Thursday, October 25, 2007

Roosevelt Island Tram Shutdown - How Does it Impact Real Estate Pricing?

Via Metro NY, Curbed asks the following question.

Does closing a major subway station for a year put a dent in real estate prices? Check out Red Hook and Gowanus, because there's a plan to shut down the Smith-9th Street station for a year (give or take, mostly the former).
For current residents of Roosevelt Island and those thinking of moving into the new Hudson/Related Riverwalk buildings or the existing Manhattan Park and Octagon buildings, the same question can be asked of the impact that shutting down the Roosevelt Island Tram for at least seven months will have on real estate prices for our little Island.

As reported in the Main Street Wire:
The RIOC Board of Directors voted Thursday night to "go into the marketplace" to pursue the possibility of a revised Tramway in which two cabins would operate independently.

The projected cost, should the plan ultimately go forward as envisioned in RIOC’s "Alternative 4," would be $21 million to something over $25 million – perhaps as high as $30 million – in 2007 dollars. The Tramway would be out of operation for at least seven months, but the work would not be authorized without further consideration by the Corporation’s Board, and the actual downtime would not start until after a long period of preparation, perhaps a year.
Image is from New York City Walk.