By, Guthrie Garvin
The Second Avenue subway has changed, and will continue to change, the
face of the Upper East Side. This is New York City’s first major
expansion of the subway system in over half a century, and when the final phase
is completed, will stretch from Harlem to Lower Manhattan. The first phase of this project is scheduled
to be completed in December of 2016 and will include three stops at 96th,
86th and 72nd Streets.
The anticipation of these stops has already lead to increased demand for
the eastern portion of the Upper East Side. Historically, the further a
property was from the Lexington Avenue subway line, the less the rental/sales
prices were and the lower overall asset values were. This new subway line
drastically changes accessibility and as the project gets closer to becoming a
reality, it will improve neighborhood fundamentals and increase property values
across the board. Many investors continue to seek out properties on the “far
east” Upper East Side in anticipation of a future surge in prices. The
luxury condo The Charles on 73rd Street and First Avenue with
asking prices in the $2,100 - $2,900 per square foot range, 1.15 million square
feet of medical development planned for the “far east” 70s, new bars and
restaurants such as The Penrose, The Meatball Shop, Jbird Cocktails, The
Gilroy and Xi’an Texas de Brazil, all point to a dramatic changes in this
portion of the Upper East Side. When coupled with a new level of
accessibility, all indicators are pointing up for this potentially undervalued
area.
Neighborhoods: Upper East Side