Rents in New York Metropolis are reaching never-before-seen levels — even for the town’s wealthiest.
An house on the Benson, Naftali Group’s 15-unit luxury condominium on the Higher East Aspect, rented for $95,000, or $288 per foot, this week. For a 12-month time period, the worth per sq. foot seems to be one of many highest within the metropolis’s historical past.
Douglas Elliman’s Lauren Muss, John Giannone and Jac Credaroli had the itemizing. Serhant’s Peter Zaitzeff introduced the tenant.
Spanning virtually 4,000 sq. toes, Unit 14 has 5 bedrooms, 4 full bogs and an important room with triple exposures overlooking Madison Avenue.
The nameless proprietor of the unit on the Benson had purchased the apartment from the sponsor for $14.5 million in 2022. In 2023, they rented the identical unit out for $65,000 per 30 days, based on StreetEasy.
The Benson, at 1045 Madison Avenue, has facilities together with a landscaped rooftop lounge, a cinema and a spa with sauna and steam rooms.
It’s troublesome to determine a real priciest lease per foot given the dearth of public information round leases, however a number of say it’s one of many highest numbers they’ve seen for the standard 12-month lease.
“If it’s not the best, it’s one of many highest ever,” mentioned Miller Samuel CEO Jonathan Miller, an appraiser who releases a month-to-month report on the town’s rental market.
The luxury rental market has outpaced Manhattan’s total red-hot market, based on Miller. In November, Manhattan’s median lease rose over 13 p.c yearly to a document $4,750, whereas luxurious rents — outlined as the highest 10 p.c of recorded rents within the month — rose virtually 18 p.c to a median value of $11,500.
One of the costly leases on a per-square-foot foundation in current reminiscence was Unit 57B at 220 Central Park South, which rented for $90,000 per 30 days, or $336 per sq. foot, in 2023, based on StreetEasy.
The most costly lease recorded on StreetEasy belongs to a set of models at Jeff Greene’s apartment conversion at 100 Vandam Street that went for $150,000, in addition to the penthouse at 24 Leonard Avenue, which Zaitzeff additionally rented out for $150,000.
Furnished residences that lease for a month at a time can lease for much more.
Whereas cracking six figures on leases continues to be uncommon, Giannone, one of many itemizing brokers on unit 14, mentioned he’s seeing a brand new threshold arising for the luxurious market.
“I personally have by no means seen costs the place they’re at,” he mentioned. “When the excessive $100s per sq. foot for a rental begins to turn out to be just like the norm, it’s fully completely different from what we’re used to.”
Muss mentioned that they possible might have gotten much more for the unit, which was initially asking $85,000, however got a single two-hour window to indicate it. Nonetheless, she mentioned that they had a number of bidders.
“There’s simply no product, and there’s some huge cash on the market,” she mentioned.
Zaitzeff mentioned his shoppers, who have been renovating their townhouse and wanted a spot to remain, have been prepared to pay above the asking value to safe the deal.
“It speaks to the dearth of stock and other people prepared to pay what it takes to get a deal completed,” he mentioned.
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