New Park Snacks

Come spring, Hudson River Park will be offering new food and drink options throughout the park. According to the recently released Request for Proposals, which will be open until March 15, the West Side park is looking for bids for seven new food carts and trucks to be located in various locations including Battery Park City, Hell’s Kitchen and Hudson Square. These new additions will more than double the six mobile food vendors currently operating in the vicinity. According to DNAinfo.com, the Hudson River Park Trust is interested in certain vendors that offer food and drink at affordable rates. Specifically, they want vendors that charge $2 or less for at least two items. The Hudson River Park Trust is hoping that not only will the low prices improve visitor satisfaction; the monetary increase from monthly fees will help with the projected $80 million deficit. Hudson River Park is looking to have these mobile vendors up and running by May 1.

Manhattan Rental Market Report

Real estate brokerage firm MNS has released its January 2013 Manhattan Rental Market Report. MNS specializes in the sale, rental and marketing aspect of residential properties in both Manhattan and Brooklyn, and the report focuses on market summary, inventory analysis and trend prices.

As far as downtown neighborhoods are concerned, Soho, Tribeca, the Lower East Side and Harlem yielded the most interesting finds. In terms of average prices, Soho was ranked most expensive for non-doorman studios, and one- and two-bedrooms in doorman buildings. While the non-doorman studios were most expensive, rent for doorman studios in Soho had the second largest decrease in all of Manhattan. Tribeca was ranked most expensive for non-doorman one- and two-bedrooms (even with a 1.9 percent decrease in two bedrooms) and for doorman studios. While Tribeca’s doorman studios had the highest mean studio rental prices in all of Manhattan, the rent price for non-doorman studios had the largest decrease in Manhattan by far at 32.9 percent due to a 43 percent fall in inventory. Soho and Tribeca were the only two neighborhoods in Manhattan to experience a crisscross of studio price trends between doorman and non-doorman, and both switches happened between this past December and January.

Doorman studios on the Lower East Side had the highest price increase in all of Manhattan at 26.1 percent. The yearly basis average increase shows that rents were raised by $225 or 8 percent. In the past month alone, rents were raised $207 due to a fall in inventory.

If you want to live in Manhattan, this report shows that Harlem is the place to be. It was ranked least expensive in all of Manhattan and experienced a drop in rent of at least $49 across all studios, one bedrooms and two bedrooms. One-bedrooms in both doorman and non-doorman buildings experienced the highest drop of $78. “Rents are lower in this area compared to other desirable places in Manhattan, so any renters interested in going uptown should not wait around,” MNS said in its statement.

By David Gibbons

That the financial crisis is over and our economy is in full recovery is old news—at least from the viewpoint of several high-profile real estate insiders, all experts on the downtown market.
“The word ‘recession’ is not even used in the last six to nine months,” said Andrew Barrocas, CEO of MNS, a real estate brokerage firm specializing in residential properties. “We’re far out of that.”

For the fourth quarter of 2012, the MNS report on new development sales showed solid overall gains on a quarterly and yearly basis. While the Upper West Side topped closings (65), two downtown neighborhoods, Battery Park City (48) and Chelsea (46), were strong contenders. All other areas south of 34th Street showed lively activity, with rents still high and sales prices exceeding pre-crisis levels.

“Downtown is mimicking the rest of the market,” said Lori Ordover, CEO/founder of the Ordover Group. “The big issue is a lack of inventory.”

According to The Corcoran Report, total available listings in Manhattan reached their lowest number in more than seven years during the past quarter.

Residential development stalled in the wake of the collapse of Lehman Brothers (September, 2008); significant numbers of new properties are not expected to crop up for several years.

“It’s a very tight market,” said Gary Malin, president of Citi Habitats, a leader in NYC sales and rentals.

The crux of the matter is liquidity: Larger institutions, such as banks involved in real estate, have been slower to rebound and remain cautious about lending. The purse strings are still tight, both for developers seeking to obtain financing and potential buyers hoping to secure mortgages. The days of huge luxury condo towers selling out to eager buyers based on nothing more than a floor plan, a virtual tour and a dream are over. Nevertheless, the brokers are optimistic.

“The overall big picture for downtown Manhattan is very positive,” said Ariel Cohen, exclusive agent for 75 Wall Street, a 346-unit luxury condo high-rise on the market since 2009. Given his stake in the area, Cohen is understandably bullish.

“Lower Manhattan has been an ongoing, emerging category since 2004,” he said. “Chelsea and Tribeca have already emerged. Battery Park City is a very mature market. Now, in the Financial District, we are heavily emerging.”

“I live in Tribeca, and every day I get seven or eight postcards from brokers saying, ‘I could sell your apartment.’ I know that, but I don’t want to move,” Ordover said. “I love living downtown. I think it’s the most vibrant part of the city.”

Cohen said that sales at 75 Wall Street picked up “dramatically” in the second quarter of 2012; the building is now more than to 60 percent sold. At an average of $1,220 per square foot, its remaining units compare well: “A husband will call me and say, ‘My wife wants to live in Tribeca, but please tell me what you have in the Financial District.’” Even on the fringes of Tribeca, Cohen points out, prices are in the $2,000 range. Both Barrocas and Malin agree, comparing the Financial District favorably to Greenwich Village for value—and adding the Lower East Side.

Another strong indicator for downtown is its preponderance of first-time buyers and young families, many from other parts of Manhattan. Ordover marvels at the stroller gridlock on West Broadway and stiff competition for exercycles at her favorite spinning class. “They’re starting to call the Financial District the Diaper District,” Cohen joked. “Our buyers run a big gamut,” he said. “It’s not just your Wall Street-driven clientele.” Both note many positive signs for the community, including good new schools opening; Condé Nast’s impending move to the new World Trade Center tower; and plans for a downtown performing arts center.

For “affordable” new development downtown—i.e., in the range of $1,500 to $2,000 per square foot—Barrocas looks east from the Bowery to the river. “Obviously, the development process takes time,” he said. “Two, three, four years out, I can only predict numbers being stronger than they are today.” He noted the Seward Park Mixed-Use Development Project for nine city-owned lots along Delancey Street, approved last September, as a potential game-changer in the area.