In New York luxury real estate, strong demand in downtown Manhattan for Tribeca’s 3 and 4-bedroom luxury lofts and condos resulted in prime properties going to contract in under 45 days. From mid-May to July, 3-bedroom inventory dropped 47% to only 29 units resulting in bidding wars and record prices for some properties.
Why is Tribeca so hot now? More families are choosing to stay in Manhattan and are looking for large spaces which are found in the luxury 3-4 bedroom lofts of Tribeca. Add PS 234 (a great public school) and the Hudson River Park and it’s ever increasing amenities and luxury lifestyle.
If you had invested in a Tribeca 4-bedroom loft in 2000 it would have cost you approximately $1.45 million. In June one such seller received a contract for her 3,600 square foot unit (approx. 350 square meters) At the time Tribeca was not yet an area many people wanted to live. With old loft buildings just converting to residential use, “Twelve years ago buyers would not have imagined that 4-bedroom units in Tribeca would command over $3,000 per-square-foot (PSF) on average, which they do now” said Tony. “Even six years ago the luxury product in the area was at about $1,600-$1,900 PSF, today that has all changed. Tribeca is home to many celebrities and high net worth individuals.
In StreetEasy research Tony conducted in mid July, 2012 there were no longer any active 4-bedrooms condos priced below $5 Million. One of the last ones, a 3,600 SqFt unit (350 sq. meters) at 169 Hudson went to contract in early June, last asking $4.995 million.
Naturally homeowners of luxury properties travel in the summer months, so some of the inventory drop off may be attributed to the fast-paced Spring buying season with little new inventory coming on in July and August. Old-time brokers often reminisce of the ‘good old days’ when summer months slowed down and people took August off. Not anymore; lofts listed in the heat of this summer are still going to contract within weeks, and in some instances setting record prices.
Today, 2 and 3-bedrooms priced under $5 Million have an average price-per-square-foot (PPSF) in the mid-1,400′s (up from a nadir of about $1,050 PSF in 2009). If you are looking to buy a 3 or 4-bedrooms priced between $5-10 million, anticipate a PPSF of close to $1,900. Luxury lofts and Penthouses priced above $10 million will require you to be comfortable spending on average $3,200 PSF. If a super-luxury 4-bedroom is your heart’s desire be ready with an average budget of $19.7 million or $15.2 million for the best 3-bedrooms units.
Having sold Tribeca luxury lofts to buyers and sellers of mine since 2000, I have had the opportunity to introduce my clients to the best luxury properties over many years and know the history of the area.