Back in 2009, New York City approved the rezoning of the Lower Grand Concourse area which stretches from 149th Street down to the waterfront and from Morris Avenue and west to the Harlem River. Within this zoning, the Special Harlem River Waterfront District was created which has seen some major sales within the past few years—not the least of which were several parcels purchased by Somerset Partners and The Chetrit Group who gave us the tone-deaf “Piano District” gentrification party.
As the de Blasio continues to push for rezonings throughout the city, we felt it important to show how this impacts sales in a neighborhood once it’s rezoned. We analyzed sales data for the past 7 years since the rezoning as well as the 7 years prior to the rezoning. When looking at the data, it is important to note that the years leading up to the rezoning was when the real estate market peaked and crashed.
Prior to the Lower Concourse Rezoning, sales were modest between 2002-2008, with the average sales price at $1,322,047 and an average price per square foot at $132/per square foot.
Since then, the average sales price and price per square foot in the area have more than doubled to $4,735,390 with an average of $289/per square foot representing a 258.19% and 118.94% increase respectively.
The volume of sales have also increased and 2016, thus far, appears to be on track to be on par with last year if not exceed it.
60% of the properties sold since 2009 are properties which were under ownership for 10 or more years with the same owner. The rezoning of the area, coupled with the proposed Special Harlem River Waterfront District has created a speculative purchasing frenzy in the general area as long-time owners are turning huge profits by unloading their holdings.
Gentrification is in full swing in parts of the South Bronx as more and more investors come into the area in hopes of making a fortune through new developments at a considerable lower cost than Manhattan, Brooklyn, and parts of Queens.
So many community assets are being sold in a neighborhood that lacks the purchasing power of millionaire and billionaire developers.