Overview

East Harlem is undergoing the first steps of a renaissance and Observatory Place is at the vanguard of both neighborhood and green construction. The 38-unit condo is being designed and developed by Gary H. Silver, Andrew Liebhaber and finance partner Albert Marengo. It has a cast stone façade with numerous set backs with red brick facing, balconies and some terraces enclosed in an open frame. Built to Leed green standards and with a impressive amenities package this marks an adventurous and bold move by the developers who have already enjoyed considerable success with the Roosevelt Lane condominiums on E 111th St. Silver also has another project in the works on 120th street and has refitted several downtown buildings. They have also eschewed the input of brokers in the planning and initial sales phase preferring instead to go with their instincts and feedback from potential buyers to adjust designs. As of December, however, they will be handing over sales to a broker. The building consists of mainly studio, one and two bedroom units but is topped off with two three-bedroom penthouses. As a sidebar in maps of 1807 the original Observatory Place was the site of a proposed reservoir and observation point located between Forth and Fifth Avenues and 89th and 94th Street.

Units and Pricing

Prices for the 500-foot studios start at $340,000, which puts prices around $700 per foot. This competitive pricing continues with the one-bedroom units ranging in size from 624 to 690 feet and averaging $715 per foot. There are seven one bedrooms with study which are a bit larger at 820 feet and priced between $510,000 and $575,000. For those who need a little more space the two bedroom apartments range in size from 985 square feet to 1131 square feet and in price from $665,000 to $845,000 or around $700+ average per foot. The two three-bedroom penthouses are 1,385 and 1,405 square feet respectively and priced at $1,142,000 and $1,180,000 respectively at an average of $832 per foot. These units along with 24 of the others have outdoor space. Monthly carrying costs with the 421-A tax abatement come in at just under one dollar per foot. The floorplans are well thought out with most units having and open plan living/kitchen area; the larger units have a bathroom ensuite with the master bedroom and the second bathroom across from the second bedroom. Several have the ceilings opened up between the beams, a suggestion the developers took from buyer’s feedback.

The units have been thoughtfully designed. Bamboo flooring and large double paned windows give a light and airy feel. White stone counters contrast with the darker wooden Italian cabinetry. Appliances are stainless and made by GE. In the bathrooms Kohler fixtures, wooden fronted vanities and coffee colored floor tiles give a warm feel. Each unit comes with a Bosch washer dryer.

Amenities

The developers have not held back in this area perhaps realizing that price alone may not draw enough buyers. In addition to the green credentials of the building which include a landscaped rooftop garden the build also boasts a rooftop fitness center, both of which will enjoy river views. A doorman will be on duty 16 hours a day and an integrated phone and email system will alert residents to deliveries. The apartments come with storage space and there is lobby refrigeration for fresh direct deliveries.

Location

East Harlem has dragged behind central and west Harlem in terms of development. There is now definitely a change in the air with sales starting at Park Hill East, Aura, Nina and The Ivy condominium projects all within a 15 block radius. It is a neighborhood in process of change but in the meantime retail is lacking and to the east the city housing dominates the block. As the developments spring up retail is bound to follow and the East River Plaza development at 116th Street and the FDR Drive – a 500,000-square-foot retail space is slated to open next summer with stores including Home Depot, Best Buy and Target. Subway access while limited to the 6 train is fairly convenient with the stop at Lexington and 103rd street just a short walk away and buses available on 1st and 2nd Avenue.

Investment Potential

When we first started looking at this the value didn’t jump out at us. As we looked a little closer at the quality of the design and construction coupled with the amenities package we started to warm up to it. As we compared prices to other local projects and then to Brooklyn and Queens we actually became enthusiastic. There are a few concerns, specifically that retail does not move in quickly enough or the market softens then East Harlem’s rebirth may stall but overall we like it. It scores a B on our investment potential scale based on the high quality and price per foot ratio. Manhattan at $700 per foot is not to be sniffed at.

This entry was posted on Sunday, November 18th, 2007 at 6:23 pm and is filed under Blogroll, Observatory Place - 2021 First Avenue. 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.