Overview

The Machinery Exchange finds itself kitty corner from 123 Baxter, the Edsel of downtown condo developments. While The Machinery Exchange is an expert conversion of a classic example of old New York architecture and craftsmanship and not the postmodern pastiche of the worst in high-modernism that 123 Baxter is, the unfortunate location may nonetheless cause The Machinery Exchange to face the same dismal occupancy fate that its Baxter street neighbor experienced.

The Machinery Exchange is advertised as being “built by people who love architecture,” and while it might seem like a truism that people in real estate love architecture, one need only think of aesthetically unconscionable companies like Avalon, to see that, sadly, The Machinery Exchange’s tagline does mean something. What the tagline is specifically meant to mean is that developer Max Protetch’s has had a reputation as the art gallerist who showed the work of highly respected architects before they became who they are today. Because of Protetch’s reputation, there where some small stirrings in the art/architecture world over his selection of a team of relative unknowns, Mark Dubois and Ed Rawlings. Protetch’s (perhaps left-handed) justification for choosing this team over one of his more famous old pals (who include Rem Koolhaas and Zaha Hadid) was his intimation that because Dubois and Rawlings were less busy they would have more time to fuss over the details.

Like the recently reviewed 11 Spring Street a few blocks to the north east, The Machinery Exchange was also originally a horse’s stable, and it is reported that traces of horse bites can still be found in some of Machinery’s wood. (In light of all of these stable conversions and considering the worsening energy crisis and Bloomberg’s recent traffic initiatives, one wonders if it is too early to begin talking about parking lot conversions.) The building became a machinery warehouse (thus its current name) just before the onset of the Great Depression and remained one until very recently.

Amenities

With only 14 units in the building, there is no doorman. In fact, there is no evidence of any amenities. To make matters worse, auxiliary providers of the usual amenities are nowhere to be found in the immediate area.

Units and Pricing

While it is a little ridiculous that Protetch is trying to sell loft living as some sort of novel idea, the wood and brick construction in The Machinery Exchange gives the units a soft, gentle feel that does seem unique among lofts. In fact, the name Machinery Exchange belies the light, organic, yoga-esque mood the interiors project (particularly with their sumptuous yellow pine—a material not seen in a new New York construction since the days when Machinery was full of horses and hay). Indeed, the fact that the exposed-columns-and-beams-formula typical of loft conversions has been executed without being in anyway harsh is impressive.

The floors in these units are red-oak; the ceilings and yellow pine; who could ask for anything more. The windows are plentiful and enormous. The kitchens are appointed by Valcuccine. Where the bathrooms are not glass they are limestone. The ceilings heights begin at 10 feet and proceed higher from there. Sitting atop the other twelve units are two duplex penthouses. There is also a triplex that begins on the ground floor and has been designed as an artist’s live/work space. The unit pricing ranges from just over one-and-a-half million to just under five million.

Location

Although in its article on the property the New York Times contrasted The Machinery Exchange’s nostalgic feel with the funky gadgetry at 123 Baxter, I feel the two properties do risk suffering a similar unenviable fate because of where they are located. The neighborhood is simply not a comfortable one to be in. The corner is a nexus of lost Little Italy tourists asking for directions to “any subway” and Chinatown in rambunctious mode.

One solution to the location problem seems to have been an attempt to celebrate the history of the building and by implicit extension the area. Ostensibly trying to infuse the property with a celebratory trace of the neighborhood’s old industrial flavor, Protetch quotes himself saying, “It was important to leave visual reminders of previous lives.” Indeed, Protetch seems to be relying on the ghost of the proletariat to the sell his million dollar properties.

Much is also made of The Machinery Exchange’s proximity to the beaux arts former Police Headquarters/current celebrity speckled dream home up the block (The Machinery Exchange originally housed the Headquarters’ police horses). However, while the two residences may be close by, they are of different worlds. The old Police Headquarters is set off from the street and really serves as a gateway to its corner of NoLita; the Machinery Exchange is pretty much just in Chinatown.

Investment Potential

As nice as these lofts are, and they are impeccable, and as nice as the original, well-converted and conserved building is, I honestly believe that the neighborhood is going to keep a lot of the people in the one to five million price range out of the property. And I don’t see the neighborhood being on the brink or forefront of any sort of cool. I think the trend here is either in the Little Italy (not to be confused with NoLita) direction or, more likely, toward becoming engulfed in Canal Street-style retail sprawl. Stribling, ever the euphemistic realtors, describe the area as “dynamic,” but it is not a dynamic mix of anything you would want from a residential perspective. Good restaurants and neighborhood amenities are all a bit of a hike from the corner of Baxter and Hester, which is doubly problematic considering the property’s lack of internal amenities and the sheer fact that navigating the pedestrian traffic in the area can often prove a challenge.

Value-wise, Protecht makes the argument that because his building is done with such attention to detail, it becomes relatively recession-proof, a key advantage considering nationwide trends. While this argument does make sense, it seems clear that location roundly trumps it. I feel that 123 Baxter across the street, chided for its Tom Wolfe-baiting design and cyber fridges, has mainly struggled because of its location. I suspect that Machinery’s fate may be similar, if not to the same extent. The question ultimately becomes, why would people with the means to live where they please live here.

This entry was posted on Monday, September 17th, 2007 at 9:56 pm and is filed under Blogroll, Grand Machinery Exchange - 209 Hester Street. 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.