Nobody calls it Manhattan Valley, except maybe some planning wonk, or the NY Times search engine. It does actually have some geographical boundaries, as there really does exist a valley. Let's forget that though and map out what people think of when they hear that name, and why people should be thinking about it more...
Loosely, Manhattan Valley runs from north of 96th street on the westside, until 110 street when Morningside Heights begins. (Some people think it stops at 107th and Strauss Park. I'm talking loosely here).
There are those people who think that anything North of 96th street is Harlem. Not that there's anything wrong with Harlem, but it's just ignorance (and, I think, a little racism). Manhattan Valley still feels like an old time neighborhood. It's filled with musicians, and professors, and other relics of an upper middle class that can't really afford to live here anymore.
Manhattan Valley has always been less expensive than south of 96th street. There are signs though, that the gap is closing.
One dramatic change to the neighborhood has been the Ariel development on Broadway and 99th street. Not only did they permanently alter the skyline, but they have infused the neighborhood with a clientele hungry for amenities, restaurants, and something retail other than Duane Reade. (It's a shame that Oppenheimer Meats couldn't hold on, because I bet they'd make it now...). The retail climate along Broadway from 96th until say 105th (anchored by Henry's restaurant on one side and Silver Moon Bakery on the other) is pretty dismal. But I'd bet that will change over the next couple of years. On Amsterdam there are big retail stores and luxury rentals) rising on 99th street, and on Columbus from 97th-99th, it's a virtual strip mall with all the favorites--WHOLE FOODS, Modells(Welcome to suburbia!) Michaels arts and crafts (no strip mall should be without!). I think people will embrace it.
West of Broadway for the entire length of Manhattan Valley couldn't be prettier. West End Avenue has many significant buildings, as does Riverside Drive. My favorite is the Clebourne, on WEA (but built until Broadway) and 105th. It is the Grande Dame of WEA, built for rich people in 1912, on the site of the old Strauss mansion (who perished in the Titanic in 1912). Strauss Park is named for them as well...The Clebourne was referred to as the Dakota of the North.
East of Broadway is a block by block affair. There are some interesting pockets: Manhattan Avenue Townhouses, for example, and lots of apts between Broadway and Amsterdam. But there is also a lot of public housing, tenements and run down apts that give a gloomy feel to the area. Having said that, 455 CPW is a luxury condo that seems to do pretty well. I've already posted my feelings about Park West Village, which I think has tremendous value that will only increase.
Some people will not look above the 70's, and for others, school catchment is their biggest concern (although I've posted my opinion about buying for school placement as well...). I would argue that before buying in the over crowded, over hyped 70's or 80's, you give the 90's or the 100's a look see. BTW, both Riverside Park and Central Park are splendid in this area. North Meadow is where most of the ball fields are located (as well as Riverside park from 101 to 104th street). Sal and Carmines has the best pizza outside of Staten Island. Silver Moon Bakery has the best bread in Manhattan. Absolute bagels are sublime. Smoke is a renowned jazz club. Mama Mexico is a local favorite. The hummus at Samad's (111th, but work with me here) is unparalleled.
(Neighbors, feel free to add you thoughts to what's special about the area...)
Saturday, February 28, 2009
Tuesday, February 3, 2009
Schadenfreude
It's my favorite German term ever. In the movie business, it's part of one's every day work life. It means taking pleasure from other people's misfortune. Here's what i don't understand: people on the NY Real Estate blogs bubbling with schadenfreude over the downward market.
Some of it I get: the frustrated masses, long shut out of the real estate market, trying to raise a family in NY. It's the only place I know of where being middle class, or even Upper Middle Class, gets you almost nowhere. These people are positively giddy over the prospect of finally being able to afford a home.
Almost every post I read is either about A) the poster's total hatred of real estate brokers or B) How the market is still crashing and prices will reach absurd numbers not seen since the 80's. They relish every price drop, they snicker at every closing price.
But here's the thing: this country, their friends, their neighbors, their family...don't they know someone who is suffering? It's like they are echoing the sickly cries of Rush Limbaugh. They are hoping for the NY Real Estate Market to crash.
Aren't their 401K's affected? Haven't they lost a percentage of their net worth? I don't know one person in NY who hasn't been affected by the downturn in some real way. Aren't these people getting giddy at their own expense? At some point, isn't it bad taste to relish others misfortunes?
