Investing in Manhattan real estate has become a must for well-to-do and up-and-coming real estate investors alike. Real estate in Manhattan is holding its value thanks to the year 2012 bringing increased foreign investment, favorable interest rates and inventory declines. A recent industry analysis found that residential property investments in Manhattan are outperforming those in comparable large cities like Los Angeles and San Francisco. Although foreign investment in Manhattan real estate increased this year, comprising nearly 9% of all sales, Americans are investing in Manhattan as well. This year, 7 out of 12 real estate investment purchases will be made by Americans.
In the light of this real estate market, who would turn away the chance to invest in real property that is not only secure but also a piece of Manhattan history? Such thinking certainly motivated buyers of units in the Lombardy Hotel, located at 11 east 56th street in New York City. The Lombardy Hotel’s superb midtown location places it only a few blocks away from famous Manhattan landmarks like Central Park, the theater district, and Fifth Avenue’s designer boutiques. A majority of the suites at the hotel are owned by individuals and rented to tourists. With only 162 rooms and suites spread over 22 floors, Lombardy Hotel feels spacious and decadent. Investors or individuals seeking a Manhattan pied-a-terre look favorably upon the Lombardy Hotel. Twice daily turndown service epitomizes carefree living.
The Lombardy Hotel embodies classic old-world charm and luxury. This should be expected considering its legacy. An edifice constructed in 1926 by newspaper publishing great William Randolph Hearst, the Lombardy Hotel was a gift for Brandon Davies. Davies was a famed silent film actress and Hearst’s lover. The beautiful stone façade of the Lombardy Hotel’s exterior symbolized his reverence for her. Today, the Lombardy’s classic limestone design stands just as proudly against a backdrop of steel. It continues to be a statement building. Inside, the marble laid lobby greets visitors its sprawling mahogany staircase. Classic art pieces and antique mirrors line the lobby walls. Feature-rich, the Lombardy Hotel offers amenities like gym, business center and spa. Those wishing to live or invest in hotel apartments should contact its exclusive broker, Wald Real Estate at the Lombardy Hotel.
Rooms that are owned but not currently occupied can be rented to tourists and short-term guests. A review of the myriad of travel and hotel sites online show guests rating The Lombardy between four and five stars. Those who visit are overwhelmed by the sheer size of rooms and the staff’s astute service. Suites with kitchenettes especially appealed to hotel guests, who can rent these spacious suites at a rate up to 30% less (dependent on the season) than the Manhattan standard hotel rate.
The returns garnered by investors, combined with the subsidized cost of running a hotel in this manner, made The Lombardy Hotel a successful experiment in real estate investing. Other hotels in Manhattan have followed suit. Live-in and owner options are also currently available at such hotels as the Gansevoort, the W, the Carlyle and the Ritz-Carlton.