Approx. view West from Middle of Star Tower
Star Tower lot
Windows are in at "The View"
View 59 (l), Crecent Club (Shrouded-r)
Above are the pictures of how all the major developments in LIC stand as of May 15th. You may notice that they are far more numerous than a couple of years ago, as the pre-421-a tax abatement rush clearly increased inventory. And some inventory, namely 150 units at "The View" and 180 units at "The Star Tower", haven't officially hit the market yet. While these newer offerings are likely to see substantial sales right out of the gate, the increased inventory should give buyers the upper hand throughout the neighborhood.
I compared my list of buildings from 6 months ago with current prices, and for the first time in recent memory, prices have stabilized. Prices in the area range from the $600's psf to the mid-$800's per square foot. That is about to change.
Rockrose's "The View" which will test the upper limits, with prices in the $900's psf and up. "The View" possesses one thing that none of the others have- a guaranteed view that will never go away (and a level of luxury that is on par with Manhattan standards). The closest comparable is 5SL, which has sold through exceptionally well and cracked the $1000psf barrier for a terraced apartment with a view last year. It is no doubt a slower market now, but on site agents I have spoken to in the area are clearly hoping the "The View" is a success. Such a high profile building will drive interest in LIC, and those agents are looking for spillover clients who may not be able to afford waterfront living. Not to mention that Rockrose will house the area's first big supermarket, Duane Reade and other retail.
"The Star Tower", located across the street from Roe Corp's earlier success, The Fusion, will contend to be the "it" building in LIC this year. While it is further North, it will be 25 stories affording great views and it is loaded with amenities (including a rooftop pool). If current price talk holds (1 beds from mid 400's, 2 beds starting at 700k), this condo should be a huge hit.
It certainly is interesting times in LIC. It's a great time for a buyer, since the selection is vast, the market has slowed, and prices (especially at the buildings that have been around for a while) should be negotiable. I would expect more of the same over the next year, mainly due to a challenging market and the need to work through inventory. Since the 421-a surge has abated (pardon the pun), the inventory situation will only improve starting this fall. While it may take a couple of years to see gains that we have come accustomed to, the area is perfectly situated, and improving rapidly. So, if you are looking for a great home, a myriad of amenities, and a potentially potent investment, LIC is still the place to be.
As usual, if you need help sifting through the options, need info on who is negotiating, by how much, and want the edge on the competition, you can always call us at 212-675-1111.