2Q Tribeca/Soho Real Estate Report Released
Prices in Tribeca & Soho notched deeper into record territory during the 2nd Quarter, eclipsing $1,700 per square foot on average for the first time ever, according to new data reported on real estate appraisal firm Miller Samuel Inc.’s website.
The gains came amid a desperate lack of inventory in the trendy neighborhoods, as sales transactions in the area fell by 20% during the quarter, the New York real estate appraisal firm reported. The drop represented the first time that sales transactions in the two neighborhoods during the 2nd Quarter were less than they were in the 1st Quarter in more than ten years, according to MillerSamuel.com.
The trend stood in contrast to the rest of Manhattan, where prices dipped slightly during the quarter while the number of transactions rose modestly. The average price per square foot in Manhattan at large during the 2nd Quarter was $1,268, which was down 7% from the 1st Quarter, according to Miller Samuel’s website. That dip only represented a slower pace of growth for the greater Manhattan market however, as prices still remain 10% higher than they were at the end of the first half last year, the firm reported.
The average price per square foot in Tribeca & Soho was $1,713 at the end of June, according to MillerSamuel.com. That figure is up 14% since the same time last year, and an astonishing 34% over the past 24 months.
Prices in Tribeca & Soho are now nearly 25% higher than they were prior to the 3rd Quarter 2008 collapse of Lehman Brothers, while the average price per square foot for Manhattan at large is still modestly trailing pre-recession levels.
The two neighborhoods rank among the most expensive in the nation, and trail only Central Park West and the Park & 5th Avenue corridor in New York, which commanded prices of $1,957 and $1,937 per square during the 2nd Quarter, respectively, the Miller Samuel data shows.
The high prices combined with a shortage in available inventory in Tribeca & Soho has created an ideal opportunity for sellers looking to take advantage of the high prices as buyers compete with each other for a lack of available homes. The recent, high-profile cover story from the June 30th issue of New York Magazine highlighted the current demand from all-cash international buyers. But mortgage rates have also trended lower, approaching levels from June of last year and enhancing affordability for buyers that are financing.
The increase in prices in Tribeca & Soho was most apparent among apartments with 3 or more bedrooms, where prices were up 16% per square foot during the quarter, according to the Miller Samuel data. The average price for a 3 bedroom unit in the area was $1,667 per square foot during the quarter, while units with four or more bedrooms commanded prices of $2,361 per foot on average, the firm reported.
Prices for 1 and 2 bedroom units in the two neighborhoods were down modestly during the quarter at $1,372 and $1,667 per square foot, respectively, which was more in sync with the greater trend across Manhattan, according to the data. The cost for studios was $1,252 per square foot during the quarter.
The median price for a studio in the area was $610,950 during the quarter, Miller Samuel reported. That compares to a price of $7.8 million for something with four or more bedrooms, according to the firm’s website. The median price for 1-, 2- and 3-bedroom apartments was $1.2 million, $2.4 million and $4.1 million, respectively, the firm reported.
The trend we have seen in 2014 whereby co-ops in supply starved Tribeca & Soho have been selling at prices close to those of condos continued during the 2nd Quarter. The average price of co-ops was only 6% lower per square foot than that of condos in the two neighborhoods during the 2nd Quarter, according to Miller Samuel. Co-ops typically sell at levels closer to 25% or 30% lower than condos across the rest of Manhattan.
Artist Charles Ross’ penthouse at 383 West Broadway nearly set a record for downtown co-ops when it sold for $26.58 million in April – less than $1 million shy of the resale of Rupert Murdoch’s former Soho “Water Tower Penthouse” at 141 Prince Street in 2010. Ross had owned the loft since the ‘70’s before renovating the 7,500 square foot space to sell it on the ultraluxury market.
The priciest sale in Tribeca & Soho during the 2nd Quarter however belonged to a condo at the newly renovated Puck Building, where a 5,919 square foot 3 bedroom sold for $28 million in May. The penthouse fetched a whopping $4,731 per square foot, which was also higher than any other sale in the two neighborhoods during the quarter.
The lowest sale price per square foot in Tribeca or Soho had to be 5,500 square foot live/work space at 41 Worth, that sold for $2.75 million, or $456 per square foot. But the two-level space had been configured for an office.
The most affordable unit in either Tribeca or Soho during the 2nd Quarter was a 522 square foot 1 bedroom at 93 Worth that sold for $410,670 in April. The office-to-condo conversion was the top selling building in either neighborhood during the quarter, having sold 18 units. 93 Worth is part of a mini-boom of new developments that is expected to double the number of residential units within a four-block stretch of Broadway between Walker and Worth streets.
Jacob is a former financial journalist and currently a real estate on the Tribeca Team at BOND New York who lives and breathes real estate in Tribeca & Soho. If you are interested in buying real estate in the area or would like a free consultation on selling your apartment, give Jacob a call today!