Downtown is residential hotbed.

As segments of the over-heated Manhattan real estate market cooled over the past few months, bright spots on the map have seemed few and far between.

One clear exception has been Downtown's emergence as a residential hotbed. As redevelopment plans have taken shape in the area, a designer condominium explosion has ridden the wave of unmatched growth in the commercial, retail and hospitality markets.

To developers, investors and landlords, a perfect storm has been gathering downtown for years. Billions of dollars in private and public investment have sparked unprecedented growth, creating the conditions for an emerging neighborhood primed for its rise.

Today, the area is the fastest growing residential city in the nation and experts predict the gap in property values between Downtown and Midtown will nudge ever closer, not because the midtown market is falling, but because Downtown is rising.

Downtown used to be referred to as the broad swath of land located below 34th Street.

As neighborhoods continued to create individual identities, however, the borderline between "uptown" and "downtown" moved farther and farther south.

Today, a reference to Downtown evokes thoughts of neighborhoods located below Houston, and to some, those located below Canal Street. Downtown, when referred to as a specific Manhattan neighborhood, zooms in on the area surrounding the Freedom Tower redevelopment site, particularly Tribeca, the Financial District, Downtown Greenwich Street, the lower West Street Corridor and Battery Park City.

In each area, commercial, retail and hospitality growth have far surpassed both historical norms and current projections. While each of these sectors has thrived, however, it's been Downtown's residential growth that has made the biggest splash.

For years, Downtown provided residents with a fair amount of rental possibilities more noted for their relatively affordable rents than their actual features and amenities.

As of late, however, an array of designer condominium developments and impressive rental buildings has sprouted up with tremendous results. Competitive pricing and top-notch amenity packages have ignited a residential boom, giving homebuyers more bang for their buck.

Designer condominiums have been the most visible benefactors of Downtown's residential boom. Premier developments, long missing from the residential landscape, began to provide the area's successful professionals with attractive, convenient purchase options in the neighborhood:

Downtown by Stark, located at 15 Broad Street, first brought luxury living to the foot of the Stock Exchange.

Plentiful amenities and spacious units, coupled with Philippe Stark design, commanded striking asking prices and sparked the growth of the designer condominium craze.

In the past year, Ciprianni Club Residences has emerged as a coveted Wall Street address. The furnished units fetched over $1400/sf, with complimentary Ciprianni memberships included for two years. Site of the former Regency Hotel, the 8-story structure houses dining and catering facilities in addition to first-class amenity spaces.

Just north of the Freedom Tower site, 200 Chambers and 101 Warren pre-sold hundreds of new construction units. Impressive sale prices of over $1500/sf validated the area as a premier neighborhood, commanding price tags once reserved for unattainable addresses.

Early this year, 20 Pine was launched just north of the Stock Exchange. Armani Casa brought its slick design to the neighborhood, churning out studio and one-bedroom pre-sales in the converted office building.

And now, Greenwich Club Residences has emerged as the latest designer development Downtown. Nestled between Tribeca, Battery Park City and the Financial District, the 37-story art deco tower boasts spectacular units with soaring ceilings, oversized windows and unrivaled light and views.

Architect, Ismael Leyva, and renowned hotel designer, Colum McCartan, collaborated on the design, which combines with hotel-quality amenities and services to create the year's most talked-about designer condominium.

The residential boom can be largely attributed to the success of the various real estate sectors, including the commercial, retail and hospitality markets. Unprecedented redevelopment programs have also kick-started the neighborhood's dramatic growth, as public confidence in the area has soared. Among the booming sectors:

Unparalleled public initiatives, funded by public and private investment, have greatly enhanced the area's growth and appeal in recent years.

Multibillion dollar transportation initiatives, highlighted by the Santiago Calatrava PATH Station and the Fulton Street Transit Hub, will create unrivaled facilities for a transportation network already recognized as one of Manhattan's best.

