Most of the luxury high-rises along the western Queens waterfront didn’t flood or lose power — but they may be the latest victims of Superstorm Sandy.
Potential buyers, insurers and banks may now be reluctant to invest in prime Long Island City real estate located in hurricane evacuation Zone A, real estate experts said.
But the same experts also said they doubt the market will suffer a debilitating long-term slump, citing the lure of waterfront living and the short memories of buyers.
“What [Sandy] may do is slow down sales activity in harder hit areas,” said real estate appraiser Jonathan Miller. But if a storm of this magnitude “happens again in short order, then all bets are off.”
The storm may also make it harder for developers to secure financing to build in evacuation zones. It also might become increasingly difficult for buyers to obtain mortgages and home insurance in those areas, he said.
“Lenders are generally afraid of their own shadow,” Miller said. “So they’re looking for reasons not to lend.”
Rosemary Scanlon, dean of New York University’s Schack Institute of Real Estate, said the market will rebound.
“The fears were widespread that people would move out of New York” after 9/11, she said. “It didn’t happen.”
But buildings — especially in Zone A — will need to be constructed differently, she said. Boilers and electrical equipment may need to be moved to higher floors, generators may become standard and towers may now be built further from the shore.
“Building on the waterfront was considered to be a great idea until the storm came,” she said.
Daniel Kessler, spokesman for 350.org, a climate change awareness group, said with rising global temperatures and sea levels, building in flood-prone areas isn’t a “very smart thing to do.”
“It’s certainly a precarious and risky proposition to develop in hurricane evacuation zones,” he said. “We’re already seeing extreme weather costing our governments and the private sectors billions of dollars.”
City Council Speaker Christine Quinn (D-Manhattan) has suggested looking into building a storm surge barrier, which could cost billions.
But Eric Benaim, owner of the Long Island City real estate firm Modern Spaces, said he isn’t fretting over business. “People want to live on the waterfront,” he said.
Dan Miner, senior vice president of the Long Island City Partnership, a local business advocacy group, said the neighborhood’s close proximity to Manhattan, abundance of transportation options and popular dining and nightlife establishments, will still make it appealing to buyers.
But climate change also needs to be addressed, he said.
“The storm is a reminder that New York City will face increased severe weather events,” Miner said. “The city has to prepare for future events so the city can be increasingly resilient.”
