Marketproof conducted an analysis of sponsor-controlled buildings on the Upper East Side that have reported at least one sale. For the purpose of this report, we evaluated average monthly sales velocity as a percent of total units, using the date the offering plan was accepted by the attorney general as the start date for sales. We use the offering plan (versus the date the developer first listed units) to normalize velocity among buildings of different sizes and ages. This is partly due to the fact that Naftali isn’t using public listing channels to market their projects. Buildings that are marked 100% sold are fully in contract, but more than 10% of the spoken-for units have not yet closed. Data in this report is as of 12/8/2021.
Based on our methodology, which creates a level playing field to analyze performance across all sponsor-controlled buildings in the neighborhood, 200 East 83rd Street (https://share.marketproof.com/building/VTJGc2RHVmtYMTlkbVZDeVlBMnBVeDY1SzhrZkhDUnlPZ2p2ZUZibjc4enpWREhPRFh5bENseVJITHNMSExmUg==) and The Benson (1045 Madison Avenue) (https://share.marketproof.com/building/VTJGc2RHVmtYMTljR3dwMWFtSmFQaGtsZE94RXBJZlhJakNHOTVyMkdmdms3VktOVkREc2pWTTJUVHJuR25aeQ==) stand out with the strongest sales velocity. Both projects are developed by Naftali Group and feature a more classical architecture style. The current average asking price per square foot for Upper East Side new developments is $2,945, compared to 200 East 83rd Street’s average list price of $2,673 per square foot and The Benson’s average list price of $3,590 per square foot. On average, this submarket sells 16.7 new development units per month, with these two Naftali projects accounting for nearly 45% of sales. “No matter how we analyze the data, Naftali’s projects are carrying the new development market on the Upper East Side, with 200 East 83rd Street and The Benson accounting for nearly half of all contract activity,” says Kael Goodman, co-founder and CEO of Marketproof. “This indicates a desirable product that is well-priced. The average asking price per square foot across these two developments falls near the neighborhood average — and that appears to be the sweet spot.”
We looked at 21 sponsor-controlled developments on the Upper East Side, accounting for Beckford House & Tower as two separate projects because each portion has a distinct offering plan. The following is the top 10 Upper East Side developments by absorption rate since offering accepted date.
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Not too far behind the Naftali projects is Legion Investment Group’s 109 East 79th Street, followed by Midwood Investment’s 150 East 78th Street and then Icon Realty’s Beckford House & Tower. These developments also represent a more classical architecture style.
Beckford House & Tower(this is a two-building development but we are grouping both together within the group of top 5 performers)
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Report Methodology
Report is based on reported contracts and may not represent all contracts signed. Prices are based on the last asking price before a unit was put into contract. New development contracts are sponsor stage (sponsor controlled) projects that are eligible to sell units. Data as of 12/8/2021.