Providing signs of a recovery in the New Development market, the former home of VillageCare, a nursing home facility located on West 12th and Hudson Streets has sold to the condominium developer, FLAnk for $33 Million.  Originally slated to close in 2007 at a slightly higher price, FLAnk had to wait for VillageCare, a non-profit, to exit from the building to their new location on West Houston St.

The timing benefits FLAnk in that both the commercial lending and residential luxury market are trending stronger than any time since the Financial Downturn.   FLAnk has secured constrution loans to gut the building and contruct 10 units in the building ranging from 3,000 to 9,000 Square Feet according to a WSJ Article.

The West Village is mainly landmarked and had limited construction during the boom years.  Average prices in the area have risen in part because in the last ten years many multi-unit Townhouses were converted to multi-million dollar single-family homes.   Adding to that, due to low inventory and new construction being luxury product, Condo prices in the area have risen 11% in the last year according to Radar Logic.  At the Related Co’s Superior Ink building, the Penthouse unit recently sold for $31 Million!  FLAnk’s has experience developing in the area.  Its building at 385 West 12th Street, built in 2009 is all but sold out except for the $7 Million Penthouse unit about to come on the market.

As a West Village resident myself, I can attest to the draw of the neighborhood’s quiet tree-lined streets, low rise buildings and European style boutiques on Bleecker Street and the proximity to the Hudson River Park.