Since the housing market collapsed, rental demand has increased, along with prices. But how much would you pay to live in a premier property? The owners of the tallest residential building in the Western hemisphere, in Lower Manhattan, are betting renters will pay up to $60,000 per month. That's right: per month.
The 76-story building, called New York by Gehry, has three penthouses that will be ready to rent this spring for $40,000 to $60,000 per month. From the top units, residents will have a sweeping view that goes all the way across Brooklyn to the Atlantic Ocean.
The Wall Street Journal reports that developers have been shying away from constructing huge residential towers, either as condos or apartments, because renters have been choosing to live in low-rise buildings and units.
But developer Forest City Ratner is betting that the demand in the city will include renters who want an unparalleled view. Part of the rental demand comes from single professionals who choose not to own and from international residents. That has sparked a desire for high-end amenities including pools and concierge service. Originally the top floors were going to be offered as condos, but the developers changed course in 2006 when they predicted a glut of condos in the city.
Units on lower floors have been leased, but for thousands per month less than the penthouses. The real estate agent for the building says that 50 percent of the renters above the 52nd floor earn more than $500,000 per year and 20 percent of them earn more than $1 million.
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