Dive Brief:
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New York-based Silverback Development has unveiled plans for a $100 million, 13-story luxury condominium building in Manhattan’s Gramercy Park, according to Multi-Housing News.
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The 80,000-square-foot building, located at Second Avenue and 21st Street, is expected to contain roughly 65 units and will be Silverback’s first development project since opening in July 2016.
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The company, which has partnered with an investor, expects to start construction next year and complete the building by 2020. In response to a weakening in the ultra-luxury tier of the apartment market, Silverback expects to offer 75% of the units under $2.5 million.
Dive Insight:
Silverback’s project comes amid cooling demand in New York City’s luxury market due to an oversupply in the category. Real estate website StreetEasy recently forecast apartment price growth in Manhattan to be the slowest of all the city’s boroughs as high-earning renters look to the lower-priced, less-dense Brooklyn and Queens — where prices are already climbing.
Nationwide, industry observers expect completions in the multifamily category to hit a cycle high this year. More than 378,000 new apartments will be completed in the U.S. in 2017, a figure roughly 35% ahead of the average of the last two decades, according to a recent report by MPF Research.
Amid an oversupply, banks are reportedly stepping back from financing new, large multifamily projects, particularly in the luxury category. In New York City, a slowing at the top-end of the market is causing some developers in that segment to shift their focus toward mid- and lower-tier luxury properties.
