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THE LATEST MARKET DATA PROVIDED BY A SPECIAL ADVERTISING SECTION OF THE NEW YORK OBSERVER SUMMER 2010 Neighborhood Spotlight The Essential Resource for Prospective and Current Residents COVER PHOTO The View Luxury Condominiums Loving the View in LIC! Long Island City

The Observer's Neighborhood Spotlight: Long Island City

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Page 1: The Observer's Neighborhood Spotlight: Long Island City

the latest market data provided by

a s p e c i a l a dv e r t i s i n g s e c t i o n o f t h e n e w yo r k o b s e r v e r

SUMMER 2010

Neighborhood Spotlight

The Essential Resource for Prospective

and Current Residents

COVER PHOTO

The View Luxury Condominiums

Loving the View in LIC!

long island city

Page 2: The Observer's Neighborhood Spotlight: Long Island City

observer.com | the new york observer2 July 26, 2010 the new york observer | observer.com July 26, 2010 3

F or the last century, the Queensboro bridge has tried to get Manhattan and long island city to embrace. the two municipalities (and their residents) have resisted, like tight-faced siblings afraid to show the other the love. partly to blame is the uncertain role l.i.c. played in the relationship--the little

brother that was, well, quieter and rough.but in the last decade, big business has swooped

in, taking advantage of some helpful rezoning and transportation upgrades that have transformed this once-scraggily kid sibling into a polished, mature haven teeming with strollers, towering condominium buildings and all the amenities of Manhattan.

take the 7-train one stop from grand central station and enter the reborn long island city. it has grown into its own--no longer a gateway to Queens or a depository of warehouses for Manhattan.

“a lot of people say it’s up and coming,” says eric benaim, founder of Modern spaces, a real estate firm that deals exclusively in long island city. “the truth is, it’s here.”

Mr. benaim moved to the area years ago when the city was still wiping the crust off its eyes and established what now is one of the largest real estate firms in its market.

“there was nothing here,” he says. “there was one supermarket and in terms of housing, you really only had the gantry. but there’s three supermarkets now, and a duane reade and you have this tremendous variety of condominiums.”

one of the biggest draws for new residents is the proximity to midtown-Manhattan--the distance is equivalent to about 15 city blocks--coupled with the feeling that long island city provides the space and solitude to raise a family.

“we’re getting a huge influx of newlyweds,” Mr. benaim said. “years ago people were saying park slope

was stroller-central, but the last couple of years has seen a huge baby boom here,

like everyone decided to come and procreate.”

he noted three day-care centers that have opened recently, with

demand high for more.the beehives on long island city’s

coat of arms suggest its checkered past. they are the symbols of its hard work--the

proverbial “busy bee.”incorporated with Manhattan in 1898 along with the rest

of the outer boroughs, long island city spent the great part of the 20th century acting as a warehouse alternative to Manhattan. factories for pepsi co., chiclet gum, swingline (yes, the staplers), and fisher electronics were side-by-side with countless more that serviced an insatiable Manhattan.

but in the 1970s, most shutdown their smoke stacks,

stunning the area with a severe identity crisis.artists from Manhattan moved into many of the vacant

spaces, which today explains why the area boasts one of the largest concentrations of artist communities and studio spaces in new york city. the most famous, 5 pointz, is a warehouse near courthouse station with one of the world’s premiere graffiti exhibits on its walls.

in 1976, p.s.1 contemporary art center (now a satellite of Museum of Modern art) established its first permanent presence in long island city in the halls of a former public school, attracting a major influx of artists to the area.

today, artist studios still exist in warehouses throughout long island city, anchoring a dynamic creative community even while businesses of a decidedly corporate strip flourish around it.

the noguchi Museum is the most famous testament to the art produced in this neighborhood. the renowned

from worker beeto Queens’ bee

Neighborhood Spotlight

P.S. 1, a satellite of the Museum of Modern Art, hosts its “Warm Up” summer music series (below).

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Page 3: The Observer's Neighborhood Spotlight: Long Island City

observer.com | the new york observer4 July 26, 2010 the new york observer | observer.com July 26, 2010 5

Japanese-american sculptor isamu noguchi purchased a former gas station on vernon boulevard in 1984 to preserve the works he created in his studio just across the street.

the first rays of corporate-light shined down on long island city in 1989, with the erection of the citicorp building in courthouse square. and despite a brief lull in the 1990s, other major companies have followed citi’s journey over the water.

