New York City's Luxury Real Estate Market: A Global Attraction
Written by Pamela Liebman
President & CEO of The Corcoran Group
IT'S NO SECRET THAT NEW YORK CITY is one of the top global destinations for culture, entertainment, technology, business, finance and of course, luxury real estate. While major media attention has focused recently on several record-breaking Manhattan residential sales nearing $100 million, the New York City property market offers excellent investment opportunities across all luxury price points. And compared to other global markets, New York real estate offers even better value for investors. With the added allure of being a financial safe haven in a stable economic and political environment, New York consistently attracts prospective homeowners from all over the world. Currently, 30% of The Corcoran Group's condominium sales in Manhattan are to international buyers.
Corcoran is one of the leading residential real estate firms in New York City and is at the forefront of high-profile, luxury real estate transactions. Its new development arm, Corcoran Sunshine Marketing Group, is the premier sales and marketing firm for luxury new development property in the United States. Together, they generate up to $18 billion in total company sales annually and service America's most in-demand luxury markets: New York City, the Hamptons - often referred to as "Wall Street's backyard" - and South Florida including Miami and Palm Beach. What attracts buyers to these markets is the opportunity to live in a world class destination while investing in a property that offers a good return on investment and is a smart vehicle for asset diversification.
Currently, the Manhattan luxury real estate market is very active with solid buyer; demand for high-end property. 2013 was Manhattan's second-strongest year ever for closed sales, and the highest ever in terms of dollar volume of sales. Market-wide, from 1989 to 2014, the closed average price per square foot for Manhattan residential properties increased 256%, a compound annualized growth rate of 5.0%. Every Manhattan neighborhood has shown considerable price appreciation over the past decade, especially the SoHo and Chelsea neighborhoods, which outpaced the market overall, doubling in price in ten years to become the most expensive neighborhoods in New York City.
High net-worth clients interested in purchasing a Manhattan property come to Corcoran when they are ready to buy. Our clients are global citizens. Borders don't apply to them. They come from all over the world: Western Europe, the Middle East, Latin America, China, India, Russia and America, among other. At the very high-end of the market, these clients frequently have several homes, often on different continents. Whether they are shopping for a loft, a pied-a-terre or a classic apartment in a full-service building, luxury real estate buyers share a list of "must haves" that reflect their tastes and desires for the best - premier location, great views, unique design, high-end finishes, impeccable service and amenities. Corcoran agents not only find properties for clients that meet these requirements but also help clients find the homes that best fits who they are and how they want to live.
Nowhere is New York real estate more active than in the new development sector. Currently, the new development market is soaring sky-high with the introduction of a stunning array of residential towers, many with hotel services. ONE57, one of the tallest residential towers in Manhattan at 1,000 feet, is located at the foot of Central Park and affords each of its 94 residences unparalleled panoramic park and city vistas. ONE57 sits atop the Park Hyatt New York, a brand new global flagship hotel, and its residents have 24/7 access to all of the hotel's services including room service, spa services and an incredible range of personalized amenities.
The Baccarat Residences New York, represented by Corcoran Sunshine, offers residents an extraordinarily elegant lifestyle and superb level of service. Residences are luxuriously appointed and residents have an array of hotel services and amenities available from the Baccarat Hotel. The Hotel occupies the lower levels of the sleek, sophisticated glass tower located opposite The Museum of Modern Art in midtown Manhattan.
Downtown, in SoHo, there has been tremendous interest in 10 Sullivan Street, a 203-foot high, triangular condominium with rounded, expansive windows that capture the dramatic downtown New York urban skyline and Hudson River views. The residences at 10 Sullivan offer the most updated floor plans, fixtures and amenities, including the ultimate Manhattan luxury amenity: off-street parking.
Over the next three years, over 6,000 new condominium properties are scheduled to enter the New York market. This will bring much-needed new supply into what has been an inventory-challenged market for several years. One of the major new development opportunities to watch:
Hudson Yards, the largest private real estate development in the history of the United States, located on the West Side of Manhattan at the Hudson River. This extraordinary mixed-use development currently being developed by The Related Companies will literally create a new Manhattan neighborhood, including marquee residential condominium residences and the conveniences of dining, shopping, entertainment, cultural events, outdoor parks and recreational spaces.
The Corcoran Group operates 40 offices with 2,200 affiliated sales associates serving Manhattan, Brooklyn, the Hamptons, the North Fork, Shelter Island, Delray Beach and Palm Beach, Fla. The Corcoran Group is part of NRT LLC, the nation's largest residential real estate brokerage company and a subsidiary of Realogy Holdings Corp. (NYSE: RLGY) that operates Realogy's company-owned real estate brokerage offices.
Baccarat Hotel & Residences New York
Residence 35A,
Price: $9,750,000 U.S.
3 Bedrooms, 3.5 Bathrooms, Sq. Ft.: 2,525
Located on 53rd Street just off Fifth Avenue directly across from the Museum of Modern Art, Baccarat Hotel & Residences New York combines sophisticated design with the highest level of service and exceptional quality that exemplifies the glamour, prestige and history of the brand. The residential tower, ajoint venture between Starwood Capital Group and Tribeca Associates, began closings in September 2014 and is now available for immediate occupancy. Clad in crystal-inspired patterns of metal and glass, the Skidmore Owings & Merrill designed 50-story tower includes 114 large guest rooms designed by Gilles et Boissier and 60 private residences conceptualized by Tony Ingrao, ranging from one-to four-bedrooms, including four full-floor homes and one five¬bedroom penthouse duplex with an outdoor terrace.
