Valuing Central Park's Contributions to New York City's ... - Appleseed

8
120%
100%
80%
60%
40%
20%
0
Blocks north of
Central Park
Central Park
area
Manhattan
Fig. 15. Percent increase in market value, 1997-2007
In Harlem as elsewhere, the market value of properties on the blocks closest to the
Park is higher than the value of properties on blocks that are farther away. Using the
same approach we used in calculating the overall premium associated with proximity
to the Park, we estimate that in 2007 the value per lot square foot of properties on the
blocks that border the north side of the Park was roughly two-thirds greater than the
value of properties one block further north. Overall, we estimate that the Park effect
added approximately $328 million to the market value (as measured by the Department
of Finance) of properties north of the Park.
Moreover, property values on the north side of the Park rose faster than values in the
Central Park area generally, and much faster than market values for Manhattan as a
whole. Between 1997 and 2007, the market value of properties north of Central Park
increased by 115 percent, compared with 65 percent for the entire Central Park area,
and 54 percent for Manhattan overall. (This comparison is summarized in Figure
15.) Sales through the spring of 2008 confirmed this trend. In April 2008, a condo at
111 Central Park North sold for a price of more than $1,400 per square foot. The $8
million sale set a record for a Harlem apartment.
After 150 years, still sparking investment
The historical record shows that within a few years of its completion, Central Park
was attracting investment and spurring new development in the surrounding area.
In the 150 years that have passed since then, the area around the Park has continued
to attract new investment – and despite its being located in the heart of the nation’s
most densely-developed City, it has continued to do so. Just between 1993 and 2008,
major projects completed or under way in the Central Park area have included the
construction of the Time Warner Center and 15 Central Park West; and the sale and
renovation of the Plaza Hotel and Jumeirah Essex House.