Boutique Condos Pros and Cons

The Pros and Cons You May Not Know About Buying in a Boutique Condo Building

When people think of luxury condo buildings in New York City, they usually imagine glamorous high-rises overlooking Central Park in Manhattan with white glove lobby attendants. However, as NYC residents have used the pandemic to evaluate and change their living situations, there is a noticeable uptick in demand for unique, boutique buildings that offer more privacy, intimacy, and a greater influence on condo board decisions. There is a common misconception that boutique buildings don’t have lavish amenity spaces, but that isn’t always the case. Ultimately, it is up to the buyer of a new home to prioritize which features best suit their lifestyle.

What exactly makes a building “boutique”?

While there is no standard definition, “boutique” condo buildings are smaller in scale - typically 20 units or less – and should feel luxurious, unique, and exclusive.

PROS OF BUYING A CONDO IN A BOUTIQUE BUILDING

1. Increased privacy, intimacy and quieter living environment

Boutique buildings are often located within townhouses on quiet, tree-lined side streets, which limits the amount of street noise and other nuisances that can negatively impact your day to day life. In addition, there is less noise inside the building due to the limited amount of foot traffic in hallways, elevators and common spaces.

2. Intimacy and communal atmosphere

Fewer units mean fewer neighbors, which makes it much easier to get to know your fellow building residents. There are also fewer people with whom to share the common amenity spaces, increasing the value of the building’s amenities. This is especially true at 324 West 108, where the amenity package includes a 360-degree roof deck, rear garden, community lounge with a warming kitchen, fitness studio, resident storage and so much more – all for only 10 residences to share.

3. Higher likelihood to serve on the board and have influence on the building operations

If you’ve lived in New York long enough, you’ve probably heard horror stories of power-hungry condo or co-op board members. In a smaller building, not only do you have a greater opportunity to serve as a board member, but your vote as a unit owner also means a lot more than in a large building. In turn, you can influence how the building operates, and if you don’t like something, you have the power to change it.

4. Resale value can be higher as there are fewer availabilities within the same building

Selling your apartment in a large building can be difficult if there are several other owners with apartments for sale at the same time, as you will have to compete with those other units when selling to prospective buyers. In a smaller building, it is less common to see multiple residences on the market at the same time, which means less competition for the seller. In addition, the exclusivity that comes with a boutique building can contribute to a higher resale value.

5. Safety

While no one likes to talk about it, the reality is that accidents and emergencies do happen. It is much easier to evacuate a low-rise building by foot, and emergency response teams can provide faster service in a smaller building.

CONS OF BUYING A CONDO IN A BOUTIQUE BUILDING

1. Fewer Amenities

Extravagant amenities such as movie theaters, video game rooms, pools and spas are typically found only in large luxury towers due to the size constraints present in boutique buildings. However, with hundreds of other residents living in the building, it can be very difficult to find the opportunity to use these incredible amenities, and many large buildings require residents to reserve amenity spaces in advance. So, while the potential choice of amenities is theoretically higher in a large building, the actual opportunity to take advantage of these amenities is lower compared with a boutique building.

2. Less Impressive Views

Apartments on the upper floors of high-rise buildings tend have better city views than those in low-rise buildings.

3. Higher Fees for Special Assessments

With fewer residents to share building expenses, monthly common charges and special assessments for significant building repairs can be more costly in a boutique building. This is a much larger risk in older, undermaintained, or poorly operated buildings than brand new developments. An excellent property management company can help reduce building operating costs and mitigate the risk of large special assessments.

CLOSING THOUGHTS

There are clear benefits and drawbacks of buying a residence in a boutique condominium building, and as with any large financial decision, it’s important to research and perform due diligence before deciding.