Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
For those of us living on the west side, we witnessed the massive construction around Hudson Yards in Manhattan. If you don’t venture above 23rd Street or have meditated in India for the past two years, Hudson Yards will become the most massive private real estate development in the United States. Also, it is the most expensive project ever built. Hudson Yards covers 28 acres and has 18 million square feet of offices, retail, and residential space. It extends between 10th and 11th Avenues and between 30 and 34th Streets.
As a matter of fact, one of the main predictors of success on the Project is the high level of companies they secured. Hudson Yards was able to attract a wide variety of different industries. From finance, tech, media, and legal, all vanguards of their industries who were open to making those long-term bets. The Boston Consulting Group (BCG), Coach, L’Oréal, SAP, and VaynerMedia. What do all these companies have in common? Their leadership thinks long-term. As a result, the Project will cause a massive shift from midtown east/downtown to the West side of the city.
The Project consists of two parts. Eastern Hudson Yards has a completion date of Q1 of 2019. Besides, Western Hudson Yards remains for 2025. It is hard to predict how their sales will price, but developers are optimistic. According to a piece published yesterday by the New York Times, “A weak luxury market may be making some developers nervous. But the developers of 35 Hudson Yards, a 72-story condo-hotel-office hybrid where sales of 143 luxury apartments will start in mid-March, are confidently predicting a quick one-year sellout.”
Units at 35 Hudson Yards, anticipates $1.53 billion in sales. In fact, it starts at $5 million for a two bedrooms, two and a half baths, and 1,492 square feet, according to plans. The average apartment will cost $11 million, or $4,100 per square foot. Meanwhile, citywide, new condos are averaging $3,100 a square foot. To say they are hopeful is an understatement. Similar to the effect the High Line had on West Chelsea, Hudson Yards should increase prices in the vicinity blocks/neighborhood.
Most likely, low-income housing and struggling residents will not benefit from this price surge. Critics say the project is for high-income consumers only. Most restaurants built on the top floors are forcing visitors to go through high-end stores to access them.
Will the city benefit from all of the construction and new space? We think so. Developing a once abandoned area will bring profits and create a booming new neighborhood. Only time will tell what it’s real consequences are.