Its common knowledge that New York City real estate is reawakening. But during this first month of the lucky 13th year of the 21st century, several unlikely geographies - the neighborhoods above 96th street – are apparently leading the march to prosperity. And multi-family investment properties are providing the lions share of the momentum.
The reason? It’s getting way too hot in Midtown.
With Manhattan rents skyrocketing and capital gains taxes poised to rise, established neighborhoods are short on inventory, and long on price. Many so-called ‘ordinary’ New Yorkers can’t even consider Midtown, Chelsea, Gramercy, the Village – or any well-heeled areas.
But with affordable (at least by New York City standards) dwellings in short supply, the gentrifying areas of East Harlem, Washington Heights, and Harlem are looking better than ever. They offer something unique and increasingly valuable: Manhattan without the price tag. And the trend will only accelerate. Northern Manhattan investment property sales soared by 58 per cent year-over-year during 2012, easily exceeding the $1 billion dollar mark. The previous year’s sales didn’t hit $700 million.
Uptown is unique in another respect – there’s room for development. The vacant lots and tumble-down properties that were considered eyesores just a few years ago have become the apple of many an investor’s eyes. Just a few of many recent examples: since New Year’s alone, an undeveloped on Third Avenue in East Harlem has fetched close to four million dollars, and two undeveloped Washington Heights parcels on 163rd street have been bundled into a $2.5 million dollar deal.
We mentioned in an earlier blog that multi-family real estate now ranks is one of the wisest investment options around. Add in this important update: Trading up – Uptown, that is – may well be the best strategy of all.