Isn't their hostility misplaced?
Some of it I get: the frustrated masses, long shut out of the real estate market, trying to raise a family in NY. It's the only place I know of where being middle class, or even Upper Middle Class, gets you almost nowhere. These people are positively giddy over the prospect of finally being able to afford a home.
Almost every post I read is either about A) the poster's total hatred of real estate brokers or B) How the market is still crashing and prices will reach absurd numbers not seen since the 80's. They relish every price drop, they snicker at every closing price.
But here's the thing: this country, their friends, their neighbors, their family...don't they know someone who is suffering? It's like they are echoing the sickly cries of Rush Limbaugh. They are hoping for the NY Real Estate Market to crash.
Aren't their 401K's affected? Haven't they lost a percentage of their net worth? I don't know one person in NY who hasn't been affected by the downturn in some real way. Aren't these people getting giddy at their own expense? At some point, isn't it bad taste to relish others misfortunes?
Isn't their hostility misplaced?
Sunday, January 25, 2009
Open House Report
I have learned a few things since the collapse of Lehman Brothers (widely accepted as the death knell of the NY RE market). 1. No one is recession proof. 2. Even people who are still ready to buy are pausing. Their retirements portfolios are down 40%, they may still have a job, but there were cuts in their department or they are waiting for the market to bottom out. I am not a numbers cruncher, so I can only report my tiny sliver of the market, but I am encouraged by what I see. Here's what I can tell you: In the last 3 weeks, I've held open houses for a listing that was recently reduced to under a million. It is easily priced at 25% under the peak price. The first week, I had 30 unique visitors to the open house (meaning I had more than 30 people, some were in groups or with brokers). The next 2 weeks I had 15 unique buyers. Those are strong numbers, any way you look at it. Granted, I don't have an accepted offer, but there are lots of people who are ready to make the move. It may take twice as long (or three times as long or four times as long), but the buyers are out there. I heard about a well priced family sized apt on the Upper west Side that had 50 unique buyers through the doors during last week's open house. I'm not predicting an immediate turnaround. I'm not predicting anything at all. (Even my smart Wall Street friends are no longer predicting). But I do think that it's possible that a combination of astonishingly low interest rates and low prices will make buying sooner rather than later a reality instead of a temptation.
There are those who will wait to see if prices drop further (and they may). I believe that if you're in it for the long haul, it won't matter much if prices drop another 15%. You'll be in the apartment when they've risen another 30% over time. And you'll have the joy of living in a home that you love while everyone else is still waiting for the other shoe to drop.
There are those who will wait to see if prices drop further (and they may). I believe that if you're in it for the long haul, it won't matter much if prices drop another 15%. You'll be in the apartment when they've risen another 30% over time. And you'll have the joy of living in a home that you love while everyone else is still waiting for the other shoe to drop.
Friday, January 9, 2009
The Truth About Townhouses
Now that the market is, um, correcting, it poses an opportunity for some people to take advantage and jump into to real estate. I realize that not everyone has several million dollars to invest in a home, but for those who do, a townhouse is a beautiful way to live.
A vacant townhouse is always a premium, but sometimes you can buy a townhouse with rent stabilized tenants and empty it over time. I've sold several homes to people who were taking them over for their own use, and have gotten a great deal. Maybe you only need to live in half the space for several years as your family grows. Then you even have income to offset the costs.
How many couples argue over leaving the city? I hear it all the time: the husband is ready to go, and the wife, (rightly) concerned about her quality of life is reluctant to leave. If she's the primary caregiver, she'll be the one in the minivan schlepping all day long. A townhouse is the perfect compromise to the suburban alternative.
Some people are "view" people. They want to look out their window and see lots of sky, or the Park, or the River. I get it; it can be pretty spectacular. Some people are "amenities" people...they want the doorman to take the dry cleaning, they want the gym in the basement, and the super to take care of leaks. I get that as well.
But those people who can be persuaded to leave those things behind, a townhouse offers so much more.
