Recently, New York City Mayor Eric Adams and the New York City Economic Development Corporation (NYCEDC) announced the next phase of the Gansevoort Square redevelopment project, bringing around 600 units of mixed-income housing to the Meatpacking District. This got us thinking about new development projects in New York City. We asked agents in the know what they are seeing in this sector and its impact on the overall real estate market. Where is some of the best new development taking place? Where should buyers be keeping a watchful eye?
Ari Harkov
BROWN HARRIS STEVENS
There remains very little new condo development. Most of the development is in the rental / multifamily sector. With high land prices, high rates, and high hard costs, it’s difficult to make a condo deal pencil. As such, buyers have limited inventory access and much of the zoning limitations are such that the available inventory tends to be at the periphery of neighborhoods – 4th Avenue in Park Slope, Downtown Brooklyn, Kent Avenue in Williamsburg, etc. High quality product in core neighborhood locations remains in high demand and is undersupplied.
Mickey Conlon and Tom Postilio
COMPASS
110 OFFICE
The City of Yes initiative is the first major overhaul of NYC housing policy in decades, and increased flexibility in zoning regulations will provide a much-needed opportunity to rethink how new developments are planned and how they integrate into communities as a whole. Of course, there will always be the shiny, relentlessly vertical luxury towers that continue to redefine the city skyline, but the focus of the developers and buyers we work with is on neighborhoods, by which we mean place that feel local in a global city — walkable enclaves with family-owned shops and restaurants, easy access to green space, and a quiet sense of community. Those factors are an important extension of wellness trends we’ve increasingly observed over the last decade. A new boutique project we just launched at 420 E 75th Street is a great example of this. The entire concept for the building was informed by this palpable shift in priorities. With just six units, the building itself is designed to foster a sense of community, which is often alien to those who have ever lived in a monolithic residential tower.
Alexander Boriskin
DOUGLAS ELLIMAN
In Manhattan, new developments are popping up in neighborhoods undergoing transformation and revitalization. The Meatpacking District’s Gansevoort Square redevelopment is a standout, adding 600 mixed-income housing units to this trendy area. Buyers should keep a close eye on areas like the Upper East Side and Upper West Side, where new luxury buildings and high-end amenities are emerging, catering to a buyer who is looking to blend the old with the new. Limestone buildings are very in style. Think a new version of a Park Avenue Co-op but as condo with all of the shiny bells and whistles. The Lower East Side is also rapidly evolving with new residential projects that blend modern luxury with the area’s historic charm. The Seaport District, with its proximity to waterfront views, is another hotspot for new condos and upscale developments. Additionally, Hudson Yards continues to see major growth, with luxury high-rises and expansive mixed-use developments reshaping the skyline and attracting both buyers and renters. Overall, Manhattan’s real estate market is thriving with diverse new developments, offering buyers a range of options from luxury condos to mixed-income units in high-demand neighborhoods. These areas are poised for long-term growth and are worth watching for potential opportunities.
Ryan Kaplan
THE CORCORAN GROUP
CHELSEA/FLATIRON OFFICE
There isn’t one particular area of New York where I feel there’s an influx of particularly compelling opportunities – it’s more so about identifying the project that’s on the exact right corner, in the exact right neighborhood. So much of new development can feel commoditized and cookie-cutter when comparing one to the next. I prefer my clients to buy and invest in projects that have some aspect that’s truly unique, which will help sustain and accrete value over time. Victor Sigoura’s Legion Investment Group has been assembling a site on the southwest corner of 3rd Avenue and 21st Street for a few years — and they just secured a crucial adjoining lot fronting Gramercy Park. So now the whole project will have both keys to the park as well as a Gramercy Park address. It’s the last site like it and a scarce piece of real estate. That’s the kind of project that intrigues me. On the opposite side of town, the Zeckendorfs are building 80 Clarkson Street, which occupies the last waterfront development site in the West Village. This area is already inventory-constrained largely due to the neighborhood’s sweeping protection as a historic district. Again, this kind of irreplaceable product is poised to be a smart investment.
This article appeared in the February issue of Behind The Hedges in Dan’s New York City. Read the full digital edition here. For more on New York City real estate, click here. Or, tap here to read previous Real Estate Roundtables for more inside info from top agents from the Hamptons to Palm Beach.
