A real estate developer in New York is planning to build a new residential building in Manhattan that will attract two separate types of owners and tenants. Extell Development Company has filed plans to build a 33-story building that will feature luxury condominiums and affordable apartments. The building will have two separate entrances for condo owners and the tenants who live in the apartment units.
The new property will feature 213 condo units that will be sold for roughly $1 million per unit. There will also be 55 two-bedroom apartment units available to rent for $1099 a month. Tenants eligible to live in the affordable apartment units will have to participate in a lottery system where apartment tenants must earn less than 60 percent of the median annual income.
It is an interesting concept to have two different types of real estate units in one property. The two units will by physically separated with their own entrances and doors. The entrance for the apartment units will be located at the back of the building, and units will be on floors two to six. Condo units will have a view of the Hudson River and will have swimming pools and basketball courts only available to those living in the condo units.
The real estate company building the two units will likely receive tax breaks for building the "affordable" apartment units, which will be considered a steal in today's rental market in New York City. While the affordable apartment units will be helpful for the tenants who win the lottery to live there, the real estate concept of building two separate units for wealthy individuals and those on a budget has some tenants in New York City worried about losing their apartments in the future.
More real estate developers are starting to build luxury condos and high-rise apartments in New York City, with some deals forcing current tenants to be kicked out of their apartments in order to build the new property. Even after the new condos are built, many of the former tenants will not be able to afford the luxury condos and many are worried they will no longer be able to find a place to live in the city.
Source: World Socialist Web Site, "New York City high-rise to have separate entrances for rich and poor," Sandy English, Aug. 23, 2013