New York City is known for its stunning architecture and unique types of real estate. Lofts and penthouses are two of the most sought after types of properties in New York City. However, they both offer unique advantages and disadvantages that will appeal to different homeowners.
While a penthouse offers unparalleled luxury and panoramic vistas, a loft embodies the city's industrial charm with its open spaces and artistic potential. In this guide, we're exploring the lifestyle, investment potential, and unique character of each option to help prospective buyers navigate the distinctive real estate landscape in the Big Apple.
What is a Loft?
Loft apartments are a very specific type of residence that are common in New York City. NYC loft apartments are typically found in buildings that were originally built for industrial or commercial use and later converted into residential units.
Loft apartments in NYC first gained popularity in the '60s and '70s. At the time, the factories and warehouses that once occupied properties throughout Manhattan had left the city, leaving many abandoned buildings.
Landlords couldn't find new commercial clients to fill them, so they began converting them into loft apartments. Initially, they were popular among artists and creatives who used them as live-in studios because the rent was so cheap. But they have since become a staple of New York City real estate that appeals to buyers from all different backgrounds.
What are the Characteristics of a Loft?
Lofts in NYC are characterized by high ceilings, an open-concept layout, large windows, and a gritty ambiance representative of the city's industrial past. For instance, lofts often feature design elements like exposed brick or pipes, large beams and columns, and wide open spaces without walls.
Lofts are popular because they offer a gritty aesthetic that many people love. Their wide, open layout offers a spacious feeling that contrasts the typical, cramped NYC apartment. Plus, the large windows let in a ton of natural light.
Lofts were originally designed to accommodate large factories and industrial facilities, many of which were built before the invention of the lightbulb. So even though they are no longer used for commercial purposes, many of the construction features NYC loft apartments offer benefit average homeowners as well.
But possibly the biggest reason lofts are so popular is that they are unique from other types of apartments in New York. They are found in some of New York's trendiest neighborhoods and offer discerning homeowners something different from all the other apartments on the market. As a result, loft apartments in NYC for sale tend to fetch a higher price than your standard condo in the same neighborhood.
Undivided Founder Mukul Lalchandani says, "There has always been this idea of the NYC loft - industrial conversion with high ceilings, private elevator landing, and multi-floor interiors.
But they may not be what is advertised. Lofts have their downsides too - such as older infrastructure that needs upgrading, which some also don't appreciate as well. So, it's important to buy in the right building and neighborhood."
What are the Pros and Cons of Owning a Loft?
Pros of Owning a Loft
- Tons of open space: The open concept layout of a loft is designed to maximize the available space and offers added flexibility and the ability to adjust it to fit your needs.
- Great lighting: The high ceilings and large windows mean you will be inundated with natural light, which creates a pleasant atmosphere in the space.
- Central location: Lofts are typically found in the heart of the action because they were designed for commercial use, so you'll typically find plenty of bars and restaurants nearby.
Cons of Owning a Loft
- Higher utility bills: The wide open layout and large windows can also come with a downside, as lofts can often be more difficult to heat and keep cool, potentially leading to higher utility bills.
- Lack of privacy: The lack of walls can be freeing, but it can also create privacy concerns if you're living with other people.
- Acoustics and noise: The high, vaulted ceilings and open layouts can sometimes lead to echoes throughout the apartment and strange acoustics. Plus, being in the heart of the action, you may also experience noise from outside.
Tips for Finding the Perfect NYC Loft
Look in the right neighborhoods
Lofts can be found throughout all five boroughs but only in neighborhoods that housed former industrial buildings. You'll often find NYC lofts for sale in neighborhoods like SoHo, Tribeca, Williamsburg, Bushwick, and Long Island City.
Inspect it carefully
When looking for lofts to buy in NYC make sure to do your due diligence and have it inspected by an expert who has experience with lofts. What may appear charming and gritty upon first glance can actually be a structural problem. So make sure to inspect the walls, foundation, insulation, and any exposed beams or pipes to look for potential issues.
Understand the difference between hard lofts vs. soft lofts
There are two common types of lofts; hard lofts and soft lofts. Hard lofts are those that are actually housed in former industrial buildings. Soft lofts refer to newer construction that is intentionally designed with the elements typically found in a loft but the building itself was never actually used for commercial purposes. Hard lofts tend to be seen as more authentic but soft lofts often come with modern features and amenities.
