Sometimes what goes up can keep rocketing upwards. That appears to be the happy lesson concerning brownstone townhouses on the Upper West Side where prices have risen 10 percent over last year and where a handful of recent listings are reaching the $5-million to $7-million level.
While the market for condos on the Upper West Side is still hotter — new listings change owners faster and condo prices have climbed, on average, slightly higher a survey of a half-dozen brownstone specialist brokers indicates interest is surging. This is in line with a citywide trend which has seen the value of townhouses soar. In the last month, a townhouse in Brooklyn Heights sold for $8.5 million and a narrow row-house in Chelsea recently went for above $3 million.
“I ve seen an incredible demand and prices are quite up across the board,” said Richard Geiringer, vice president at Douglas Elliman. “The first quarter of the year is generally the peak time and interest levels off in the spring after people with their bonuses have made their moves.”
According to Jonathan Miller, president of Miller Samuel, the New York City real estate appraisal firm, there has been a 27 percent contraction on townhouses on the market this year over last. Indeed, at the end of January 2005, 189 Upper West Side townhouses were on the market, compared to 260 at the same time last year. On average, new brownstone listings take four to six months to sell.
Miller Samuel, which produces an annual survey of the Manhattan townhouse market, found that in 2003, the average sales price of a Manhattan townhouse was $4.06 million, but the average price for on the Upper West Side was $3.29 million. Their survey of 2004 prices will be released at the end of February.
The Upper West Side s brownstones were built in the 1890s, when the Ninth Avenue elevated train was extended to reach the new site of Columbia University. The buildings are unique because unlike other townhoused pockets of Manhattan, where brick or limestone was used, these were built with brown sandstone.
“You can almost tell you re on the Upper West Side because of the features of brownstones,” said Miller. “The architecture is different. They have those wide front steps, more decorative woodwork, and in general the ceilings are higher than in townhouses in Greenwich Village or on the Upper East Side.”
A hundred years ago probably most houses lining the residential streets on the West Side between Columbia University and Columbus Circle were Victorian style single-family brownstones, but over the years many have been converted into multifamily dwellings. Brokers agree that the surge in interest in brownstones is largely being driven by young families with children seeking to return multifamily townhouses to their original, single-family states.
“People like brownstones because to the extent that multifamily homes can be resurrected into single-family homes, you get more space for the money,” said Seth Tassae, an associate broker for Phyllis Koch Real Estate. “Most brownstones have about 4,000 square feet, and it s rare to find a condo that size.”
“With prices the way they are, it s hard for investors to make a return on rent-rolls,” said Kinnaird Fox, director of townhouse sales for Wohlfarth & Associates Real Estate, a boutique firm specializing on Upper West Side properties. “Presently, I d say that the market on the Upper West Side is being driven by people who are turning multifamily buildings into single-family homes.”
No set formula exists, but when estimating prices for new brownstone listings, brokers agree that what matters most is location. Prices generally rise based on a townhouse s proximity to Midtown or to Central Park. Dwellings on residential streets within a block of the park can command anywhere from 10 percent to 25 percent more than similar townhouses adjacent to Broadway. Because modern buildings crowd many West Side corridors, homes on streets that retain an unvarnished Victorian flavor also command more money.
“The integrity of the block is very important,” said Fox. “88th is a beautiful street and a brownstone there can go for more than one further south.”
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