Flatiron District Booms

By Zachary Stieber Epoch Times Staff Created: March 29, 2012 Last Updated: March 29, 2012

Looking south on Broadway toward the Flatiron building on March 6, with Madison Square Park on the left. (Amal Chen/The Epoch Times)

NEW YORKMore people are moving into the Flatiron District, buildings are being converted into residential units, and commercial and retail rents continue to increase.

John Ciraulo, vice chairman of Massey Knakal Realty Services, used 901 Broadwaybuilt in 1869, and currently mixes use with apartments and retailas an illustrative time lapse of increased popularity and rent in the area. The firm first sold the building in 1996 for $2.5 million as a vacant retail store, with rent below $100 a foot. Ten years ago the firm sold it againthis time for $6.5 million.

Two years ago we sold it [again] for $25 million to a Russian/Spanish investor who put Brooks Brothers in there for close to $300 a foot, says Ciraulo.

A StreetEasy listing for a 2-bedroom-2-bathroom rental in the building asks for $15,500 a month.

Rent for some retail buildings on Broadway, Fifth Avenue, and Park Avenue South have more than doubled even over the past few years, explained Ciraulo.

High ceilings are a strong draw for those moving in the area, as are the architectural details of the buildings, many of them turn-of-the-century. However, Lynn Shanahan, president of Marimekko North America, said those offering space in the district should be more transparent about the inside of buildings, some of which might not be up to par for certain uses.

With more large companies moving in, Shanahan also wants the Flatiron/23rd Street Partnership to remember the small businesses that started in the area and have invested in it. The partnership seeks to enhance the Flatiron Business Improvement Districts (BID) reputation and on Wednesday hosted the panel discussing these issues.

There are a lot of great restaurants on all of the side streetsI think the discovery factor of this area is tremendous, said Shanahan. If it turns out to be too exclusive, I think that it will lose its color, and thats why were here.

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Flatiron District Booms