What is a Penthouse?
Penthouses are another popular type of residence in New York City. They occupy the top unit in a building, often the entire floor, and tend to be the most expensive and desirable residences.
NYC penthouses are often synonymous with luxury, affluence, and exclusivity. Some of NYC's most expensive penthouses often sell for nine-figure sums, making them among the most valuable real estate in the world.
What are the characteristics of a penthouse?
New penthouses in NYC can offer any number of district features, from private jacuzzis to home movie theaters. However, their one defining characteristic is that they occupy the highest floor. Some buildings have one single penthouse unit that occupies the entire floor, while others have multiple penthouse apartments. They also usually feature luxury amenities, high-end appliances, breathtaking views, private elevator, and high ceilings.
According to Mukul, "Penthouses are the most expensive units in the building, usually a one-of-a-kind extraordinary residence. They have this allure, and developers have caught on. They know they can get multiples more for simply calling a penthouse a penthouse. So, in a new development, you will often need several floors of penthouses to attract buyers—I even saw one that had five floors of it. But a true penthouse is at the top of the building.”
What is the most expensive penthouse in NYC?
The penthouse of Central Park Tower at 217 West 57th Street in Manhattan's Billionaire's Row is not only the most expensive NYC penthouse for sale, it's also the most expensive listing in the country after it was listed at $250 million.
The residence occupies three floors at the top of a 131-story building and features seven bedrooms, eight bathrooms, three powder rooms, and a 2,000-square-foot ballroom. However, the developer later dropped the price to $195,000 after it failed to attract a buyer for more than a year.
What are the Pros and Cons of Owning a Penthouse
Pros of Owning a Penthouse
- Privacy and exclusivity: NYC penthouse apartments for sale are among some of the most coveted real estate in the world and typically feature state-of-the-art security systems, front desk staff, and private elevators. They're also further removed from street noise and neighbors, offering a sense of serenity, even in the heart of the city.
- Great light and fantastic views: One of the perks of being that high up is the ability to gaze out over the city skyline and the abundance of natural light that comes from towering over the neighbors.
- Luxury amenities: Penthouses often come fully equipped with desirable features such as private roof decks, pools and spas, outdoor kitchens, and more.
Cons of Owning a Penthouse
- More expensive: All that luxury comes at a price, and penthouses are not only more expensive than regular apartments, but they're also pricey compared to other units in the same building.
- More maintenance: The additional space and high-end features mean that you'll have more to claim and maintain than your standard apartment.
- More susceptible to heat and water-related damage: Being that high up also has its drawbacks. Penthouses are often more vulnerable to water-related damage since they are right below the roof. So, avoid any penthouses directly below a rooftop pool. Plus, penthouses with a terrace or balcony usually do not have an overhang above them since they are at the top of the building and can get very hot.
Tips for Finding a Great Penthouse
Research the location
When it comes to owning a penthouse, location is everything. So make sure to do your research on the neighborhood, development, and any other relevant details, such as who owns the air rights to the neighboring building, so someone can't simply add onto it and block your view.
Check the roof
Being on the top floor means you're especially vulnerable to weather-related incidents. So make sure to have the ceiling inspected and find out if the building has a history of leaks.
Work with an experienced agent
Buying a penthouse in NYC is a bit more complicated than purchasing another type of home. Buildings may have strict requirements and may only show units to buyers they believe are serious. So, it helps to have an experienced agent on your team who can help you set up showings and negotiate the sale.
Which Is Right For You: Loft or Penthouse?
Lofts and penthouses are both popular because they offer something different from the standard New York City apartment. Lofts are better for those who want flexibility and space with a trendy, creative vibe. Penthouses are better for those who want panoramic views and a luxury lifestyle.
However, don't be fooled by deceptive marketing. Just because something is labeled a loft or penthouse doesn't mean it's automatically worth more money, as both types of properties can have their issues as well. So, make sure to do the proper due diligence and work with an experienced team that knows what to look for.
Need help deciding between a loft vs. a penthouse? Join our NewBuildClub and we will gladly show you all the best homes currently on the market. We use cutting-edge marketing techniques and best-in-class systems to find only the top new construction homes from trusted developers. Reach out to our team today for more information.
