When the pool of qualified condo buyers shrinks due to assorted economic maladies (credit crunch, unemployment, Bernie), the solution for developers is clear: shrink the number of needed buyers! Already, bulk apartment offerings have been dangled in front of investors in a number of new buildings, and now Halstead is getting in on the action. The brokerage issued a press release today announcing "multiple package options" (which, by the way, was our high school nickname) at a number of Halstead-repped developments, including Hell's Kitchen's The 505, Long Island City's Fifth Street Lofts (right) and Harlem's Kalahari, Bridges NYC, Savoy West and The Lore. "On average," the release notes, "the prices for purchase of bundled units are offered at a discount from the listed prices for each unit and packages can be customized by number and type of units."
The Real Deal pried some additional info out of Halstead Executive Director Stephen G. Kliegerman:
Brokers are targeting American and foreign investors who would buy the apartments and then rent them out, with the potential to get a 4 to 7 percent return on their purchase, he said. At Lev Parkview Developers' 505 at 505 West 47th Street, Halstead is offering a package of four one-bedroom units for $2.8 million, which is 10 percent less than the cost of the apartments if purchased individually, Kliegerman said.
At the Kalahari, a 249-unit development at 40 West 116th Street that's 90 percent occupied, Halstead is marketing two two-bedroom and two three-bedroom apartments for $3.89 million, which also represents a 10 percent price reduction compared to the cost of the apartments if purchased one at a time, Kliegerman said.
Is 10% off enough to entice investors to the wilds of LIC, Harlem and Hell's Kitchen?
· Halstead selling condos by the bundle [Real Deal]