On the Benson, a 210-foot, limestone-clad tower on the Higher East Facet accomplished final 12 months by the developer Naftali Group, there have been 15 models, starting from $12.75 million for a 1,770-square-foot three-bedroom to $35 million for a greater than 6,600-square-foot penthouse, in accordance with the developer. The constructing is offered out, stated Donna Olshan, the president of Olshan Realty, which tracks the posh market.
“It was a wild success,” she stated, but in addition a dangerous technique, as a result of the funding was tied up in so few models. The event website, which was once a row of prewar residence buildings, may have supported as much as 83 flats, in accordance with zoning calculations.
Builders have little incentive to squeeze in so many models on initiatives in prosperous markets, as a result of greater models command increased premiums, stated Ryan Schleis, a senior vp at Corcoran Sunshine Advertising and marketing Group, a growth advisor and advertising agency. “House is the last word luxurious,” he stated, with top-dollar models on the Higher East Facet exceeding $4,000 a sq. foot.
Furthermore, most of those initiatives are constructed “as of proper,” on websites that don’t require zoning modifications or public assessment which may in any other case require the builder to match or exceed the variety of models beforehand on the location, stated George Janes, an city planner who has studied various the brand new towers.
“You’ve a scarce useful resource of ground space that might be used for housing folks, and it’s getting used, basically, for people who find themselves tremendous rich,” he stated.
Builders say they’re chasing the very best return on their funding.
“It’s a quite simple reply: It’s the market demand,” stated Miki Naftali, whose agency, the Naftali Group, is constructing a number of high-rise condos in Manhattan with few models.