First of all, on a square foot basis, a townhouse is generally a better value than an apartment. In a townhouse, you're usually getting a minimum of 3000 sf, up to what can easily be 7000 sf. Let's take an average 18 sf townhouse of 4 stories and call it 4500 usable sf. Let's not forget the additional 400 sf of outdoor space on the garden level, and say an additional terrace somewhere off of the extension of 150 sf. A vacant townhouse (which will need work, no doubt) will run you more or less $1000 per sf, but it soon could be less than that. When you're finished with a high end renovation, it'll have cost you $1200 to $1400 per sf, and you'll have everything you've ever wanted in a home without leaving for the suburbs. Let's discuss further before we talk about townhouse particulars:
If you're buying a townhouse, you have kids. Maybe lots of them. Are you constantly worried about them bouncing a ball above your neighbor's heads and having the doorman call you to complain? Fear no more. What about a big classic eight apartment that still only has 1 kids bath? It's still $4M, with no outdoor space, and not a lot of room to roam.
Do you have a dog? Tired of that midnight walk to insure that your Oriental carpet isn't ruined further? A townhouse provides the answers. Not to mention that it can provide that Viking BBQ that you've secretly always coveted. Most townhouses were built with multiple gas burning or wood burning fireplaces. How many apts have one or more functioning fireplaces? It's easy to dismiss it, but mid-January when you smell someone burning a fire in their hearth, doesn't make you a tad wistful?
A townhouse affords you more privacy than the average apt. Unless you have 14 rooms somewhere, even a sprawling apt doesn't really keep the kids out of your hair. But if you have a playroom, or your own study, there's room for peace as well as play. It's a fallacy that townhouses are dark--it depends how it's situated, but a north/south townhouse generally gets great sun in different places through the day.
There are many different period of townhouse styles (and that's a different post). In the village, you'll find a lot of Federal, Greek Revival and Georgian (mid to late 19th century), but on the Upper West, there are far more 20th century homes, many in a Queen Anne, Romanesque or Revival style. I live in a townhouse built around 1907 for German laborers (who had come to NY to build fancier townhouses). My home (17') was specifically constructed for the middle class.
The structure of a townhouse is pretty standard. They vary in width, anywhere from 13' to over 25'. (14' is pretty small, but I've seen it work many times. The rooms are still 13' across). A 25' townhouse, usually built in limestone and not brownstone, were generally built as mansions and feel that way. They are extraordinary. The gold standard for a townhouse is generally 20', but 17' and 18' are pretty common as well. Even in a 17' townhouse you can usually accommodate an elevator (which may sound dumb and unnecessary but it's important for re-sale and your in-laws will appreciate it. It costs about $100,000 to install). In addition, a 17' townhouse, you can still split one big room and make it 2 kid's rooms, each of a decent size.
Some townhouses have basements below the ground floor that can be dug out even further, which allows for things like a kid's playroom, a wine cellar, a screening room. All of the trappings of Suburbia without the Sam's Club. Some townhouses have the mechanicals on the ground floor and no basement. This is often referred to as an "English Basement" and the ceiling height is usually over 8'.
The location of the stairs also changes the feeling of the home. A center staircase rather than a straight staircase, allows for more gracious rooms on either side of it. I've noticed that many narrow townhouses have a center stair to make them appear more gracious inside.
The ground floor is often used as the kitchen floor which leads out to the garden. Depending on your needs, people often create a guest room or staff room on this floor as well.
The parlor floor is the entrance off of the stoop. Many townhouses were built with stoops, although there are some built with the original entrance on the street. The parlor floor was built as the receiving floors. They were always the most ornate, with the highest ceilings, most intricate woodwork. Many people have installed their kitchens and living rooms on this floor instead of the ground floor, but that was not the original layout.
Often a townhouse was built with an extension off the back that usually makes a great study on the parlor floor (and then becomes a terrace because it usually wasn't built the entire height of the home).
The next 2 or 3 floors are for the bedrooms. Historically, the master bedroom floor was located right above the parlor, and then the children's rooms and then the staff rooms. Depending on the width, one can easily get 3 or bedrooms per floor, and as many as 2 baths (and a laundry room!)
There's often room to build up, generally a half a floor with another terrace.This floor will often have extraordinary light as well.
If you're lucky, you'll also get a terrace for your morning coffee, and a giant walk in closet for your master suite. There's usually enough room for a home office as well as a den. And the short commute makes a real difference in everyone's lives.
To me, it beats a McMansion in Larchmont any day.
