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