A new batch of efficiency units can be found in luxury buildings, as developers seek ways to add value for high-end buyers while keeping a lid on their owns costs.
Unlike the sprawling trophy apartments that have hit the market in the past few years, tighter-cut units at buildings like 15 Leonard Street, the Charles at 1355 First Avenue, the Rudin family’s Greenwich Lane and others offer more value per square foot for buyers, brokers said.
At 15 Leonard Street, a new development, the building’s four-bedroom condos measure 2,621 square feet — and are under contract for prices ranging from $6.4 million to $7.5 million, or $2,441 per square foot to $2,861 per square foot.
In comparison, the average sale price in the luxury segment in the third quarter of the year was $7.25 million, and the median sale price was $5 million, according to real estate appraisal firm Miller Samuel. The average price per square foot was $2,617 during the quarter, up from $2,055 per square foot a year earlier.
The move toward efficiency is gaining the most traction in the middle of the market ($1 million to $5 million segment). There’s little inventory in those price points. Developers are building those units more economically to meet those consumers’ pockets.(source: The Real Deal).