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www.privateairny.com Private Air New York | Fall 2018 32 Harlem and Hudson Yards Harlem and particularly East Harlem, also known as Spanish Harlem and El Barrio, has had its fair share of socio- economic struggles in the past. is community suffered from high poverty rates and unemployment crime, and inadequate quality of housing. But thanks to rezoning approved by the NYC City Council in November 2017, underdeveloped corridors running north to south, from Park to Second Avenues, between 104th and 106th Streets now have in place reduced height and density limits on new construction, relaxed residential parking requirements, and a loosening of design restrictions. Included too is a rezoning plan encouraging retail and mixed-use development and the revamping of parks and playgrounds. "Harlem and Hudson Yards couldn't be more different, but each is shimmering with game- changing promise," says Postilio. "Harlem, whose rich history has long been overshadowed by the physical and social challenges of the mid-twentieth century, is in the midst of a protracted renaissance. In the past, gentrification in tandem with the ebb and flow of real estate cycles had slowed appreciation at the pace of much of Manhattan, but that is finally changing. A cultural and commercial boom in key sections of Harlem is reigniting the residential market, and the trend is, at last, certain to continue." When asked to define what's so special about these locations, Conlon responded, "If you build it, they will come! While Harlem is benefitting from redevelopment, Hudson Yards is something born of nothing. A city within a city, built on top of a rail yard, it is the most ambitious new development project in American history." Interesting history, but will it succeed? "It will. What separates it from other large-scale developments is a key ingredient which other projects have been unable to deliver on a practical scale — infrastructure. Add water, stir, and this new city will offer new transportation hubs, exceptional dining, luxurious residential offerings, both for sale and rent, not to mention commercial space that's attracting some big corporate names, which promises an easy commute for many. e time to get in is now, but the greatest returns will likely begin to be realized within a decade." e New Downtown Both Conlon and Postilo believe there is a large-scale upside potential and that only a handful of neighborhoods have delivered on that promise in the last decade. In addition to Harlem and Hudson Yards, both agents consider 125 Greenwich to be the "Next Downtown." "125 Greenwich is the fruit of a long-anticipated harvest in the Financial District," states Postilo. "e lines between Tribeca and the Financial District have blurred. Years before, Tribeca practically reinvented the definition of 'downtown,' and with no place to go but south, and thanks to a staggering infusion of capital, FiDi has emerged as the ultimate downtown destination." Conlon agrees, "With shopping, dining, culture, and architecture consistent with (or exceeding) any of Manhattan's most highly regarded residential neighborhoods, "the New Downtown" offers what no other neighborhood can — a perfect geographic and architectural blend of uptown and downtown living. 125 Greenwich, designed by Raphael Vinoly, and March & White, famous for their sumptuous interiors of private jets and super yachts, is a masterpiece. At 88-stories, and nearly 1,000 feet tall, it is a giant among giants, standing tall alongside the gleaming, glass monoliths that comprise the World Trade Center. e amenities and finishes cater to a level of sophistication that has rarely been experienced in new development. All of this in a residential neighborhood that was defined by conversions of commercial buildings only a decade ago." ere is no such thing as market stability in the Big Apple. Savvy investors consider New York real estate prices as irrational and accept it. "But there is an art and a science to navigating New York real estate, and like art, there is often some science to deconstructing pricing, and it is our business to understand that," says Conlon. "As Warren Buffet said, 'Price is what you pay. Value is what you get.'" Value, like energy, cannot be created nor destroyed. It can only be changed from one form to another. Conlon and Postilio consider themselves architects of that change. INVESTMENTS

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