Residential, commercial blend together in positive cycle - New York City, NY - Brief Article - Statistical Data Included

The area bounded by 23rd and 34th streets along Sixth Avenue is an interesting example of the symbiotic relationship between commercial development and residential growth. This district has evolved from a predominantly commercial destination into a desired residential neighborhood, with numerous residential development and redevelopment projects currently underway that are single-handedly changing the dynamics of this area.

As major retail chains such as Old Navy, the Disney Store and the city's first K-Mart continue to, make 34th Street their home, the attractiveness, convenience and desirability of living in the area is greatly enhanced. The Gap based at Herald Towers - one of the area's prime residential properties and a JEMB building - is one of the largest grossing Gap stores in the country. The corner of 34th Street and Sixth Avenue is at the epicenter of this change.

We have seen the residential rental rates in this marketplace rise between 20 and. 30 percent within the last six months. The availability rate at Herald Towers has been below one percent since we acquired the property in the summer of 1999. This record result can be easily attributed to a number of positive factors. Herald Towers is currently benefiting from the boom in Times Square; from being centrally located and easily accessible by public transportation; and from the higher caliber of retail stores moving to the area.

Our tenant demographic is now comprised of young professionals that work all over Manhattan, whether in the media industry and commuting to Times Square, or in the financial sector on Wall Street.

These factors and more convinced us of the vitality of this area, and its promise for continued growth. This has led us to invest considerable resources into a capital improvement program that will include a new lobby and marquee, new bathrooms and kitchens, a business center and extensive telecommunication sup grades which provide high-speed Internet access to all apartments and 60 short-term stay units. Finally, our tenants benefit from a number of in-house services and amenities including a New York Sports Club, concierge service arid valet dry cleaning.

We foresee this upward trend continuing. The overall perception of this area has changed permanently, and we are committed to being a part of the exciting future of this emerging neighborhood.

COPYRIGHT 2000 Hagedorn Publication
COPYRIGHT 2001 Gale Group