Manhattan House
845 West End Ave
The Aldyn
15 Union Square West
The Rushmore Riverside
515 East 72
Overview
Here at the New York Condo Blog we love real estate and the constant controversy that surrounds each new condominium project. Our object of fascination, today at least, is the Manhattan House, located at 200 East 66th Street. The project is a highly anticipated, fought and sued over building where getting a sales office appointment is tougher than getting a reservation at Babbo. In fact, stop reading this – promise you’ll bookmark it – and call 212-566-0660. You’ll get in there in a few weeks 
200 East 66th Street is a complex of white brick buildings that cover the entire 66th street block between 2nd and 3rd avenues – and cover way more space on the internet. From blogs covering the controversy and revealing the nasty tactics used by owners to “out the old,” to the sleek, modernly designed website launched by Dolly Lenz’s team handling the sales; this building is on the radar of both real estate lovers and tenant advocates.
Here’s the scoop – up until 2005 the Skidmore, Owings & Merrill designed building was owned by New York Life Insurance Company. During those 50 years it was an UES treasure; an emblem of the neighborhood where residents lived in large apartments at small rents. That all changed when NYLIC sold the building to Manchester Real Estate Company for a reported $625M. Long-term residents began to panic while eager buyers began to salivate.
Manchester’s partners, Richard Kalikow and Jeremiah O’Connor Jr. started their plan to take the UES by storm enlisting power broker Dolly Lenz and team to handle sales. A well desired neighborhood, a perfect building, and the most acclaimed agent were all on board to make real estate history. And then the residents’ panic turned to action. Manhattan House was originally supposed to be a post-war urban renewal project for Middle-class New Yorkers. However with the sale, recently destabilized residents are experiencing rent hikes of 400% or an offer to purchase their apartment at “15% below offering…” which is hardly affordable for someone used to paying a rent that is now equal to just the common charges. Tenants are claiming the owner’s offers violate the Martin Act (mandatory disclosure requirements for facts and figures regarding condo sales) an issue which continues to go back and forth.
Then, there were owner arguments, financial, uh, “problems”, and lawsuits. As chronicled here, Kalikow bought out O’Connor Jr. Then, O’Connor bought out Kalikow. And, it appears, O’Connor now owns the $1.1B condo conversion. The two had disagreements on how much work would be done and what the website would look like. The ongoing credit crunch hit Manhattan and in August 2007, Crain’s New York Business reported the project would be put on hold due to financing. Then, Kalikow announced he was suing not only his former partner O’Connor, but Dolly Lenz and Douglas Elliman citing that they were meeting with O’Connor and his team behind his back making decisions that, at the time, Kalikow should have been involved in making. Tenant suits followed. Financing wavered. And then financing moved forward, a deadline was set – Lenz and team would have to sell 15% of the units by June 1, 2008 – and the happier times came to 200 East 66th Street. The sales office opened and nycondoblog.com was there to see if all the fuss was really worth it. Here’s the verdict:
Units and Pricing
If there is a price tag for a new life, it is $1.5M because that amount of money will get you into an impeccable 1,110 square foot one bedroom with a fireplace and an 82 square foot terrace. The unit comes in at $1,277 per square foot, which is still reasonable for the area and for the quality of the space. Price amendments, of which there have been several already, will only raise prices further as sales get going.
There are 2, 3, 4 and 5-bed units with enormous layouts and panoramic views to boot. To give you an idea of the price and the space, a 3-bedroom, 3-bath unit measuring 1,678 square feet is priced at $2.71M or $1,678 per square foot, and that is the least expensive. The sales office is housed in a 4-bedroom/4.5-bath 3,029 square foot unit, which connects two of the towers, offers an eat-in kitchen, and balconies… it is not currently offered, but a comparable unit is available for $5.95M or $1,964 per square foot.
Since it’s a midtown conversion, the abatement, if any, will be minimal. Common charges, albeit worth it for the amenities, top out at just over $1 per square foot. NOTE: Units in the E tower, or those that face 2nd Avenue, do look into the new Cancer Center. While checking out a 4th floor unit in the tower, we noticed the construction happening across the street. A view directly into the new “Breast Imaging Center” may appeal to some, but seriously, it is something to take into account. We recommend opting for one of the other towers that offer just “city views” – but you never know what that might entail.
