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It is currently illegal to build 20 story residential towers in the village. If you think this is ridiculous you should get involved with http://opennewyork.cit

by kuza55 8y ago

It is currently illegal to build 20 story residential towers in the village. If you think this is ridiculous you should get involved with http://opennewyork.city/ http://opennewyork.city/ There is currently a rezoning process going on in SoHo/NoHo which is the main reason these articles are currently getting written. I also think the cycle of neighborhoods is a bit more complicated than you make out, at least historically, where it's not just a one way trip towards neighborhoods getting more expensive.

bilbo0s 8y ago
>It is currently illegal to build 20 story residential towers in the village... Even if it weren't illegal, it'd be nearly impossible to make a profit doing it. Land acquisition alone would just sink that kind of a project. Say, 40000 sq ft plates, less luxury but moderate common, less mechanical, less safety. You're talking what, maybe 25 or 30 thousand sq ft? And you have to divide that up into profitable spaces with only 20 or 30 floors worth of them to pay off your investment. (And those numbers are all wildly optimistic.) I don't know man? Maybe it can be done? But I'm just not so sure. Well, maybe I should walk that statement back a bit? I'm positive it can be done, but I'm not sure anyone other than more rich people would be able to afford the prices required to support the development. Only thing that law really does is keep more rich people from being able to find spaces in the Village.
- all2 8y ago
  You didn't do the numbers, so I went looking for properties in the area... In NoHo (if anyone is looking for an investment) there is this: [0] 48 units, 20,000 square feet, cost of 26,000,000USD. According to Zillow [1], apartments in that building go for roughly 3000USD a month -> 144000USD per month -> ~1.8 million USD a year. So, if we take those numbers and apply it to new construction, 20 floors, 20,000 sq ft rentable space per floor (I'm assuming that's what you meant by plate). Given real-estate costs in the area we can expect to spend 16 million [1], just for land. To get a contiguous acre (~40000 sq feet) on the island would probably cost us more. Next, cost for construction would be something like 1000USD per sq ft [3], so ~400 million USD for all 20 floors. If we, like the above mentioned apartment, have ~400 sq ft apartments at 3000USD a month, we would have 960 units total, and ~2.8 million in income per month. I have no idea what the monthly payments for utilities, insurance, etc. would be, not to mention servicing a half billion dollar loan. The numbers are all sourced from non-vetted sources, so we could probably multiply costs by 3 and have relatively accurate picture of something like this. [0] http://www.showcase.com/property/302-Mott-Street/New-York/New-York/7278868 http://www.showcase.com/property/302-Mott-Street/New-York/Ne... [1] https://www.zillow.com/homes/302-Mott-St-Apt-25,-New-York,-NY-10012_rb/ https://www.zillow.com/homes/302-Mott-St-Apt-25,-New-York,-N... [2] https://pocketsense.com/average-acre-land-new-york-7488311.html https://pocketsense.com/average-acre-land-new-york-7488311.h... [3] https://therealdeal.com/issues_articles/nycs-construction-craze/ https://therealdeal.com/issues_articles/nycs-construction-cr...

by kuza55 8y ago

bilbo0s 8y ago

>It is currently illegal to build 20 story residential towers in the village... Even if it weren't illegal, it'd be nearly impossible to make a profit doing it. Land acquisition alone would just sink that kind of a project. Say, 40000 sq ft plates, less luxury but moderate common, less mechanical, less safety. You're talking what, maybe 25 or 30 thousand sq ft? And you have to divide that up into profitable spaces with only 20 or 30 floors worth of them to pay off your investment. (And those numbers are all wildly optimistic.) I don't know man? Maybe it can be done? But I'm just not so sure. Well, maybe I should walk that statement back a bit? I'm positive it can be done, but I'm not sure anyone other than more rich people would be able to afford the prices required to support the development. Only thing that law really does is keep more rich people from being able to find spaces in the Village.

all2 8y ago
You didn't do the numbers, so I went looking for properties in the area... In NoHo (if anyone is looking for an investment) there is this: [0] 48 units, 20,000 square feet, cost of 26,000,000USD. According to Zillow [1], apartments in that building go for roughly 3000USD a month -> 144000USD per month -> ~1.8 million USD a year. So, if we take those numbers and apply it to new construction, 20 floors, 20,000 sq ft rentable space per floor (I'm assuming that's what you meant by plate). Given real-estate costs in the area we can expect to spend 16 million [1], just for land. To get a contiguous acre (~40000 sq feet) on the island would probably cost us more. Next, cost for construction would be something like 1000USD per sq ft [3], so ~400 million USD for all 20 floors. If we, like the above mentioned apartment, have ~400 sq ft apartments at 3000USD a month, we would have 960 units total, and ~2.8 million in income per month. I have no idea what the monthly payments for utilities, insurance, etc. would be, not to mention servicing a half billion dollar loan. The numbers are all sourced from non-vetted sources, so we could probably multiply costs by 3 and have relatively accurate picture of something like this. [0] http://www.showcase.com/property/302-Mott-Street/New-York/New-York/7278868 http://www.showcase.com/property/302-Mott-Street/New-York/Ne... [1] https://www.zillow.com/homes/302-Mott-St-Apt-25,-New-York,-NY-10012_rb/ https://www.zillow.com/homes/302-Mott-St-Apt-25,-New-York,-N... [2] https://pocketsense.com/average-acre-land-new-york-7488311.html https://pocketsense.com/average-acre-land-new-york-7488311.h... [3] https://therealdeal.com/issues_articles/nycs-construction-craze/ https://therealdeal.com/issues_articles/nycs-construction-cr...