A sleeper no more: What new condo buyers can get in Kips Bay
- After little to no development for the past decade, seven new condo projects have opened in the past five years
- New condos sell for a 47 percent premium over resale condos in Kips Bay compared to 26 percent citywide
At VU, a 100-unit condo building at 368 Third Ave., a majority of units have views in all directions.
New condo projects in the Kips Bay neighborhood of Manhattan have perks more densely developed neighborhoods cannot offer: expansive views and natural light at mid-height units. One new project offers scaled-down luxury—smaller units with lower price points, but top-quality finishes and amenities.
After little to no development in Kips Bay for nearly a decade, seven new condo developments, including Eastlight, VU, and Hendrix House, have opened in the past five years. They add luxury-style living to a neighborhood not known for its architecture, with the exception of limestone townhouses and the 1963 Kips Bay Towers complex designed by internationally renowned architect I.M. Pei. (A 2017 New York Times article, “Kips Bay: An Anonymous Neighborhood with Fringe Benefits,” noted the area’s “lackluster” high-rises.)
The neighborhood, which runs from the East River to Lexington Avenue, and from 23rd Street to 34th Street—is perhaps better known for its hospitals on First Avenue, bars on Third Avenue, and Indian restaurants along the Curry Hill stretch of Lexington.
Changing the mix
Prices for the latest condo projects in Kips Bay are comparable to new development in Manhattan. So far in 2025, the average price per square foot in Kips Bay is $1,826, compared to $1,982 for Manhattan overall, according to data from Marketproof, a real estate analytics company, which has a market snapshot feature for subscribers that Brick used for this article.
Notably, new condos in Kips Bay trade at a 47.5 percent premium over resale condos in the neighborhood, compared to a 26.2 percent premium for new developments citywide. (A new co-op project at 201 East 23rd St. is due to be delivered in 2026.)
That’s a “larger-than-typical gap in the quality and amenities of new vs. existing inventory,” said Ning Zhou, chief technology officer and co-founder of Marketproof.
The new condo developments are using zoning to their advantage, Zhou said. They are built within mixed-use zoning (C2-8 or R10), which allows for taller buildings, while surrounded by residential zoning (R8B and R7B) that limits neighboring structures to a maximum height of 75 feet.
“This allows for light and views for relatively lower floors—something harder to achieve in denser parts of Manhattan,” Zhou said.
Avoiding Local Law 97 headaches
One advantage of buying in a new development now: Buyers are likely to avoid the expenses that some owners are facing to come into compliance with the city’s landmark climate law.
“Developers are taking into account the requirements of Local Law 97 and making sure buildings fall within those guidelines, said attorney Shaun Pappas, a partner at Starr Associates. There is a caveat, however: There are long timelines involved in developing a building, during which laws can change and new rules can be introduced, “so nothing is guaranteed.”
Pappas is seeing a lot of competition for one-bedroom condos because of their “very flexible layout.” They work for a single person, a couple, or a couple with a small child.
The unit mix in new Kips Bay developments is still heavily skewed toward studios and one bedrooms, comprising 67 percent compared to 40 percent citywide, according to Marketproof.
“This suggests developers are still targeting younger buyers over families—just at a higher price point,” Zhou said.
More than 'bars and bros'
Many New Yorkers associate Kips Bay with post-grads, said Nicole Grandelli, a broker at CORE. She is marketing Eastlight, a 143-condo building at 501 Third Ave. But there’s more to the neighborhood than just bars and bros.
The residential parts have a neighborhood feel, and the area is convenient for commuting to Midtown and Downtown. For shopping, the area has some neighborhood mainstays, like La Delice Pastry Shop (in business since 1935) and Kalustyan’s (since 1944), as well as Fairway and Trader Joe’s and it’s also close to Nomad and the Flatiron District for big box stores. There’s also a 15-screen movie theater, AMC Loews Kips Bay.
A major educational development project is in the works: The City Council recently approved overhauling Hunter College’s Brookdale campus, massive brick buildings between 25th and 26th streets, into modern academic and research buildings that will be the home of three CUNY colleges, known as Science Park and Research Campus (SPARC) Kips Bay.
