Market slows, Levine says.

New York residential market is definitely softening, but developers can still make a profit if they know their target audience.

This was the verdict from Jeffrey Levine, president of Levine Builders, as he delivered a speech for the Associated Builders and Owners of Greater New York on January 12.

"Over the last three years and up until this July, you didn't have to be a genius to be a developer in New York," Levine said. "Now the market does not forgive your mistakes. You have to know who your buyers are."

However, Levine doesn't necessarily see the exit from the market of speculative investors as a bad thing. In his view, risky developments that rely on over-inflated prices contribute to the perception of an impending real estate bubble more than anything else.

"The market has absolutely softened in the last six months," he admitted. "But this has kept the overzealous buyer from grabbing [whatever they can] and pushing prices up."

Levine, who was lauded by ABO executive director Nick LaPorte as "the next Donald Trump," spoke about a number of condominium projects he currently has under construction, including 555 W. 23 rd St., a 333-unit condominium project in West Chelsea and the Edge, a 16-acre development consisting of three residential towers, a pier and supporting retail services in North Williamsburg, Brooklyn. According to Levine, he has been able to sell his units at a significant profit because he makes it a rule to customize a property to fit prospective buyers' preferences instead of relying on them to buy whatever he is offering.

"Interest rates haven't moved significantly, so that perception is more psychological than anything else, but you have to give people the product that they want," he noted. "If you know what you are doing, you can still make money. So do condos cautiously, but do them."

In addition to 555 23rd St., and the Edge, Levine Builder's current projects include 325 Fifth Ave., a 50-story condominium tower at Fifth Avenue and 32nd Street, 160 W. 62nd St., a 60-story residential tower overlooking the Lincoln Center and 101 E. 110th St.