wn, since it has been so long since we’ve seen the establishment of new line in the area on this scale.
How does Yorkville’s standing as one of the relative bargains in Manhattan change going forward?
Yorkville was the least expensive part of the neighborhood, but bargains depend a little on who the renters are. Certainly, [once prices go up], other areas will be attractive for some of these renters, whereas some might be a little more tied to the neighborhood. Yorkville is still the least expensive place to live out of all the Upper East Side neighborhoods.
Principal broker and founder of Katzen Team, Douglas Elliman
You’ve been working on the Upper East Side for roughly a decade. What are you seeing in the UES market now that the highly anticipated subway is set to open?
The Upper East Side east of Third Avenue was typically considered the “nosebleed section.” People didn’t want to live over there; it was too far over. But people really believe the subway is happening now, and there is an affluent group of people who want chic, well-made apartments. And what we’re finding now is that people do have an interest in seeing what’s coming to life on places like East End Avenue and York Avenue. Restaurants are shifting up there, and retail too.
What types of residents are you seeing moving into the neighborhood, and what types of investors are interested?
A broad range: young, hip professionals; Europeans who want to be near the best schools, people who want the loft lifestyle like Downtown but don’t want 8-foot ceilings or co-op boards. They want the Downtown feel and have Uptown needs and sensibilities. I do see foreign investors who show an interest especially next to schools. Foreigners are looking for condos they can rent out, a pied-a-terre. They are specifically looking for ease and a clean acquisition that doesn’t have any hair on it. It’s a slam dunk on the Upper East Side, and the pricing has different entry points. The market now in Downtown is very expensive and the Upper East Side is more opportunistic, with a bigger width and deviation on either side of Lexington. There are a lot more opportunities to enter, and the investor likes it because the numbers make more sense for buyers.
Where are the relative bargains in the neighborhood going to be?
Yorkville will not remain the relative bargain. Right now, people find it noisy, inconvenient, and people want silence when they move in. But the ones looking now may be missing that market by virtue of the fact that it’s going to get very pricey very quickly when there’s no more risk, noise, dirt and fuss. If you’re an entry buyer or investor with a limited budget, ultrasmart people looking for value are looking at First Avenue: it’s not such a dumb idea. I’m seeing a shift and going to bet that 10 years down the line those people will not regret putting their liquid assets into an apartment, because this thing will perform. We feel that is the natural progression. This island ain’t getting any bigger and the population is growing, and the only way to go is up. So on the Upper East Side, there’s a new buyer in town who doesn’t need to have a prewar on Park. They want good product and value.
Tags: second avenue subway
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