A vacant townhouse is always a premium, but sometimes you can buy a townhouse with rent stabilized tenants and empty it over time. I've sold several homes to people who were taking them over for their own use, and have gotten a great deal. Maybe you only need to live in half the space for several years as your family grows. Then you even have income to offset the costs.
How many couples argue over leaving the city? I hear it all the time: the husband is ready to go, and the wife, (rightly) concerned about her quality of life is reluctant to leave. If she's the primary caregiver, she'll be the one in the minivan schlepping all day long. A townhouse is the perfect compromise to the suburban alternative.
Some people are "view" people. They want to look out their window and see lots of sky, or the Park, or the River. I get it; it can be pretty spectacular. Some people are "amenities" people...they want the doorman to take the dry cleaning, they want the gym in the basement, and the super to take care of leaks. I get that as well.
But those people who can be persuaded to leave those things behind, a townhouse offers so much more.
First of all, on a square foot basis, a townhouse is generally a better value than an apartment. In a townhouse, you're usually getting a minimum of 3000 sf, up to what can easily be 7000 sf. Let's take an average 18 sf townhouse of 4 stories and call it 4500 usable sf. Let's not forget the additional 400 sf of outdoor space on the garden level, and say an additional terrace somewhere off of the extension of 150 sf. A vacant townhouse (which will need work, no doubt) will run you more or less $1000 per sf, but it soon could be less than that. When you're finished with a high end renovation, it'll have cost you $1200 to $1400 per sf, and you'll have everything you've ever wanted in a home without leaving for the suburbs. Let's discuss further before we talk about townhouse particulars:
If you're buying a townhouse, you have kids. Maybe lots of them. Are you constantly worried about them bouncing a ball above your neighbor's heads and having the doorman call you to complain? Fear no more. What about a big classic eight apartment that still only has 1 kids bath? It's still $4M, with no outdoor space, and not a lot of room to roam.
Do you have a dog? Tired of that midnight walk to insure that your Oriental carpet isn't ruined further? A townhouse provides the answers. Not to mention that it can provide that Viking BBQ that you've secretly always coveted. Most townhouses were built with multiple gas burning or wood burning fireplaces. How many apts have one or more functioning fireplaces? It's easy to dismiss it, but mid-January when you smell someone burning a fire in their hearth, doesn't make you a tad wistful?
A townhouse affords you more privacy than the average apt. Unless you have 14 rooms somewhere, even a sprawling apt doesn't really keep the kids out of your hair. But if you have a playroom, or your own study, there's room for peace as well as play. It's a fallacy that townhouses are dark--it depends how it's situated, but a north/south townhouse generally gets great sun in different places through the day.
There are many different period of townhouse styles (and that's a different post). In the village, you'll find a lot of Federal, Greek Revival and Georgian (mid to late 19th century), but on the Upper West, there are far more 20th century homes, many in a Queen Anne, Romanesque or Revival style. I live in a townhouse built around 1907 for German laborers (who had come to NY to build fancier townhouses). My home (17') was specifically constructed for the middle class.
The structure of a townhouse is pretty standard. They vary in width, anywhere from 13' to over 25'. (14' is pretty small, but I've seen it work many times. The rooms are still 13' across). A 25' townhouse, usually built in limestone and not brownstone, were generally built as mansions and feel that way. They are extraordinary. The gold standard for a townhouse is generally 20', but 17' and 18' are pretty common as well. Even in a 17' townhouse you can usually accommodate an elevator (which may sound dumb and unnecessary but it's important for re-sale and your in-laws will appreciate it. It costs about $100,000 to install). In addition, a 17' townhouse, you can still split one big room and make it 2 kid's rooms, each of a decent size.
Some townhouses have basements below the ground floor that can be dug out even further, which allows for things like a kid's playroom, a wine cellar, a screening room. All of the trappings of Suburbia without the Sam's Club. Some townhouses have the mechanicals on the ground floor and no basement. This is often referred to as an "English Basement" and the ceiling height is usually over 8'.
The location of the stairs also changes the feeling of the home. A center staircase rather than a straight staircase, allows for more gracious rooms on either side of it. I've noticed that many narrow townhouses have a center stair to make them appear more gracious inside.
The ground floor is often used as the kitchen floor which leads out to the garden. Depending on your needs, people often create a guest room or staff room on this floor as well.
