nypost.com
Open in
urlscan Pro
192.0.66.32
Public Scan
URL:
https://nypost.com/2023/06/15/nyc-ushers-in-ultra-luxury-rentals-amid-high-interest-rates/amp/
Submission: On June 16 via manual from US — Scanned from US
Submission: On June 16 via manual from US — Scanned from US
Form analysis
0 forms found in the DOMText Content
Close the sidebar * News * Metro * Page Six * Sports * NFL * MLB * NBA * NHL * College Football * College Basketball * Post Sports+ * Sports Betting * Business * Personal Finance * Opinion * Entertainment * Oscars 2023 * TV * Movies * Music * Celebrities * Awards * Theater * Shopping * Lifestyle * Weird But True * Health * Fitness * Health Care * Medicine * Men’s Health * Women’s Health * Mental Health * Nutrition * Sex & Relationships * Viral Trends * Human Interest * Parenting * Fashion & Beauty * Food & Drink * Travel * Real Estate * Media * Tech * Astrology * Video * Photos * Visual Stories * Sub Menu 1 * Today’s Paper * Covers * Columnists * Horoscopes * Sports Odds * Podcasts * Careers * Sub menu 2 * Email Newsletters * Official Store * Home Delivery * Tips Close the sidebar Menu * Facebook * Twitter * Flipboard * WhatsApp * Email * TRENDING NOW Skip to main content OZEMPIC FINGER IS DIET DRUG'S LATEST SIDE EFFECT — FORCING... CATHOLIC SCHOOL TEACHERS CAUGHT IN COMPROMISING POSITION IN... ANDY COHEN SAYS HE AND JOHN MAYER ARE 'IN LOVE' Real Estate NYC USHERS IN ULTRA-LUXURY RENTALS AMID HIGH INTEREST RATES By Shivani Vora June 15, 2023 | 5:33pm What fancy condo? Today, New York is ushering in the era of ultra-luxury rentals where the pickings are slim and rival the best new for-sale properties in town. MORE ON: RENTALS * JOHN MAYER’S NYC APARTMENT WHERE HE BEFRIENDED ANDY COHEN LISTS FOR RENT * THIS MAN SPENT JUST $7,500 BUILDING A ‘LOVE ISLAND’ VILLA — IT HAS A 2-YEAR WAITING LIST * RENT THIS LUXE APARTMENT IN THE WORLD’S SKINNIEST TOWER FOR $75K/MONTH * BANK-BUSTING NYC RENTS REACH A RECORD HIGH — AGAIN After a decade of much-hyped and buzzed-about condo developments hoping to attract buyers with sleek designs and a bevy of amenities, the top end of the city’s real estate market is gravitating towards rentals of the same caliber instead. Advertisement The reasons? Ongoing high interest rates and overall economic uncertainty. That said, deep-pocketed would-be buyers who want to wait things out still have luxe options at their disposal. Take, for example, 111 Charles, a West Village development debuting on Aug. 1. With a distinctive red sculptural facade designed by architect Morris Adjmi, the 19-unit building has one-bedroom rentals that are a minimum of nearly $8,000 and a penthouse that’s leasing for an eyebrow-raising $40,000. The building’s amenities include a souped-up gym, an airy residents’ lounge complete with a top-of-the-line kitchen, and a playroom for kids filled with the latest and greatest toys. Homes at 111 Charles don’t fail to dazzle, and cater to those willing to sit out a shaky sales market these days.Binyan Studios Advertisement 111 Charles, with chic interiors, is in Manhattan’s West Village.Binyan Studios Sweet amenities abound at 111 Charles.Binyan Studios There’s also the new Anagram Columbus Circle with its 13,000 square feet of amenities and four-bedroom units that cost upwards of $26,000 a month. Brooklyn isn’t excluded either. One Boerum Place, an all-rental development downtown, has 700-square-foot one-bedrooms for a minimum of $5,000, and penthouses for up to $30,000. Advertisement Brian Ezra, a partner and co-founder of the real estate development company Avery Hall behind One Boerum Place, says his firm has an even more luxurious rental project in the works that debuts in Gowanus in 2025. Demand matches the prices. Matt Abreu, the vice president of development at Aurora Capital Associates, the company behind 111 Charles, says that the waitlist for eager tenants is close to 100 people, and Anagram Columbus Circle has a waiting list as well. Already-open buildings, meanwhile, including One Boerum Place and The Cooper in Midtown East, with more than 760 units, report full occupancy. That hasn’t always been the case. Vickey Barron, of Compass, says there’s a dearth of luxury rentals on the market, and the ones that are listed are snapped up in less than a day — even sometimes within hours. Advertisement One of her clients, who requested to remain anonymous, says that he looked at several listings in Lower Manhattan that ranged in price from $25,000 to $60,000 a month and offered a significant amount of outdoor space. “They were leased so fast that I never had a chance to put in a bid,” he said. “I haven’t been able to find anything suitable for my family yet, so we’re staying out in our current apartment in Chelsea.” Across the city, rents have been on a post-COVID rebound and have continuously broken records.Getty Images/iStockphoto One Boerum Place in Brooklyn has full