Developer’s interest gives smaller properties a lift ‘Thor effect’ seen on Coney Island properties” class=”read-more-link”>[more]
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Prices hold steady, though new development lags Q & A: Market nothing to sneer at on Staten Island” class=”read-more-link”>[more]
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Even in a strong market, some top homes aren’t finding takers A herd of white elephants waits around” class=”read-more-link”>[more]
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Not content to let Philadelphia’s significantly lower housing prices sell themselves, a developer in the City of Brotherly Love is using Big Apple brokers to lure New York commuters to its properties. [more]
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Sam Chang, CEO of McSam Hotel, is developing 1,570 rooms in Manhattan’s Financial District, almost half the total rooms proposed for Lower Manhattan through 2009. But that doesn’t seem to be thwarting other hotel developers. McSam supersizes in Lower Manhattan” class=”read-more-link”>[more]
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A look at city’s largest in a ‘Wild West’ business [more]
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Although a diverse crowd of foreign investors has been feasting on New York properties for decades, a new wave of Middle Eastern buyers appears to have an insatiable appetite for the Big Apple’s biggest buildings.
But where does all their cash come from?
Israeli billionaires Lev Leviev and Yitzhak Tshuva have been grabbing headlines lately with their eye-popping buys, joining Middle Eastern players like Dubai’s Istithmar and Kuwait-based Fosterlane Management on the city’s real estate scene. While some of these investors are relatively new to New York, all of them have powerful assets sprinkled around the world.
In short, their reputations — and seemingly limitless coffers — precede them.
“The fact of the matter is, we are talking about investors from the Arab countries, and Israelis, where there is too much cash,” said Dan Fasulo, managing director of Real Capital Analytics, which tracks real estate transactions nationwide.
All that cash comes from a labyrinth of international investments. The companies have holdings in oil, foreign real estate, global finance, construction, diamonds and other lucrative investments.
Leviev: From 7-Eleven to diamond mines
Lev Leviev is one of the richest men in the world. He heads Africa Israel Investments and has been receiving front-page media attention for his high-stakes shopping spree over the past six months. Africa Israel snapped up a 50 percent stake in the Apthorp, an icon on West 86th Street, for $213 million. It also bought the old New York Times building on West 43rd Street for $525 million and the Clock Tower at Five Madison Avenue for $200 million.
Leviev was born in Uzbekistan and has lived in Israel since 1971. With an estimated net worth of $2.6 billion, he ranks 278th on Forbes’ list of the world’s richest people.
Beyond New York properties, Leviev’s empire includes investment companies, a toll highway in Israel, 7-Eleven convenience stores, 1,700 gas stations in America’s Southwest, the swimsuit company Gottex, and shopping malls from Amsterdam to Toronto. Leviev is said to be the biggest owner of real estate in Russia. Through a company called Ascorp, he is also at the top of one of the largest diamond cutting and polishing operations in the world. Leviev runs this operation as a joint venture with the Angolan government.
Alleged labor and human rights abuses at his Angolan diamond operation have raised concerns, however, according to published reports.
Leviev’s security company in Angola, K & P Mineira, controls a 7,000-square-kilometer mining region. The company has been accused of abuses toward civilians who live and work in the mining area.
“Essentially Leviev is the kingpin of the diamond industry in Angola,” wrote Rafael Marques de Morais, who won the 2006 Civil Courage Prize for his efforts to document alleged abuses.
But the Leviev Group of Companies, a partial owner of Ascorp, says it is a participant in the Kimberley Process, an initiative aiming to end the flow of so-called blood diamonds to the West, and has denied the allegations.
“Ascorp assisted in creating and improving transparency in the Angolan diamond industry and created methods and tools to combat illicit trade of diamonds and to reduce as much as possible smuggling of diamonds… [and] to guarantee that diamonds sold by the government are not ‘blood diamonds,’” the company said in a statement.
Leviev is marketing his own brand of particularly large diamonds that have average sale prices of around $20,000 per carat. In late May 2006, Leviev Diamonds opened a store on Old Bond Street in London a few doors down from Tiffany & Co. and Cartier. Another store has been slated for New York, at 698 Madison Avenue near 62nd Street.
Calls to Leviev’s operation in the U.S. were not returned.
