Residential market still hot despite trade center tragedy

Real Estate Weekly, Oct 31, 2001 by Elaine Misonzhnik

For all the talk of panic-stricken people scrambling to get out of Manhattan, Andrew Gerringer, director of Douglas Elliman's marketing development group, doesn't think the news stories reflect reality.

"We just did two deals in Tribeca, at 19 Beach St., at full price," he shrugs. "I've heard from the property managers that there was a number of inquiries (about moving), but it's just a gut reaction. I don't think it really reflects a trend. It's just taking people a little longer to buy today, than it did a year ago."

As the man in charge of the marketing division of one of New York's largest residential firms, Gerringer takes credit for speeding the development of some of Manhattan's over-looked areas. He and his colleagues, who have been marketing real estate for decades, have a sixth sense about neighborhoods' potential, he claims.

"One of the things we are proud of and have been particularly successful at is developing new areas," Gerringer says. "We were the first ones to go into West Chelsea, into the Financial District, into the East Village. And we just opened up another project in SoLiTa, which is kind of a crossroads of SoHo and Little Italy. It's kind of in the middle of nowhere and we already sold several apartments there."

Gerringer himself is the quintessential salesman. Friendly and talkative, he manages to maintain a positive attitude about the city and its residential market even in uncertain times.

Gerringer first got involved with residential development when he took a position with The Marketing Directors, a high-profile Manhattan firm.

"It was in the 1980s and the condo move was happening," he explains. "And the Marketing Directors was one of the first companies that got involved in new con do development and construction. We were really helping shape the skyline of the city."

In 1989, however, when the market crashed and many of his colleagues moved from real estate to the banking business, Gerringer saw an opportunity.

"I came to Douglas Elliman just after the Millstein Brothers bought it and asked to work with the bank-owned properties," he says. "Because of my friends, I knew where all the buildings were buried and we set up many programs with Chemical Bank, Chase, Crossland."

Today, after his group has proven its viability, Gerringer says he wants to focus on more challenging projects. In addition to expanding the residential marketing group to a national basis, with developments in Florida and Minnesota, he is considering condo projects in Harlem, Williamsburg, and Red Hook.

"We find that what usually happens with some of these areas is that the bars and restaurants come in first because of cheaper rents," he explains. "And then people start visiting the neighborhood more, seeing that it's not as deserted as it used to be, and the rentals begin appearing. Then it's a good time for condo development."

That's what Douglas Elliman is doing in Harlem right now, with several new market rate developments. Although Gerringer concedes that revitalization in that area is a bit tricky, he is confident the projects will be successful and will help make Harlem more attractive for people who want to move to Manhattan from the suburbs.

"Harlem has had many chances at a renaissance and I think this is the first time it's really going to happen here. This is the time that Harlem is seeing some real development," he says. "There is a demand for our product now -- there hasn't really been luxury housing in that part of the city. Our project is right next to the Mount Sinai Hospital -- we hope it's going to have great appeal maybe not for the doctors, but for the nurses and other personnel who work there."

Another new development in the area is 455 Central Park West, what Gerringer calls "the last developable piece of property in Central Park." The luxury high-rise will combine a French Chateau-style townhouse with a modern apartment building. According to Gerringer, Douglas Elliman's marketing campaign for the development really shows what it takes to sell residential properties now days.

"We work with the architects and with the designers to put together the marketing materials," he explains. "We put together this CD which gives you a virtual tour of the property. That's basically what you have to do these days when what you are selling is air."

Gerringer also wants to point out that his marketing group is somewhat different from the rest.

"We really have our fingers on the pulse of the market because of our broker ties at insignia," he says. "We know what the next big thing is going to be."