Overview

Indigo 21 is scheduled for completion by November/December 2007 (as always caveat emptor with new construction) and will add 52 units spread over 13 floors to this burgeoning part of town. Alchemy Properties, the niche developer responsible for the Lion’s Head Condo on West 19th and The Oculus on West 15th (which we’ve bragged about) is running the show here. They have teamed up with architects FxFowle (The Onyx, Sky House, Oculus). The building is somewhat light on amenities and outdoor space, but the big attraction may become the combination of an “indigo aluminum strip” intersecting with the Zinc façade which FxFowle hopes will help it stand out from the crowd. The building is book-ended by two low-rise buildings and a few of the units benefit from small lot line windows. In keeping with the architect’s holistic approach to design the spurning of a large glass façade will help with the insulation and “green” qualities of the building. The block is not particularly pretty and the views out of the windows onto 21st street will be of ’21 Chelsea,’ a luxury (but not particularly attractive) rental building just across the way.

Amenities

Amenities in the building are fairly minimal. There is no gym and only a small communal roof deck on the SE corner. There will be additional outdoor space at the back of the building that will run the width of the building and around 30 feet deep at the 2nd floor. It is unclear at this point how much sun, if any, this area will see. There will be a live-in super and 24-hour attendant. A sophisticated video intercom is going to supplement what is apparently going to not be a high level of human security.

The units themselves, while somewhat similar to other brand new condos, are decked out with Viking appliances, Poggenpohl marsh oak wood cabinetry and quartz counter tops. The bathrooms are equipped with Kohler fixtures and fittings, limestone and marble tiling, and radiant heated floors. These are the same finishes as are found at the Oculus. Perhaps the developers saved some money by ordering a lot of the same supplies. The 1,2 and 3 bedroom units are equipped with a separate steam shower. Also included are Maytag washer/dryers. One of the best features is the Sestito casement windows which should dovetail nicely with the zinc façade. Floors are cherry wood and upgrades are plentiful in the penthouses.

Units And Pricing

Twenty-three of the units have been sold including most of those with terraces. There is one remaining 3-bedroom unit with a small terrace for $2,060,000 and several 1 and 2 bedrooms with balconies. Of the units without outdoor space studios start at $810,000 for 605 sqft.and the highest price unit left is a seventh floor 3 bedroom at $2,060,000 for 1,758 sqft. 1 and 2 bedroom units are available on several floors. Overall average price is around $1,150 per sqft (very nice).

With common charges coming in at 91 cents a foot and a 421A tax abatement adding less than 10 cents per foot, costs are very reasonable. Floor plans seem fairly well thought out with most of the units being a square or rectangular box with one exposure. The A line benefits from 2 exposures as it “wraps” around the building.

Location

While sandwiched between a bunch of nice neighborhoods, there is nothing highly commendable about the block itself. There are a couple of parking garages and a dry cleaner which is handy but not beautiful. The retail on 7th avenue is still mixed with a collection of sushi restaurants, shoe repair stores and hardware outlets. On the upside, there is a Whole Foods and Barnes and Noble located on Sixth Avenue just a few short blocks away. Quick and easy access to the restaurants of Chelsea and Flatiron should please buyers, as will the numerous transportation options. Cabs tend to run frequently on 5th Avenue (downtown) and 6th Avenue (uptown). The buses and trains are right nearby.

Investment Potential

The pricing, as is often the case with Alchemy, allows for a potential “instant upside” on closing. The main drag on investment could be the mid-block location, perhaps the light issues. We found less amenities in this building than some Chelsea neighbors, but that isn’t a huge flaw–more of a preference thing. The building also has reasonable monthly carrying costs–a huge benefit to the building. The sheer amount of development in the surrounding blocks may pose some risk to short-term investors as well, but as noted these units seemed priced a little under market. Long term, the improvement of the neighborhood, particularly when the other developments are occupied and the retail on Seventh Avenue comes up in quality, should result in upward pressure on prices. As always the end of the tax abatement could be an issue but I believe the areas advancement will keep demand, and therefore, prices high. We rate Indigo a B+ for investment.

This entry was posted on Wednesday, September 12th, 2007 at 2:41 pm and is filed under Blogroll, Indigo 21 - 125 West 21st 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.