New York real estate agent on 3 coveted features of a Manhattan condo
Posted by Wei Min Tan on June 3, 2024
New York real estate is a highly desirable asset class for investors because of its stable prices, high global demand and very limited supply (since Manhattan is a fully built island). When representing clients, we identify the most unique real estate given the price point. Here are 3 highly desirable features that are in limited supply and will help with the property’s performance over time.
Contact: tan@castle-avenue.com
Read about what Wei Min does in Role of a buyer’s broker.
Location of the real estate
Location is the one thing that cannot be changed and the best locations come with a price premium. This is the most basic of real estate. The desirability of a location in Manhattan is driven by (i) access to transportation (ii) access to entertainment and dining options (iii) access to recreation and parks. Since 90 percent of New Yorkers do not own a car, access to transportation means being close to the subway. Almost everyone takes the subway to work because this is the most predictable means of transportation. Being close to 7 subway lines is preferable to having to walk 10 minutes to one subway line.
Weimin’s article, The best areas to invest in Manhattan
Client’s condo opposite Goldman Sachs HQ (the green building opposite). We reserved the apartment pre construction, waited 2 years, then rented it immediately after closing. Close to Whole Foods, dining options ranging from Shake Shack to fancy Locanda Verde, subway lines 1/2/3/A/C/E.
Terrace
Having a terrace is a scarcity in Manhattan real estate. A terrace refers to outdoor space that is above an apartment below. This happens when the building has setbacks. For example, a building narrows like a wedding cake as it gets higher. The purpose of the narrowing is to allow light onto the streets per New York City zoning laws. Floors where the narrowing happens is where there can be a terrace.
A terrace is different from a balcony which is much more common. A balcony is a concrete platform that extends outwards. Hence it is more doable than a terrace. In between, there is the loggia, which new developments introduced to Manhattan real estate about 10 years ago. A loggia is between a balcony and a terrace in that a loggia is larger than a balcony, usually sits on top of an apartment, but is not the result of a building’s setbacks.
Client’s 500 sqft terrace which we bought and resold for a nice profit a few years later. This was at 99 John Street, an Art Deco prewar condo building. Read Weimin’s case study, Terrace demands a premium.
View
The view of the apartment demands a premium. A buyer or tenant looking at a gorgeous water or skyline view can be easily wowed into taking the apartment. Looking at a good view brightens the spirits and simply makes one happier. Contrast this to looking at the back of another apartment.
The view of an apartment can change though, since a new building can come up to block the view. This is where due diligence is necessary to estimate whether anything could be built in front of an existing view.
View of Empire State Building and plenty of sky from client’s West Village condo.
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
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Related Links:
Introduction to Manhattan real estate agent Weimin Tan
Investing in a Manhattan penthouse apartment
Buying new launch condo in Manhattan
