Vice President of Sales
Swain Weiner discusses some factors that make Queens
a natural for the conservative investor with a long-term strategy:
QUEENS FITS INTO A CONSERVATIVE INVESTMENT STRATEGY
Oftentimes, investors frequently
accept a low return on investment (ROI) for the privilege of owning a big,
expensive building in a marquee neighborhood. In Queens,
you might buy apartment buildings for $5 million to $7 million instead of
owning a $20 million building in one such community—but your ROI might be 8%
rather than 5%. Sale prices of commercial
buildings in Queens have dropped about 20% in
the past year, which looks bad—until you consider that prices have dropped as
much as 40% for commercial buildings in other areas. In other words, Queens
gives you almost double the return, for about half the downside risk.
QUEENS IS AFFORDABLE
As an example, Jackson Heights, a vibrant residential
neighborhood known for its garden apartments, the average rent is $1,350 for a
one-bedroom apartment and between $1,650 and $1,850 for a two- to four-bedroom
unit. You can find Class A office space in Queens in the low $30s per square
foot—but office and apartment rents have been holding steadier in Queens.
QUEENS IS STABLE
Queens is not a
boom-and-bust market, so it won't attract the highly speculative investor. But
it is a good place to invest your capital if you are a buy-and-hold investor
who is looking for a steady, dependable return. It is an ideal investment
option for "patient money." Is it a dull market? Maybe. But good
money is usually dull.
QUEENS IS GROWING
Several Queens’
neighborhoods that were once not highly regarded have taken off in the past few
years, and while growth may have slowed, the foundations of these neighborhoods
are solid. We have seen several luxury residential developments lately—like
Murano in Long Island City and Santorini in Astoria—that are bound to create demand for
more development in those neighborhoods and others.
QUEENS IS UNDER-RETAILED
Queens is known as the
"bedroom borough," so while luxury retail might be suffering, people
still need apartments to live in and they still need to buy groceries and
sundries. Queens, with its amazingly diverse
population, will always have high demand for supermarkets, drugstores,
opticians, shoe repair shops, dry cleaners, and lower-priced restaurants.
QUEENS HAS GREAT TRANSPORTATION
The New York City subway and the LIRR traverse
the borough at various points, and bus service is first-rate.
Neighborhoods: Woodside, Sunnyside, Ditmars, Steinway, Jackson Heights, Astoria, Corona