The Plan: The Perrie Condo Building Leans on Efficient Design

The Perrie, at 234 East 46th Street, ranks as Midtown Manhattan’s only luxury project eligible for Federal Housing Administration (FHA) financing for buyers. It’s a 95-unit condominium building that’s all about (relative) financial accessibility — made possible, too, in part, through design efficiency.

The building has occupied space in Turtle Bay, not far from Grand Central Terminal and the United Nations headquarters, since 1986 and was previously used for hospitality. Now, Cape Advisors is transforming the property into a 21-story condo complex that takes full advantage of its historic infrastructure.

“The bones itself are in amazing shape,” said David Kronman, president at Cape Advisors. “There was so much capital investment into this building over the years, we never thought for a second about tearing it down.”

Rather, the building plays to its strengths. Nearly every residence is due to have private outdoor space via a balcony, combining indoor and outdoor living components. Likewise, the property sits back from the sidewalk, which allows for even more gardens in communal spaces throughout. Cape Advisors is developing both a front-entry garden and a rear garden.

Within the condos, features include new millwork wood islands with Italian stone and oak floors, while the lobby is utilizing both millwork and marble. The units are for sale, but the building has a flexible rental policy, so buyers can rent out their units as needed, and turnkey furniture packages are available.

When it comes to the building’s amenities, Cape Advisors has similarly strategized its choices to prioritize efficiency and develop what buyers want.

“A lot of projects now will build amenities that the residents end up paying for but never using, just to check a box,” said Kronman, who believes The Perrie has homed in on the basics.

Instead, the Perrie will have a gym, a coworking lounge and a resident lounge, as well as those gardens.

The building’s most distinctive feature, then, may have less to do with physical design than financial one. At under $1.2 million, most units in The Perrie cost about $145,000 less than the average Manhattan condo (but still far above the average $746,000 a home cost across New York City last year), which explains how it became eligible for that FHA financing. Some 20 percent of the complex’s units cost less than $1 million, which Kronman calls “unheard of” in Midtown.

“For many people in New York, the problem is not affording the mortgage payments; the problem is affording the down payment,” said Kronman, noting that the FHA allows a minimum 3.5 percent down payment, compared to the Manhattan average of around 20 percent. The Perrie is able to maintain its lower price point because of its efficient one-
bedroom design, added Kronman.

That relative affordability has already attracted the interest of potential buyers. Although the units remain under construction until early next year, condo sales launched in September, with contracts already in the works.

“We’re really making an effort to make the ease of ownership and the accessibility of ownership for the maximum amount of people that perhaps otherwise wouldn’t be able to afford a condo in New York,” said Kronman.

Anna Staropoli can be reached at astaropoli@commercialobserver.com.