NEW DEVELOPMENT MARKET REPORT

Week of Feb 15 - Feb 21 by Kael Goodman (kaelg@marketproof.com)

Marketproof


Long Island City's The Neighborly led the city last week with 10 contracts reported signed. The New Empire Real Estate building has been selling units at the rapid clip of five per month. Nest Seekers International is leading sales, which began in February 2020. The 77-unit condo has 61 units in contract. At this rate, it will sell out in just three months. Closings have not started.


The Neighborly is well positioned to succeed in a new development market geared toward affordable luxury. Its asking prices start at a low $500,000 and peak at only $2 million. Sixteen studios have asking prices of $500,000–640,000. The 34 one-bedrooms range from $745,000–875,000 and the 25 two-bedrooms $970,000–1.33 million. There are only two three-bedrooms, each priced at $2 million.


The building's PPSF is just $1,278. Apartment sizes are modest. Studios average only 438 square feet, one-beds 656, two-beds 904, and three-beds 1,439. The affordable prices and moderate sizes of the units appear to have benefited a building that has signed contracts for the lion's share of its units during the COVID-19 recession.


In addition, The Neighborly is located in an up-and-coming Queens neighborhood where prices are still relatively low but are expected to rise. The building is offering a 15-year tax abatement, which likely incentivized bargain hunters looking to save several hundred dollars a month on taxes.


The white marble countertops and wood veneer cabinets provide the sleek aesthetic of modern luxury at an affordable price point, and the condo packs amenities including a 24/7 doorman, a garden, a fitness center, and a private study.


https://mailchi.mp/marketproof/new-dev-market-report-feb-15-feb-4778877