Moving Amazon to Long Island City Sparks Condo Frenzy

Now, thanks to Amazon's commitment in the New York City neighborhood, brokers predict that the apartment market will continue to rise. 19659004] "It's like a gift from the gods for the Long Island City condominium market," said Patrick W. Smith, Stribling's agent for the area.

The cities of Long Island and northern Virginia were selected to welcome Amazon's families. second and third seat, according to people familiar with the subject. Each region could accommodate approximately 25,000 employees. The decision was made public Monday night.

Until last week, the Long Island City market had suffered from slowing sales and rising inventories. According to some brokers, this sudden mood change reminds them of the intoxicating days of the condo boom in New York just before the collapse of the real estate market during the 2008 financial crisis. It's the first time in a 20-year career that I've seen the market move from the buyer's market to the seller's market overnight, on the basis of a rumor, "said Smith.

In the first six days following the release of Amazon's interest in Long Island City, searches on the StreetEasy.com registration site for residential properties in the neighborhood increased by 295% over at the same time a week earlier, StreetEasy said. The biggest rise occurred in the first few days after the news, when the search volume jumped more than 400 percent, StreetEasy said.

Real estate broker Teresa Ali faced a frenzy at the Gallery's sales office, a new brick and glbad building. ride on Jackson Avenue. Although the building, which surrounds a central garden, will not be open until spring, Ms. Ali said her team had met nearly 100 buyers on Saturday and Sunday. More than 60 other buyers were refused after leaving their name.

The same building recorded 34 visits from potential buyers for the entire previous week, she added. "Several offers were on the table" after open day Sunday, while four other offers arrived overnight.

"It was ridiculous," said Ms. Ali, Sales Manager at Halstead Property Development Marketing. His team organized simultaneous group visits in English and Mandarin this weekend.

Speculative investors and buyers who are considering living in the neighborhood are betting on the promise that an Amazon head office would bring new equipment and stature to a once-rundown industrial district, driving up prices in the future.

it will become the next Silicon Valley and wants to participate, "said Kayla Lee, a broker at Modern Spaces, who oversees sales at Corte, an eight-storey glbad-fronted facade condominium that was put on the market in August. 19659005] Last week was the best ever, with contracts for six of its 84 units and several more under negotiation, she said. There were 20 appointments last weekend, compared to four the previous week.

Even before the Amazon decision, Ms. Lee said, prices were expected to rise.

"The clients I had not spoken with for seven or eight years The years have begun to send me SMS," said Eric Benhaim, president and founder of Modern Spaces. "I sold 20 flats per text".

He stated that agents of his company, who represent many New real estate developers now met these customers to review the documents.

Brokers say there are about 350 new condominiums on the market in Long Island City and about 50 resale apartments. Some of these resale units have been sitting on the market for weeks without interest, but they are also in demand, Smith said.

On Friday, he found that weekend appointments in many condominium sales offices were full. Thus, on Saturday, he had five clients visit his clients on foot and by Uber. And on Sunday, Mr. Smith rented two dark blue minivans with his drivers, and he and his partner used a shotgun to show goods to groups of five buyers.

Other clients met them on the way, he said, so in the end.

"The exhibition hall was crowded and was just growing," said Smith, adding that other guests had gathered in the conference room reserved for the event. originated in his group. Mr. Smith, who lives in Long Island City, warned his buyers that agreement with Amazon had not been reached and that it could fail.

Nevertheless, he said, "The worst case for Amazonian buyers is that they own real estate on Long Island. The city is not a bad proposition, they tell me.

Write to Josh Barbanel at [email protected]