Living it up Downtown: residential conversions draw buyers.

Although Fifth Avenue, Park Avenue and Central Park West are still viewed as the most prestigious addresses in New York, many savvy New Yorkers are finding that neighborhoods like Tribeca, Soho, Chelsea and the Flatiron District are providing the most exciting residential opportunities and a lifestyle suitable for the '90's.

Loft conversions, which are at the center of the city's new residential inventor, have been gaining in popularity for a number of reasons. One attraction is that they provide large, open spaces, which potential dwellers can customize to their needs, and meet today's demand for a more low-key lifestyle.

At 112 Duane Street/72 Reade Street buyers can find large condominium lofts with a space and flexibility rarely found in Tribeca. With unit widths of 50 feet and a minimum of three exposures, these spacious 3,400 to 4,700 square-foot lofts can be custom designed as three or four bedroom homes.

"Since each residence is being delivered as unfinished space, buyers have a choice in the design of their home," says Ken Malian, executive vice president and sales director of Douglas Elliman - Downtown. "This flexibility is a big plus for creative buyers with a vision of what they want in a home. More and more people seem willing to take on the challenge of creating their dream home, even if it means dealing with some of the frustrations which always occur in any construction project."

In addition to offering great space and the opportunity to create your own living environment, many conversions offer modern amenities, while maintaining the charm of historic buildings. For example, D'Arte House located at 354 Broadway in Tribeca and built at the turn-of-the-century, features a distinctive architectural design, including a pressed-tin cornice and an Italianate brick facade with cast-iron columns.

Yet these full floor lofts, ranging in size from 3,000 to 4,200 square feet, include a number of contemporary features, too. Deluxe kitchens with a choice of cabinetry, as well as large master bathrooms with limestone floors, whirlpool tubs and separate steam showers add to the building's appeal. Patricia Dugan, a Vice President at Douglas Elliman, the exclusive agent for the property, says "The combination of beautiful architecture, spacious residences, dramatic views, and outstanding amenities is a unique opportunity for those seeking the style of uptown living in a Downtown address."

Conversions have also given buyers an opportunity to move into neighborhoods which were previously lacking available properties. According to Shaun Osher, the Douglas Elliman broker who played an integral role in the sale of 31 West 21st Street, "More developers are recognizing the Flatiron District as a great area for condominium loft conversions. The building at 31 West 21st Street was originally on the market for $8.1 million, yet in less than two weeks, we had several interested buyers. Ultimately, the property sold for $500,000 above the asking price, demonstrating that these buildings are in high demand. Once 31 West 21st Street is converted into loft condominiums, it will provide excellent opportunities for those looking to live in a great location."

Other neighborhoods, such as Chelsea and Tribeca, are also drawing developers interested in commercial spaces that would make viable conversions.

Alan Rogers, managing director of Douglas Elliman, points out that it is very important that today's developers get the guidance they need. "Our On-Site Marketing and Sales team is comprised of highly experienced professionals with a strong track record in development and a complete understanding of all aspects of the real estate market. Hence, our early involvement is critical to the success of the project, because it enables us to create the most appealing property for the target market."

Douglas Elliman broker Larry Michaels agrees. "The sale of 110 West 17th Street exemplifies how Douglas Elliman can work with developers to find the best properties and see their projects through to completion. Douglas Elliman's Onsite Marketing and Sales Group is working closely with 110 West 17th Street Corporation to arrange everything from the choice of amenities and finishes to the individual sale of each residence. This comprehensive approach greatly facilitates a developer's project, and its ultimate success."

The Wall Street boom, a demand for larger apartments suitable for growing families, tax incentives and the availability of vacant commercial space have made residential conversions one of the New York real estate market's hottest commodities. Today, buyers who have dreamed about living Downtown but have held back due to a lack of inventory and the availability of top amenities, now have their chance to buy a home that meets their every expectation.