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Second Ave. Condo Prices Soar in Anticipation of Coming Subway, Study Says

By Shaye Weaver | November 13, 2015 12:37pm | Updated on November 16, 2015 8:27am
 A rendering of the southeast corner at East 69th Street and Second Avenue.
A rendering of the southeast corner at East 69th Street and Second Avenue.
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UPPER EAST SIDE — Prices for apartments along Second Avenue are rising as the new subway nears completion, real estate analysts say.

The average price for an apartment within a one-block radius of the upcoming Second Avenue subway — which is expected to make stops at 96th, 86th and 72nd streets — is 34 percent higher than the rest of the units east of Third Avenue on the Upper East Side, according to a recent report by CityRealty, which used area sale data dating back to 2005.

The report looked at sales of 362 co-op condo buildings east of Third Avenue, north of East 59th Street and south of East 96th Street, and found the average price of homes there to be roughly $941,000. While condo units directly surrounding the stops are going for an average of about $1.3 million, the report shows.

A one-bedroom condo unit at The Knickerbocker building on Second Avenue and 72nd Street, sold for $1.1 million on Oct. 3, 2014, according to CityRealty.

In comparison, a one-bedroom condo a few blocks away at Gregory Towers, on East 79th Street near York Avenue, sold for $580,000 on Feb. 2.

Gabby Warshawer, the Director of Research for CityRealty, said prices along Second Avenue will only get higher.

"We expect prices on apartments near the future Second Avenue Subway stops to continue to rise as the line becomes a reality," Warshawer said. "If new developments open near the stops, they will have an outsize effect on raising average prices, as The Charles, which is on First Avenue between 72nd and 73rd streets, did this year."

In other words, the more development that comes to the area, the higher the average sales prices will go along the Second Avenue Subway corridor.

Real estate developers and business owners have already been flocking to the area to take advantage of the added foot traffic the subway will bring, which the MTA has estimated will be 200,000 commuters per day. The subway is expected to be completed by the end of 2016.

Developer Anbau is constructing a brand new luxury condo building at 360 E. 89th St., a block away from Second Avenue. Its president Stephen Glascock said the company chose the area because it is on the "cusp of transformation" with the coming of the subway.

A slew of restaurants have also been opening up along the avenue, including 5 Napkin Burger which launched an outpost in the neighborhood last week.

Some stores have had to close, however, to make room for the boom in real estate development, such as Uptown Motors on East 84th Street. On Oct. 22, Manhattan Residential purchased its three-story building on East 89th Street with plans to convert it into a condominium.

View CityRealty's infographic of the report here.