Mayor Michael Bloomberg and Governors Island

Mayor Michael Bloomberg led the groundbreaking ceremony for the first $260 million worth of developments on Governors Island today, the New York Times reported. The initial renovation phase of the increasingly trafficked island – visitors jumped to a half-million last year from 8,000 in 2005 – will add formal gardens, lawns, play areas and woodlands. But the bulk of the budget will be spent on much-needed infrastructure: repairing 2.2 miles of seawall, building a water-line to Brooklyn, demolishing 18 abandoned buildings and improving electrical and telecommunication facilities. [more]

From the March issue: There are just three units left at Cary Tamarkin’s 11-story condo, which has 22 duplex homes at 456 West 19th Street. The remaining units include one 1,700-square-foot two-bedroom unit with city views to the north and south, as well as two three-bedroom penthouses facing the High Line, each of which has nearly 3,000 square feet of interior space. Prices on the remaining units begin at $2.975 million. Stribling Marketing Associates is the agent. Click here for more.

From the March issue: It isn’t a flood just yet. But observers say the flow of funds from the money spigot for New York real estate deals has intensified in recent months.

And this new stream of lending — which is enabling mostly refinancings, but some developments and acquisitions, too — is coming from many directions, according to bankers, brokers and developers.

Brand-name national banks like Wells Fargo and Bank of America are finally taking risks on a range of projects again. And overseas lenders are even more active than their domestic counterparts.

Money is also coming from government agencies, local banks and insurance companies. In addition, as The Real Deal has reported, commercial mortgage-backed securities, or CMBS, which were shunned by investors through 2009, also appear to be helping projects cross the finish line. [more]

The St. Claire at 2077 Fifth Avenue

From the February issue: The 13-unit, seven-story boutique condo the St. Claire hit the market last month. Residences include two-, three- and four-bedrooms. Available homes range from a 1,074-square foot two-bedroom for $615,000 to a 1,621-square-foot three-bedroom for $925,000. The building features a 2,200-square-foot common roof deck, a media lounge and a children’s playroom. The Developers Group is the agent. Also, Equity Residential topped out construction at its 14-story rental property at 500 West 23rd Street. Architecture firm Gerner, Kronick & Valcarcel designed the building, which is adjacent to the High Line. The project was picked up a year ago by Equity’s chairman, Sam Zell, after construction stalled at the site. Residences will include studios and one-, two- and three-bedrooms. Click here for more.

Rendering

An eight-story, 42-unit condo project at 1635 Lexington Avenue has almost topped off, according to the Harlem + Bespoke blog. The 60,000-square-foot building, which is located near the corner of 103rd Street, is set to have a grocery store in its ground-floor retail space. Once known as the Glass Spire, the building, which is being marketed by Citadel Property Management, according to Streeteasy.com, may see its name changed to Lexington Hill. [Harlem + Bespoke]

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From the October issue: It’s an odd time for new condo development to be making a comeback. The national economy is still in shambles, unemployment is high and getting a mortgage is still no picnic. And yet, industry experts are reporting unmistakable glimmers of life in New York’s long-suffering new condo market, which has struggled mightily since the financial crisis of 2008 and lagged behind the resale market on the recovery front.

Buyers are showing a renewed interest in new developments, brokers say. Suddenly, units in newly built projects — with prices marked down substantially from the boom — are moving faster than expected. [more]

While new condominium developments can be attention-grabbers, real estate experts say that “almost new” condos — those that have been around for about five years — are gaining traction among buyers, according to the New York Times. The economic climate has made some New York City new construction look risky, and many buyers say they aren’t willing to take the leap. [more]

From the February issue: Slowly, Manhattan’s residential real estate market is coming back to
life. When the city’s major brokerages released their fourth-quarter
market reports last month, they revealed a clear jump in activity. The
number of sales in the fourth quarter grew 8 percent from the same
period in 2008 and almost 11 percent from the previous quarter,
according to Prudential Douglas Elliman’s report.
But thanks to the lingering grip of the credit crunch, the vast
majority of those sales were resales in established buildings, not new
developments.
Only 19 percent of closed sales in the fourth quarter were in new
condos, according to Elliman, down from 38 percent in the fourth
quarter of 2008. By contrast, some 58 percent of closed sales in 2006
were in new developments. Meanwhile, Elliman estimated that the “shadow
inventory,” or not-yet-released new development units, may total more
than 6,000.  [more]

A new law would allow developers to renew expired building permits if they adhere to strict safety requirements while their construction projects are on hold, City Council members announced Monday. Currently, developers have only 12 months before their suspended or not-yet-begun construction plans lose their permits, but the new Department of Buildings program would extend that period to four years, provided a detailed safety monitoring and inspection plan is implemented. The program is intended both to aid struggling new developments and to maintain safety in the areas surrounding stalled project sites, said City Council speaker Christine Quinn, who made the announcement. “If these sites are not properly maintained, they can become safety hazards to residents and even havens of criminal activity,” Quinn said. “Our legislation will require enhanced site maintenance while construction is halted and allow projects to avoid delays when economic conditions improve.” A vote on the proposal is scheduled for Wednesday. [Crain’s]

From the July issue: New development condos, places where many buyers once turned a blind
eye to problems, are now emerging as a breeding ground for litigation
over everything from misrepresentation to shoddy construction to unpaid
vendors. When prices were escalating, buyers seldom complained if their
views weren’t as spectacular as they had been promised or if the floors
buckled. The current downturn, however, is now revealing a plethora of
ongoing bad behavior at new developments — problems that, as money runs
tight, are getting worse. Meanwhile, unhappy buyers or stiffed vendors
are much more likely to sue.
“In a bad market, a lot more emphasis is put on honesty,” said
Jonathan Phillips, a senior vice president at Halstead Property.
“People are very concerned about not being cheated.” Comments

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