The parlor floor is the entrance off of the stoop. Many townhouses were built with stoops, although there are some built with the original entrance on the street. The parlor floor was built as the receiving floors. They were always the most ornate, with the highest ceilings, most intricate woodwork. Many people have installed their kitchens and living rooms on this floor instead of the ground floor, but that was not the original layout.
Often a townhouse was built with an extension off the back that usually makes a great study on the parlor floor (and then becomes a terrace because it usually wasn't built the entire height of the home).
The next 2 or 3 floors are for the bedrooms. Historically, the master bedroom floor was located right above the parlor, and then the children's rooms and then the staff rooms. Depending on the width, one can easily get 3 or bedrooms per floor, and as many as 2 baths (and a laundry room!)
There's often room to build up, generally a half a floor with another terrace.This floor will often have extraordinary light as well.
If you're lucky, you'll also get a terrace for your morning coffee, and a giant walk in closet for your master suite. There's usually enough room for a home office as well as a den. And the short commute makes a real difference in everyone's lives.
To me, it beats a McMansion in Larchmont any day.
Saturday, January 3, 2009
Park West Village and a Tale of Two Condos
First, a (very) brief history of the cluster of buildings known as PARK WEST VILLAGE. There are four, independently run condos (372 CPW, 382 CPW, 392 CPW and 400 CPW) that form a quadrangle on 97-100 streets and Columbus and CPW. Built in the 60's (and they share that post-war, slightly Soviet looking brick exterior), the buildings were converted to condos in the early 80's. Because they've been condos so long, they have VERY low carrying costs as well as low real estate taxes. They each have their own amenities inside, but they share a common parking lot, as well as gardens and playgrounds. IMHO (although I think this is common knowledge) 372 CPW (or THE VAUX, as it is officially named but I think that smacks of desperation in trying to sound fancier...sort of like naming your kid Tiffany) is the jewel in the Park West Crown. It's actually ON CPW and 97, and many units have fantastic views (more on that later). It also has a renovated and tasteful lobby and a lovely new gym, as well as a huge community room with a library, a bike room, and a children's play room. There are nominal monthly fees for the gym, the bike room and the playroom. The on-site parking, for which is there is several year waiting list, is currently $175 monthly. Yup, you read correctly. The going rate in that neighborhood is about $450 monthly, so you'd save $3300 annually when you hit the lottery and get off the waiting list.
After 372, I think 400 is the best run building, also with excellent facilities. It too, sits right on CPW, at 100 street.
Maybe because of the subsidized housing look of the exterior, or the location just past the 96th street invisible border of the "good upper west side", or the relative proximity of the housing projects on Manhattan Avenue and 100th street, Park West Village has tended to be undervalued. Even at the height of the market, apts with full on Park views and Park facing terraces were trading at $1000 per sf, sometimes a little more. (In February, an 1141 2 bed 2 bath with full on Park Views and a north facing terrace sold for $1400 per sf. That's certainly a new record, and one that will stand for quite some time, I'm sure. It was a beautiful renovation).
Which leads me to part 2 of Park West Village: A Tale of 2 Condos.
I currently have apt 17C on the market at $1,350,000. It's the same unit as the one that sold for $1400 per sf, only this is 9 floors higher. The views are breathtaking. I'm asking $1125 per sf. Did I mention the views? The apartment has a renovated kitchen, but in general could use some updating. Still...
Now I'd like to comparison shop with a nearby condo, which in many ways is the perfect comp:
Apt. 22A in the Ariel East, located on 99th and Broadway. It's a new development, and arguably a more aesthetically pleasing exterior. (Although, frankly, it depends on whom you ask). Because the building is new construction, there are tax abatements in effect for the next 10 years.
this is our listing http://www.randny.com/listings.cfm?ListingID=269162&ListingSource=RPL&PropType=S
and theirs:
http://www.corcoran.com/property/listing.aspx?Region=NYC&listingid=939319
Their asking price: $2,510,000 ($1552 per sf)and theirs:
http://www.corcoran.com/
Ours: $1,350,000 ($1125 per sf)
Their cc: $1915.00
Ours: $631
Their taxes: $82 monthly, increasing by 20% every 2 years
Ours: $368
372 CPW is only a few hundred sf smaller than the Ariel, (and BTW, their measuring includes a certain percentage of common space, and they measure from outside wall to outside wall. I think the net difference is much smaller than the quoted sf would imply). Our second bedroom is actually the same size as their master bedroom, and our second bedroom is larger as well. We both have a terrace. Our view is better. They have a larger terrace (but still...they BOTH have terraces). We have a STUNNING VIEW.
