Signs point to growth in Battery Park City

Real Estate Weekly, July 7, 1993 by William Graizel

During the past year, Battery Park City has shown strong activity in both the commercial and residential market. Today, signs are pointing to a resurgenee in this suburban.like enclave in Manhattan, with strong activity among both buyers and renters.

In the past 12 months, we have registered 26 sales with a total value in excess of $6.5 million at the development's 11 condominiums, residential leases in excess of $1 million at its condos and three rental buildings, and retail leases valued at approximately $2 million at its.three retail developments.

Sales are strong, especially for less expensive apartments and high-end condos with views. We're currently seeing a lot of interest in one-bedroom apartments in the $125,000 to $160,000 range from bottom fishers, and one bedrooms at over $300,000 from people who can afford the best. The middle range is still lagging.

Two bedrooms at $400,000 to $500,000 are doing better than the less expensive ones due to their generally better views. And Battery Park City's most pricey homes, especially large duplexes and penthouse apartments. have shown a marked increase in buyer interest. As for rental units, the occupancy rate is very high.

While prices f6r apartments without views are down 20 percent, apartments with views are selling within 5 percent of what they sold for at the height of the market. Prices are beginning to inch up, though bank appraisals still lag behind current values.

The current surge in Battery Park City activity can be attributed to a number of factors. The development continues to attract residents from the Downtown business community because of its views, convenience and park-like setting. Many owners who were renting their units are now trying to sell because they sense a change in their pricing.

In addition, the continuing influx of retail services has engendered a new confidence among potential Battery Park City residents. Battery Park City's retail developments are now substantially leased. We've just signed a restaurant lease for 2,250 square feet of space at The Shops at South Cove, and we are receiving numerous inquiries on what little space remains.

The recession, which virtually halted development on the southern end of Battery Park City proved to be a stumbling block for retailers who were leery of being on the development's outermost fringe. However, retailers are now taking advantage of lower rents engendered by the lull in residential development.

As one of the few on-site brokers in Battery Park City, we have always been in touch with the nuances of this very specialized market. We opened our offices here because of the confidence we had in the success of Battery Park City, and it is gratifying to know that this confidence was not misplaced.