Broadway theater owners have been selling developers the rights to build above their antiquated buildings for years. Developers buy those rights so they can add floors to the skyscrapers in the area. But there is a new twist in the real estate market, according to Town Residential’s Managing Director Ryan Fitzpatrick. Fitzpatrick said developers are buying the basement rights from theater owners, and that could change the dynamics of the real estate market in Manhattan.
Town Residential is considered one of the top real estate companies in New York. The company’s office is located at 26 Astor Place. Town Residential brokers sell commercial as well as residential real estate. The New York City apartments for sale market is ever-changing, according to Fitzpatrick. Selling basement rights will open the door for building owners around the city to do the same thing.
Selling basement rights does entail some major renovations to the property involved in the transaction. Building owners expect developers to keep the integrity of their building intact while they develop retail or residential units below ground. The Broadway area is the first area in the city to sell basement rights, but real estate agents and developers all over the city are pushing this new way to add more space to the already crowded streets of Manhattan.
But Town Residential brokers are not only watching the new basement rights twist, but they are also extremely busy selling multi-million dollar properties all over the city. Trying to find listings that sell for less than a million dollars is a struggle in Manhattan these days. If an apartment or a condo is listed for less than a million chances are its small, out-of-the-way and needs work, according to Fitzpatrick.
Most agents believe the market prices will continue to increase because of the demand and the new construction that is going on all over the city.
Brooklyn is another hot market, according to Town Residential brokers. The prices in Brooklyn have increased dramatically because it is the perfect alternative to living in Manhattan for Millennials that can’t afford the multi-million dollar price tags in the city.
A recent New York Times piece described the real estate market in New York City as a market with no ceiling when it comes to price. Wealthy Chines buyers are flooding the market and buying condos, townhomes and apartments for mega-millions and most of those buyers are paying in cash.