Affordable Noise

Rent plummets on Second Avenue with never-ending construction By [Sean Creamer ] For the past few years, residents and businesses on the Upper East Side have been victim to heavy-duty construction on the Second Avenue subway line. The construction, expected to be completed in 2016, will make Second Avenue a new hub of transportation in the city. In the meantime, it"s a nightmare for proprietors, residents and business owners and a godsend for realtors and young professionals willing to tackle the dirt, dust, construction noise and grit in return for cheap rent in a great location. Businesses between 62nd and 96th streets on Second Avenue have been especially hit by the construction. The constant roadwork and blocked storefronts have led to decreased sales and, in the worst case, businesses closing, according to Andre Soto, director of management of Salon Realty, located at 338 E. 92nd St., between First and Second avenues. Salon deals in full-service property management, and Soto manages two buildings in the heart of the construction zone. Due to the construction, Soto said, two of the four businesses in his buildings that operate on the street level have closed up shop. The two survivors have had their rent lowered by 40 percent to accommodate the storeowners, whose sales have been decimated by the construction. Even in the early stages of construction, businesses were suffering from a loss of clientele. â??Lowered rents began in the first year of construction, said Soto. Commercial tenants who rent 700 square feet would pay $5,200-5,600 under regular rent conditions, but now that the construction has curbed business, the same renters pay $3,200-3,700 and businesses are â??still struggling, he said. Even residential properties have been discounted in the construction zones. On average, a one-bedroom apartment in one of Soto"s buildings on the Upper East Side would go for $1,100-$2,200, and a two-bedroom would go for anywhere between $1,800 and $2,800. Soto has lowered rents by 30 percent in the areas that are at the mercy of subway construction because of the volume of complaints filed by residents. Mark Lyon, a Midtown lawyer, lived on 96th Street around the corner from Second Avenue at street level for three years before moving due to the constant barrage of noise from the subway construction. During that period, he and his wife were subjected to blasting, constant roadwork and dirty air that placed his family in a living hell. Lyon supports the subway, saying, â??I"m a big fan of the project's I think it is needed, but his frustrations stem from the fact that â??the MTA, city and the contractor have not considered ways to mitigate the impact on residents. He said that at first, construction crews followed procedures, but after a few months, â??Construction equipment would be left on, work would begin earlier than the allotted time and extend late into the night. His personal disaster tale did not stop there, though. There were times when access to his apartment was blocked and no notice of any construction was given. â??Last year, my wife and I agreed to try and suffer through and keep the apartment and location we loved; I thought we"d be able to do that again this year, said Lyon. However, right as the Lyons had decided to deal with another year of construction hassles, the workers dealt their final blow. â??The contractors parked a generator outside our window and filled our apartment with exhaust for weeks. That was the breaking point. We gave up and started looking for other places to live, he said via email. Although the Lyons gave up on their attempts to weather the noise, some people have resorted to modifying their homes to combat the auditory intrusion. Cityproof has been in the business of soundproofing windows since the 1960s, and on or near Second Avenue by the construction site, business has been booming. â??The amount of contracts has been increasing at a rapid pace on Second Avenue in the past year, said Michael Damelin, president of Cityproof. Although the problems with the subway construction have caused some people to move, they have opened the market on the Upper East Side to a younger generation willing to deal with the clamor in exchange for lowered rents. Because of the proximity to the hustle and bustle of Second Avenue and the cheaper rents, many more young professionals have come in, according to Norman Shakner, a realtor from A.C. Lawrence Realty. He noted that real estate in the area is booming because of the prospect of having a train line in the future and the fact that proprietors are driving down prices to fill empty apartments. A new resident of the Upper East Side, Simi moved there three months ago, saying she was drawn to the area because of â??better prices and more space for your money. She said it was cheaper than the Upper West Side, and the proximity of her apartment to her job and her friends couldn"t be beat. The construction does not really affect her day-to-day activities, but â??it makes a lot of noise in the morning, especially on days I"m not working. According to David Sannella, founding partner of Onno Realty LLC, property owners have been throwing out concessions to fill empty apartments that have been vacated due to the construction. â??You would get a great deal for a studio apartment on the Upper East Side because prices have been suffering in the Second Avenue corridor, said Sannella. He agreed that commercial property is taking the hardest hit of all. â??Commercial rents have dropped tremendously, many storefronts for lease on Second Avenue between 62nd to about 96th Street have not seen any activity, he said. This has created situations like the ones Soto described; he has to work with his clients to ensure that they are able to remain in business. Sannella said that a landlord would usually raise commercial rent by 3 percent each year, but now that business has slowed down substantially, that same 3-percent rise is instituted every three years in an effort to lessen the stress felt by local businesses. Ray"s Pizza, at 1827 Second Ave., has been in business for 25 years and is just one of many businesses that have been affected by the construction. Unfortunately, they signed their lease before construction began, so their rent has not changed like it has for businesses around them. Like other business owners and renters, they think the subway line will be a major benefit for the neighborhood and city when it is finished. Mahoud Ahmed, an employee of Ray"s, is hopeful that the new line will make the area more desirable and increase business. â??The new subway is going to take the Lexington Avenue crowd and bring them over to Second Avenue, he said. â??Once the train is done, it will bring more business to the area.