Manhattan Walk-Ups Gain Popularity

Investment real estate sales in New York have unearthed a new trend; the acquisition of small walk-up buildings throughout Manhattan.

Though previously considered relatively low-end and generally unpopular, more than 70 walk-ups were sold in Manhattan in this year’s second quarter alone. Three years ago, that figure barely passed 30. In addition, these apartment sales made almost $640 million in the first half of 2012, while 2009 saw only $210 revenue from walk-ups.

The Benchmark Real Estate Group is an example of a firm who recently took interest in the strategy, purchasing a 22-unit walk-up building at Sullivan St. in Soho. The building is now selling for $12.5 million though it was acquired for a mere $6 million.

“When we bought it, the rent rolls were about $300,000, but after renovating the apartments and pushing up rents, it is now generating $1 million,” explained a company co-founder, Jordan D. Vogel.


Low Interest Rates and Worldwide Popularity Boost Commercial Real Estate in NYC

Commercial real estate in New York City is on the rise and transactions have increased significantly during recent months. The improvement is mainly a result of the heightened interest of both local and international investors. Despite numerous economic setbacks, NY’s real estate market has kept afloat thanks to its low interest rates and the city’s worldwide popularity.

According to the New York Real Estate Journal, “interest rates are as low as 3% and the Fed has indicated that rates will remain at this level for the nect few years. Rates are lowered to boost the economy and, as far as local real estate goes, it’s working because the New York City real estate market is booming! The low rates, as well as the lack of other viable investments, are a major driving force behind the upsurge in activity.”

Local businesses and the U.S.’s overall economy are benefitting from the upswing in New York’s commercial real estate industry as agencies and law, environmental and engineering firms flourish from the business. NY neighborhoods are also seeing the advantages as buildings are renovated and areas are revitalized.