Created as a result of one of America’s greatest real estate deals, New York City has never lacked for development opportunities in its 392 year old history. But large scale successful real estate ventures won’t work without the right investor to provide funding. And smart investors in turn won’t put funding into real estate projects that won’t ultimately show them a profit in return. 19th century real estate investors like Joe Sitt put money into developments that supported other businesses, like the railroad industry. But what do 21st NYC real estate investors want for their money from current developments?
New York City has one of the world’s most stable real estate markets, due to continual demand and high transparency. But not every potential building project here is a success in the making. There are specific things smart investors look for before committing their money to a project:
Supply And Demand
Just because you can build it, doesn’t mean that you should. For real estate investors, it often makes sense to hold off on green lighting projects in some areas until housing shortages occur there. As demand occurs there, so does the opportunity to increase rents and other fees in new buildings. The Bronx is finally seeing new residential development after years of housing shortages, and developers Mott Haven and Melrose have led the charge into this market with a major new 501,764 square foot housing development on East 149th Street.
If You Build It, Will The Right People Come?
Yes, they can bring baggage and unpleasant publicity, but for the most part celebrities make good neighbors. They’re financially solvent and they attract other wealthy, non-celebrity tenants to neighborhoods as well. Hey, if Harrison Ford or Julia Roberts want to be here with their families, it must be the right place to be! More celebrities representing industries ranging from sports to music to media live in the Upper West Side than anywhere else in New York City. Outlying neighborhoods are close behind. So as an investor, if you want Beyoncé or Sting or Steven Spielberg as neighbors, it makes more sense …