With the real estate market in a slowdown, particularly in markets like Phoenix, Las Vegas and Miami, where the memory of recent boom times has barely had a chance to fade away, perennial bloomers like New York and San Francisco are becoming increasingly appealing bets for luxury developers. W Hotels is no doubt banking on this seemingly unshakable New York real estate market as the opening of its new downtown property at 123 Washington Street approaches.

W New York-Downtown Hotel & Residences, slated to open its doors in 2008, is Starwood’s most recent project in Manhattan, and will bring the number of hotels the company is operating in the city to twelve. It is W’s first foray into whole ownership residences in New York, a move that St. Regis, another luxury brand under the Starwood umbrella, took a few years ago. The 57-story tower features 222 whole ownership units alongside 217 guest rooms, and is located just a block away from the new Freedom Tower. And expect Big Apple prices. After all, this is a city where the average condominium easily tops $1 million.