Residential Housing Growth in New York City
In an article earlier this year in the Wall Street Journal, Dana Rubenstein reported that the real-estate group led by developer Douglas Durst would soon be building a $350 million skyscraper south of Herald Square. This project shows optimism in the real estate world, since it’s one of the first major private projects to get underway since the real estate downturn. This is certainly welcome news for residential real estate lenders.
The current project includes a 40 story apartment which will change the flavor of the Sixth Avenue south of 34th Street location. While it has traditionally been a wholesale and flower district, it will now become a high-end residential and retail location.
While it’s still a shaky time economically for the private construction market, the apartment residential sector has seen more growth than have other sectors. Effective rents, which include landlord concessions, grew 5.25% in 2010, according to market research firm Reis Inc.Developer Mr. Durst was quoted as saying, “We’re very anxious to start building again.” Certainly, time will tell how well the project does, but all indications point to the project helping to revitalize this portion of New York City; and the project points to a revitalization of the real estate economy, which can only be good news for lenders.