Luxury development continues on 1st Ave

Real Estate Weekly, May 17, 2000

Excitement is building on the East Side as construction commences for two condominium developments widely expected to become, upon completion, among the most valuable residential properties in Manhattan.

Indeed, Donald Trump has already demonstrated that the United Nations/Beekman Place area will be the next hot East Side location for affluent buyers of residential condominiums. And Dennis A. Herman, developer of the high-end 60 East 88th Street, is now joining Trump in delivering to Midtown East what will be some of the finest condominiums ever offered.

Construction is already underway for Trump's 600,000 square-foot, 90-story, bronze condominium tower on First Avenue spanning 47th and 48h streets. And three blocks north, at 51st Street, construction has commenced for 931 First Avenue, where Herman is planning a 180,000 square-foot condominium of an entirely different genre, on the site of the old landmarked United Nations School.

At 931 First Avenue, will be redeveloping a century-old landmark property while presenting and restoring the building's architecturally-significant facade. More significant than the architecture, perhaps, is the concept. One of the exclusive residential components planned by Hennan is to be the first on the East Side to offer luxury loft living. With almost 26,000 square feet of space planned for large loft condominiums, with 14 to 16' ceilings and 10' windows, Herman will bring to the market a product that, until now, has been largely unavailable.

"If Dennis Herman can do this, 931 First Avenue will have extraordinary value," notes Clark Halstead, president of Halstead Properties.

Herman is best known as the developer of 60 East 88th Street, built in 1987. Capturing the spaciousness and ambiance of New York's golden pre-war era of residential construction, the property ranked number one in its market segment of luxury condominiums.

"I think of Dennis Herman as a visionary developer," comments real estate marketing consultant Robert Burnett, who is president of Residensea (U.S.A.). "He was a decade ahead of his time when he built 60 East 88th Street and offered very large, family-sized apartments that were virtually unheard of. Today, they are standard in new development."

With the development of 60 East 88th Street, Herman delivered an outstanding product, according to Adrienne Albert, president of The Marketing Directors, "Quite simply, buyers appreciated the singular value of these homes - and it was reflected in the record prices the residences commanded." In fact, she added,

"It is his trademark to build large units and pay real attention to quality and detail, and I'm quite certain he plans to do the same with this property."

Herman's development is expected to heighten the panache of an already distinguished neighborhood, which borders Sutton Place, the United Nations, and Beekman Place.

"931 First Avenue is ideally situated," Burnett continued, "between new development around the 59th Street Bridge to the north, and Donald Trump's tower rising to the south. This is a great opportunity for Dennis Hennan to capitalize on the area's appeal. As a former resident of the area," he added, "I can say with assurance that this project is a welcome addition to the community."

Both condominium developments are expected to redefine the luxury residential market, noted Fred Peters, president of Ashforth Warburg. "Both will create a new standard of ultra-luxury living, which will always draw buyers who demand the absolute best."

Costas Kondylis is the architect for both projects. Commenting on 931 First Avenue, he said, "We are very pleased to have been chosen as the architects for this project. As a developer, Dennis Herman is widely recognized for his choice of unique properties in which to invest and cultivate - 931 First Avenue is no exception. We've been challenged by his vision and creativity, and the end result will be a development that cannot be duplicated and is of exceptional value."

He continued, "As an architectural cornerstone of this midtown neighborhood, the conversion of 931 First Avenue will breathe new life into the existing building and its rich Romanesque revival facade. The challenge of then having to wed this facade with new residential construction behind it resulted in the design of a wider diversity of apartment layouts seldom found in today's market."

"Mr. Herman's vision as embodied in this unique melding of old and new is certain to distinguish 931 First Avenue as one of the most sought-after residential properties in Manhattan," Kondylis added.

"Ultimately, 931 First Avenue will be an architectural gem that can not be duplicated anywhere in the world," said Randy Levine, former NYC Deputy Mayor for Economic Development, Planning and Administration.

The 42,000 square-foot building was constructed by the City in 1890 as a public school and is on the National Register of Historic Places.

"The redevelopment of this historic structure will bolster the quality of life in the internationally significant neighborhood of the United Nations," added Mr. Levine.