards began to look at them with disfavor,” said Michele Conte, senior vice president and managing director at Brown Harris Stevens.
Besides high-end projects, amenities are also common in fringe areas as a way to draw purchasers.
At 99 Gold Street in Vinegar Hill, for instance, one of the amenities is a basketball court. “Basketball is fun and interactive, it’s not like going to the gym,” explained Ramona Mahtani, director of sales and marketing for the Developers Group, which is marketing the project. “Young people get tired of working out on a treadmill.”
The building will probably retain the basketball court for a long time, and the space will stay a common area forever, because amenities are generally carved out of square footage that is not subject to a building’s floor area ratio for living space, Mahtani said.
After half of the building’s units are bought, governance reverts to the resident board, which can convert the court to any use it pleases, “but there would be costs involved and the charges would be passed on,” said Mahtani. “They probably won’t spend the money to alter it and if they did, it wouldn’t be for several years, when it comes time to possibly renovate it.”
The ownership of amenities and their future use is clearly spelled out in the building’s offering plan, though some buyers are easily seduced by sales pitches or glossy brochures.
“I recommend that buyers carefully review the plan,” said Michael Goldstein, a lawyer in Manhattan who specializes in real estate. “Just because a sales agent tells you something or you see a picture of it, you can’t rely on the fact that it’s going to be there.”
The offering plan also indicates whether or not the amenity will be free for residents.
“Will it be owned by the co-op corporation or the condominium association, the same entity that owns the building, or will it be owned by the sponsor?” he said.
At the building where Goldstein lives, the tennis court is owned by the co-op corporation and leased through a sweetheart deal to the sponsor, who runs it as a for-profit entity.
“Even building residents have to pay the same as outsiders to use it,” he said. “When the lease is up, the co-op can either keep it as a tennis court or put it to a different, or more profitable use.”
Falling for the latest new thing
Some real estate professionals remain skeptical about the rush to offer amenities. “It’s all hype devised by marketing people who are paid a lot of money to come up with ideas,” said Michele Conte, senior vice president and managing director at Brown Harris Stevens. “It may matter to a small percentage of buyers, but in the end, it’s really all about location, the floor plan, the space and the flow. If it’s a great apartment, that’s generally enough to close the deal.”
Still, it’s not hard to be drawn in by the latest perk.
Ramona Mahtani, director of sales and marketing for the Developers Group, said the most over-the-top amenity she has heard of lately is the virtual closet, where residents keep photos of their clothes, which are cleaned, steam pressed, covered and stored in the building. When residents order an outfit, it arrives at their door within 20 minutes.
The Cumberland Greene condo project in Fort Greene, meanwhile, will feature a waterfall designed by two local artists. And you can even live in the midst of a forest in the big city. The 35-story mixed-use building at 101 Warren Street in Tribeca touts a pine forest, consisting of 101 imported Austrian pine trees, along with its condos.