A growing number of wealthy NYC buyers are buying multiple, smaller units, bucking the trend toward large trophy apartments
Investors with $10 million to $15 million to spend have no shortage of New York City real estate to choose from. As of the middle of last month, there were 218 apartments listed in Manhattan in that price range.
But a growing number of well-heeled buyers are spreading their wealth among several apartments, instead of buying a single trophy unit, and some investors are taking advantage of the city’s strong real estate market, while at the same time hedging against any future softening.

A buyer with $20 million to spend might decide to invest in a three-bedroom apartment in Midtown ($4 million), two retail condos ($5 million each) and a four-bedroom unit on the Upper West Side ($8 million).
Owning a trophy apartment can be a good investment when the market is strong but it is also wise to mix up the holdings, because the inventory of large luxury units is poised to grow.
At the end of the day, there are more people that can afford $6,000 a month rent than $25,000 a month.
For a smart investment strategy, it is advisable to go to different areas and select different sizes.

Some investors believe a diverse portfolio boosts their chances of securing a high return.
They can buy an apartment in a neighborhood like the West Village that won’t give them the highest return on an annual basis, but it’s a prime neighborhood. Then they can go to a neighborhood like Bushwick or Harlem and be a little bit more speculative.

Another excellent strategy is to buy several units on one floor of a building, with the intention of renting the apartments for several years and later combining them and selling when prices and demand for larger units continue to rise.