Elad: The fortune behind the Plaza Hotel’s owner
Like Leviev’s company, fellow Israeli firm Elad Properties is no stranger to criticism, at least in New York. When Elad bought the Plaza Hotel for $675 million, it incurred a firestorm of protests from preservationists and labor leaders by shuttering the landmark and remaining vague about its condo conversion plans.
While the Plaza’s transformation since the 2004 deal has played out in public, not as much is known about Elad, which is itself a subsidiary of the Delek Group, a publicly traded Israeli company.
Yoav Oelsner of Cushman & Wakefield, who worked on the sale of the Plaza Hotel, said Elad is open about its holdings and that the firm has made money mainly through real estate transactions in other countries. “The U.S. will not allow any dirty money to come in,” said Oelsner. “But mostly we care that our buyers are coming to the table with the necessary amount of money to close the transaction,” he noted.
Yitzhak Tshuva, the 58-year-old owner and founder of Elad (the company is named after his 26-year-old son and heir), is a self-made billionaire who made his fortune in real estate. Delek also operates gas stations and has interests in car dealerships, cable television, insurance and energy companies.
Tshuva, whose assets are thought to be around $4 billion, is listed at No. 214 on the Forbes list of the world’s wealthiest people.
The company’s biggest New York deal has been the Plaza conversion, which will leave the 1907 classic with 152 upgraded hotel rooms, 182 condos and 160,000 square feet of retail space. The historic Grand Ballroom, Palm Court and Oak Room will be retained and refurbished. Last month, Elad announced a sale in the building for more than $50 million, the highest price ever paid for a New York City residence.
The company also has a real estate presence in Las Vegas. It recently spent $1.2 billion to acquire the 34.5-acre New Frontier Hotel and Casino property there. Capitalizing on the Plaza Hotel brand, Elad has plans to convert that space into a massive $5 billion project with a 3,500-room hotel, along with a convention center and high-end hotel-condo residences.
Istithmar: A big player moves from commercial to hotels
Istithmar, part of the Dubai World group, an investment house wholly owned by Dubai’s royal family, also played a role in some of New York’s biggest recent real estate deals.
In April 2006, it bought 6 Times Square for $300 million. Last summer it spent $1.2 billion on 280 Park Avenue and $600 million on 450 Lexington Avenue. When Istithmar recently sold 280 Park Avenue to Broadway Partners, many analysts wondered if it did so at a loss.
“They have been really tight-lipped, and no one is really sure what their strategy is,” said Fasulo.
The Persian Gulf-based entity has also moved into hotels. It bought the W Hotel Union Square for $285 million, the Knickerbocker Hotel for $300 million and the Mandarin Oriental hotel in the Time Warner Center for $278 million. It also has its name on the former Essex House, a pillar of Central Park South.
“I am not sure it is appropriate to make a blanket statement that they are exiting the office [market],” said Craig Evans, senior managing director at Colliers ABR. “If they had better opportunities in another segment in the market, or if they believe prices are peaking out right now, why not sell?”
More likely, the moves are signaling the company’s belief that hotels and resorts are the way to go. Calls to Istithmar were not returned.
Outside of New York, the firm is involved in myriad business ventures that help fund its buys in the city.
In April 2006, the company started Istithmar Hotels FZE, a hospitality and leisure investment group. Its portfolio includes golf resorts, a portion of the Atlantis chain of hotels, and the Middle East, North Africa, India and Pakistan franchise for EasyHotels. Istithmar also announced plans to expand the W Hotel brand throughout the world.
When Istithmar Hotels was launched, CEO Muneef Tarmoom gave some clues about the group’s direction.
“Our idea in the hotel sectors is to focus our hospitality-related investments at the very top end as well as the budget end, eschewing the mid-market hotel sector, which we believe to be highly competitive and generally lacking innovation,” he said.
Istithmar’s investment portfolio isn’t limited to real estate and hotels. Istithmar is in the process of buying retailer Barneys New York. The investment house also has strong holdings in financial services, including Sharia-banking houses, which incorporate Islamic financial practices (Muslims are not supposed to borrow money, so these banks find ways for them to do so while observing religious law), health services and education.
Last year, the company began expanding into new areas of growth, investing $15 billion in the Dubai Aerospace Enterprise, a $1 billion stake in international bank Standard Charter PLC and a $480 million interest in Metromedia International Group in Georgia, Eastern Europe. They have also placed $100 million in the $2 billion private equity fund of Perella Weinberg Partners.
