125th and Park ave

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NEW YORK CITY—As a rezoning plan undergoes the approvalprocess—and a new Second Avenue Subway station provides improvedaccess to public transit—East Harlem has become an appealingresidential option for those priced out of other Manhattanneighborhoods, according to the newest research report fromGFI Realty Services.

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States the report , entitled East Harlem: A.K.A. theNeighborhood, “Developers and investors, recognizing theopportunity that East Harlem presents as an under served market,have been bullish with land, repositioning and multifamilyacquisitions. Multifamily buildings rose to an averageprice-per-square-foot of $425 in 2016; an 8% year-over-yearincrease, while development sites are now trading at over $200per-buildable-square-foot, a 25% increase from theprice-per-buildable in 2015. As new construction in theneighborhood continues to heat up, they are expecting that figurerising as well.”

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Aimed at reshaping a large portion of the neighborhood—an areathat runs roughly from East 104th Street to East 132th Streetbetween Park and 2nd Avenues, and from East 126th Street to 132ndStreet between Madison and 5th Avenues—the rezoning plan analyzesthe amount of residential space that would be introduced throughthe development of 69 different sites.

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Further, it examines the number of new apartments that could bebuilt if the city moves forward with building on a city-owned,vacant piece of land bounded by Park and Madison Avenues to theeast and west, and by East 112th to East 111th Streets to the northand south.

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The effort is expected to bring thousands of new apartments andalmost 10,000 new residents, many of whom will benefit from theplan's attachment to the Mandatory Inclusionary Housing Program,which requires builders to set aside 25% to 30% of apartments asbelow-market-rate housing. Additionally, it's estimated that futuredevelopments will bring over 100,000 square feet of retail spaceand over 100,000 square feet of office space to theneighborhood.

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“In New York City, both residents and real estate investors areon a constant quest to find the next hot neighborhood beforeanybody else, and recently, East Harlem has become thatneighborhood,” declares Justin Fitzsimmons, research analyst of GFIRealty Services. “Residents are drawn to the ability to hold ontothe neighborhood amenities they'd grown accustomed to elsewhere ata more affordable price, while investors are suddenly rushing tofill the need for quality housing options.”

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The introduction of the new Second Avenue Subway station on East96th Street is expected to further drive the neighborhood's growth.Additionally, the yet-to-be-funded Phase II of the Second AvenueSubway will add three stations, extending the line all the way upto 125th Street.

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“The Second Avenue Subway is fueling further confidence in thearea, and is helping to silence doubts about East Harlem'spotential for prosperity,” Fitzsimmons says. “When Phase II isfunded, we can expect investor interest in the area toskyrocket.”

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The increased desirability of East Harlem is reflected byincreases in the neighborhood's median rents and median salesprices, GFI notes. At the end of 2016, the median rent in EastHarlem was approximately $2,325—a 5% jump from 2015—and, asof last month, it reached $2,399.

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At the end of the year, the neighborhood's median residentialsales price was $810,000 — up 12% from the previous year.Furthermore, there was $112 million in total sales in East Harlemin 2016—an unprecedented 99% year-over-year increase that was oneof the city's largest.

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GFI expects the area's attractiveness to continue to rise, asdevelopers file plans, break ground, and open the doors for a hostof market-rate, mixed-income and affordable housingdevelopments.

|

“While it's clear that East Harlem is in a transitional phase,the character of the neighborhood is strong, and we believe itsdeep-rooted culture will continue to shine through,” Fitzsimmonsexplains. “The area is far more famous for the taco trucks onSecond Avenue than the new high-rises going up throughout theneighborhood, and frankly, we don't see that changing any timesoon.”

|

125th and Park ave

|

NEW YORK CITY—As a rezoning plan undergoes the approvalprocess—and a new Second Avenue Subway station provides improvedaccess to public transit—East Harlem has become an appealingresidential option for those priced out of other Manhattanneighborhoods, according to the newest research report fromGFI Realty Services.

|

States the report , entitled East Harlem: A.K.A. theNeighborhood, “Developers and investors, recognizing theopportunity that East Harlem presents as an under served market,have been bullish with land, repositioning and multifamilyacquisitions. Multifamily buildings rose to an averageprice-per-square-foot of $425 in 2016; an 8% year-over-yearincrease, while development sites are now trading at over $200per-buildable-square-foot, a 25% increase from theprice-per-buildable in 2015. As new construction in theneighborhood continues to heat up, they are expecting that figurerising as well.”

|

Aimed at reshaping a large portion of the neighborhood—an areathat runs roughly from East 104th Street to East 132th Streetbetween Park and 2nd Avenues, and from East 126th Street to 132ndStreet between Madison and 5th Avenues—the rezoning plan analyzesthe amount of residential space that would be introduced throughthe development of 69 different sites.

|

Further, it examines the number of new apartments that could bebuilt if the city moves forward with building on a city-owned,vacant piece of land bounded by Park and Madison Avenues to theeast and west, and by East 112th to East 111th Streets to the northand south.

|

The effort is expected to bring thousands of new apartments andalmost 10,000 new residents, many of whom will benefit from theplan's attachment to the Mandatory Inclusionary Housing Program,which requires builders to set aside 25% to 30% of apartments asbelow-market-rate housing. Additionally, it's estimated that futuredevelopments will bring over 100,000 square feet of retail spaceand over 100,000 square feet of office space to theneighborhood.

|

“In New York City, both residents and real estate investors areon a constant quest to find the next hot neighborhood beforeanybody else, and recently, East Harlem has become thatneighborhood,” declares Justin Fitzsimmons, research analyst of GFIRealty Services. “Residents are drawn to the ability to hold ontothe neighborhood amenities they'd grown accustomed to elsewhere ata more affordable price, while investors are suddenly rushing tofill the need for quality housing options.”

|

The introduction of the new Second Avenue Subway station on East96th Street is expected to further drive the neighborhood's growth.Additionally, the yet-to-be-funded Phase II of the Second AvenueSubway will add three stations, extending the line all the way upto 125th Street.

|

“The Second Avenue Subway is fueling further confidence in thearea, and is helping to silence doubts about East Harlem'spotential for prosperity,” Fitzsimmons says. “When Phase II isfunded, we can expect investor interest in the area toskyrocket.”

|

The increased desirability of East Harlem is reflected byincreases in the neighborhood's median rents and median salesprices, GFI notes. At the end of 2016, the median rent in EastHarlem was approximately $2,325—a 5% jump from 2015—and, asof last month, it reached $2,399.

|

At the end of the year, the neighborhood's median residentialsales price was $810,000 — up 12% from the previous year.Furthermore, there was $112 million in total sales in East Harlemin 2016—an unprecedented 99% year-over-year increase that was oneof the city's largest.

|

GFI expects the area's attractiveness to continue to rise, asdevelopers file plans, break ground, and open the doors for a hostof market-rate, mixed-income and affordable housingdevelopments.

|

“While it's clear that East Harlem is in a transitional phase,the character of the neighborhood is strong, and we believe itsdeep-rooted culture will continue to shine through,” Fitzsimmonsexplains. “The area is far more famous for the taco trucks onSecond Avenue than the new high-rises going up throughout theneighborhood, and frankly, we don't see that changing any timesoon.”

|

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.

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