The
Kingsley
400 East 70th Street
New York, NY
THE STORY:
Turned a 20,000 sq. ft. site -- which was available thanks to an incomplete assemblage and failed partnership -- into a 40-story luxury condominium where everything you need is less than 2 blocks away.
201 RESIDENCES
BUILT 1984
40 STORIES
KEY DETAILS
Total Cost: $40 Million
Total Gross Sq Ft: 216,000
USES:
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197,000 sq. ft. of luxury condominiums
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8,000 sq. ft. of retail space
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11,000 sq. ft of parking below grade
AMENITIES:
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Fitness center on upper level with views, rooftop lounge, parking garage, resident storage
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Interior features include herringbone floors, many over sized windows and uniquely shaped balconies.
PROJECT CHALLENGES
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The existing owners’ significant partnership issues added to the complexity of the negotiations.
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Zoning permitted a public plaza bonus only if faced south, therefore the existing tenement buildings needed to be vacated and demolished. These buildings were occupied by rent controlled tenants who would be difficult to vacate, making the ability to develop the south plaza highly unlikely.
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In-depth knowledge of the market was needed in order to develop a plan that would maximize the potential of the site.
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Traditional residential construction aligned to stack bathrooms and kitchens vertically throughout the building. A creative approach that introduced tiers of off-set design stacked up through the building was required to obtain premium pricing for the creative unit mix distribution.
OUR SOLUTION
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Acquired unused air rights from the three adjacent tenement buildings to increase the buildable square footage.
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Utilized the government process to gain approval for an alternative plan to build the City’s only north facing urban plaza. This approach enabled the existing tenants to remain in their homes, at the same time creating a new urban plaza for the neighborhood and scale to the new development.
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Structured the building as a condominium to allow for a new wave of for-sale buyers --- namely corporations, foreigners, and other people denied access to co-op housing due to board requirements --- to enter the market.
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Pioneered the use of consumer-based marketing techniques to determine the appropriate unit mix, amenities package, and the kitchens and bathrooms designs preferred by the Upper East Side condominium buyer. The research also indicated that a significant market existed for a more upscale product than historically had been offered in that neighborhood.
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Results of the research were translated into a development that had a larger number of smaller units for price-conscious buyers on the lower floors and a smaller number of larger units for affluent buyers on the higher floors.
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Critical elements of the development approach included: (1) Putting studios and 1- beds on floors 1- 19; 2 and 3-beds on floors 20 – 36; (3) Designing 6 floors of “Penthouse” units which commanded premium pricing due to their location in the building, the unique design, numerous balconies, and luxury amenities; (4) Constructing the lobby out of sequence, prior to the completion of the rest of building, and therefore, gave the pre-construction purchaser an actual sample of the quality of the product being developed. This marketing technique had not been previously used in New York City; (5) Constructing, out-of-sequence, 6 model units on the 20th floor to showcase the views, luxury finishes and unit options.
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The development was in contrast to the traditional approach that merely replicated what had previously been built in the area. The previously untested marketing approach, non-traditional layout of the building and distinct unit mix accelerated sales and produced premium prices, which, in turn, offset the higher construction costs dictated by the development plan and building design.
