London Terrace NYC Rent 10k/Month in 2023, WTF?!

[Rod Hagen]

For no particular reason I asked AI to price a 2BR in the London Terrace, 23rd street.  The most recent listing it could find was 2023, and it was $10K/month.  Now, if one came on the market it'd be competitive and $12K, I presume. 

My question, why? Of course, I love the building, I presume It's rent-stabilized and the fact that nobody gives up their unit suggests the management company is better than one would expect for such a behemoth, but it's by no means a luxury property.  Is this "reasonable" for an available "nice" apartment with amenities in Manhattan?  Holy Shit. 

https://streeteasy.com/building/425-west-23-street-new_york/11ef?utm_source=chatgpt.com

 

Edited Sunday at 03:49 PM by Rod Hagen

[+ Italiano]

London Terrace is a beautiful building in a great spot of Manhattan.

We lived there for less than a year in 2014 to "try" life in Manhattan, and the rent for a 1BR was $4100 which was already HIGH!

Unfortunately after few months we had serious problems with the neighbor above us, and luckily we were able to break the lease (and get some money back!) and went back to our place in Brooklyn.

Rents in NYC are impossible.

[Rod Hagen]

2 minutes ago, Italiano said:

London Terrace is a beautiful building in a great spot of Manhattan.

We lived there for less than a year in 2014 to "try" life in Manhattan, and the rent for a 1BR was $4100 which was already HIGH!

Unfortunately after few months we had serious problems with the neighbor above us, and luckily we were able to break the lease (and get some money back!) and went back to our place in Brooklyn.

Rents in NYC are impossible.

Sorry it didn't work out for you, wonderful building.   Great that you had your Brooklyn place to move back into.

[+ robear]

20 hours ago, Rod Hagen said:

I presume It's rent-stabilized

That's market rate, like most older buildings LT is probably a mix of stabilized and de-stabilized units.  It may also be a co-op with owner occupiers as well as investor held units.  Maybe @Italiano can comment on that.  Tenants with decades of residency may well have stabilized leases, but many units would have become destabilized via turnover in time.

[Rod Hagen]

Just now, robear said:

That's market rate, like most older buildings LT is probably a mix of stabilized and de-stabilized units.  It may also be a co-op with owner occupiers as well as investor held units.  Maybe @Italiano can comment on that.  Tenants with decades of residency may well have stabilized leases, but many units would have become destabilized via turnover in time.

My understanding is that Rent Stabilized units can increase to market rate between tenants, that that is the difference b/w rent control and rent stabilized.  I may be wrong.  Just seems so expensive to me for such a building.  10 years is well over a $ million, for something you wouldn't own.  I assume with some effort a person could find a$1.5M 2BR condo in Manhattan.

[+ sniper]

Yes but in the meantime they'd have to love like "the poors." 

It's a side effect of income inequality. 

 Manhattan is a place a LOT of incredibly wealthy people spend a year or two and move on, and they are price insensitive. 

[+ Italiano]

22 hours ago, robear said:

That's market rate, like most older buildings LT is probably a mix of stabilized and de-stabilized units.  It may also be a co-op with owner occupiers as well as investor held units.  Maybe @Italiano can comment on that.  Tenants with decades of residency may well have stabilized leases, but many units would have become destabilized via turnover in time.

Exactly!