“it’s been a long-term vision for [long island city] to become the fourth central business district in [new york city],” says tracy sayegh gabriel, vice president of development at new york city economic development corporation.

“but [the area] needed a physical transformation of the public realm to realize its potential as a growth center and a place that would attract new development.”

basically, it needed a facelift. Queens plaza was a derelict gateway that served poorly

as a nexus between Manhattan. the city allocated $76 million dollars in streetscapes, open spaces, and pedestrian and traffic improvements for Jackson avenue and Queens plaza and installed new pocket parks, new sidewalks, new benches and new lighting to improve safety.

“it’s an intensely urban place…but we needed to do some things to soften its appearance, to create more of a green oasis amid considerable infrastructure. this vision that we’ve had for long island city for a very long time is really coming to fruition now. we’re realizing this new awakening.”

in 2010, Jetblue, the United nations federal credit Union and cUny law school announced plans to have major presences in long island city, joining citigroup, Metlife and barclays.

side-by-side with these businesses is a boom in restaurants and shopping. vernon boulevard is the neighborhood’s commercial backbone, offering a farmer’s market on wednesdays and some of the best italian food in the city. Joining them are gastro pubs like el ay si on vernon blvd., and the famed cocktail house dutch kills near citicorp building.

early in July 2010, new york city’s largest rooftop garden opened on northern boulevard. the grange brooklyn offers almost an acre of urban farming and estimates it will harvest 16,000 pounds of farm-fresh produce this season (think cauliflower, cabbage, carrots, beans, corn and just

about everything else you’ll need to keep up in our food network culture).

by and large, the most resplendent addition to the neighborhood is the opening of its waterfront, which began in 1998 and is undergoing continued renovations.

the 10-acres of undulating lawn have some of the most dramatic views of the Manhattan skyline and allow for fishing and kayaking on the east river. for the younger, hipper crowd there is water taxi beach, a non-swimming urban oasis where dJs and youthful debauchery make you feel much closer to Miami beach.

when complete, the entire park will total 40 acres.towering over it are some of the newest buildings in long

island city, which proudly offer Manhattan-esque amenities, like concierge and valet.

further east is l haus, an example of a building the offers the same convenience (even a yoga room) for middle-income families.

the condominium complex recently obtained approval for federal housing administration condominium loans, allowing eligible homebuyers to finance up to 96.5% of the purchase price and closing costs.

“it’s increasingly more difficult to get loans so we were really excited by this,” said karen Mansour, executive vice president of marketing at prudential douglas elliman.

“it really opens up a lot of doors for first time buyers to purchase.”

as an indicator of traffic, Ms. Monsour noted that more than 50 people came to look at l haus units in a single weekend. in Manhattan she felt lucky if 20 came, she said.

“it is attractive to Manhattan people who are used to certain stands. they can get those same amenities in long island city in this new chic area. they have great views of the city and there’s no question you’re getting better value.”

the constant force weaving through the streets in long island city is change. it always has been. the area has adapted and conformed to new industry and new inhabitants for more than three centuries.

but the change it has seen in the last five years--the fusion of art, business and high-end housing opportunities--is equivalent to this city’s cinderella story. only this wasn’t magic. it was the product of extremely hard work.

L Haus offers many amenities, including a yoga room.

Socrates Sculpture Park.

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Page 4: The Observer's Neighborhood Spotlight: Long Island City

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Scott walsh, 35, spent eight months this year searching for a one-bedroom condominium in and around Manhattan.

he lived in edgewater, new Jersey, on the hudson river--an area that has thrived in great part because of its front-row view of Manhattan.

Mr. walsh wanted something in a quiet neighborhood with great outdoor space and an easy commute to his office on park avenue.

