C
hanges to transit can significantly impact real estate values. The NYC Ferry is soliciting feedback on route changes, which could benefit property owners near new ferry stops and harm those that lose them. Sunset Park is among the areas under consideration for elimination.
This got me thinking about how mass transit affects rents and property values. Douglas Durst's relentless push for a ferry stop near his Halletts Point development reduced commute times from 75 minutes to just four, increasing its value. In contrast, the proximity of Dock 72 to the Brooklyn Navy Yard has not been as beneficial due to its distance from the nearest subway.
The extension of the Second Avenue subway line has had a significant impact on property values in the area. Three developments near the East 72nd Street station will be far more valuable than if the Q train had not been extended there, and may have not happened at all. These projects include Chetrit Group's 1357 Second Avenue, Shlomi Avdoo's 242 East 71st Street, and Torkian Group's potentially 60,000-square-foot project.
The city's transportation network has seen few major changes since the initial buildout of subway lines by private companies. Those companies collapsed when lawmakers capped fares at a nickel, forcing the government to take over the subway system. Other cities don't have train stations as close together, which is why New York has 441 stations – an accident of history that won't be repeated.
More stations are in the works, including three new Second Avenue stops and four Metro-North stations in the Bronx. Property owners along these routes will benefit if they're patient. A reader suggested letting real estate be a free market to solve all problems, but I countered by asking about getting rid of Opportunity Zones and 1031 exchanges.
Greystar manages nearly 950,000 apartments in the US, more than three times as many as No. 2 Asset Living. On Long Island's North Fork, some residents are worried that a new water pipe planned by the Suffolk County Water Authority will enable development, but the authority disputes this narrative. The town can dictate development through zoning, and locals can't deny firefighters adequate water to prevent new hotels, restaurants, and homes.
The top residential deal recorded was $28.1 million for a 7,488-square-foot condominium unit at 111 Murray Street in Tribeca. The top commercial deal was $36.9 million for a development site at 140-142 Fulton Street in the Financial District. A new building application was filed for an 80-unit community facility at 67 Meserole Street in East Williamsburg.
