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Price of air hits record in New York
Real estate developers agree to pay $430 a square foot for 'air rights,' twice the going rate.
November 30, 2005: 12:45 PM EST
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NEW YORK (CNNMoney.com) - Two New York City developers have agreed to pay a record price for "air rights" to build an apartment building with views of Central Park, according to a report Wednesday.

The developers, brothers William and Arthur Zeckendorf, will pay $430 a square foot, more than double the going rate, for air rights over Park Avenue and East 60th Street, the New York Times reported.

Buying the air rights over low-scale buildings, the developers will be able to build up. The 35-story apartment tower will be taller than the zoning ordinarily allows, the paper said.

"We want to concentrate on the very high-end market where we see tremendous strength and a limited inventory," Arthur Zeckendorf told the paper.

Previously, the high end for the price of air rights was around $200 a square foot, the paper said, citing New York appraisers.

"This market is absolutely crazy," Daniel Sciannameo, an appraiser at the Albert Valuation Group, told the Times.

The market for air rights has been an odd feature of the New York real estate market for decades.

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