Naftali Group condo projects lead Upper East Side market

Upper East Side New Development Analysis: Naftali Group's Project Outperform The Market

OVERVIEW/METHODOLOGY Marketproof conducted an analysis of sponsor-controlled buildings on the Upper East Side that have reported at least one sale. For the purpose of this report, we evaluated average monthly sales velocity as a percent of total units, using the date the offering plan was accepted by the attorney general as the start date for sales. We use the offering plan (versus the date the developer first listed units) to normalize velocity among buildings of different sizes and ages. This is partly due to the fact that Naftali isn’t using public listing channels to market their projects. Buildings that are marked 100% sold are fully in contract, but more than 10% of the spoken-for units have not yet closed. Data in this report is as of 12/8/2021. THE FINDINGS Based on our methodology, which creates a level playing field to analyze performance across all sponsor-controlled buildings in the neighborhood, 200 East 83rd Street and The Benson (1045 Madison Avenue) stand out with the strongest sales velocity. Both projects are developed by Naftali Group and feature a more classical architecture style. The current average asking price per square foot for Upper East Side new developments is $2,945, compared to 200 East 83rd Street’s average list price of $2,673 per square foot and The Benson’s average list price of $3,590 per square foot. On average, this submarket sells 16.7 new development units per month, with these two Naftali projects accounting for nearly 45% of sales. “No matter how we analyze the data, Naftali’s projects are carrying the new development market on the Upper East Side, with 200 East 83rd Street and The Benson accounting for nearly half of all contract activity,” says Kael Goodman, co-founder and CEO of Marketproof. “This indicates a desirable product that is well-priced. The average asking price per square foot across these two developments falls near the neighborhood average — and that appears to be the sweet spot.” TOP 10 PROJECTS BY ABSORPTION RATE We looked at 21 sponsor-controlled developments on the Upper East Side, accounting for Beckford House & Tower as two separate projects because each portion has a distinct offering plan. The following is the top 10 Upper East Side developments by absorption rate since offering accepted date. Top Producers 200 East 83rd Street Developed by Naftali Group in partnership with Rockefeller Group 62.79% sold since offering accepted in April 2021 7.85% monthly absorption rate 54 of 86 units sold Asking prices range from $5.95M to $35M with $3,590 average asking ppsf The Benson (1045 Madison Avenue) Developed by Naftali Group 100% sold since offering accepted in March 2020, closings have not commenced 5% monthly absorption rate 15 of 15 units sold Asking prices range from $5.950M to $32.5M with $4,368 average asking ppsf