A JFK rail link and direct access to the Long Island Railroad will vastly improve commutes for workers and travelers heading Downtown. Billion dollar grants have been dedicated to refurbishing the area's parks and recreational facilities. The Hudson River Park, stretching from Battery Park up past 59th Street, has become recognized as the city premier jogging and biking track. The 550-acre park is the largest open space development in Manhattan since the completion of Central Park.

The West Side Highway redevelopment project has also reshaped the West Street corridor with parks, commuter walkways and transportation access.

Downtown's commercial development, with roughly 10 million square feet of office space set to come on line in the next three to five years, is reestablishing the area as Manhattan's financial center:

Construction of the Freedom Tower development site began last spring following finalization of plans.

In addition to the 1,776 foot Freedom Tower, three office towers from world-renowned architects will rise along Greenwich and Church Streets, with completion of the first towers as early as 2010.

7 World Trade Center, the newest addition to Downtown's skyline, is approaching capacity after only four months of leasing, with record rents being achieved in the process. Moody's, American Express, Ameriprise Financial and high-profile law firms, including Darby & Darby, are among the tenants to have signed on to long term leases.

Construction of a $2 billion global headquarters for Goldman Sachs is underway in Battery Park City, directly across from the Freedom Tower redevelopment site. Goldman's project has served as the catalyst for high-profile corporate relocations to the area.

The Deutsche Bank Building, on the south side of the redevelopment site, is currently being deconstructed to make room for a soaring residential development. Plans for the tower have not been finalized, but will inevitably cement Downtown Greenwich Street as the fastest growing residential location of the next five years.

The strong retail surge has been a predictable result of Downtown's residential and commercial success. Long-held complaints about the absence of high-end retailers, supermarkets and restaurants have disappeared, as each as flocked to the area in droves.

Hermes has taken space at 15 Broad Street, generating significant buzz amongst the Wall Street crowd; Tiffany and Company, which began business on lower Broadway in 1837, will return to downtown at 37 Wall Street, generating buzz and anxiety amongst the same Wall Street crowd.

In not-so-subtle fashion, Chanel and Prada have both begun actively shopping for downtown retail space.

Hickey Freeman and Sephora, recently open for business on Broadway, are just a few of the high-end retailers who are already populating the area's shopping maps.

Whole Foods has led the charge of supermarkets and pharmacies eager to establish a foothold in the residential hotbed, joining Gristedes, the Amish Market and the usual suspects of pharmacies as neighborhood conveniences.

Starbucks, Barnes & Noble and the unrivaled Battery Park Movie Theaters have also established footholds in the area, forming community hang-outs in the process. Bobby Van's, Megu, Harry's Bar, P.J. Clarke's, Roy's, Mr. Chow's, Wolfgang's and Dylan Prime have recently become area favorites, with numerous other restaurateurs eagerly seeking space.

A vibrant hospitality sector has also thrived in recent years, buoyed by the revitalized office market and an ever-growing tourist pool.

In the last year alone, significant developments have reshaped a hotel map once known only for the Millennium Hilton and Marriot Financial Center: W Hotels has announced its newest addition to the city, a 53-story tower just off Downtown Greenwich Street. Joseph Moinian will also tap the emerging hotel-condo market in his latest downtown development.

Andres Balazs has also joined the fray downtown, announcing plans for what is expected to be the area's premiere Boutique Hotel on William Street.

Goldman Sachs swiped up the Embassy Suites Battery Park, the popular chain conveniently located across from Goldman's new global headquarters. Redevelopment and refurbishment have been rumored to be in the works.

The Ritz Carlton will soon be joined by the neighboring Ritz Carlton Residences, due to open in the coming months and McSam Hotels, the successful boutique developer active in Tribeca and Midtown, has purchased two sites off of Downtown Greenwich Street with ambitious development plans for boutique hotels

As could be expected from a neighborhood experiencing redevelopment of an unprecedented magnitude, Downtown Manhattan is experiencing an undeniable growth surge.

It has developed into a sought-after neighborhood, with residential growth complimenting a strong wave of commercial, retail and hospitality activity.