Nicholas Venezia
Trying to afford a condo in notoriously pricey Manhattan? You may be in luck: A new development in the Turtle Bay enclave of Midtown offers the Everyman’s 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 now comprised solely of one-bed, one-bath condos — prices start at $875,000. What’s more, three-quarters of the 90 units in the 20-story edifice, which launched sales last month, have an ask of less than $1.2 million. On the top floor, five penthouses start at $1.38 million.
To make its apartments more attainable, 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.
Approval from the FHA means the building’s buyers can qualify for FHA-backed mortgage loans. Among their perks, these loans accept 3.5% down payments for primary residences from those with credit scores above 580, and 10% down payments for 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-impacted 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 typically tacked on to a homeowner’s monthly mortgage bill.
“Our goal is to make ownership easier and more accessible to as many people as possible, especially those that without the option of FHA financing, maybe wouldn’t be able to afford a condo in New York,” Kronman told The Post.
But FHA loans aren’t 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 the borough’s buyers paid for their homes in cash 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 periods as short as 30 days. That way, “purchasers have the flexibility to rent out their units when they are not in New York whether it be 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 top-tier renters to buy, rather than a pathway to Midtown homeownership for households with modest means.
Wagner said factoring in the costs of a mortgage payment, MIP, common charges and property taxes makes the lowest monthly payment at The Perrie more than the cost of rent 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 from 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 big six-figure incomes, which is what most FHA loan products do, but it does give the white-collar New York renter a faster road to homeownership,” Wagner said.
Nonetheless, Kronman said his project offers value to buyers. While asking mostly below-market-rate prices, the building still has some shiny amenities, he noted.
Each unit features an open floor plan with marble countertops, backsplashes and bathrooms. Eighty-five homes there have balconies, and the penthouses have both balconies and roof terraces.
Downstairs, the double-height lobby is also marble, while exterior landscaped gardens are equipped with fire pits and spaces for working, lounging and exercising.
The building also has a gym, a co-working suite and a residents’ lounge.
“We have an understanding of what amenities people use. and which are splashy on paper but people are never going to use,” Kronman said. “We believe we’ve created a value proposition unlike any other condo project in New York City.”