Overview

The spectacular image presented above will eventually fill the empty ground space pictured below. The 12-story project will be located on 18th Street between 9th and 10th Avenues. The building will be “all glass” and will “shift in and out” across the front. Construction broke ground recently and sales numbers are already quite impressive. Currently they are at “almost 50% sold” which, in condo sales language, indicates they are at least one building past 25% sold and trying to capitalize on the momentum which is always strongest with condo sales in the first six-twelve months. The Chelsea Modern offers a fairly standard amenities package but has surprisingly low common charges. As for taxes, the building offers a 421a tax abatement, but even without it (or after it passes), the taxes are under $1.00/foot. This is quite reasonable given the block’s “industrial” but “trendy” feel. Overall, our feeling is that the façade will look shiny and new, but the interiors and amenities will be nothing to brag about. Given the huge number of projects going up nearby, our recommendation would be to get in early and get out early if you’re speculating. Also, we caution you to be careful regarding the 421a tax break. As we’ve mentioned in previous posts, the incentive is nice for the original purchasers and developers and sales team, but it can really bite the buyer who owns the unit when the abatement expires. If the taxes in this area jump $1,000 after 10 years, the selling price must reflect the new, higher taxes. Think about it. (more…)