2013 Tribeca Condo Sales, Year over Year averages…

• Extremely low inventory
• Strong demand & high competition
• Bidding Wars
• Low discount off of sold listings

Governor Cuomo signed into law (Chapter 4 of the Laws of 2013) the Omnibus Housing bill that renews the coop/condo abatement and J-51 programs and amends the certain provisions of the 421a program.

A brief explanation of the bill’s provisions is below.

Coop/Condo Abatement

The coop/condo abatement would be extended for three years.  However, to be eligible for the abatement, the unit must be the primary residence of the unit owner.  A unit owner may still receive an abatement for up to three units, provided they are in the same building and one of the units is the owner’s primary residence.  In addition, the thresholds for an abatement were modified as described below.

(that is the big change, as now only primary residences qualify)

For non-primary residence coops/condos where the unit received an abatement in FY2011 the abatement will phase out according to the schedule below.

J-51

The J-51 program, which provides a tax benefit for the renovation of existing housing, would be extended three years.  However, the amendments would eliminate benefits for the conversion of commercial space to residential use and limit the eligibility for condominium and cooperative buildings with units whose average assessed value per unit is >$30,000.  However, projects that receive “substantial government assistance,” which is defined to include city, state, or federal loans or grants, are not subject to this cap.  Likewise, conversion projects receiving substantial government assistance would be eligible for J-51 benefits.

421a

The amendments to 421a would encourage new residential development in high density 15 FAR districts in Midtown and Downtown Manhattan. In the modification to the program in 2007, the renewal of this separate provision was accidentally omitted.  This amendment was intended to restore the benefits that have been part of the program since 1993.  In addition the bill restores flexibility in the completion of construction provisions that are crucial to the resumption of stalled housing projects.

Low inventory and strong demand has pushed prices up Year over Year and made the buying situation tougher and more expensive.

Tribeca showed strong sales throughout 2012 and the luxury market showed the greatest gains as that sector emerged from the doldrums.

• Low inventory and low transaction volume for October
• Prices remain strong across the segment with larger units dominating sales output

Taking a peak into the sales numbers at 250 West Street, a Tribeca New Development, shows what is happening in the sub market.

Currently they have 81 lofts out of 106 lofts in contract already according to Street Easy.  Leaving only 25 lofts left and creating a price increase on the available units.

Studio lofts start at over 1MM and at the top end 10.5MM.

The marketplace is absorbing this high end, amenity ladden loft building at a rapid rate based on the hybrid formula of loft living + amenities, location and lack of like kind inventory.  The building a conversion of a former warehouse has a wide appeal to many demographic groups with its many features and style.

The month still has a few days left and so taking a quick peak at the sales numbers to see where we are heading in terms of sales volume.

So far:

Only 10 closed sales this month which is lower than any of the previous 4 months.

Low levels of inventory and higher demand & end of peak selling cycle are reason for drop.  We should see lagging numbers throughout the summer as demand is outstripping condo supply currently.

Starting July 1st we will start a month by month sales analysis of closed sales in the Tribeca condominium market.  This will be helpful as it has more focus than a traditional market analysis and will provide a year over year comparison in the future.

A site discussing tribeca condo loft sales, featured buildings, news and the like.

Coming Soon.