Despite Oversupply, Developers Say Time To Build Apartments Is Now

Posted On November 6, 2017

By ETHAN ROTHSTEIN
East Coast Editor

Concerns about overbuilding and rent growth have spooked lenders. Rents have fallen by nearly 2% in Manhattan this year compared to 2016, and in places like Downtown Brooklyn, where thousands of units are coming online at the same time, fears of a glut have developers offering high concessions.

 


Bisnow: Ethan Rothstein 
Besen & Associates Senior Director Shallini Mehra, Ariel Property Advisors President Shimon Shkury and
Rose Associates Chief Operating Officer Brian Peters speak at Bisnow's 2017 New York State of the Market.

"There’s a great deal of talk about oversupply in the rental marketplace and that’s particularly acute in some areas, like Downtown Brooklyn," Rose Associates Chief Operating Officer Brian Peters said. "The oversupply is going to prove to be temporary, and the time to start developing to deliver into the market in three years is now."

The lack of lender appetite for new construction loans is just one of the factors that have cut into New York City's apartment pipeline. A lack of available land, and the cost to buy the parcels that are on the market have hampered developers aching to build ground-up apartments. Rent stagnation has also put the brakes on building sales as investors do not anticipate being able to raise rents — and therefore profit — on buildings they acquire.

 


 

About Rose Associates, Inc.

Based in New York, Rose Associates is a developer, owner and operator of premium residential properties. From planning a new development to managing day-to-day property operations, the Rose 360 Platform offers a full range of services designed to maximize the value of real estate. The firm oversees more than 26,000 units across New York, with approximately $2 billion in projects under development. Rose recently opened the historic skyscraper 70 Pine Street, which the firm is transforming into a luxury rental property with 644 residential units, 132 extend-stay apartments and a destination restaurant/lounge occupying the top four floors.

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Awards and Recognition

2016 Women of Influence
Amy Rose
Real Estate Forum

2015 Women of Influence, Metro NY
Amy Rose
Real Estate Forum

2015 Residential Management
Community Service Award
Rose Associates, Inc.
Real Estate Board of New York 

2012 Building Manager of the Year:
Gary Farrell
New York Building Managers' Association

2012 Property Manager of the Year:
Ellen Bornet
New York Association of Realty Managers

2011 Women of Influence
Amy Rose
Real Estate Forum

2011 Management Company of the Year:
New York Building Managers' Association

2011 James Berg Peace Prize:
Mitch Gelberg
New York Association of Realty Managers

2010 Award of Excellence
The Three Hands

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