Eastlight shines on lower floors
Kips Bay has “been a sleeper for a while, so buyers can get good value. You can get a one bedroom in the $1.6 million range that in other neighborhoods would be more expensive,” Grandelli said. Eastlight currently has 15 units available, ranging from studios to two bedrooms and with prices starting at $950,000 to penthouses for $3,370,000.
The project was designed by CetraRuddy and as its name implies, units are designed to offer natural light, even at lower floors. Many residences feature corner living rooms with floor-to-ceiling windows that wrap around the edge of the building. Amenities, which include a terrace and gym, are on the 34th floor to take advantage of light and views.
Units feature high-end finishes and appliances like white marble slab countertops and backsplashes, radiant heated floors, and Bosch washers and dryers. Some units have home offices, like 20C, a 902-square-foot, two bedroom that’s asking $1,805,000.
The project, which began selling in 2021, is 60 percent sold. Grandelli said the developer is offering a 4 percent buyer’s broker commission and incentives on closing costs. Units are “mostly trading at ask,” she said.
A VU in all directions
At VU, a 100-unit condo building at 368 Third Ave., a majority of units have views in all directions, said Hunter Frick, chief marketing officer at Brown Harris Stevens Development Marketing, which represents the building. The tower is in the middle of the block, with lower buildings on either side, and views start on the eighth floor, “unusual in this location,” Frick said.
The amenity spaces, including the roof deck, gym and co-working spaces, are on the top floor, the 36th, so they have natural light as well. The landscaped roof deck gets the most use of all the amenities, Frick said. He attributes that to its views. “We’re used to seeing NYC as pedestrians, so it’s pretty amazing to see the city” from a high vantage point,” he said.
Resident spaces are by interior designer Paris Forino and units feature floor-to-ceiling windows, marble countertops and backsplashes, and Miele washers and dryers. Ceiling heights range from 9 feet to over 11 feet.
The project began selling in 2021 and is over 95 percent sold. There are four available units, all three-bedroom units, including PHA, a duplex penthouse with an outdoor loggia overlooking the Empire State Building, asking $8,995,000. It also has a freestanding soaking tub and a 7-by-11-foot walk-in closet, which is equivalent to the square footage of many NYC bedrooms.
The developer is offering a 4 percent buyer broker commission and a $1,000 gift card to the buyer’s broker to AMAN Hotel Spa and Wellness Center.
Hendrix House strikes a chord
Hendrix House, a 60-unit, 12-story new development at 250 East 25th St., was designed by DXA Studio with resident spaces by Paris Forino. The size of the units here may be surprising: Studios are 470 square feet, one bedrooms are 660 square feet, and two bedrooms start at 782 square feet.
Units are smaller and price points here are lower than what you would pay at comparable luxury buildings, said Ellen Qian, principal broker at One Realty, which represents the building along with CORE Real Estate.
The building launched sales in 2024 and is 80 percent sold—three units recently went into contract. There are six units currently available, including 8D, a one bedroom that is asking $1,595,000.
Kitchens have marble counters and backsplashes and Gaggenau appliances. Some units have curved corner windows with 270-degree views and private outdoor space. There’s over 6,000 square feet of amenity space, including a lounge, courtyard, roof deck with grills.
Every residence has a home office with millwork, shelving, and a desk. There’s also a co-working center in the amenity space with workstations, a conference table, and private meeting rooms.
The large windows and natural light in the communal workspace are intended to feel like you’re working in a coffee shop, said Kayla Everett, director of sales at Hendrix House and a broker at CORE Real Estate. The developer “made it a point to make it comfortable to work at home,” Everett said.
You’re not likely to find co-working spaces or other amenities in the older co-op buildings in the neighborhood, Everett added. The new condo projects, along with commercial development like the new college science complex, which is expected to create 1,500 jobs, herald a shift for this once anonymous neighborhood.
“Property values can only go up,” she said.