Fosterlane: big bucks from Kuwait
Like Istithmar, Fosterlane Management has been an active buyer of New York City real estate — getting its money from the Kuwaiti government.
Since 1983, the government of Kuwait has been investing primarily in U.S. real estate through Fosterlane.
However, starting in 2004, Fosterlane started selling off its U.S. real estate. Analysts say the company has been moving its cash to real estate investment funds.
In 2004, Fosterlane sold the Lipstick Building, at 53rd Street and Third Avenue, to Tishman Speyer for between $235 and $300 million. It also sold two large commercial office buildings in Chicago and one in Connecticut.
Then, last November, Fosterlane sold the 538,000-square-foot 350 Park Avenue to Vornado Realty Trust for $542 million, or more than $1,000 a square foot.
The conglomerate’s strategic shift leaves market watchers unsure of its next moves. Calls to Fosterlane’s Atlanta offices, and to previous employees of the company, were not returned.
Not unlike national buyers
While these big international buyers have lots of money to spend in New York, they still have to pony up for their buildings in the same way domestic buyers do, with 5 to 10 percent down and the remainder financed by an international bank. Because so many international banks have a U.S. presence, and because the Middle Eastern companies have deep assets, obtaining U.S. financing is not difficult.
“They are buying deals like any other domestic investor, and they bring a portion of the equity to the deal as needed,” noted Oelsner of Cushman & Wakefield, who said that “99 out of 100 international buyers are already real estate investors in their home country.”
Amid the boom in New York, every foreign buyer knows one iron law of a boom market: Money talks and creates a level playing field here.
“What is so great about the U.S. or New York is that any foreign investor can come to the city, and he can be treated as equal,” said Oelsner. “You do not need to know the mayor or the governor; it is open to everybody, and the regulations apply to everyone — the locals and the foreigners.”
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Developers selling hotels upon completion [more]
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Downtown tower gaining cachet similar to prime Midtown office space [more]
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Leasing activity drops off by 26 percent [more]
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The condo market is losing steam, which may prompt more developers to earn advanced degrees in building student housing. [more]
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Commercial, residential investors cash in on Downtown’s resurgence [more]
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Big retailers keen to enter city or expand locations [more]
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Roosevelt Hotel may fetch $1B
The 1,013-room Roosevelt Hotel, which takes up a full block between 45th and 46th streets and Vanderbilt and Madison avenues, may sell for as much as $1 billion, the New York Post reported. With air rights, the hotel site could support a tower of up to 1.5 million square feet. An investment arm of the Pakistani government, PIA Investments, owns the property and has recently put it on the market. Cushman & Wakefield is handling the sale.Sheraton Manhattan on the block
The 665-room Sheraton Manhattan at 790 Seventh Avenue is being marketed for sale and could fetch as much as $850,000 per room, or $565 million, the New York Sun reported. The hotel, located at West 51st Street, also includes retail space and a 94,000-square-foot garage.Grand Central air rights could trade
Argent Ventures, which bought the land under Grand Central Terminal and all its unused air rights last year, may soon sell some of those air rights to property owners near the landmark transit hub, the Post reported. The air rights could be worth $250 to $800 per foot, which puts their price between $375 million and $1.2 billion. Broadway Partners, for example, may seek to buy air rights from Argent in order to more than double the size of 237 Park Avenue. Broadway’s 21-story office tower, which it purchased for $1.18 billion earlier this year, could be built to more than 50 stories if it had another 700,000 feet of air rights.Lots of prime development sites hit market
The group that bought Central Parking earlier this year is selling many of its lots as development sites, including six in Manhattan, the Post reported. The properties — at 12 West 48th Street, 332 West 44th Street, 430 West 37th Street, 159 West 48th Street, 138 East 50th Street and 135 East 47th Street — comprise 1,200 spaces and 650,000 buildable square feet. Cushman & Wakefield is marketing the properties, which could fetch between $250 and $300 million.Forbes selling Downtown HQ
