, Thu, September 21, 2017
Five Manhattan West. Rendering via Millerhare.
Governor Andrew M. Cuomo announced today that tech giant Amazon will be growing its presence in New York City. The company just signed a lease for a 359,000-square-foot administrative office at Five Manhattan West, Brookfield Property Partners’ 16-story, 1.8 million-square-foot Skidmore, Owings & Merrill-designed building located on Tenth Avenue between 31st and 33rd Streets. The new addition is expected to create 2,000 new jobs in finance, sales, marketing, and information technology. The offices will be the main New York location for Amazon Advertising, which handles sales, marketing, product, design, engineering and more. “We’re excited to expand our presence in New York–we have always found great talent here,” said Paul Kotas, Amazon’s Senior Vice President of Worldwide Advertising.
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Image via Whole Foods’ Facebook
New Yorkers earning 50 percent of the area median income can apply for two affordable one-bedroom apartments for $1,015 per month at 40 West 126th Street. The Central Harlem multi-family building was renovated in 2013 and is just steps away from the 2 and 3 train lines, an abundance of restaurants and bars like the Red Rooster and Sylvia’s, the Studio Museum in Harlem, both the Apollo Theater and National Black Theatre, and the city’s latest Whole Foods that’s set to open next week.
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Along with its glassy towers on the rise and big-name corporations leasing office space, the Hudson Yards district is now displaying another show of how the mega-development is pushing the once-desolate Midtown West area forward–the announcement of a 60,000-square-foot Whole Foods. The green grocer will move into Brookfield Property’s eight-acre Manhattan West complex, located at 5 Manhattan West on the corner of 10th Avenue and West 31st Street, directly across from Related’s Hudson Yards. Echoing the sentiment of the “Whole Foods effect“–the pattern of real estate values increasing when high-end grocery stores open nearby, both due to convenience and prestige–a press release from the developer says the news “is a significant first step in creating a first-of-its-kind global retail hub at Manhattan West.”
Downtown Brooklyn is quickly becoming one of NYC’s most desirable commercial hubs. On top of hosting a lengthy roster of big name retailers and entertainment centers—which include a new Target, Trader Joe’s, Century 21, Apple store, Alamo Drafthouse cinema, and Barclays Center—the neighborhood will also welcome a brand new, lower-priced Whole Foods concept store called “365.” According to a press release, the store will open in early 2018 at Two Trees’ 300 Ashland Place, and be set up as a no-frills version of the grocery giant.
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An important must-have when apartment hunting often involves the presence of a grocery store within a few blocks. A local food market, regardless of how harsh its fluorescent lighting or how narrow its aisles, is often the key to feeling part of civilization, especially when you’ve run out of milk for breakfast. The familiar branches of local chains–from Key Food to D’Agostino to the corner deli–are closing down across the city, in some cases leaving New Yorkers in something of a “grocery desert” surrounded by restaurants but without access to fresh ingredients and emergency baby supplies. According to the New York Times, the landscape is definitely shifting: Between 2005 and 2015, about 300, or eight percent, of the city’s greengrocers–defined as “family-owned stores of less than about 7,000 square feet”–closed up shop and left the neighborhood.
What’s causing the shift?
A rendering of the new Harlem Whole Foods
6sqft has previously written about the Whole Foods Effect–the pattern of real estate values increasing when a new grocery store opens nearby. In fact, national data from Yahoo! Finance showed that “homes with a Whole Foods in the ZIP code appreciated by nearly 34 percent.” And here in New York, the Effect seems to be taking hold in Harlem, where a Whole Foods will open next year at 125th Street and Lenox Avenue in a six-story commercial building spanning over 200,000 square feet (other tenants will include Burlington Coat Factory, Nordstrom Rack, Olive Garden and TD Bank).
Citi Habitats agent Chyann Sapp told the Post that “there’s a one-bedroom two blocks away for $1,800. And the owner said that once Whole Foods opens he thinks he could easily get $2,000, $2,100 for it.” The store was first announced in 2012, at which time the area’s price per square foot was $594, according to appraisal firm Miller Samuel. As of 2015, it had risen to $839. Similarly, townhouse prices have doubled from $2 million to $4 million in this time.
Is Whole Foods behind it?
Fairway Market, considered by many the quintessential New York City supermarket, filed for bankruptcy yesterday, citing competition from “natural, organic and prepared food rivals” and “online ordering and home delivery services,” according to the Wall Street Journal. Perhaps their biggest threats are Whole Foods and Trader Joe’s, which both seem to be in a very different boat. Yahoo! Finance looked at data of four million homes in the U.S. that are located in a zip code with either one of these stores, “finding that average property values in a ZIP code with Trader Joe’s appreciated by about 40 percent since they were purchased, while homes with a Whole Foods in the ZIP code appreciated by nearly 34 percent.”
The reasoning is quite simple — people will pay a premium for the convenience of being near their favorite stores. And proximity to a store like Whole Foods, often thought of as more high-end than other grocery stores, adds an air of prestige to a neighborhood. But the science behind it is a bit of a chicken or the egg situation — does a retailer directly affect home values, or are these companies able to identify locations where they’ll generate the most interest?
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- Keith Haring’s six-story Statue of Liberty mural is going up for auction. [NYP]
- Turns out there is some validity to the “Whole Paycheck” nickname for Whole Foods. The grocery store has been overcharging for pre-packaged foods. [Gothamist]
- Past and present: Manhattan Beach’s “Apartcot” bungalow colony. [Brownstoner]
- According to an interview with real estate investor Aby Rosen, when Jay Maisel moved out of 190 Bowery, he left behind a 26-year collection of Playboy and Hustler magazines, as well as a collection of 5,000 screwdrivers, all lined up. [New Yorker]
- The creator of the pink plastic lawn flamingo has passed away at age 79. [Guardian]
Images: Whole Foods (L); 190 Bowery (R)
Last week, we learned that Whole Foods is planning to open a cheaper chain of stores, targeting millennials and vying to compete with other affordable stores like Trader Joes. And today, the internet is abuzz with the news that a Wegmans grocery store is coming to the Brooklyn Navy Yards. This northeast chain is popular for its huge selection of prepared foods, discount wine, and combination of BOTH traditional grocery store items and organic products a la Whole Foods. With all of these new options that aren’t going to use up your “whole paycheck” in the pipeline, what do you foresee for the future of Whole Foods in New York?
Images: Produce Department via photopin (license) (L); Whole Foods via Alley Girl (R)
- Here’s how to celebrate the Year of the Ram around Chinatown. [Bowery Boogie]
- And here’s how to celebrate in Queens. [DNAinfo]
- A Mad Men exhibit is coming to the Museum of the Moving Image. [Gothamist]
- The much-anticipated Upper East Side Whole Foods opens today. Expect lots of free samples. [DNAinfo]
- Bald eagles have been wintering in NYC for the past ten years, and this year they’re on Staten Island. [Animal]
Images: Lunar New Year celebration via Drake via photopin (license) (L); Bald eagles via Bald Eagle via photopin (license) (R)