Dozens of New De­vel­op­ments Planned Along the 2nd Ave Sub­way Route

The Jewish Voice - - NEW YORK - By Charles Bern­stein

De­vel­op­ers have made plans for dozens of new rentals and con­dos as the Sec­ond Av­enue sub­way cel­e­brates its first six months of op­er­a­tions.

The new sub­way route ex­tends the Q line through the Yorkville neigh­bor­hood, which is now the site for many new de­vel­op­ments, ac­cord­ing to analy­ses from Hal­stead Prop­erty De­vel­op­ment Mar­ket­ing and Brown Harris Stevens De­vel­op­ment Mar­ket­ing.

Long­time agent in the area, Sotheby’s In­ter­na­tional Re­alty’s as­so­ciate bro­ker Nikki Field, told the New York Times, “What was the over­whelm­ing en­cum­brance of that area? It was the lack of mass trans­porta­tion. Now, prop­er­ties are go­ing to move.”

De­vel­op­ers and bro­kers note that val­ues are in­creas­ing for many of the build­ings that al­ready ex­ist be­tween First and Third Av­enues from East 63rd to East 96th Streets.

In 2008, the sub­way started its most re­cent phase of con­struc­tion, which has in­creased real es­tate prices now that its com­plete. Ac­cord­ing to apart­ment price tracker Ci­tyRealty, the av­er­age sale price on June 23 in the area around Sec­ond Av­enue was at its high­est in five years, a whop­ping $1,486 a square foot. 28 build­ings in the district were eval­u­ated by Ci­tyRealty, in­clud­ing two that opened in 2015, Re­lated Com­pa­nies’ Carnegie Park at 200 East 94th Street and Blue­rock Real Es­tate’s the Charles at 1355 First Av­enue.

The NYT re­ports, “Long con­sid­ered a more af­ford­able re­gion on the Up­per East Side be­cause of its dis­tance from the Lex­ing­ton Av­enue line, Yorkville apart­ments have typ­i­cally sold for about 20 per­cent less than those lo­cated west of Third Av­enue, Ms. Field said. But ‘the gap is ab­so­lutely nar­row­ing.’ The grad­ual es­ca­la­tion of prices, which also can be ex­plained in terms of a re­cov­ery from the last down­turn, has been ap­par­ent on a per­sonal level for Shai Shus­tik, a de­vel­oper who lives at 300 East 71st Street, a red brick co-op near the new East 72nd Street sub­way stop. In 2007, Tali Had­dad, whom Mr. Shus­tik would later marry, bought a one-bed­room in the build­ing for $520,000,

“What was the over­whelm­ing en­cum­brance of that area? It was the lack of mass trans­porta­tion. Now, prop­er­ties are go­ing to move.”

Con­tin­ued from page 6 he said. From within the third­floor unit, which faced Sec­ond Av­enue, the sub­way con­struc­tion sounded like a ‘bomb­ing,’ said Mr. Shus­tik, who stayed there of­ten.”

In 2013, six years later, the now Ms. Shus­tik, for­mally Ms. Had­dad, sold the unit for $685,000 while con­struc­tion was still un­der­way. Although they still made a profit, the prop­erty value was low­ered by the views from its win­dows be­ing blocked by a tem­po­rary struc­ture that acted as an of­fice for the sub­way work­ers.

Af­ter the struc­ture came down when the sub­way opened, real es­tate prices shot up. Ac­cord­ing to prop­erty records, the same apart­ment sold this past May for $900,000, a 30 per­cent in­crease in just four years. Mr. Shus­tik told the NYT, “I was def­i­nitely shocked they were able to achieve that num­ber.”

The lobby in the sub­way sta­tion at East 86th Street and Sec­ond Av­enue.

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