Which apt makes more sense? Which is the better investment? Which has the better view? I leave those questions for you to decide. If you're looking for a condo, don't overlook Park west Village. By the way, there are new luxury rentals going up at Columbus and 97th. They will house a new Whole Foods, a Modells, a Borders (if it doesn't go bankrupt), a Michael's arts and crafts store, 2 new schools (Mandell school expansion and Solomon Schecter) and a TJ Maxx. That addition to the neighborhood will only improve the value of apts at park West Village.
Friday, December 19, 2008
The School Debate
Nothing gets people more riled up than talking about NYC schools. (OK, maybe politics, but the school debate pretty much is politics writ small).
For those buyers who are sending their children to private school, the choice of where to live can be liberating: it doesn't really matter. Why live in the PS 87 school district when you can find the same apartment for less money nearby and your kid is going to Trinity anyway?
For most people, private school is not an option. Now more than ever, people are giving a hard look at what the public schools have to offer. It may be apocryphal, but I've been hearing that applications for financial aid at private schools is way up, and that new applications at private schools are way down. It wouldn't surprise me.
For full disclosure, my kids are at a private school, so I haven't had to navigate the Soviet-like bureaucracy of public schools. However, my partner at Rand Realty, Marty Krasnoff, has his child at Manhattan School for Children, and he had applied to all kinds of programs, including gifted and talented programs, the Anderson Program, and the Hunter program.
Here's a helpful nyc school website: http://maps.nycboe.net/
Here's an article which touches on some of the school madness:
http://www.nytimes.com/2008/11/05/education/05rezone.html?pagewanted=print
and one other:
http://nymag.com/news/features/41277/
For those buyers who are sending their children to private school, the choice of where to live can be liberating: it doesn't really matter. Why live in the PS 87 school district when you can find the same apartment for less money nearby and your kid is going to Trinity anyway?
For most people, private school is not an option. Now more than ever, people are giving a hard look at what the public schools have to offer. It may be apocryphal, but I've been hearing that applications for financial aid at private schools is way up, and that new applications at private schools are way down. It wouldn't surprise me.
For full disclosure, my kids are at a private school, so I haven't had to navigate the Soviet-like bureaucracy of public schools. However, my partner at Rand Realty, Marty Krasnoff, has his child at Manhattan School for Children, and he had applied to all kinds of programs, including gifted and talented programs, the Anderson Program, and the Hunter program.
- Here's the thing: You have to apply for those programs no matter where you live in Manhattan. They are not catchment programs, so it DOESN'T MATTER. (You do have to live in the district where you're applying for a standard G and T, but not the catchment). OK, but those programs are very selective and they are basically like winning the lottery you may say. You can't count on it. True, you can't count on it. But there are a lot of gifted and talented programs out there, not just those.
- The "hot" school of today may evolve, and not only for the better. The "up and coming" school may be tomorrow's hot school. Just ask those parents at PS 199, which is bursting at the seams. There are all kinds of fights going on at that school, most recently because the parents of the Riverside BLVD condos have been re-routed to another public school. Those parents are furious, but I bet that the new school will improve in a hurry.
- PS 166 for example, is an under the radar school with an excellent G and T program, and some other accomplishments. When looking for an apartment, do your research before you rule out a specific catchment.
- If you have a newborn, and you are planning where to buy based on kindergarten in 5 years, you could be making a mistake. Everything changes. Buy the best apartment you can buy that will hold its re-sale value and that will make your family happy. Make it close to a pre-school or two where you can walk your kid to school in a couple of years. Beyond that, everything will change.
- Having said that, PS 87 has been a great elementary school for a generation, as has PS 6. (But even PS 6 is getting re-zoned.) If you can afford those districts, it's like winning a mini-lottery.
Here's a helpful nyc school website: http://maps.nycboe.net/
Here's an article which touches on some of the school madness:
http://www.nytimes.com/2008/11/05/education/05rezone.html?pagewanted=print
and one other:
http://nymag.com/news/features/41277/
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