Magnum Real Estate Group — following one of this year’s biggest market trends — is the latest high-end housing developer to take a stab at the “affordable luxury” game.
Most recently known for its work on glitzy Ralph Walker Tribeca, the conversion of an Art Deco Verizon building into lavish condos, Magnum is hard at work on the Luminaire, a 103-unit rental-to-condo conversion in Gramercy. Prices will begin just under $1 million for a one-bedroom when sales launch next month, as New York YIMBY first reported.
“I’m always looking for what’s missing in the market,” says Magnum’s president, Ben Shaoul. “Not everyone wants to move to Brooklyn, Long Island City or Jersey City. How do you make it work in [Manhattan]?”
Also known as “accessible luxury” or “mid-market luxury,” this tier forms the entry level of the city’s top-end housing market — a niche that industry sources agree was previously overlooked by developers. Within this range, prices generally fall in the low to mid $2,000s per square foot, according to appraisal expert Jonathan Miller.
He adds that beginning in early 2014, the luxury market averaged in the upper $2,000s per square foot. And with new mega-luxe projects like 432 Park beginning closings, that figure will only rise, making projects like Shaoul’s a relative bargain.
Converting existing property and keeping unit sizes smaller are the key for builders to keep their prices lower. HFZ Capital Group, with its Fifty Third and Eighth conversion in Midtown West, as well as Related Companies, which handled the Carnegie Park conversion on East 94th Street, are other big names that have entered the affordable luxury arena.
The Luminaire — a 21-story property at 385 First Ave., across from Peter Cooper Village — was constructed in 2003 and formerly housed luxury rental apartments.
In its new chapter, the building will have one- to three-bedrooms measuring up to 1,982 square feet.
While some units will have private outdoor space and floor-to-ceiling windows, all will have 5-inch-wide European oak flooring, vented washer/dryers and marbled bathrooms.
Belgian designer Francis D’Haene, of D’Apostrophe, is responsible for the interiors and common spaces.
The amenities are robust: The Luminaire will have a Jay Wright-designed gym, private storage, bike storage, a 24-hour attended lobby and a lounge with a terrace, plus a separate rooftop space.
Leonard Steinberg of Compass will be handling sales and marketing, and closings are slated for May or June.