occupancy.Williams New York Advertisement Data supports the trend. Douglas Elliman and Miller Samuel’s most recent rental report shows that median rents have yet again reached another record high amid big demand for city living. Further, 13.5% of rentals in May were bidding wars, and inventory remained well below the decade average for May. The report’s author, Jonathan Miller, says that monthly rental prices at the top end of the market start at $23,000, a jump from $18,000 five years ago. “It’s definitely the time when luxury rentals are picking up traction more than ever before,” he said. “In Brooklyn, for example, the median rent reached new highs for the second straight month.” This scenario is the reverse of what happened at the start of the pandemic when rental prices dropped dramatically in the wake of New Yorkers fleeing the city. According to Miller, rates dropped 20% while vacancy reached close to 12% — the highest since July 2006, the first year he tracked this data. Advertisement The views at One Boerum Place are certainly condo-worthy.Williams New York An open kitchen inside a stylish One Boerum Place home.Williams New York A view of a One Boerum Place layout.Williams New York Leasing prices then began ratcheting up in 2021 when the COVID vaccine became a reality. Advertisement “As soon as a vaccine was distributed, it was almost as if a switch was flipped and demand began to soar,” said Miller. Rentals are attracting the deep-pocketed set, Miller says, because of the higher interest rates on mortgages compared with a year ago and uncertainty in the stock market. “People are afraid we are going to slide into a recession,” he said. Douglas Elliman agent Kirsten Jordan agrees. Advertisement “Some potential buyers are spooked and don’t want their money tied up,” she said. “The financials of a rental make more sense.” Jordan’s recent client, for example, a single guy working in finance, considered buying an apartment that would have had him shelling out $24,000 a month — but opted for a two-bedroom apartment in Soho for $18,000 instead. The gym at One Boerum Place.Williams New York The gym at 111 Charles is nothing to sniff at either.Binyan Studios Advertisement An indoor pool at One Boerum Place.Williams New York Real estate experts and developers additionally point to a shift in lifestyles since COVID. Ezra, of One Boerum Place, says the building was originally planned as a condominium but switched to a rental model just before it was set to open. “COVID hit as we were finishing, and we found that people wanted the flexibility of a rental but still wanted a beautiful home,” he said. “We wanted to offer that.” 111 Charles’ Abreu echoed the same sentiment. Advertisement “People want freedom when it came to finding a home without sacrificing luxury, and we capitalized on that,” he said. Matt and Kelly, a couple currently renting a three-bedroom in One Boerum Place and only wanted to be identified by their first names, are prime examples. Matt, a lawyer, and Kelly, who works in public relations, relocated to New York from Washington DC in 2022. They didn’t want a long-term financial commitment and sought a rental for their new home. “We have seen instances of family and friends who couldn’t resell their homes, and we didn’t want to be in the same situation given that our long-term plans are uncertain,” said Matt. What do you think? Post a comment. Advertisement The building’s amenities, especially the indoor swimming pool and lounge that Kelly uses when she’s working remotely, were a key driver in their decision. “The amenities are comparable to the condos we looked at, and we’re so happy with our decision that we signed a lease for another two years,” said Kelly. “A rental for us for right now is the way to go.” Ad SHARE THIS: Filed under apartments , brooklyn , interest rates , luxury real estate , manhattan , rentals , 6/15/23 Load more... {{#isDisplay}} {{/isDisplay}}{{#isAniviewVideo}} {{/isAniviewVideo}}{{#isSRVideo}} {{/isSRVideo}} TRENDING NOW 1. Ozempic finger is diet drug's latest side effect — forcing women to spend more $$ 2. Catholic school teachers caught in compromising position in classroom by students 3. Andy Cohen says he and John Mayer are 'in love' 4. Anheuser-Busch whistleblower alleges Dylan Mulvaney fiasco 'planned': 'Strategic destruction of Bud Light' 5. Yes, CVS actually stands for something — and most people have no clue after 60 years 6. Deion Sanders may have to get his foot amputated https://nypost.com/2023/06/15/nyc-ushers-in-ultra-luxury-rentals-amid-high-interest-rates/?utm_source=url_sitebuttons&utm_medium=site%20buttons&utm_campaign=site%20buttons Copy the URL to share * Post Sports+ * Email Newsletters * Mobile Apps * Contact Us * Tips * Facebook * Twitter * Instagram * LinkedIn * Email * YouTube © 2023 NYP Holdings, Inc. All Rights Reserved Terms of Use | Privacy Exit mobile version