“i looked everywhere. i looked in the city. i looked in Jersey. it was exhaustive,” he said.

he made several offers on properties that he saw during his hunt but they were all out of his price range. he wouldn’t go above $750,000.

in May 2010, a friend urged him to look at a one-bedroom condominium at the view, a upscale, 20-story building in long island city. the building sits along the east river and has a doorman and a concierge, a fitness room and 184 units that look directly at Manhattan’s eastern face.

he viewed an 825 square-foot unit in early-May with a 1,400 square-foot private lawn facing the water. the kitchen was equipped with top-shelf amenities (a viking range, a subzero refrigerator and a wine

cellar) and had 13-foot ceilings, a walk-in closet and a gorgeous bathroom.

equally important: the commute to his office was a quick 15 minutes, door-to-door. the 7-train, which connects long island city to midtown Manhattan, is notoriously the best Mta offers and moves passengers to and from grand central station whip-fast.

it was perfect for him. in May he made an offer that, to his surprise, was accepted.

for the next 25 to 30 years his monthly homeowners taxes will come to just $9 per month, thanks to an incentive program, and his common charges will be just $862 per month, he said.

long island city’s new luxury and middle-income developments are allowing new yorkers in search of condominiums to have it all: the space, the amenities, the proximity to Manhattan and the reasonable prices. Meanwhile, buyers aren’t being asked to give up anything more than their old zip codes.

“i’m really in heaven here,” Mr. walsh said. “it’s just so perfect for me. i’ve lived in old buildings before and there’s something almost magical about electricity working the way it’s supposed to, about outlets being in the right place, air conditioning getting your apartment to the exact degree. everything here is brand new. it’s been wonderful.”

the view, which opened in 2008, has sold nearly half of its units and sees upwards of 60 lookers each weekend.

“the interesting thing about this project, and generally about long island city, is that there are a lot of people that underestimate Queens,” says eddie shapiro, founder and ceo of new york city based real estate brokerage company nestseekers international.

“we’re seeing a lot of wealth and very sophisticated people that made their money in cash businesses in Queens who are moving here. they’re looking for the best in Queens, and that’s long island city.”

Mr. shapiro partnered with the famed brothers of tf cornerstone, tom and fred elghanayan, to market the view.

“[tom and fred] have always been known for being ahead of the game 5 to 10 years. as usual they’re the first ones to break ground and define this area.”

one of the first great successes of recent real estate development in the area was arris lofts, developed by the andalex group. the building, which perches over the east river, is considered one of the great successes of recent real estate development in the area.

“consumers lined up for arris lofts,”

Mr. shapiro said. “once we recognized the opportunity we said, you know what, let’s be the first guys in the neighborhood.

demand for units remained robust even while other neighborhoods suffered blows from the recession.

“during 2009, and since the beginning of this year, while the recession was taking a toll on the whole city, particularly in the brooklyn waterfront where prices dropped 20% to 30%, demand never stopped in long island city. it never slowed down for even a minute,” said Mr. shapiro

the new buildings coming to market now are the strongest evidence of this.

in June, model showings began at the Murano, 519 borden avenue, which is slated to be a 11-story all-glass building with 76 units ranging in size from 675-square-foot one bedrooms to 1,558-square-foot three bedrooms, and starting at $459,000. already, developers have seen tremendous interest.

real estatedevelopment

Gantry Plaza State Park: a 12 acre river-side oasis with fantastic views.

The only thing we overlook is Manhattan

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Page 5: The Observer's Neighborhood Spotlight: Long Island City

observer.com | the new york observer8 July 26, 2010 the new york observer | observer.com July 26, 2010 9

“we have more than 1000 names on our priority list even before our official opening date,” said andrew barrocas, ceo of developers group, new development division of the real estate group ny, the exclusive sales and marketing firm for the project.

as its name suggests, the Murano will evoke an italian energy, with imported appliances by makers smeg and Miele filling open kitchens. the most prominent

feature of the building’s exterior will be walls of led screens that change color by the hour and can be seen all the way from Manhattan.

in late summer of 2010, 1 vernon Jackson, 10-17 Jackson avenue, will begin showing 33 units priced between $400,000 and $1 million. the condominiums will feature high-end amenities and the added bonus of being located in the throbbing heart of shopping

and nightlife in long island city.also nearby is the wildly successful

l haus, which offers mixed-income condominiums and a wealth of amenities, such as yoga studios, screening rooms and outdoor spaces for barbequing. prices at l haus start at $465,000 for a one bedroom, $635,000 for a two bedroom and $1,310,000 for a three bedroom condominium.

the boutique and ultramodern east of

east, 13-14 Jackson avenue (across from p.s.1), will begin showing models in the coming months. the building will have only 13 full-floor lofts with direct elevator access.

