At the end of this month, the former contractor for the NY Wheel may be given the green light to auction off parts of the large tourist attraction. For local commercial real estate investors, particularly those looking at North Shore properties, the potential loss of the NY Wheel has opened the doors to speculation ranging from positive opportunities to doom and gloom.
The NY Wheel and North Shore Properties
The NY Wheel was designed to be a major attraction and had over $450 million in private investments poured into its 630-foot structure. The project was halted over a year ago, in May of 2017. Estimated costs to complete the project are standing just shy of $1 billion. The NY Wheel was going to be a major factor in developing real estate and investing in North Shore properties, specifically St. George, which was slated to be a walkable community. With the NY Wheel in stasis, and potentially being dismantled, what will happen to the commercial real estate market for North Shore properties?
Without the attraction of the NY Wheel, many speculators are predicting businesses, along with both permanent and short-term residents won’t want to stay or come to the North Shore. Some are even pointing to the loss of the wheel as the signal for a property market crash that will spread throughout Staten Island and then to other areas of New York City.
A gigantic wheel shouldn’t be the only thing driving the value and interest in North Shore properties. While the NY Wheel may never be finished – or completely disappear – North Shore properties still have a lot of value and interest. If the plan to make St. George and surrounding areas into communities geared towards pedestrian traffic, then the attractions will come regardless. This is a minor setback. If anything, properties will be easier for commercial real estate investors to purchase now, and then lease for a healthy revenue in a few months. In short, commercial real estate investors should not give up just because the NY Wheel isn’t going to be completed.
Express Capital Financing specializes in funding solutions for commercial real estate investors and developers throughout NYC. If you have your sights set on a particular property in Staten Island, or you are looking to take on a construction project along the North Shore, contact our offices.