The Upper East Side
By Jillian Blume
Spring 2010
"I don't want to own anything until I know I've found the place where me and things belong together. I'm not quite sure where that is just yet. But I know what it's like. It's like Tiffany's."
-Truman Capote, Breakfast at Tiffany's, spoken by Holly Golightly.
Audrey Hepburn created a vision of the Upper East Side party girl with a past in Breakfast at Tiffany's, playing the dramatic and flighty Holly Golightly. She lived in a brownstone filmed at 169 East 7lst Street. Her favorite haunt was a bar on Lexington Avenue. Today's uptown party girl has its representation in Paris Hilton, Olivia Palermo, Tinsley Mortimer and their brood. Glamorous, high spirited and a little inaccessible, they represent a lifestyle that could be described as aspirational, stuffy, privileged, elegant, cultured and affluent.
The Upper East Side, however, is not just for the rich and famous; there are properties for families of differing financial muscle. As well as offering some of the most luxurious (and expensive) properties, it also offers tremendous value in both sales and rental properties. "The Upper East Side in general has always been known as one of the very best residential locations in New York to live in," says Kelly Mack, Corcoran Sunshine Marketing Group.
It's considered by many to be the most prestigious address in town, its residential streets lined with trees, stately prewar architecture, elaborate brownstones, distinguished townhouses and exclusive luxury apartment buildings. Comprised of a number of smaller enclaves including Carnegie Hill, Lennox Hill, East End Avenue, and Yorkville, it is an elegant, exclusive area, bordered by the East River Esplanade and Central Park.
''You have every single thing that relates to proper infrastructure to support a neighborhood," says Mack. ''It's very clean, it's very safe, and there's always been a lot of very good housing stock available there. It's a long-established residential neighborhood, unlike other parts of New York, which were more emerging and have now developed themselves into strong residential locations, but they don't have the same sense of history and maturity. Upper East Side property values have always held up and grown year-over-year."
Star-Studded Neighborhood
Once known as the "Silk Stocking" district, it was the site of the fashionable mansions of families such as the Kennedys, the Rockefellers, the Roosevelts, the Whitneys, the Carnegies, the Astors and the Dukes. It has been home to actors and actresses including Woody Allen, James Cagney, Paul Sorvino, Christopher Walken, Michael J. Fox, Robert Redford, Kevin Kline, Candice Bergen, Elizabeth Taylor, Ellen Barkin and Greta Garbo; musicians Cole Porter, Sean Combs, Art Garfunkel and Billy Idol; and famous designers such as Donna Karan and Ralph Lauren. Famous athletes who own homes in the area include Tiki Barber, Derek Jeter and Martina Navratilova. Business moguls occupying Upper East Side real estate include Rupert Murdoch and George Soros. Madonna recently purchased a four-story, Georgian-style townhouse at 152 East 31st for $40 million.
Real Estate Prices & the Market
''From this year compared to last, it's like a different world," says Rog- er Erickson, senior managing director with Sotheby's International Realty. "Last year, pretty much everyone was hiding in a cave expecting the world to end, and it affected buyers drastically. There were very few people braving to go out and even look at properties, let alone purchase. There was very little to nothing happening. And then in the fourth quarter, things started to pick up. The fourth quarter was very strong with a lot of transactions. I actually sold a house in excess of $24 million, an apartment in excess of $22 million, a couple of major deals over $20 million and a lot of other transactions to round out the year."
According to Mack, this is a great time to buy real estate on the Upper East Side. There is a lot of great product to choose among. Inventory levels relative to historical averages are high. "The inventory right now is about 1,600 units," she says. "So there's lots of really great inventory to choose from, and there's value to be had in terms of the pricing. Prices have adjusted downward in the past year and a half by about 20 percent. So if you look at value as it relates to potential price appreciation, I think everyone will agree that the Upper East Side has long been known as an area that has supported price appreciation and that has all the infrastructure to support growing property values."
