Sunday, August 21, 2011

Amenities Bundled into New Residential Housing in Manhattan

Milstein Properties is rolling out new housing in Southern Manhattan's Battery Park City.  This real estate isn't cheap.  As this article explains, it will cost $1,300 a square foot while its local competition costs a mere $1,000 per square foot.  What amenities does the new property offer to justify a 30% markup?

To quote the article;

"Stylewise, the exteriors of Liberty Green and Liberty Luxe blend with their neighbors in Battery Park’s northern, newer section, with traditional facades and sliding windows, similar to those at Tribeca Green, a Related Companies rental across the street.

Like Tribeca Green, the two buildings have environmentally friendly features. Since 2000, the Battery Park City Authority has mandated that new buildings in the neighborhood be energy-efficient. Cabinets and floors are made of bamboo, which can be harvested sustainably; apartments have master cut-off switches so all lights can be turned off at once; and rainwater is collected and reused.

What may differentiate Liberty Green and Luxe from their predecessors is a 52,000-square-foot community center under the base of both buildings, connected by a plaza.

Created by Asphalt Green, the not-for-profit organization known for its Upper East Side sports complex, the center will have a basketball court, a 5,000-square-foot fitness center and an auditorium, all of which can be accessed from newly refurbished baseball fields on the complex’s eastern side."  There will also be a swimming pool.

Somehow, I'm not convinced that these amenities are worth a 30% increase but they only need to find 1300 households who disagree with me.  Such residential areas are self selected communities. If they are viewed as elite, hip places then they will succeed as such like minded people will seek to live there.  They don't want guys like me to live there. I would ruin the buzz.