Manhattan Loft Guy

Jul. 17, 2007 - end of uber-lofts? (uh � no)

scaling down amenities + dollars

Funny how journalism works, when two items can make a trend.

The Real Deal ran a short piece last week about who some developers are scaling back some services or amenities to reach a lower price point or a lower monthly expenses.

In re-reading Fewer amenities, more sales just now, I was a little surprised to see that there are only two examples given, and an equal number of (soft) marketing quotes. (To be fair, bloggers need fewer than two examples, sometimes no examples at all.)

For example, in September Citi Habitats will be marketing Carriage House Chelsea, a 24-unit, high-end condominium at 159 West 24th Street, with only a few perks [??]. There will be a part-time doorman, 24-hour monitoring system and eight automated, fee-based private parking spaces that are likely to cost an additional $175,000 to $250,000 per year. The units are expected to start at $700,000 for a 600-square foot open loft space, $100 to $200 less per square foot than condos with considerably more bells and whistles, said Cliff Finn, managing director of Citi Habitats Marketing Group. The monthly maintenance will be 20 to 30 percent less than the more amenity packed buildings, he added.

high-end?

I am not sure what they mean by a “high end” condominium with “only a few perks” – especially with 600 square foot units. In a small building you may well not have a doorman, gym, cold room off the lobby, or other “high-end” amenities, but you need a pretty high level of interior finishes to be “high-end”. No idea if this Carriage House Chelsea will have those finishes. But with 600 square foot units, this will appeal to a different market segment than buildings with larger units, including the Chelsea Stratus at the other end of this block (with media lounge, billiards, fitness center, basketball court, dining area with catering Kitchen, landscaped rooftop terrace with a dog run).

I don’t think this approach will work in Tribeca, for two reasons. Acquisition costs are probably too high to do anything other than a new uber-loft, with bells and whistles to drown out an orchestra. Second, the TriBeCa loft buyer who wants “new” probably wants the bells and whistles. Carriage House Chelsea looks as though it may attract more first-time loft buyers (who else is buying a studio?).

The other example cited in the Real Deal article is way uptown, at 257 W 117 Street, where changing the amenities package permitted them to drop the common charges from $1.10 a foot to $0.75 a foot. I suspect that this is what you need to attract downtown buyers to uptown properties.

Why do the same thing downtown if there is a strong market for the amenities (as there is)?

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Jul. 17, 2007 - end of uber-lofts? (uh � no)

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