The Upper East Side has some of the priciest real estate in the city, but even if your name is not Rockefeller, you'll still find plenty of properties at various price ranges. "The lower end of the market is insanely hot with young people looking to spend under a million dollars," says Roger Erickson. ''I'd say the one to four million dollar price point is also very, very hot. The only area that still seems to be slower is the high end of the market, where there are not as many transactions happening and not quite as much activity."
According to Kelly Mack, people are feeling a lot more confident. There have been several quarters in a row where the numbers have been strong, where prices are not continuing to decline, and where people are starting to feel like it's a good time to jump back into the market. "It took some time, but most of the sellers have become a lot more realistic and have finally adjusted their prices. So buyers and sellers are finally seeing eye-to-eye on where the market is because we have seen some form of stabilization. I think we're pretty much on the brink of some form of recovery. There's a lot more transaction volume in the market, and there's a lot more people who are jumping in because they don't want to miss the opportunity."
There were 615 sales on the Upper East Side during the fourth quarter of 2009. According to Mack, this is about 6 percent above the five-year average and 200 percent year-over-year. So market velocity is clearly picking up and inventory is actually shrinking. And the Upper East Side has some of the most extraordinary and pricey real estate in the city.
For example, Roger Erickson has a listing in the Pierre Hotel for $27,500,000. It's the entire 29th floor, about 5,000 square feet, with spectacular 360-degre views. The apartment is newly renovated, and it comes with all the hotel services of the Pierre, including twice-daily maid service, room service, a personal housekeeper, and 24-hour hotel staff. The apartment has 11 rooms with a bar-equipped library, a home theater, a personal gym, a home office, a TV room, a formal dining room, staff rooms, guest rooms, a breakfast room and more. "If you want to have a party, you call the butler from the hotel to greet people as they get off the elevator," Erickson says. "It's an absolutely remarkable lifestyle that one could have there."
Paula Del Nunzio, senior vice president, managing director at Brown Harris Stevens lists the Walter N. Rothschild Mansion on the Lehman Gardens on East 70th Street for $25,500,000. With a design by architect Aymar Embury IT, who conceived the other townhouses in this enclave, and gardens designed by Alfred Rheinstein, this townhouse is truly a part of New York history. The architect worked on the Triboro Bridge, the Whitestone Bridge and the original zoo buildings in Central Park, but this collection of Georgian mansions are the only residential buildings he designed in Manhattan. The Rothschild Mansion has six floors of approximately 11,256 square feet and a basement with high ceilings.
Of course, if you are planning on purchasing, a broker is the most effective way to assure that the price is right. ''I think a lot of people use the Internet, which is a wonderful educational tool, but every deal is unique, and when you're in a market like this, you really need to know the history and the ins and outs of these buildings," says Kirk Henckels, director of Stribling Private Brokerage. "Which means that you need to have a really experienced broker to say this is priced right or it's not priced right. Time and time again, when I see people buying directly, they generally overpaid, and sometimes quite significantly."
The Rental Market
There are also some very strong advantages to renting. The process is much simpler in a legal, financial and emotional sense. There's no anxiety about getting approved for a mortgage. There's no closing costs or real estate taxes. The whole process is fairly easy compared to buying real estate in a market that still sometimes makes getting a mortgage difficult. And some people just don't want the headache and responsibility of ownership.
Many rental properties on the Upper East Side today offer apartments with condominium-style finishes and amenities. Arthur Fenton and Teresa Wuest, both senior vice presidents at Prudential Douglas Elliman, handle some of the best in luxury rental property. "As far as buildings that we represent, we've had incredible activity in the last four weeks. We've basically rented out everything in our inventory," says Wuest. "Location dictates a lot as well, along with details like full-service buildings and condo finishes," says Fenton. "In our buildings, there's really more demand than there is supply, which is very frustrating. We have people ready, willing and able to rent, but because the activity is so intense and because we are renting apartments so quickly, as soon as they come on the market, they're gone."