other buildings in the area include solarium, one hunters point, hunters view, ten63 Jackson and the powerhouse, which can visited on-foot in one trip to the neighborhood.

for a complete listing of all the new developments see the streeteasy directory

at the end of this section.by all accounts, the new structures

have paid off. a 2010 mid-year sales report from real estate firm Modern spaces suggests prices have returned to pre-recession figures with sales averaged at $510,000 for one bedroom, $774,743 for two bedrooms and just over $1 million for three bedrooms.

agents across the city agreed that the rental market remains extremely competitive and overly crowded.

one-bedroom apartments in a doorman building average around $2,700 per month while three-bedroom units usually rent for $4,325 per month.

“we have back ups for our back ups,” said eric banaim, founder of Modern spaces. “the market is as strong as some parts of Manhattan. it’s just crazy.”

Silvercup Studios is currently home to NBC’s 30 Rock and WB’s Gossip Girl.

The New York water taxi.East of East.

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Nest SeekersI N T E R N A T I O N A L

Project Marketing Development Sales

TEL. 212.252.8772 I FAX. 212.252.9347

Midtown20 East 49th Street 6th Fl

New York, NY 10017

Eastside415 Madison AvenueNew York, NY 10017

Westside2190 Broadway

New York, NY 10024

Miami1221 Brickell Avenue 9th Fl

Miami, FL 33131

Long Island City47-44 Vernon Boulevard

LIC, NY 11101

Hamptons2415 Montauk Highway

Bridgehampton, NY 11932

Downtown55 Christopher StreetNew York, NY 10014

International415 Madison AvenueNew York, NY 10017

Sage House Condo112-02 Northern Boulevard

The Residences at 36 Gramercy Park East36 Gramercy Park East

John Deco Condominium Lofts 99 John Street

The Victoria7 East 14th Street

The Vere Condominium26-26 Jackson Avenue

The 505505 West 47th Street

West End Condominium314 West 100th Street

The View at East Coast 4630 Center Blvd

www. NestSeekers.com

Page 6: The Observer's Neighborhood Spotlight: Long Island City

observer.com | the new york observer10 July 26, 2010 the new york observer | observer.com July 26, 2010 11

Long Island City NEw dEvELopMENtS

market statistiCs provided by

The table below presents recorded sales data of condos, co-ops and townhouses in Man-hattan and within the upper west side market. data is from March 2008, 2009, and 2010. Overall, the volume of transactions this March have increased since March 2009 but have not yet returned to March 2008 levels. while median and average prices continued to fall in the Manhattan and the overall upper west side market, Manhattan Valley witnessed median price gains since last year.

Long Island City CLoSINg pRICES

NEw YoRK CItY Closed on Closing Count Median price Average price2008Q2 12,732 549,855 890,4842009Q2 8,401 425,000 642,2942010Q2 11,145 449,202 760,3032010Q2 v. 2009Q2 32.7% 5.7% 18.4%2010Q2 v. 2008Q2 -12.5% -18.3% -14.6%

QUEENSClosed on Closing Count Median price Average price2008Q2 3,863 405,000 438,5342009Q2 2,909 346,000 376,4812010Q2 3,476 330,000 497,5722010Q2 v. 2009Q2 19.5% -4.6% 32.2%2010Q2 v. 2008Q2 -10.0% -18.5% 13.5%

LoNg ISLANd CItYClosed on Closing Count Median price Average price2008Q2 90 536,760 658,7362009Q2 82 568,219 599,0162010Q2 71 580,000 614,7602010Q2 v. 2009Q2 -13.4% 2.1% 2.6%2010Q2 v. 2008Q2 -21.1% 8.1% -6.7%

QUEENSSALES tYpE pRICE

Studio $292,000

1 BR $319,500

2 BR $419,000

3 BR $499,000

4+ BR $679,000

QUEENSRENtALS type price

Studio $900

1 BR $1,350

2 BR $1,700

3 BR $1,750

4+ BR $2,900

below is a market snapshot as of july 15, 2010 of what is currently available for sale and rent.

