In New York, real estate is ingrained into the culture of the city. With one of the highest markets for real estate in the world, let alone the country, developing real estate in the Big Apple is no easy feat. In fact, it takes a particular level of skill, experience and instinct in order to be successful. As the adage goes in real estate, we’re all well familiar with the emphasis on location. But for the real estate magnates of New York City, location is merely one of the components of a successful development. What seems to matter even more is taking a closer look at various factors within a location. Part of the fundamentals entail a comprehensive survey of the location and its potential—not just merely geography.
Seasoned real estate entrepreneur Jason Halpern of JMH Development weighs in on a few of the crucial components that he finds fundamental when considering an area to develop, whether in New York or beyond. With a number of impressive developments across the country, including New York and Miami, Halpern’s projects emanate class and luxury while still enriching the neighborhood around them. Although the list of important considerations in land development is immense, here is Halpern’s view on the following three critical points.
1. The Profile of the Neighborhood.
We first asked Halpern what he looks for when analysing the profile of a neighborhood. When choosing an area to develop, one thing to look for in a neighborhood is potential— not just in the site and its financial factors, but in terms of the demographic and potential for predicted future growth. How will the neighborhood grow? How will the development augment the community? With Halpern’s recent development The Astor, in Long Island
City, JMH’s first thought was to develop a hotel, but upon extensive research on the area, and the influx of new hotel developments, Halpern saw that there was a greater need for high-end residential apartments. So instead of a hotel, the group pivoted and erected a highly amenitized modern apartment building with ample parking available and high-end finishes. This was not only a significant addition to the neighborhood, but the decision to shift from a hotel to an apartment building was met with huge success. The Astor was completely leased almost immediately. So not only is it important to provide a development that enriches the neighborhood, but it is also fundamental to look at opportunities where the building, neighborhood, and community all contribute to one another accordingly. These are all things that can inform a decision on whether or not to invest and develop.
2. Comps, or “comparables.”
Similar to surveying the profile of a neighborhood, comps go hand-in-hand with this process. JMH puts high priority on thoroughly developed comparable analysis with any opportunity or development. As mentioned above with The Astor, this leads to the importance of a very robust pro forma. When looking at the comps of a neighborhood or area, it’s important to think about gaps in the market, growth of rents, and supply vs. demand. So it’s great to examine similar comps in the area and also get a read on the neighborhood’s vitals, meaning its history, how other surrounding, similar developments were received over the years, how rents have grown, when have there been gaps or opportunities in these neighborhoods in the past and what is the likelihood of more in the future.
3. Aesthetic.
With younger generations gravitating more toward how things look, aesthetic is everything. The look of a development can often be the deciding factor for many tenants when searching for a new home or apartment. A few ways to enhance your development’s aesthetic is with landscape and lighting. For The Astor, Halpern’s focus was on preserving the original integrity of the building, while still creating a modern, sophisticated living space. The designer rentals have matte black finishes, gas range stoves and large vanity mirrors, but maintains an industrial aesthetic in honor of its location – next to the famed Kaufman Arts District. Additionally, looking at ways to enhance lighting opportunities within each unit with an architect is key. Going hand-in-hand with the effects of nature and how it can augment one’s home habitat, lighting is an often understated luxury that many now consider when in the market. Despite an incredible unit with exceptional finishes, the lack of ample natural lighting can detract from a development. Although often taken for granted by those inhabiting the finished product, thoughtful consideration was put into the angle and positioning of the building, landscaping, and window placement to maximize this valuable resource. In the case of The Astor, this is demonstrated especially well with the various rooftop terraces, offering glorious sunset views of Long Island City.
“There’s so much to factor in when deciding where to develop, but these three points are a great starting point,” Halpern says. “As important as it is to follow the trends in real estate that continue to evolve with the demands of buyers and renters, a perhaps even more essential element of development is finding opportunities that augment the neighborhood in a positive way and respect the community.”
