Overview

How far uptown is 1200 Fifth Avenue? That is the first question one might ponder when considering this building. The difference between the few short blocks which separate prime Carnegie Hill from East Harlem is tremendous–often amounting to millions. This building presents an interesting dichotomy for both those buying in the building and those who currently live in the neighborhood. A conversion of this magnitude (a classic, pre-war Emery Roth masterpiece into a modern, luxury-condominium) transforms the neighborhood all by itself, leading to other condominium conversions and new businesses close-by. New buyers have to consider the less-than-perfect 10029 zip code and residents on Madison and Park can prepare for more price hikes as the entire Harlem neighborhood continues to convert to condos at a rapid pace. It’s something of a compromise I suppose–for everyone but the developers and brokers who get paid handsomely for their time and efforts.

I still have to question whether the gentrification of lower Harlem has advanced enough yet to justify the eye-popping price-tags which typically exceed $1600 per square foot at 1200 Fifth Avenue. On the flip side, one could argue that the spacious floor plans such as those found in the building are hard to come by, as is the ability to walk across the street into Central Park.

One must also keep in mind that passing a Fifth Avenue co-op board is not a simple task by any means–even for wealthy individuals and families. Fifth Avenue co-ops are a cultural phenomenon which many people don’t fully understand. This is why 1200 Fifth, similar to the Stanhope (995 Fifth Avenue) present an interesting scenario for the buyer. It allows them to keep their sources of income and wealth somewhat private while mingling with nearby residents–some of the richest in the world.

Architecture

1200 Fifth Avenue was originally designed by the great architect Emery Roth. A few of his notable buildings include the Beresford, the San Remo, the Ritz Tower, the Warwick Hotel, and the Normandy. Living in an Emery Roth building truly warrants bragging rights. The sort of construction he was doing in the 1920’s and 1930’s isn’t possible anymore because of rising material prices, labor costs, space availability, and a host of other factors. This is why 15 Central Park West (which actually compares to 1200 Fifth Avenue with the theme of pre-war architecture and post-war amenities–note 15 CPW is not actually pre-war architecture–it just looks that way) is such a rare and impressive condominium. The blending of pre-war architecture with modern amenities seems to be buzzing in the condo community lately.

The building was converted by Joseph Nakash, Joseph Chetrit, Lloyd Goldman and Mann Realty (Wow!). They bought the 16-story building from Mount Sinai Medical Center exactly three years ago for $61 million. Try doing the math on a square foot basis for how much profit they’ll make if this building sells out at current prices and it’ll blow your mind.

The entrance of 1200 Fifth Avenue @ 101st Street

Pricing

As usual, with a building that is priced in part according to views, amenities, and square footage, prices vary widely. The top unit still available is for $19,500,000 and comes in at over $3,000/square-foot. It happens to be a triplex penthouse staring over the Park, so its investment value as a function of price would be an interesting question with varying answers.

The rest of the units are priced between $1,300/square-foot for a 1 bedroom to over $3,000/square-foot for a 4 bedroom, 4.5-bath unit. Most of the original construction layouts were for families converting from townhouses living to apartment living during the wealthy decade of the 20’s. Thus, they are quite spacious and the high prices reflect the rarity of this sort of footage.

In addition to pricey square footage, the common charges are on the high side, at roughly $1.25/foot. While not terribly high, many new developments and conversion have tax abatements which push that number down to $1.00 or less per square foot. So, on a relative value scale, the CC/taxes aren’t great.

Unit Features and Amenities

All units have standard luxury condominium features in addition to a few choice amenities. In terms of standard amenities, you’ll find a 24 hour doorman/concierge, washer/dryers in every apartment, wiring for internet and cable, Wolf, Miele and SubZero appliances, custom cabinetry, a private fitness center and a bicycle room.

Keep in mind, on a conversion project, the developer is much more limited than a new construction project in how many unique amenities they can add in. This building was designed by Emery Roth and toying with the apartment layouts or structure of the building would be not only prohibitively expensive, but looked down upon.

The developers did a nice job of adding in the following extra amenities: refrigerated lobby storage for grocery deliveries (you’re not going to find many residents venturing out to the local supermarkets…) a wine cellar in each apartment which holds 46 bottles–far more than most condos we’ve seen. The ceilings are high and beamed as per the original 1920s design. Each apartment has been outfitted with an electric fireplace, heated limestone floors in the bathrooms, and oversized “tilt and turn” windows to maximize the spectacular Central Park exposures.

The Area

While one could probably argue this neighborhood in both directions, the upside is much more important than the downside. Perhaps most significant, you’re across the street from central park, and only three blocks from the conservancy gardens within the park. Museum mile is only a skip away, which includes the Metropolitan Museum of Art, the Guggenheim, the Frick Collection, and the Jewish Museum. Mt. Sinai Hospital is conveniently located directly next to the building, in the event of any major medical concerns. Plenty of Manhattan’s most important residential buildings are located just a few blocks south.

As we’ve already mentioned, the building is technically in Harlem, which may avert those looking for a prestigious zip code or a neighborhood in which they can walk around without any concerns. Then again, in New York City, where can you really walk around without any concerns?

In terms of restaurants, shopping, etc, you’re looking at a short walk southwest to find most of these attractions. The immediate vicinity of the building is mostly comprised of the park, museums, and residential buildings. There aren’t any restaurants or shops of interest in the immediate area. There isn’t really any subway access either, but that probably wouldn’t matter because anybody buying here probably isn’t riding the subway. There is bus access nearby, which is particularly valuable if you’re looking for cross-town access via 96th street.

Investment Potential

The investment potential here is tough, as it rests on the development of this neighborhood over the next 5-10 years. In terms of the integrity of the building, there is no issue at all. Emery Roth is a legend and living in one of his buildings is an honor. However, one can reasonably point to the lack of non-cultural amenities in the vicinity as a potential drag, along with the north-of-Carnegie-Hill location. You’re probably getting in a cab to get to any restaurant, night-life spot, shopping area, or mass transit. If you’re moving here, it’s for the peace and quiet, and beautiful Central Park exposures. Overall, considering the high price-per-square foot (even if low for Fifth Avenue frontage) we rate the building a B. It will probably take 5 years or more to turn a nice profit on a sale here–even if the developers are already raising prices on the remaining units.

This entry was posted on Saturday, August 18th, 2007 at 7:48 am and is filed under 1200 Fifth Avenue, Blogroll. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.