Long Island City CURRENt SNAp Shot

L.I.C.SALES tYpE pRICE

Studio $549,400

1 BR $563,000

2 BR $764,000

3 BR $1,409,000

4+ BR $1,330,000

RENtALS type price

Studio $1,900

1 BR $2,595

2 BR $3,395

3 BR $3,000

4+ BR $4,500

Development name total Units sales office tel Website aDDress blDG. type neW?

casa vizcaya 24 212-508-7457 casavizcayacondos.com 10-40 46 road condo new const.

ten 63 41 212-769-6530 1063jackson.com 10-63 Jackson avenue condo new const.

l Haus 122 718-94-lhaus lhauslic.com 11-15 50 avenue condo new const.

east of east 13 646-450-east eastofeast.com 13-14 Jackson avenue condo new const.

the powerhouse 177 718-472-5009 thepowerhouselic.com 2-17 51st avenue condo conversion

the foundry at Hunters point 57 718-707-0855 thefoundrylic.com 2-40 51st avenue condo new const.

vere 43 718-786-2600 vere26.com 26-26 Jackson avenue condo new const.

41st avenue condos 26 646-756-9561 41stavenuecondos.com 27-16 41 avenue condo new const.

crescent club 119 718-383-0030 crescentclublic.com 41-17 crescent street condo new const.

Queens plaza 66 917-806-0608 aptsandlofts.com 41-26 27 street condo new const.

the view 184 877-lic-7778 livingtheview.com 46-30 center boulevard condo new const.

Hunters view 73 718-361-7800 hunterspointcondos.com 48-15 11th street condo new const.

the prestige 7 646-299-2096 5-01 50 avenue condo new const.

murano 76 718-488-1986 muranolic.com 5-19 borden avenue condo new const.

solarium 36 718-472-0888 solariumlic.com 5-43 48 avenue condo new const.

one Hunters point 131 718-361-7800 hunterspointcondos.com 5-49 borden avenue condo new const.

Q&a with the owners of M. wells

m. Wells, the chrome-shelled creation by husband-and-wife team hugue dufour and sarah obraitis, mirrors a lot of what is going on in long island City these days: nice new things inhabiting old, refurbished spaces. the re-opening of their cable-car diner on 49th avenue (no, not street, or place, or whatever other “49” you find nearby) has seldom caused such a splash. Food blogs have been squawking since dufour (of the famed Québécois pork-shrine au

pied de Cochon) and obraitis opened their dining room on July 6, serving high-end foods like steak-tartar, frogs legs from the everglades, rabbit from kansas side-by-side homemade english muffins that bookend the best sausage-and-egg sandwich we’ve had in a long time.

after lunch service on a leaden Wednesday in July, they talked about opening shop in long island City.

observer: Where are you from, sarah?ms. obraitis: i’m from Queens, a little bit more east than where we are, in elmhurst. but i’ve been here [in long island city] for twelve years.mr. duFour: i’m from 6-hours north of Montreal and i moved here eight months ago. we were together for four years before, so i would come often and i knew the place.

What’s it been like to move to long island City?d: i like it. i’m trying to avoid going to Manhattan for no reason. i’d call it the fifth borough. but crossing the bridge coming back home, it’s like ah, it feels great.

Where did the idea for m. Wells come from?o: at the beginning we were thinking of opening a general store. but there’s a real built in purpose for a diner here. we live around the corner--like we can look into the diner from our apartment--and we just knew how severely in need of this the area was. we didn’t have to change much to conform this.

Why long island City for this restaurant?d: i love Queens. i think we have the most beautiful view of Manhattan. and you can see further than a block away. and i need that, for my sanity.

o: there was no question in looking for spaces in Manhattan or brooklyn, because they don’t need us, and we don’t need them. and it’s also selfish. we wanted to be close to home. we love this area and we really wanted to add here. the developers should hale us as heroes. there hasn’t been something as unique in the area for a very long time.

everyone describes long island City as “up and coming.” how do you describe it, sarah?o: i know that there’s a huge amount of change slated for this area. it’s going to happen fairly organically and gradually. things like malls with trees.

d: i remember like four years ago, the two buildings on the corner [l haus and hunters view] hadn’t even started. and now look. (they are noticeably finished).

do residents eat here?o: of course. all the time. do you know about the grange, by the way?no.o: it’s a rooftop farm and like not just tours. you’ve got to check it out. they produce

for consumption--bushels and bushels of produce. it’s crazy.

someone comes to m. Wells for breakfast and asks where to go for an adventure in long island City. Where do you send them afterwards?o: well, it’s a great place to bike, but even on foot there’s ps1 around the corner. from there you have to take the train to this gorgeous warehouse covered in graffiti of the most spectacular kind. i would really urge you to see that. get out of the train (the 7 train away from Manhattan), see that, then get back on and go to the socrates sculpture park. and then come back and go to gantry park, over by the water park. they’ve done a beautiful job over there. it’s two blocks and they’ve set up some really beautiful things.

d: you can even fish over there. sarah caught a striped bass last summer. but don’t eat it.

