Living and working in the Financial District

Real Estate Weekly, Feb 23, 2000 by Eric Kaufman

Parking in the area is expensive and relatively inflexible. In my case, the closest garage is not open Sundays, and still get the privilege (ha, ha) of paying nearly $400 per month to have to move my car at 7 a.m. Monday mornings. One thing that the planners will have to keep in mind is that if the area is to become a 24-hour neighborhood, adequate street traffic flow will have to be maintained. It will be interesting to see how the City plans for what seems to be an inevitable increase in automobile use by residents. Currently, most Lower Manhattan residents are either students or young single professionals, who are less likely to have cars than more traditional family units.

Although the pace of conversions has slowed somewhat due to the relatively strong office market Downtown, the existing stock of residential housing will insure that the area retains its residential status. Retailers in the area will be more receptive to evening and weekend hours as people begin to demand the services of a residential neighborhood,. Overall, the construction of additional multi-family product will depend on whether the commercial market continues its strength (especially Silicon Alley) and how favorably the area is perceived by prospectiye tenants.

A final note on condominium ownership in the area: With rental prices at $40 or more per square-foot for luxury housing, residential condominium conversions have begun 25 Ann Street (The Edgar House) is being offered through Halstead Properties, with prices starting at $910,000 for a fourth floor, 2,270 square-foot pre-war condo loft. Prices at that project range up to $2,425,000 (asking price) for a penthouse of 2,743 square feet plus outdoor space. Rumor has it that 33 Rector Street may also become a conversion. Clearly, I think such talk is justified after living down here for nearly a year. Preliminarily, the prices would be about two-thirds of the price for comparable residential space in SoHo or TriBeCa, approximately $450 per square-foot for luxury renovated product.

New Yorkers have been pushing the boundaries for residential housing for years in our insatiable need for luxury high-rise living. It is truly exciting to be a part of the revitalization process concerning the Financial District, and to retain the character of some historic buildings that had outlived their original intended use. It should be noted that the initial residential conversion tax benefits available under the 1995 Downtown Plan are set to expire in 2002. Property owners in the Financial District should seriously consider whether their buildings are residential or mixed-use conversion candidates now.

As the song goes, "When you are alone and life is bringing you down, you can always go -- Downtown[ldot]"