According to Fenton, the prices in their buildings have been holding steady because of the quality of the finishes and the amenities. For example, at 200 East 62nd Street at the corner of Third Avenue, a two-bedroom, 2.5-bathroom duplex listing for $8,950 a month features herringbone floors, a cook's kitchen with top-of-the-line appliances, a complimentary fitness center, an on-site garage and a 24-hour doorman and concierge. A three-bedroom, three-bathroom at 85 East End Avenue lists for $7,250 per month and features a balcony, herringbone floors, crown moldings, a cook's kitchen, a fitness center, and round-the-clock doormen and concierge. The prewar 530 Park Avenue lists a three-bedroom, three-bathroom apartment at $9,950 a month and features herringbone floors, lots of prewar details, a windowed kitchen, great appliances, a gallery, tons of closets, beamed ceilings, attended elevators and a doorman.
Glenwood Management also has exceptional rental buildings on the Upper East Side. Designed by Costas Kondylis, the Brittany, at 1775 York Avenue, has numerous bay and corner windows and spectacular views of the East River and Long Island Sound. It's an elegant building with a limestone base, landscaped gardens and a two-story lobby. The apartments have marble bathrooms, 9-foot ceilings and washers and dryers. The amenities include a private shuttle bus, 24-hour doormen, an attended garage, a 7,000-square-foot fitness club with a pool and saunas, a lounge and a landscaped rooftop sun deck.
One of the newer rental buildings, One Sutton Place North (420 East 61st Street), is a sleek, black glass tower completed in 2003, with a private driveway and a glass, teak, and travertine marble lobby. The apartments have f1oor-to-ceiling windows, Absolute black granite kitchens with stainless steel appliances, marble-and-granite bathrooms and Bosch washers and dryers. The amenities include 24-hour doormen, a concierge, an attended package room, a landscaped courtyard a fitness center and valet parking.
New Developments
''Many of the new development properties in particular on the Upper East Side today are being built by very established and reputable developers who have great pride in delivering a product that is very high end, and they are really committed to the quality of the construction," says Mack. "These developments are going to stand the test of time."
New development in the Upper East Side is a particularly unique event due to the fact that there's a lack of available land. This means that there's usually very limited inventory in the pipeline. "One of the reasons it's a great residential location is that it's so mature, but because it's so mature, there aren't a lot of sites available for someone to build a new building," says Mack.
Right now, it's a great time to buy on the Upper East Side because there's a significant amount of new development property on the market, but that won't last.
One of the most talked about new development properties is Miraval Living. Located at 515 East 72nd Street, it was developed in connection with the famous Miraval Spa to be a "spadorninium," a condominium complex where spa living is a way of life. The serene residences feature eco-friendly materials with luxurious finishes, such as Italian Piombo limestone, Calacatta Gold marble and Macassar Ebony, and the amenities are over the top: a fitness center with a rock climbing wall, indoor and outdoor yoga studios, a pool and hot tubs and racquetball, squash and basketball courts. The Miraval Spa has a huge amount of classes and workshops to choose among, a long list of spa treatments, numerous massages, and Central Park is a bike ride away. a Pilates studio. The complex also house the Creative Arts Studio and Activity Space, the Garden Cafe and one of the largest private parks in the city, with a serene yoga retreat, platform gardens, expansive lawns and groves of honey locusts, bamboo trees and birches.
The Upper East Side has some of the greatest residential architecture in New York, with its history preserved in the mansions, townhouses and grand prewar buildings. It has the broadest avenue in Park Avenue; the highest concentration of museums along Museum Mile; some of the most expensive shopping at Barney's, Tiffany, Henri Bendel, and Louis Vuitton; and some of the greatest parks in Central Park and Charles Schurz Park. There are five-star restaurants, tons of nightlife, a plethora of playgrounds and the best cultural institutions in the city.
"Just from a pure neighborhood point of view," says Kelly Mack, "everything you could ever ask for is on the Upper East Side." |
