New York City: Urban Reinventions: High Line: Cost, Revenue & Development

Costs:
The first section of the High Line opened to the public in June 2009, at a total cost of $172 million dollars. More than 300,000 visited within the first six weeks. Though the New York City Department of Parks and Recreation provides security for the High Line and maintains its structures and accessibility, Friends of the High Line (FHL) manage day-to-day operations, which are estimated to cost between $3.5 and $4.5 million annually. A proposal to create a Business Improvement District in the area has been withdrawn.

Revenue:
The High Line is credited with bringing new development to the neighborhood. By the end of 2008, there were already 1.5 million square feet of living spaces, offices, and hotels under construction, with an additional 2.5 million square feet in the planning stages. New York City officials expect High Line Park to bring the City $900 million in revenue over the next 30 years and spur $4 billion in private investment.

Speculation & Development:
Several world renowned architects have designed buildings around the High Line, including Frank Gehry, Jean Nouvel, Robert A. M. Stern, Shigeru Ban, Renzo Piano, and Annabelle Selldorf. Many condo units have been pre-sold and developers are reporting success in refinancing construction loans. Interest in real estate and attendance at restaurants near the High Line have both significantly increased since the park's opening.

Broker Matt Bergey with CB Richard Ellis said he’s seen commercial rents rise $2 to $3 per square foot over the past year to the $55 to $60 range. Earlier this year, the Starrett-Lehigh — where Martha Stewart and Tommy Hilfiger are based — changed hands for $900 million. (Marritz)