Overview

Ian Schrager’s luxury development opposite the delightful and coveted Gramercy Park saw brisk sales when it opened to buyers in 2005 with 19 of the 23 apartments snapped up in less than six weeks. Despite some early concerns from the block association and residents in this genteel enclave, Schrager has created a building that aesthetically blends in with its neighbors. The boutique hotelier turned residential developer also wisely donated $100,000 towards the park’s upkeep and responded rapidly to construction noise and mess issues. Schrager’s first foray into residential development generated an enormous amount of publicity and scrutiny with almost all the commentary being favorable. His stated ambition was to rethink the concept of city living for the rich; his inspiration came from the service offered by estate managers in the Hamptons. 50 Gramercy Park North is developed from the rear section of the Gramercy Park Hotel, which was also redesigned and rethought as part of the project (with the collaboration of Julian Schnabel). Residents benefit from a full menu of hotel services and Schrager’s vision of lifestyle that includes a building staff that will walk dogs, shop for groceries and even arrange for a chef to cater a private dinner party.

Amenities

John Pawson, the minimalist British architect, designed the apartments; this collaboration marked a change for Schrager who had previously worked with Philippe Starck. Pawson’s view of design is to create a space that is a series of connected ‘meeting places’ and leave it as a simple canvas for the owner to paint. Each apartment has North and South exposures so they are bathed in light and with fantastic views of the park. Pawson installed custom designed cabinetry some in factory painted to match the wall colors and some in Cherry wood. Floors are white oak and the great rooms feature wood-burning fireplaces. Pawson also makes use of vein cut travertine in the fireplace surround and bathroom vanity and sink units. Each bathroom features a different look with either etched glass matte finish floor tiles or white oak and either Kohler or Vola fixtures and Duravit toilets and sinks.

The kitchens are kitted out with Miele and GE stainless steel appliances, washer dryers and the aforementioned custom cabinets with Valli and Valli hardware. 50 Gramercy Park North offers arguably the most comprehensive package of service amenities in the city, and certainly south of the Central Park hotel/condos. Supervised by the Gramercy Park Hotel team everything the wealthy but time-challenged could wish for is here, 24 hr concierge, individual residence oversight, fitness center, massage and spa services, call screening, message taking and wake up calls, housekeeping are just the tip of the service iceberg.

Of course the apartments come with a key to Gramercy Park, the only remaining private park in Manhattan. John Pawson remarked, “It’s like London.”

Units and Pricing

There is one remaining sponsor unit available on the 12th floor priced at $5,450,000 for 2032 square feet which comes out at $2,682 per sqft with a maintenance of $5,924 or $2.92 per square foot. The original asking price was $6,100,000 so they are obviously keen to sell. The 2 bedroom 2 bath unit has its master bedroom and bath facing the park and the Great Room is 22’ by 18’ with 12’4” ceilings with a loft feel as it is open to the kitchen and dining room. The 2nd bedroom is in the rear and Pawson appears to have achieved his goal of an effortlessly connected living space with this floorplan.

There are also two other available units in the building. On the 15th floor two units have been combined to create a 3,810 square foot 3-bedroom 2 1/2 bathroom floor through apartment with spectacular views. Priced at $11,000,000, which works out to $2,888 per foot with maintenance an additional $10,993, ($2.89 per foot,) transfer taxes to be paid by the purchaser. There was a $1M price drop in August 2007. The combining of the units has created a stunning apartment–time will tell if it has found its correct pricing.

On the second floor there is a 2,407 square foot unit (2 bedroom 2.5 bath) listed at $5,750,000 which works out to $2,388/foot. This represents a $1,650,000 increase on the original sale price. Maintenance is $6,907, again around $2.89 per sqft. This unit benefits from 1074 feet of outdoor space. Compared to an average price per foot in the neighborhood of $1,049 there is a definite premium for living Schrager’s dream.

Location

Among the big draws for this building is the private park and its surrounding architecture creating a peaceful oasis in the city. Sandwiched between East 20th and 21st streets and bordered by 3rd Ave and Park Avenue South, the park and its neighboring streets have some of the finest residences of pre-war New York and are protected by historical district designation. Easy access to transport (6 train @ 23rd street) in addition to the multiple options a short walk away at Union Square. Retail in the immediate area is not stellar but that is more than made up for by the abundance of great restaurants at hand, not least of course Gramercy Tavern. Overall the location is hard to beat.

Investment Potential

This should be a no-brainer, but we must first consider the Ian Schrager factor. What am I talking about? Ian Schrager charges an enormous premium for his hotel service/lifestyle concepts. It’s almost as though his name alone, regardless of the actual finished product, commands prices 20-30% above market. Pricing at the initial launch was low, in some cases $1,500 per foot with final sales prices spread between $2,500 and $3,000+ per foot. The market seems to have reached a level in the mid to high $2000’s. Where to from here? Probably higher. It is probable that New York will retain its pre-eminence as a ‘playground’ city for wealthy foreign buyers and combined with a steady supply of well-heeled locals demand for luxury and high service should stay high. In the short term prices have probably reached a peak but over the long-term, scarcity (it is less than the initial 23 units now some combining has taken place) and the draw of the park and services will drive demand. We rate it an A- for investment potential.

This entry was posted on Thursday, September 20th, 2007 at 3:37 pm and is filed under 50 Gramercy Park North, 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.