I was happy to listen to prodigious developers Charlie Bendit of Taconic Investment Properties, David Dishy of L & M Development Partners and Meade Curtis of WinnCompanies who were joined by Paul Massey of B6 Real Estate and Andrew Lyons of Fulcrum to discuss the State of the Market in Multi-family Market Rate properties at the NYC Bisnow event recently. These are take-away thoughts from the seminar:
Manhattan’s new construction projects are averaging about $500-$525/ square foot. If it’s non-union, it’s about $100/s.f. less. All in with land, figures of approx.. $1,000-$1,1100/square foot is typical.
When it comes to Brooklyn, it’s much less expensive. Figures of $285 – $324/sf are more likely.
There has been a lot of local interest in mass timber building but right not there is a 6 floor limit in the city. Its benefit is that it needs less labor to put up.
In general, the City needs to rezone areas to support higher density. Inwood is a good example of when rezoning works. It was rezoned in the prior administration and there was good growth of available housing units after that.
Essex crossing by Taconic Investments has been a successful example of high density and mixed use. Target and Trader Joe’s brought retail; There’s a child care company, a Regal theater and the ICP useum is opening in 2019 alongside 3 multi-family buildings.
When asked about where the panelists thought the real emerging markets may be Charlie said “Follow the Transportation.” Housing follows good transportation in and out of the city.
Meade thinks the outer ring of NY will emerge strong for housing: Rochester, East Haven, CT. Right now he’s working on a Boston project.
Andrew believes the whole New Haven line is ripe for new building.
David thinks New Rochelle is open to development.
David also understands how important interior design is for residential multi-family buildings. He calls it the “Hotelification” of residential multi-family.
Paul Massey believes the Bronx is a place for big opportunities.
It was a great event and I highly recommend looking at the upcoming Bisnow events.