Struggling to afford an overpriced Manhattan apartment? You might be in luck: A new development in Midtown’s Turtle Bay enclave offers the Everyman one-bedroom.
At least that’s what its developers say.
The median price for a one-bedroom unit in Midtown is $1.29 million, according to data from StreetEasy. At The Perrie — a former hotel that now consists of only one-bed, one-bath apartments — prices start at $875,000. Additionally, three-quarters of the 90 units in the 20-story building, which went on sale last month, have an asking price of less than $1.2 million. On the top floor, five penthouses start at $1.38 million.
To make its apartments more affordable, Cape Advisors, the developer behind The Perrie, located at 234 E. 46th St., also plans to apply for approval from the Federal Housing Authority (FHA), said the firm’s president, David Kronman.
FHA approval means buyers of the building can qualify for FHA-backed mortgage loans. Among their benefits, these loans accept 3.5% down payments on primary residences from those with credit scores above 580 and 10% down payments on those with scores above 500. Loan amounts are capped at $1,149,825 as of 2024.
FHA loans can also offer low interest rates, a relief in today’s inflation-driven market, where the rate for a 30-year mortgage is around 6.5%. In return, the FHA charges a Mortgage Insurance Premium (MIP) fee, which is usually tied to the homeowner’s monthly mortgage bill.
“Our goal is to make homeownership easier and more accessible for as many people as possible, especially those who without the option of FHA financing would probably not be able to afford an apartment in New York,” Kronman told The Post.
But FHA loans are not commonly needed among Midtown buyers. The median home price in the neighborhood was $2.75 million as of September and $1.55 million in Manhattan overall, according to StreetEasy. Meanwhile, 64% of townhome buyers paid cash for their homes as of April, the New York Times reported.
To sweeten the deal, Cape Advisors will also allow owners at The Perrie to rent out their units for short periods of up to 30 days. That way, “buyers have the flexibility to rent out their units when they’re not in New York, whether they’re working remotely or traveling,” Kronman added.
Douglas Wagner, director of brokerage services for BOND New York Properties LLC, countered that The Perrie’s offerings are a chance for high-end renters to buy, rather than a path to Midtown homeownership for families of means. modest.
Wagner said factoring in the costs of a mortgage payment, MIP, common fees and property taxes makes the lowest monthly payment at The Perrie more than the cost of renting in a comparable building — even with an FHA loan.
In Midtown, the median rent for a one-bedroom was $4,650 last month, according to StreetEasy. A September study by the listings site reported that buyers needed an annual household income of at least $211,970 to buy a median-priced home in New York City.
“I don’t think it helps buyers who don’t have big jobs with high six-figure incomes, which most FHA loan products do, but it does give the New York renter a faster path to home ownership.” Wagner said.
Still, Kronman said his project offers value to buyers. While asking prices mostly below market rate, the building still has some shiny fixtures, he noted.
Each unit features an open floor plan with marble countertops, backsplash and bathroom. Eighty-five houses there have balconies, and the penthouses have both balconies and terraces.
Downstairs, the double-height lobby is also in marble, while the outdoor landscaped gardens are equipped with fire pits and spaces to work, relax and exercise.
The building also has a gym, a co-working suite and a resident lounge.
“We have an understanding of the facilities that people use. And which are splashed on paper, but people will never use,” Kronman said. “We believe we have created a value proposition unlike any other apartment project in New York City.”
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