Q&a with alanna heiss, founder of p.s.1

alanna heiss, the acclaimed founder of p.s.1 Contemporary art museum and director of art international radio, is like a godmother to long island City. her love of its people and its neighborhoods are downright infectious. her museum, which was founded in 1976 and partnered with moma in 2006, is the city’s hallmark creative space, boasting summer concerts, outdoor gardens and world-class exhibits within. she knows this city’s art scene

better than anyone and on a Friday morning, sipping tea, she spoke over the phone about the city she adores.

observer: When ps1 opened in long island City in the 1970s, what was the area like?alaNNa heiss: really what you’re asking is what was it like in the 70s. and it was actually very, very similar to what you see now. there was a very tight residential community in hunters point. it was almost a secretive community that people loved. and when you move close to the water, you have the brick buildings, townhouses of sorts that were built for mid- to high-level bosses.

there was an early, very romantic, very dramatic figure who was mayor here. i always thought of his name as long John silver, but that’s not it. he was the mayor of what was then a little city and he really drew so many people here with an idea of having a transportation Mecca in long island city. you see that you have an unusual number of subway stops for such a small area. you have the fv, and the number 7, which is the real midtown artery. you have the g that goes to brooklyn, and the long island rail road stop.

did you worry (or feel) like p.s.1 was ever out on at a limb being located where it was?i didn’t worry in the beginning. i didn’t worry at all. i worked in europe for 10 years where museums were dotting the landscape everywhere. so i don’t have the same radar as a new yorker. where are you from?

i’m from los angeles.oh well then as a los angeles boy, ps1 would seem very close to you. but new yorkers

tend to have more of a restriction about going under the water than you’d think they would have. Much, much later we started to worry that it may have been a disservice being located where it was. but the truth is, people always came.

you’ve no doubt seen dramatic change in the neighborhood. What has its evolution looked like? yes and no. you know, the neighborhood in long island city has always been very stable. the neighborhood in soho, on the other hand, where i live, was vastly unstable. places were abandoned down [there] and long island city never went through that stage. people were happy to run these small factories. they had this magic brigadoon situation. so we weren’t looking at an abandoned neighborhood. it was a changing one.

What were some of the big changes?the big change was when citicorp was built. it was anticipated that many would follow, though in truth they didn’t for a long time. the big change has been the development of the waterfront, which is something we’ve been involved with and have been talking about for many years.

are you happy about the development?it’s only good that the waterfront is used. i hope of course it will be a beautiful stretch of waterfront. but it can only be good that it’s used.

people like to describe long island City as “up and coming.” how do you describe it?there’s a very vital flow. the neighborhood has gotten much bigger. it used to be a residence frequently chosen by journalists because they could get around so easily. it’s kind of private. you know you’re kind of in your own village. a lot of writers were there, and a lot a musicians. now it’s shifted and become more centered on the visual arts. but that wasn’t really the question. there’s another expression used in the arts called emerging. we never know what we mean when we use that word. anything could be emerging to you if you don’t know anything about art. Matisse could literally be emerging to you if you’ve never heard about him.

in a less silly context, emerging means an artist who has not yet finished the work. he might be known and appreciated by an important audience, but still not on the scale that he ought to be. by that sense, i think long island city is an emerging neighborhood.

M. well is located at 21-17 49th avenue in long island city. the restaurant will begin its dinner service in late-July. Until then, breakfast and lunch are served from 7am-3pm, Monday-friday. for more information: (718) 425-6917, www.mwellsdiner.com p.s. 1 is located at 22-25 Jackson avenue, l.i.c Queens.

for more information: (718) 784-2084, www.ps1.org sTa

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Page 7: The Observer's Neighborhood Spotlight: Long Island City

observer.com | the new york observer12 July 26, 2010

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