Overview

995 Fifth (formerly The Stanhope Hotel) is part of the Upper East Side hotel condo-conversions trend, and it has been a controversial property for the past two years or so. There original buzz earmarked the Fifth Avenue condo project—still called the Stanhope at the time—for lucrative greatness. This was followed by rumors reported in the Observer that it wasn’t selling at all, which quickly led to denials by the brokers. Then, a few months ago, the name Stanhope was suddenly and completely banished and replaced by 995 Fifth. Presumably this was a reaction to a growing stigma that must have been attaching itself to the name Stanhope. Although, one wonders if Extell (the development firm) could really have supposed that buyers spending eight figures on an apartment would be taken in by a branding gimmick.

Roughly coinciding with the re-branding was the unveiling of two heavily labored over units decked out as model apartments by Eric Cohler. They were to be the centerpieces in a major sales push that was supposed to take the springtime buying season by storm. And apparently the major sales push saved the day! In July, an excited press release from Extell claimed that the model homes were a success: buyers were walking through and snatching up. More than half the residences are sold, the press release reported.

Or did the major sales push save the day. Here we are on October 1st and the Corcoran website indicates that 13 units are still on the market. This does not jibe with what was reported in July. There are a total of 26 units in the building, and thirteen unsold units does not translate to more than half the units being sold; it means exactly half of the units have been sold. It’s possible that the press release was exaggerating, or Corcoran hasn’t updated their website in a while (often the case) but either way the sales numbers for a building like this could have been better. Also troubling, the $47.5 million unit (the most expensive by more than $10 million) is among the units still on the market.

Sales and renovation drama aside, it must also be noted that the beautiful building was originally designed by Rosario Candela, the early-20th-century wizard of the Upper East and Upper West Sides. Candela designed some of the most important co-operative apartments in the world, including 740 Park Avenue, 1040 Fifth Avenue, and 834 Fifth Avenue. Also notable: as a hotel the building was the site of many historical goings on, most notably the death of Charlie Parker.

Amenities

A La Palestra health club is opening up at 995 Fifth, providing a health-centered version of a spa and fitness center for residents. An in-house wine consultancy is being employed. The renovation also brings in state-of-the-art touch-screen climate control and concierge-service interface (the concierge service is provided by Concierge Direct).

Units and Pricing

There are 26 units, the majority of which take up an entire half floor of the 17 floor building. The renovation is scheduled for completion in January of next year. John Simpson is at the helm of the condo redesign. He is the architect behind the art gallery at Buckingham Palace. He has a reputation for recreating classic styles, and his work on this property is quite beautiful and well-detailed, and there has been an admirable concern for conservation.

Units currently go from the $11 million range all the way up to $47.5 million for the most expensive home. Apartment sizes start at a whopping 4,100 feet—eliminating most types of buyers except the very most exclusive.

There are reported claims that the rooftop of the southern end of the Met, when looked down upon, is unsightly. And really, how dare Richard Morris Hunt not consider the views of potential potentates living across the street from his proposed structure. That is one objection. The main objection, though, is that, at nine feet, the ceiling heights are out of proportion with the massive square footage of the units. In fact, the disproportional lowness of the ceilings is what originally began the whole above-mentioned flap in the Observer. Simpson has gone to much touted lengths to create as much of a feeling of spaciousness and height in the apartments as possible, but only time will tell if it sufficiently satisfactory for enough model apartment-visiting potential buyers.

Speaking of ceilings and roofs, the maintenance costs are often noted for being well through the roof of what is normal in comparable properties.

Location

995 Fifth Avenue is directly across the street from the Metropolitan Museum of Art, meaning it is an address that must properly be called American regal. Directly across though it may be–it is not exactly across from the steps. It overlooks the southern most end of the institution where the vendors and street artists set up like oxpecker birds to the Met’s hippopotamus. It’s a tourist area, but then so is Versailles and who wouldn’t want to live there. Next door (across the street) is 998 Fifth Avenue, one of the oldest and most prestigious co-operative apartments in the world.

The building sits atop land on lease from the ghost of late Sol Goldman. The lease will be up toward the end of the 23rd Century, but this seems like too abstract of a concept to make any real world difference in the here and now.

Investment Potential

If occupancy doesn’t start wrapping up soon, the entire project might risk being in trouble. The prices will have to come down, which will generally hex the building for both the status and investment minded. Even if, upon inspection, the units are deemed not to be over-valued by apartment hunters, the risk remains that they will be hesitant about being counted among those who took the leap and bought at the Stanhope or 995 Fifth or whatever it winds up being called after everyone else decided to pass. Even before its trouble’s began, I get the impression that the Stanhope was understood to be the spot for those who couldn’t get into the similar but better-established buildings in the area. If, though, the initial buyers can be wrangled, I think 995 Fifth will be just fine in the long run and join the ranks of legendary addresses in the neighborhood. I think, in real terms, that the units are not overvalued considering the location, the square footage, and Simpson’s craftsmanly attention. But my final word is that perception looks like it’s going to be everything for 995 Fifth. We rate it an A- for investment potential.

This entry was posted on Monday, October 1st, 2007 at 6:50 am and is filed under 995 Fifth Avenue - The Stanhope Hotel, 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.