An example of a 3-bed floorplan
What a great floorplan for this 4-bed
Interiors
All units have classic floorplans – large living spaces, separated bedrooms, windowed kitchens – luxury finishes including recreated crown moldings, and top-of-the-line appliances. Depending on which tower you purchase in, the flooring is either a dark or light oak plank. Bathrooms are appointed with heated Jerusalem limestone flooring and walls covered in subway-tile. Kitchens all have Viking appliances and their own wine coolers. Each unit will come with its own washer and dryer (if that won’t do it for you, common laundry rooms are available). Particular units on the upper floors – 14 or above – do offer a balcony and/or a fireplace.
Amenities
There are just too many amenities to name. Below is a laundry list of them and if Manhattan House left anything off, we certainly don’t know what it is. But we are sure they have the room to add it:
-2 Porte-cochere, drive-thru entrances (pull your car right up, or have a taxi take you right to the door)
-24 hr doormen at all entrances
-Private Valet Parking
-Rooftop Private Club for residents only. A 10,000 square foot club featuring 360-degrees of the city, indoor lounge with gourmet kitchen, and landscaped rooftop garden.
-Live in Resident Manager
-Full-time Concierge Service (tickets? Reservations? Hard to find items? They’ll take care of it.)
-Indoor/Outdoor spaces for Children
-Exhale Mind Body Spa and Fitness Club
-Temperature Controlled storage for groceries (for all you Fresh Direct customers)
-Private Storage Units (available for additional charges in either $15K or $30K sizes)
-Private landscaped garden on ground level
Area
On the Corner of 66th and 3rd, the Manhattan House does place you in a very convenient neighborhood for both public transportation and shopping. The 6 train is available at 68th Street-Hunter College. The M66 will take you across 66th Street. Shoppers can easily access Bloomingdales, H&M, Pottery Barn, and other stores that are on and around the 59th Street shopping district. Also, Madison Avenue from the 60s up to the 80s is heavily concentrated with boutique stores.
Although not within walking distance, the Upper East Side is home to many New York City cultural institutions. The 92nd Street Y is just a short train ride up the 6 line, as is the Frick, Whitney, Cooper-Hewitt, and Met.
Residents that have children (and tuition money) will find the elite institutions of Dalton, Brearley, Chapin, and Marymount nearby. Public schools such as Eleanor Roosevelt and Hunter are also in the neighborhood. Suffice it to say, if live in Manhattan House, your children will be attending a well regarded school.
Interesting Fact
Yes, yes… Grace Kelly lived in this building. A huge portrait of her hangs prominently in the sales office. The woman giving us the tour mentioned it several times and upon returning to the sales office after the tour the woman politely touched the framed portrait and excitedly said, “there she is.”
But, did you know that her father John Kelly, Sr. helped build the Manhattan House? It was his influence that got Grace an apartment and it is her legacy that continues to inspire some conversion decisions. A few of the converted units have been staged with the “spirit of Grace Kelly” – elegant, sophisticated, gold – but according to a recent New York Times article the style in the model apartments doesn’t look anything like Kelly’s. Times Reporter Josh Barnabel wrote, Grace Kelly’s furnishings at Manhattan House were, alas, quite plain. “The living room was without charm, character or gender,” Judith Balaban Quine wrote (in The Bridesmaids). “It wasn’t ugly; it was utterly bland. Furniture, fabrics and colors alike were all resolutely practical. Everything seemed brown.”
Investment Potential
When you go through the ‘marketing motions’ you can easily believe that Manhattan House is the coolest thing to ever happen in the New York condo market. However, while standing on the street corner, a local resident told me he’s bored of the place, and it strikes him as a typical white-brick post-war co-op. He’d rather be in new construction or something with a smaller but taller footprint and better views. I can understand his perspective and it was refreshing after getting a dose of Elliman.
That being said, if you’re a smart investor, you’ll realize that the marketing is real, the developers paid a lot of money for these units, and price increases can be counted on. Of the 584 units in the building, 250 will remain rent stabilized. Once those units’ tenants vacate, they will be converted as well, presumably at a much higher premium. We can’t deny the plethora of attractive features at this building, even if it isn’t the prettiest site in the sky. We rate it a B for investment potential.
