New York City is a city that’s always struggling for space. For real estate investors, there’s almost never an opportunity to build something new, or create a space from scratch. This means that organizations need to take another approach if they want to make their mark on the development map.
CRE Conversions in NYC have become the most common way to make the most of the space that already exists in the form of foreclosed or abandoned buildings. Here, we’re going to look at just some of the CRE conversion projects and CRE investment trends that are happening in New York City.
New NYC Housing Opportunities
One of the most compelling uses of old and abandoned buildings is to transform them into low to moderate and middle-income housing opportunities, designed to bring in floods of residents who can’t afford to live in the pricier areas of the city. For instance, Essex Crossing has been the center of a new housing design for more than half a decade now.
The 1.1-billion-dollar development is intended to include plenty of delightful features including homes, bowling alleys, and a movie theater. The once abandoned site was previously home to mostly parking lots and old industrial buildings.
Academic Facilities and Schools
Another opportunity for these large and unused spaces comes in the form of attractive new schools and educational facilities for higher education. For instance, the Ivy League School in Ithaca New York, Cornell, recently built a brand-new campus to make up most of the NYC Roosevelt Island space.
This high-tech space took over buildings previously abandoned to create a powerful new property that not only includes classrooms and offices, but also dorm rooms, a hotel, and restaurants for students to explore too. The campus opened in 2017 and it cost around $2 billion to build.
Mega Development Housing
While standard housing projects are often quite appealing when it comes to CRE investment trends, some real estate investors are looking for bigger and better solutions in the form of “mega-developments”. For instance, Hunters Point South, is the mega-development project in Long Island City designed to prioritize affordable housing.
The space is the largest development of its kind since the 1970s, and over half of the Hunter Point units will be offered at a rate below market value. Apparently, 93,000 people already applied for space during 2015. The site is predicted to include a range of different amenities, including retail parks, restaurants, schools, and its own waterfront park.
New Startup Spaces
Finally, while many of today’s startups seem to start in home offices or shared space, there are still plenty of companies out there looking for chances to make their mark in the office world. Some of the CRE conversion projects in NYC are set to address this trend by offering more affordable and supportive redevelopments in office space.
The expansion plan includes options for a hotel, various office buildings for tech startups, and stores too. Although there’s a lot of development still to go in this area, construction began on the multi-billion-dollar project back in 2012, and it’s still under way today. The major redevelopment project is designed to give the industrial complex a much-needed makeover and hopefully drive new business to the area.