Institutional Investor's Alpha Magazine - April 2008 - (Page 56)

SPECIAL REPORT: LUXURY MARKETS Luxury Real Estate: What’s Hot in New York From left to right: 785 Park Avenue on the Upper East Side of Manhattan; penthouse condominium unit at 200 Eleventh Avenue in New York t Adagio, a new 40-unit boutique condominium near Lincoln Center, buyers can incorporate outdoor tennis and an outdoor pool into their Manhattan lifestyle. To the south, the W New York-Downtown Hotel & Residences is bringing a new luxury brand to one of the city’s hottest neighborhoods. And across the East River, The PowerHouse oﬀers buyers a choice of 80 diﬀerent models in a converted power plant just minutes from Grand Central Station. In New York’s luxury real estate market, new developments that stand out in their neighborhoods continue to attract the savvy, discriminating buyer. “Today, the New York market is all about having the right product in the right location with the right price for the target market,” says Andrew Gerringer, managing director of developments for Prudential Douglas Elliman, a leading New York brokerage ﬁrm. “If you get those basics right, the buyers are there.” Other specialists in the city’s luxury residential market agree. “Today’s consumer is far more educated about real estate products,” says Michael Shvo, president SHVO Marketing, a real estate ﬁrm with oﬃces in New York, Dubai and London. “From a practical point of view, new developments that oﬀer a unique product have seen a surge in prices and sales volume, while ordinary products have not.” After all, a buyer paying $1,000 to $5,000 per square foot for a New York residence wants something special in that price category – “something they can’t buy from someone else,” as Shvo says. A residential condominium units now under construction at 123 Washington Street, one block from the site of the new Freedom Tower. “It’s the only W Hotel you can buy in Manhattan,” says Shvo. “We sold half the residences on opening day because you simply can’t buy this luxury product anywhere else.” Another example is 15 Central Park West – a new building whose traditional design has proven particularly appealing to Wall Street buyers. Although still under construction, prices at 15 CPW continue to rise and are now in the $5,000 to $6,000 per square foot range, according to Shvo. Having a name-brand designer also adds a special cachet to a new residential development. One example is Gramercy, a new 21-story luxury residence on East 23rd Street designed by Philippe Starck. The 207-residence building features light-ﬁlled interiors and three distinctive design packages: classic, culture and nature. Another intriguing oﬀering is The Jade, whose 57 residences are inspired by Jade Jagger’s sexy and sophisticated style. To maximize space and minimize clutter, residences are modernist cubes, called “pods” available in diﬀerent designs: The Aristo Pod, evoking a traditional British ambiance; The Luxo Pod with sun-and-sand-inspired gilt gold; The Baroco Pod in black, red and white; and The Boho Pod, reminiscent of the seaside. Appealing Amenities Successful developers also understand that upscale buyers want amenities that add to their lifestyle – not to their monthly costs. “Buyers are looking for inviting amenities that they can actually use,” says Gerringer. “Having a landscaped garden or roof deck makes a project more appealing. And you also need a good ﬁtness center. After all, most New Yorkers use a gym far more than a spa, which can add to a building’s common charges Unique Oﬀerings For example, the W New York-Downtown Hotel & Residences is a new 58-story tower featuring 217 hotel rooms and 223 6 • Alpha Sponsored Report • April 2008

Table of Contents Feed for the Digital Edition of Institutional Investor's Alpha Magazine - April 2008

Institutional Investor's Alpha Magazine - April 2008 Contents Letter from the Editor Longs & Shorts Pension Corner: Here to Eternity The Good Guys: Voice of Hope Cover Story: The Kings of Cash Where the Money Is Into the Light Interview: Proceeding with Caution Strategies: A Convenient Truth Alpha Bytes: Village Voice Unhedged: Commentary: No Time for Complacency

Institutional Investor's Alpha Magazine - April 2008

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