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In 2022, over 1,700 condo units were launched in Manhattan, and another 1,500 units are projected to launch through this year and into 2024. In addition to the current activity in Manhattan, new developments continue to launch in Brooklyn and Queens. As a result, if you’re currently looking to buy a residence or invest in New York City real estate, there are plenty of options in the new construction condo market.

Buying a unit in a new construction condo carries many advantages, but the process is also different than purchasing a resale condo, coop, or existing family home. Fortunately, no one has to navigate it alone.

CityRealty experts are on hand to help, and this article looks at the databases and professionals to assist you

RESEARCH THE DEVELOPER AND VISIT THE MODEL UNIT

From developments that take months and even years longer than expected to reach completion (One High Line was known all too well for this) to developments that never deliver on their promise to provide high-end

services, there are plenty of stories about new construction condo projects gone wrong. Fortunately, most developments are fully realized, meeting and exceeding buyers’ expectations. Still, buyers are encouraged to take the following steps to mitigate risks.

Assess the developer’s past projects

The best way to determine if a development currently under construction will resemble its architectural rendering and deliver on other promises (e.g., the promise of high-end amenities or services) is to look at the developer’s track record. While you may not find anyone raving about the fact that their condo was finished on time or that the marble finishes in the bathroom are the spitting image of the original architectural rendering, if the development took months longer than expected or the finishes are subpar, you won’t have to dig far to find evidence, including unfavorable online reviews and articles.

Review past lawsuits against the developer

Bad reviews may be a concern, but a pattern of past buyers taking legal action against a developer is an even bigger red flag. Simply searching for the developer with a keyword such as “lawsuit” is a good place to start. If you want to dig deeper, do a search using a legal database such as Lexis or Bloomberg Law. If you don’t have access to a legal database already, you can search legal cases using WestlawNext Patron Access by visiting any local public library in New York City. Once again, simply search the name of your developer, and if there is a pattern of consumers taking legal action against the developer, it will soon become apparent.

Visit the model unit

One of the best ways to ensure you’re putting in an offer on a condo unit that meets your expectation is to visit the building’s model unit. Of course, depending on the stage of the project’s development, there may or

may not be a model unit available. If you can visit the model unit, pay attention to the details. For example, do the floors and countertop finishes match the ones featured in the architectural rendering? Is the unit as spacious as expected? What appliances have been installed?

Inspecting a new construction condo

It is important to note that just because a unit is new doesn’t mean it will be problem-free. In fact, new condos often have more problems than resale condos and coops because they haven’t yet been put to the stress test posed by daily living. For that reason, new construction condo buyers are encouraged to hire a trained inspector to do an inspection prior to the contract signing whenever possible – depending on the condo’s stage of development, it may not be.

Depending on the size of the unit, the inspection will typically cost anywhere from $500 to $1,000. While inspectors look for many different problems, key areas of focus include signs of water seepage (both outside water seepage and inside plumbing leaks), electrical work, and appliance installations, including proper hook-up of any gas appliances. While the inspection only focuses on your unit, the inspector can ask to look at other parts of the building, including common areas, though the developer may not give permission.

REVIEW THE OFFERING PLAN WITH AN ATTORNEY

In order to close any real estate transaction in New York City, you must contract with an attorney. However, real estate attorneys are particularly important when buying a new construction condo since they can help you review the developer’s offering plan and negotiate contingencies to help you lower your closing cost and protect your financial interest if something goes wrong with the project.

Features of an offering plan and important contingencies

Offering plans for new construction condos typically describe:

● What you are buying (i.e., a detailed description of the unit)

● The process for how the transaction will take place (e.g., the down payment schedule and who will cover closing costs)

● How the building will be managed by the developer until it is handed over to the condo board

● Special risks (e.g., if the condo has street-level retail, this section may provide details on the types of retail permitted)

In addition, the offering plan will include a number of exhibits, such as:

● The purchase agreement

● The condo declaration and by-laws

● Floor plans and, in most cases, an architectural description of the building

● Information on taxes (e.g., projected taxes and who will cover which taxes at which point in the project’s development)

Among other things, you and your attorney should be on the lookout for clauses that protect the sponsor but disadvantage the buyer, including the absence of a financing contingency. After all, if there is no financing contingency and your lender doesn’t approve your mortgage, you’ll lose your down payment to the sponsor,

who can then seek out another buyer for the same unit.

MOST ANTICIPATED NEW CONDO OPENINGS IN 2024

The information presented in this article can be applied to new development condominiums in the works throughout Manhattan, Brooklyn, and Long Island City. While the projects are in various stages of development — prospective buyers are able to take the construction elevator up The Greenwich by Rafael Vinoly to look at unfinished apartments, but work has only recently begun on 255 East 77th Street — one commonality is how they will bring eye-catching design, new housing units, and well-thought amenities to their neighborhoods. Below, see the 21 forthcoming condo projects we are most excited to see come to market in 2024.

Fresh off its success on Madison Avenue with The Benson and The Bellemont, Naftali Group looked to the Upper West Side starting in spring 2022, when it purchased an assemblage of properties on West 84th Street. The project was delayed when a lone tenant in one of the properties refused to move out, but the developer settled with them in June 2023 and work is now underway.