New York Prime Areas
Posted by Wei Min Tan on March 26, 2019
Many of our foreign clients coming to buy investment property in New York are interested in the most prime areas of Manhattan, also known as New York, New York. The first New York refers to the island of Manhattan while the second New York refers to it being located within New York state.
Wanting the most prime areas is normal because high-net-worth individuals taking the effort to research and then invest in a different country thousands of miles away would want a property in a stable, blue chip and very prime area.
Contrary to what foreigners think, Fifth Avenue, Wall Street and Central Park are not the measures which determine whether an area is prime. These are touristy areas. Being touristy is different from being a prime area for residential property.
Manhattan, New York is the United States’ prime area
The island of Manhattan (also known as New York, New York) is the most prime area of the United States. Manhattan is home to the most billionaires, the highest prices per square foot, highest rents and highest household incomes.
Living in Manhattan, identified by the famous 212 phone area code, is a status symbol.
However, we don’t have the highest number of luxury cars per capita as most Manhattan residents don’t own a car. This is because of the inconveniences of driving and looking for parking.
Within prime Manhattan, certain areas are more expensive in terms of price per square foot or rent. These are the super prime areas of Manhattan.
Below is a ranking of the most expensive neighborhoods within Manhattan based on two metrics for residential property.
Keep in mind that these are averages. The most expensive buildings in Manhattan such as One 57 and 15 Central Park West are not in either of these neighborhoods.
|Average 2-bedroom condominium|
|Greenwich Village||$3.192 million|
|West Village||$3,045 million|
|Manhattan average||$1.67 million|
|Average price per square foot|
|West Village||$2,245 per sqft|
Data: Streeteasy, Miller Samuel
It’s not just about Super Prime
Getting a property in a super prime area does not guarantee it will be a good investment. This is the macro level. The micro level would be getting a property in the right building and the right apartment within the building.
For example, having a bad facing apartment within a super luxury building is not good. Or having the most expensive apartment in a so-so building in a super prime area. The micro level – building and apartment within building – is where local expertise becomes invaluable when choosing an apartment.
What We Do
We focus on global investors buying Manhattan condos for portfolio diversification and long term return-on-investment.
1) Identify the right buy based on objectives
2) Manage the buy process
3) Rent out the property
4) Manage tenants
5) Market the property at the eventual sale
1) The Sutton, Midtown East. Clients reserved at pre-construction stage with only 10 percent reservation deposit. Represented multiple buyer clients at the $2 million price point. Project took 2 years to complete. Location and luxury finishes make this a good investment. Close to United Nations, Citigroup Center, Blackstone, Blackrock. Rented to quality tenants from the beginning.
2) 200 Chambers Street. Luxury building in Tribeca with premium price and rents. The low carrying costs and high demand make this a good investment. Located next to Whole Foods, World Trade Center, Goldman Sachs headquarters. This apartment faces the building’s zen garden and comes with a washer/dryer within the apartment.
3) Parc Vendome, Midtown West. A value buy but required renovation of the entire apartment. Renovations in Manhattan are more time consuming because of licensing/permits/limited elevator usage etc. The buy decision based on southern exposure with plenty of light and proximity to Central Park. Rented out immediately after renovation project was completed.
Article updated to include examples on March 26, 2019
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