Record air-rights sale in theater district just the beginning

[hrmjustin]

Ryan Hutchins

It seems to be an impressive figure on its own: A development consortium has purchased the air rights of two Manhattan theaters from the Shubert Organization for a record $409 per square foot, according to city records filed last month.

The sale of nearly 45,000 square feet at that price represents a steep increase in the cost of theater development rights in the district. In 2012, Shubert sold air rights from two of its theaters for about $225 per square foot. That's a more than 80 percent rise.

But this latest deal may just be the tip of the iceberg. It takes about a year to finalize a sale and for its price to become public, meaning $409 was the going rate quite a while ago.

How much are development rights in the theater district going for now? About $600 per square foot. That's according to Robert Shapiro, the president of City Center Real Estate, who has put together air-rights packages for developers in Midtown. He said he's not involved in those transactions, he's just in the know.
http://www.capitalnewyork.com/article/real-estate/2014/05/8544770/record-air-rights-sale-theater-district-just-beginning

[roody]

1. What are air rights?

[htuttle]

2. I believe it refers to selling the empty space above a building

Peculiar concept.

[hrmjustin]

3. They use it for places where they want to build big.

http://en.m.wikipedia.org/wiki/Air_rights