A long-time admirer of the Baccarat brand, Tony Ingrao brings a remarkable understanding of architecture and an innate sense of elegance and luxury to the residences, which feature refined finishes that combine natural elements with modern concepts including custom bronze-work crackled with crystal, contemporary furnishings and floor-to-ceiling windows that capture the natural light outside and reflect a glistening brilliance throughout each space. Every residence will also feature a custom crystal chandelier in the foyer, reinforcing Baccarat's reputation for creating exquisite pieces of art.
The Baccarat Hotel (scheduled to open in December 2014) will offer residents the highest level of service and luxury amenities, including 24-hour concierge service and priority reservations at the hotel's world-class bar and restaurant (scheduled to open in January 2015) led by Chef Shea Gallante, formerly of Cru and Ciano, and managed by Charles Masson Jr., formerly of La Grenouille. Owners also have a private in-residence dining option provided by the hotel's restaurant, f as well as access to the hotel's full !service, 1O,000-square-foot spa, complete with a 55-foot pool.
One to four ,bedroom residences at Baccarat Hotel & Residences New York are priced from $5,150,000 to $24,000,000. Duplex Penthouse priced at $60,000,000.
Contact: 212-765-5300 www.baccaratresidencesny.com
ONE57 Residence 58B
Price: $27,000,000 U.S
3 Bedrooms, 3.5 Bathrooms Sq. Ft.: 4,193
Rising over 1,000 feet at 157 West 57th Street, ONE57 is New York's premier collection of ultra-luxury condominium residences. The Christian de Portzamparc-designed landmark building features 94 private homes above the new flagship Park Hyatt hotel. Envisioned by a team of world-class talent, this architectural masterpiece provides residents with breathtaking, views of Central Park to the North, the famed Manhattan skyline to the South, and both Hudson and East Rivers. Interiors have been meticulously designed by New York-based Danish designer Thomas Juul-Hansen.
Developed by Extell Development Company, ONE57 is located in the heart of New York's famed Plaza District directly across from Carnegie Hall. The homes at ONE57 feature gracious dimensions, soaring ceiling heights, custom details and materials of the highest quality. ONE57 offers the "Extell Choice," a unique value proposition allowing buyers to choose from a fine selection of finishes, design and layout packages to tailor homes to individual tastes.
The only ultra-luxury residential building along the 57th Street corridor to feature a hotel, ONE57 is poised above the five-star Park Hyatt New York. Residents enjoy full access to Park Hyatt's exclusive amenities and hotel services. Additional residents¬only amenities include a 24-hour doorman and concierge, screening and performance space, on-site parking, triple-height indoor swimming pool and custom Jacuzzi, library, private dining room and state-of-art fitness center.
ONE57 is over 80 percent sold, and select three to five bedroom residences are available for immediate occupancy.
Pricing at ONE57 begins at $18.85 million.
Contact: 212-570-1700
www.ONE57.com
10 Sullivan
Duplex Residence Price: $25 million U.S. 5 Bedrooms, 5.5 baths 5,256 Sq. Ft.
10 Sullivan, located in the chic SoHo neighborhood at 10 Sullivan Street, is an authentic, modern and elegant condominium that captures SoHo's rich architectural heritage. It features Penthouse, Duplex and full-floor residences offering residents the experience of true SoHo living with all of today's modern proportions, luxury finishes and desirable amenities. Off street parking is available as well.
Designed by acclaimed architect Cary Tamarkin, 10 Sullivan's unique shape is its signature. The building features large classic industrial style windows. The rounded glass windows, defining the building's southern "prow", surround the spacious living rooms, allowing for breathtaking panoramic downtown views of New York City and the Hudson River.
The spectacular Duplex sits directly beneath the Penthouse. Benefiting from a double height 23' ( 7.01 m ) Great Room with gas fireplace, it is currently designed to have 5 bedrooms including an expansive master suite with his/her walk-in-closets, 5 Y2 bathrooms, eat¬in kitchen, two grand foyers, library, a monumental staircase, direct elevator access, and 2 balconies.
Contact: Marie-Claire Gladstone 212-508-7167
212 West 18th Street Penthouse 5
Price: $25 million U.S. 3 bedrooms, 4.5 baths 3,396 Sq. Ft.
This turnkey, exquisitely furnished duplex penthouse spanning 3,396-square feet offers three bedrooms, four and a half bathrooms, and a 190-square foot terrace with breathtaking unobstructed downtown views. Enjoy sunlight' all day and evening sunsets from south and west exposures. The residence opens onto a gracious gallery that leads into an expansive living room and dining room with access to the terrace. Past the entertaining space is an oversized, state of the art Smallbone open kitchen, sitting/TV room with wood-burning fireplace, a full bathroom and separate laundry/utility room. The upper level features a superb master bedroom suite with a large walk-in closet and bookend marble bathroom featuring dramatic views. Two additional bedrooms with en-suite bathrooms complete this gracious layout. The ap~rtment is fully pre-wired and features radiant floor heating, electric shades and blinds, a built-in humidification system, and an ultra-quiet multi zone central air conditioning system with a dedicated ventilation system Walker Tower is the most sought after condominium in Chelsea. Amenities include a 24-hour doorman, concierge, library lounge with pantry and bar, refrigerated storage for deliveries, playroom, bike storage room, fitness center with yoga room, sauna, and landscaped common roof deck with dining area, sun lawn, observation area and covered cabana room.
Contract: Leighton Candler 212-937-6677
For more information about The Corcoran Group please visit www. corcoran.com.