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June 14, 2010
New rental tower fills tall order
Downtown's Beekman seen drawing good crowd, but units are pricey, and market is still shaky
Despite years of community opposition over its size, a financial crisis that briefly threatened to halve its height, and falling debris that rendered neighboring streets hazardous, the city's tallest residential spire will officially open its doors in about six months.
And after all that, the 867-foot Beekman Tower is already being hailed as a winner. In a remarkable about-face, many community officials expect their new 76-story, Frank Gehry-designed neighbor to raise the profile of the entire area. Meanwhile, real estate brokers predict developer Forest City Ratner Cos. will not only have little trouble renting the building's 903 high-end apartments but that their arrival on the market will be perfectly timed.
...Beekman is fortunate to open in a strengthening rental market,” says Gary Jacob, executive vice president of developer Glenwood Management, which raised rents and eliminated concessions in February.
With many of the off-price leases due to expire in the fall, however, the market faces a major test. That factor, combined with a still uneven economic recovery, could yet make Forest City Ratner's hope of garnering rents that brokers predict will work out to be around $80 per square foot overly ambitious. Rents at nearby Liberty Plaza and 10 Barclay are $60 to $65 per square foot—and even those are considered high. According to Platinum Properties, rents in luxury financial district buildings range from the mid- to high $40s per square foot.
NoLandGrab: $5,000 a month for a 750-square-foot apartment is almost as fanciful as the $1,250 per square foot Forest City hopes to get for Atlantic Yards condominiums.
Posted by eric at June 14, 2010 9:04 AM