1212 Fifth AvenueFrom the September issue: When the stock market is plummeting and panicked investors are pouring money into gold, it would seem a less-than-prudent moment to predict the next cycle of new residential development in New York City. But despite the economic turmoil, some New York City developers and their consultants are holding fast to the theory that the increasing demand for living space in the city means that it’s a good time to bet on new residential buildings.

“We’re starting to see purchasers willing to pay, if not above-peak prices, pretty close to peak — where they were in the second quarter of 2008,” said Kelly Kennedy Mack, president of Corcoran Sunshine Marketing Group. Developers “are optimistic about future market conditions. … They have a real appetite to jump back in after sitting on the sidelines” during the downturn. [more]

Watch out, New York by Gehry. According to new development marketing guru Kelly Kennedy Mack, the city is about to see a flurry of new, starchitect-designed skyscrapers. In a new video segment by the Corcoran Group, Mack said she believes that because lenders are becoming more willing to finance large projects, the city’s new development sector is about to see a shift back to 60-, 70-, and even 80-story buildings, after a few years of smaller, boutique new developments dominating the market. That shift is likely to “completely transform neighborhoods and really make a huge impact on the Midtown skyline,” Mack said. [more]

Top: Protesters at the REBNY event; bottom, from left: Mary Ann Tighe, Douglas Durst and Rob Speyer

The Real Estate Board of New York’s annual banquet — the most high-profile event of the year for the industry — last night was marred by the shouts of protesters.

A group of about 30 people inside the New York Hilton, where the glitzy event was being held, chanted: “Hey you millionaires, pay your fair share!”

Before being escorted off the property by hotel staff, the protesters handed out fliers stating their opposition to the Committee to Save New York, a group of business leaders formed in support of Gov. Andrew Cuomo’s campaign to oppose tax increases, reduce the size of government and reform Medicaid and pensions for public employees. Donors to the committee include a number of prominent real estate figures, including Tishman Speyer Properties and the Durst Organization. Tishman Speyer’s Rob Speyer is the co-chair of the committee’s board of directors, which also includes REBNY President Steven Spinola and REBNY Chairman Mary Ann Tighe. Tighe, Spinola, Rob Speyer and Douglas Durst all attended the banquet. [more]

From the December issue: The New York City residential real estate market has come a long way
from the dark days of late 2008 and early 2009. But despite the moderate
improvements in the market, succeeding in the current climate remains
far from easy. Many brokers and developers left the industry when the
economy soured, and those that remain have no choice but to be on their
“A” game.
This month, The Real Deal is recognizing people and projects
in the industry who managed to have stellar years despite the difficult
economic conditions. To compile this list, we conducted an online
survey, receiving more than 300 responses. We also got input from
industry experts, gathered data from real estate listings aggregator
StreetEasy, and relied on our judgment as 24/7 industry observers. [more]

Kelly Mack, 36, is president of Corcoran Sunshine Marketing Group.
Specializing in the planning, design, marketing, and sales of luxury
residential developments, the company has generated over $9 billion in
sales since she became president in 2006. Mack earned her MBA at New
York University before joining Corcoran Sunshine, where she became
executive vice president in 2004. Last year, Mack was named the
first-ever Distinguished Young Alumna by New York University.

Which amenities are popular in new buildings today, and how has that
changed over the past year?
Amenities still create value — that
hasn’t changed. The strength of sales at a building like the Rushmore,
one of the most amenitized buildings in Manhattan, demonstrates that new
development buyers still want the complete package. That being said,
are there other developers who are scaling back on amenities during
predevelopment? Some are. 

Compiled by Candace Taylor. [more]

The Real Estate Board of New York’s 114th Annual Banquet was the usual whirl of floor-length dresses, schmoozing and cameos by politicians like Mayor Michael Bloomberg and Governor David Paterson (see slide show above of The Real Deal’s Lauren Elkies interviewing people at the REBNY event, and click here for a Webcast from the night). But for the first time, a woman presided over the event — new REBNY Chairman Mary Ann Tighe, CEO of the tri-state region of CB Richard Ellis, swathed in a sparkling blue gown. Her presence at the microphone, however, didn’t do much to quiet the boisterous crowd, which was just as loud as usual despite the fact that there were slightly fewer attendees this year than last — 2,000 versus 2,300 last year — according to REBNY President Steven Spinola. The crowd’s smaller size didn’t do much to dampen the markedly higher spirits that set this year’s event apart from last year’s. “Last year, this was like a funeral,” said Jeffrey Levine, principal of Douglaston Development, who attended the banquet with his son Benjamin. “We were licking our wounds from the collapse of Lehman. There’s no question everyone tonight is in a much better frame of mind.” [more]

From the December issue: In New York City real estate, buyers have had the upper hand for a
while. With transactions virtually frozen in the wake of last year’s
collapse of Lehman Brothers, sellers grew alarmed, dropping prices and
offering incentives to tempt purchasers. For the first time in a year, however, New York is no longer a
buyer’s market, brokers say. Or at least not the intense buyer’s market
of recent months.
“Neither buyers nor sellers have an obvious upper hand over each
other right now,” said Ric Swezey, a senior associate at the Corcoran
Group.
As the stock market recovered and prices dropped, more buyers –
especially those who put off buying during the financial crisis — came
back into the market, searching for bargain prices. [more]

Buying over renting was a hot topic amongst real estate pros at a panel discussion yesterday, with sales brokers insisting that now is the time to buy. Stephen Kliegerman, executive director of development marketing at Halstead Property, said that locking in a 30-year fixed mortgage rate makes more sense than grappling with mutable rental rates over the coming decades. “The only way to control your lifestyle is to own,” Kliegerman said. He argued that renting a home is akin to putting money into an investment that never returns. “Why would you want to pay off your landlord’s mortgage instead of paying off your own mortgage?” Kliegerman spoke on a panel that was part of a residential real estate event Observer Living, hosted by the New York Observer in the Puck Building on Lafayette Street. [more]