Ginsburg Development Companies was once known for its luxury rental condominiums. But the company's focus in recent years has been luxury rental apartment communities. (Video by Akiko Matsuda/lohud) Wochit
As 2018 unfolds, lohud reporters are assessing what's ahead on their beats this year. Real estate reporter Akiko Matsuda looks at the state of real estate in Westchester County.
Westchester’s downtown transformation is moving at top speed. In 2018, multiple mixed-use projects will take shape in different parts of the county. Outdated office buildings and former industrial sites are being reshaped into residential and retail spaces. Hundreds of new apartments will be added to the rental market this year. The repurposing trend has spilled over into the suburban office parks as well, and as a result, Westchester’s office real estate market, which has been plagued by vacancy, is regaining its health.
On the beat
Downtown revitalization initiatives have been years in the making, and they are becoming a reality in various parts of Westchester.
Construction machinery is ubiquitous in communities such as White Plains, Yonkers and New Rochelle.
The common theme of transformation is "transit-oriented," aiming to create a vibrant "live, work, and play" communities near train stations.
In White Plains' transit district, which encompasses the area near the city's train and bus stations, the newly-developed Continuum White Plains complex, a 16-story, 288-unit apartment tower at 55 Bank St., started leasing in October.
Yonkers, which has been leading Westchester's transit-oriented trend, will have additional 500-plus new rental apartments near its station. The 324-unit Modera Hudson Riverfront complex at 20 Water Grant St. is aiming for a spring 2018 opening; the last phase of Hudson Park complex at 1 Alexander St. is expected to start leasing its 213 units this fall.
HOUSING MARKET: Lower Hudson Valley home sales hit a plateau
NEW ROCHELLE: The 28-story 587 Main St. tower making progress
Larkin Plaza on Main Street celebrated the "topping off" of one of its two towers in late November, and construction of the 17-story, 170-unit building will continue this year.
In New Rochelle, at least 2,000 apartment units near the train station are in the pipeline, with more to come. Leading the pack is 587 Main St., a 28-story mixed-use building that consists of 280 apartments, retail units, a theater and a parking garage.
Mixed-use developments are transforming former industrial and office sites, as well.
Rivertowns Square, a residential, retail and entertainment development, replaced Akzo Nobel's 17-acre office and laboratory complex in Dobbs Ferry.
The former General Motors assembly plant site in Sleepy Hollow is being revived as a 1,177-unit waterfront community, to be known as Edge-on-Hudson. Toll Brothers has recently committed to build out 306 units of housing in Phase 1 of the project.
Two underutilized office buildings on Corporate Park Drive in Harrison were demolished to make way for a 421-unit luxury apartment building, to be known as Carraway. Wegmans Food Markets Inc. plans to open a store, replacing three office buildings in the same complex.
It remains to be seen who will occupy those newly-developed apartments. If local empty-nesters opt to rent as downsizers, it would help the Lower Hudson Valley's housing market by freeing up much needed inventory in the entry- and middle-level markets.
What to watch for
Dannon: Danone North America, owner of Dannon yogurt, is expected to move its Greenbugh headquarters to The Source at White Plains building sometime this year. As quality office inventory in the White Plains Central Business District shrinks, Dannon is being creative, converting a former retail space into offices, a cafeteria and a food laboratory.
Transit District: The city of White Plains is seeking developers for three city-owned properties and one Urban Renewal Agency parcel totaling about 4.5 acres near the White Plains Metro-North railroad station. The sites' redevelopment is critical for the city to create a vibrant downtown.
Ex-IBM and PepsiCo sites: Westchester's office real estate market is tightening up, but not in Somers, where former IBM and PepsiCo campuses remain mostly vacant. The vast campuses have been promoted along with several other locations in the county as a potential home for Amazon's HQ2.
Downtown retail: Many of rental apartment buildings that are currently under construction in Westchester downtowns include retail spaces, but finding the right tenants to fill those storefronts can be challenging because of the growth of online shopping. Lennar Multifamily Communities, which plans to redevelop the Westchester Pavilion site on South Broadway, is reworking its plans to reduce retail components.
Why you should care
Downtown revitalization initiatives aim to attract young professionals and empty-nesters to newly-built rental apartments near transit hubs. If successful, local shops and restaurants will thrive, thus making those areas more attractive to businesses thinking of relocating.
Key Players
Jonathan Stein, managing partner of Diversified Realty Advisors: Stein is one of the key players behind Edge-on-Hudson, a 1,177-unit waterfront community planned for the former General Motors assembly plant site. The project broke ground in May. His association with the project goes back to 1998, when the auto company approached him and his partners to discuss plans for the site's redevelopment.
Scott Rechler, chairman and chief executive officer of RXR Realty: RXR is investing in hundreds of millions of dollars on transit-oriented residential developments in Yonkers and New Rochelle, while selling off its suburban office buildings, including 660 White Plains Road in Greenburgh.
Sarah Jones-Maturo, resident of RM Friedland: The Harrison-based firm has been named as the exclusive retail leasing agent for 578 Main St., RXR's $120 million, 28-story mixed-use building being constructed in downtown New Rochelle. The building offers four street-level retail units, ranging from 900 to 5,800 square feet, for lease.
Martin Ginsburg, principal of Ginsburg Development Companies: The company has been expanding its luxury rental portfolio in Westchester both by building new apartments and by purchasing existing ones.
Key dates
March 1: The first day when some units at Modera Hudson Riverfront in Yonkers can be occupied.
May 18: Hilton Garden Inn at the newly-developed Rivertowns Square community in Dobbs Ferry isn't open yet, but the hotel is accepting reservation for arrivals on or after May 18, according to the website.
Spring or summer: Townhome-style condominiums in the Edge-on-Hudson complex in Sleepy Hollow may become available for presale.
By the numbers
250,000 yards: The amount of soil brought into the Edge-on-Hudson property in Sleepy Hollow to get the site ready for development.
125,000 square feet: The size of a Wegmans store planned for for the 20-acre site on Corporate Park Drive in Harrison.
$642,250: The 2017 median sales price of single-family homes in Westchester. The price rose by 3.1 percent compared to a year ago, according to the Hudson Gateway Multiple Listing Services, a subsidiary of the Hudson Gateway Association of Realtors.
$1,975: The least expensive monthly rent found at the River Tides at Greystone, a newly-developed luxury rental apartment complex in Yonkers. A 473-square-foot studio with a walk-in closet was available for this rent as of Jan. 19, according to the website.
Twitter: @LohudAkiko