Lower Manhattan

By Denisa R. Superville | Special to amNewYork

September 7, 2006

Three years ago, when the city was still offering incentives to draw people to lower Manhattan, Rafael Esquer took the bait and moved into a 575-square-foot studio on Greenwich Street in the Financial District, not far from Ground Zero.

"I used to live in the heart of Greenwich Village and there used to be people 24/7, all the time," said Esquer, a graphic designer. "It's nice to have a break from that. This is very quiet."

It may be quiet downtown, but it is slowly changing, according to advocates, real estate agents, business owners and residents. In the five years since the Sept. 11 attack, the areas closest to Ground Zero -- the Financial District, TriBeCa, and Battery Park City -- have seen a resurgence in their residential populations as developers continue to convert obsolete office space into luxury units and renters continue to head downtown in search of bargains.

A growing neighborhood

According to the Alliance for Downtown New York, which manages the lower Manhattan business improvement district, lower Manhattan's residential population jumped from 14,000 in 1990 to close to 37,000 in 2006. The Alliance expects that figure to reach 42,000 by 2007. Residential units also grew by 5,804 in the past five years, according to the organization.

"It's really exciting to see all these young families and other folks moving into the neighborhood and breathing new life into a neighborhood that has long since been known for its reputation as being a financial location," said Meredith Bellew, executive director of Wall Street Rising, which was formed in the wake of the attack to encourage people to visit lower Manhattan.

Shops follow renters

Many, like Esquer, were lured by rent rebates and other financial incentives that were offered in the bleak years after the attacks. Others were attracted by the huge loft-like conversions by celebrity designers.

"It's interesting to families because it does fly within the [P.S.]234 school district, which is one of the best school districts in the city, which is why so many people flock to Tribeca," said Jason Karadus, a vice president at The Corcoran Group. "And now you can basically have that school district, and get more apartment for less money in a brand new building."

Following closely on the heels of the residents are luxury brands such as Hickey Freeman, BMW and Sephora. Tiffany & Co. recently signed a lease to open a store at 37 Wall St., scheduled to open next fall. Hermes is not far behind.

A transformed landscape

There are small businesses that never recovered from the attack. Shelley Spector, president of Spector and Associates and founder of the Downtown Business Network, said that although the neighborhood was rebounding slowly, more needed to be done to restore the area to its pre-Sept 11 days. Still, she said, residences were preferable to vacant buildings. "The small business community that we had here that was thriving because of the dot coms, because of the trade center, because of the economic vitality that we saw through the late 90s, through 2000 to 2001, that's not here," Spector said.

Rachelle Friedman, co-owner and co-chief executive of J & R, the electronic store, said that in recent years the store has added small home appliances to tap into the new residential market.

"When you leave here at 7 or 7:30, it's not dead anymore," said Jennifer Gandia, vice president of Greenwich Jewelers. "It used to be a very quiet neighborhood when you close on the weekends. It has an energy in the off hours which you never had before September 11th."

Real estate

Thousands of offices have been converted into condos, often with "starchitects" attached to the projects. There is 15 Broad St., the former J. P. Morgan headquarters, done in conjunction with designer, Philippe Starck, and 20 Pine St., designed with Giorgio Armani.

The average cost of a 700-square-foot studio rental in the area is $2,700 to $2,900, said Jason Karadus, a vice president at The Corcoran Group. A 1,000-1,200-square-foot space will run around $4,500 to $4,800 to rent, Karadus said.

Buying in the area will set you back further, even if you do not choose a designer building. "You can't really get yourself into a studio for much less than $500,000, said Ken Malian from Prudential Douglas Elliman in Tribeca. A one-bedroom would cost a minimum of $700,000, unless it's in a small building, Malian said.

What's selling
-4-room, 2-bath, 2000-plus-square-foot loft condo at 15 Broad St.: $ 1.7 million