New York (Manhattan) Property Investing Strategies

Posted by Wei Min Tan on August 9, 2019

New York (Manhattan) property investing strategies  for the residential condominium market are focused on the $1 million to $4 million price point. This segment represents the studio to 3 bedroom sizes which are most in demand. Anything larger than a 3 bedroom in Manhattan is a mansion by our standards.  These are three strategies we use when recommending investment buys to our clients.

 

 

new york property investing strategies
Full service condo in high demand building

New York Investing Strategy #1: Full service condo in high demand building

When the investment objective is rental income, a full service, high demand building is important. This is because tenants are attracted to the amenities which command a price premium relative to buildings with no amenities.

 

The Upper West Side one-bedroom condo pictured above, at $1.5 million in the Harrison building, suits this criterion because it is a full service building with almost no inventory. This means strong demand from renters and buyers who are attracted to the luxury amenities and also to the location which is close to the main Upper West Side 1/2/3 subway station and grocery stores such as Fairway and Trader Joe’s.

 

 

Contact:  tan@castle-avenue.com

 

 

new york property investing strategies
Ultra luxury condo building in Soho, for appreciation

New York Investing Strategy #2: Ultra luxury building for above market appreciation

The one-bedroom at 40 Mercer above, at $3 million, features 14 foot ceilings and super large windows in a building designed by Jean Nouvel. The objective was to benefit from above market appreciation because of the building’s star architect, Soho location and ultra luxury quality.

 

However, the risk is that renting out would take a longer time. Reason is that the market for a $13,000 per month one bedroom is much smaller, as the average one bedroom apartment rents for $3,500.

 

 

Pre-construction new development at The Sutton

New York Investing Strategy #3: Pre-construction new development

Investing in pre-construction refers to buying before a property has been completed. Often developers start selling 1-2 years in advance of anticipated completion date.

 

The advantage to the buyer, who is buying based on floor plans and viewing finishes at the sales office, is the pre-construction discount. Booking a unit typically requires 10 to 25 percent of the property price. The balance is due at closing which is also when the property is completed, during which time prices would have increased as well. The risk is that, if there’s a recession and the project stalls, the buyer’s 10 to 25 percent booking down payment would be tied up or even lost.

 

 

What We Do

Manhattan property broker focusing 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

 

 

Deal Examples

1) Halcyon new development in Midtown East.  Represented multiple clients in booking at the pre-construction stage, waited 2 years for completion, then rented out to high end tenants.  Excellent location driver, close to Citigroup Center, Blackstone, Blackrock etc.

Benefits and risks of Manhattan property

 

 

2) 99 John Street, represented client in the purchase and eventual sale.  Apartment has very rare 500 sqft terrace, commanding premium sale price.

 

 

3) Pre-war condo at Parc Vendome, managed renovation process and rented out within 1 week after renovation completed.  This is a famous pre-war building close to Central Park and one block from Billionaire’s Row.  

 

After Renovation

 

Before Renovation

 

This article was updated August 9, 2019

 

 

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About Wei Min

  • Focuses on investors of Manhattan condominiums, interviewed by CNBC, CNN, Wall Street Journal, New York Times
  • Ex-Citibanker, managed $500 million portfolio
  • MBA, University of Illinois at Urbana-Champaign
  • Manhattan resident since 1999. Currently lives in Tribeca with wife and 2 kids
  • 352 burpees in 23 minutes, student of muay thai kickboxing

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About Wei Min


  • Focuses on investors of Manhattan condominiums, interviewed by CNBC, CNN, Wall Street Journal, New York Times
  • Ex-Citibanker, managed $500 million portfolio
  • MBA, University of Illinois at Urbana-Champaign
  • Manhattan resident since 1999. Currently lives in Tribeca with wife and 2 kids
  • 352 burpees in 23 minutes, student of muay thai kickboxing

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