Overview

The Paper factory is a mid-19th Century building that is being restored and converted into 5 condo units. The 5 units allow for an intimate building atmosphere in an area that has substantial foot and street traffic on all sides. The block of the development on 22nd Street between 5th and 6th Avenues is centrally located and allows for an easy transit to anywhere in the city. However this centrality in this neighborhood ensures a certain high level of activity possibly contradicting the “traditional brownstone lifestyle” which one might expect from the building.

The units are very reasonably priced, especially considering the low monthly charges as compared to other amenity-driven condo projects in the area. However, this building is nothing like a typical condo in the neighborhood. The developer, Metro Builders is sure to emphasize the charm of the brownstone life and has done a wonderful job of restoring the fa̤ade of the building to reflect this. The units are all single floor-through with the exception of the penthouse which is a duplex with a roof-deck. The main difficulties for the building are typical of town home living Рlong, rather than wide spaces and limited light in some rooms. However, the building does feature outdoor space, private living and a charming aesthetic.

This is what the project will look like. Interesting.

A view of the stoop and entrance

Amenities

Again, not an amenities building. The video intercom system provides a hint of security and the elevators ensure that penthouse actually gets sold. I don’t think we’ve covered any of the few walk-up new development projects in the city yet–they are tough sells. The outdoor space would be considered an attractive amenity as well.

As for the apartment features, they have a nice mix of high-end finishes which blend well with the charm of an 1851 landmarked row house. For example, each unit comes with a Bosch washer and dryer, central air and private storage in the basement. In addition, the kitchens feature Viking and Bosch appliances. The bathrooms aren’t particularly stunning but still allow for a level of indulgence with items like dual sinks and a soaking tub. Overall, the development falls a bit short of the “new standard” of condo living, but that’s irrelevant when you consider the intimacy found here combined with the benefits of condo living.

Units and Pricing

Currently the building has 3 of the 5 total units remaining, with the other two listed as contract signed. The two units that are not currently on the market are the two smallest units and also the least to offer in terms of differentiating themselves from the rest of the units, leaving the validity of their status up for debate. The three units that are currently available all have differing strengths and weaknesses. For starters, the Penthouse unit is a duplex with large terrace space but very tight square footage. The street level unit is the largest with the lowest price per square foot (under $975 per square foot – unheard of in the area) but also backs into an alleyway, receives the least amount of light and has an outdoor space that is listed as private but is really just the patio area in front of the townhouse. The final listing is the parlor floor and features 12 foot ceilings, a large picture window, and a home office but also is the second highest price, and has smaller bedrooms.

Overall, the building is looking for prices far below other area condos, coming in with an average price per square foot under $1,150. The low price may be enticing for some but the fact that the building offers privacy with only a total of 5 units might be even more appealing to some. The exclusivity of the building also seems to be a double-edge sword, in that it causes the common charges for building, while low, to not be as low as they should. The average monthly common charge per square foot for the units is right at seventy-five cents. The conversion also adds to the monthly keep-up, in that there is no tax abatement and one should expect to pay typical taxes for the unit. All things being equal, the price on the units is slashed compared to other condos but the monthly expenses for the building may counter somebody looking for a cheap deal.

Living Room rendering

Bathroom rendering

Location

The brownstone building is located on 22nd Street between 5th and 6th Avenue. This is essentially the heart of the Flatiron district, located just a half a block from the building which gives the area its name. This location offers walking distance to Madison Square Park, several subway stations (N,R,W,F, and Path are all close), a plethora of clothing and interior design stores, all in addition to many of the Manhattans hottest restaurants and nightclubs. However, the area also offers traffic, hordes of pedestrians and noise that seems to reverberate a little more amongst the older stone buildings. The block itself is comprised mostly of industrial building with a few brownstones thrown in, but still has a sense of appeal that reminds me of a scene from a black and white film with Clark Gable.

The main appeal for the area is clearly its centralized location which allows for easy access to most of the city. A buyer in this building would have to forgo a sense of quaint appeal for the satisfaction of knowing they have the ability to traverse the city with great ease. This compromise could be made slightly easier with the knowledge that your new home is only a short walk to one of the few downtown mid-island green spaces, Madison Square Garden. However, if you opt for a little higher end than the famous Shake Shack in Madison Square Park, the area is strewn with hip restaurants like 11 Madison, Tabla, and Rosa Mexicana to name a few. The area is what one might expect from New York and gives you know doubt that you’re living in Manhattan.

Investment Potential

Taking into consideration factors such as location, price, space and longevity of the investment, there is a clear division of investment potential just within the building. Oddly it can be seen that the two “contract signed” units would have the least potential in investment. The most logical purchases would by far be the penthouse and parlor floor units. Each unit allows for the most desirable living in for a common brownstone resident. The penthouse features rooftop access where the parlor unit reminds the owner of the sense of grandeur within a brownstone. Given that the units are fairly comparable in price it seems foolish to purchase one of the other units over these two.

As for the investment potential as compared to the market as whole, we give the building a B. This decision is mainly based on the belief that the area, while not generally suitable for your average townhouse buyer, is suitable for a condo buyer who may enjoy townhouse living. The building tries to mesh the two styles but falls a bit short. However, the building also comes in at a much lower price tag, giving the investment the ability to inflate with less risk over time.

This entry was posted on Wednesday, October 10th, 2007 at 1:26 pm and is filed under 52 West 22nd Street, Blogroll. 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.