Forbes is selling 60 Fifth Avenue, its headquarters since 1965, and plans to construct and move to a new Manhattan building, the New York Observer reported. The media company says it’s making the move because it has outgrown 60 Fifth. The 145,000-square-foot office building is likely to fetch around $140 million. Cushman & Wakefield is handling the sale.58th Street office building asking $120M
An office building at 1414 Sixth Avenue, on the corner of 58th Street, is on the market for approximately $120 million, the Post reported. Current owner APF Realty paid about half of what it is now asking for the Class B building, or $60.2 million, when it purchased it from SL Green in 2005. Darcy Stacom of CB Richard Ellis is marketing the property.Kushner selling Uptown apartment buildings
Kushner Companies is selling 24 walk-up buildings in Harlem, Washington Heights and Inwood, the Observer reported. The Uptown 500 portfolio, which comprises 496 residential apartments and two retail units, is expected to sell for more than $70 million. Shimon Shkury, Michael Tortorici and Christopher Lefferts of Massey Knakal are handling the sale.Carroll Gardens rental building on the block
The 60-unit apartment building at 204 Huntington Street, at the corner of Smith Street, is on the market for sale with an asking price of $32.5 million. Plans for a condominium conversion were submitted in 2004, but the building is now being marketed as a rental. It includes six two-story townhouse units with private yards. Robert Knakal and Ken Freeman of Massey Knakal are handling the assignment.Tribeca loft building on the market
An eight-story loft building at 8 Beach Street, between Varick Street and West Broadway, is on the market for sale with an asking price of $15 million. The building has three commercial units on the lower floors and five full-floor residential lofts on the upper stories. John Ciraulo, Peter DeCheser and Craig Waggner of Massey Knakal are handling the sale.Jackson Heights development site for sale
A 10,000-square-foot development site at 100-13-21 Northern Boulevard, between 100th and 101st streets in Jackson Heights, is on the market for sale with an asking price of $10.5 million. Plans have been proposed for an 82,000-square-foot medical condo. Swain Weiner of Massey Knakal is handling the assignment.Devonshire House hits the market
The 15-story, 145,000-square-foot Devonshire House at 28 East 10th Street is on the sales market. The Emory Roth-designed building has 131 residential units and 10 retail units. Eric Anton and Ronald Solarz of Eastern Consolidated are marketing the property. -
Residential Market Report [more]
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Detailed renderings of unbuilt properties have proved themselves effective aids to selling new developments, but now these computer-generated perspectives of the possible are being used to promote units that already exist — and may seem impossible to sell.
“Renderings allow you to simulate a hyper-realistic image in a way that illustrations cannot,” said Santiago Felippelli Conway, director of Bridger Conway, a global branding agency that does 3-D visualization.
Some agents are using virtual imaging to sell raw space, and others are starting to use renderings for existing buildings where units are in the midst of massive renovations.
As with developments that are not yet built, renderings allow apartment hunters to envision what a blank slate could look like if there were walls, rooms, window treatments, furniture and even tchotchkes. And when done well, it can be easy to mistake a virtual image for a photograph.
“It doesn’t matter what you say and how much you paint the picture to a buyer, there’s nothing like a visual to help explain what it is,” said Deanna Kory, a senior vice president at the Corcoran Group who has used renderings for sales in existing buildings.
Kory used a series of renderings to sell five one-bedroom apartments combined as a single unit in a co-op at 245 West 104th Street.
“It was a huge blank slate,” she said, adding that the renderings cost her at least $10,000.
Before this technology was available, brokers had to make do with what they had. Kory sold a raw space at 161 West 86th Street using an existing floor plan with a proposed floor plan laid on top. She put tape around apartment walls where doors would be and tape on the floors to show the shape of rooms.
Whether virtual imaging actually works to increase sales is hard to gauge, but as a marketing tactic it can certainly drum up interest.
“Most buyers, unfortunately, do not have an imagination, and it’s very difficult for them to visualize,” said Jacky Teplitzky, an executive vice president at Prudential Douglas Elliman.
And today’s buyers and sellers expect much more from their agents.
“I think that we all have to become more sophisticated in the way that we sell,” Teplitzky said.
Part of what is increasing interest in rendering raw space or space under renovation is that people are getting accustomed to relying on high-tech computer-generated renderings to purchase apartments in new developments.
The costs of renderings vary. Bridger Conway charges between $3,000 and $7,000 for each one. Sometimes the broker pays for it, and sometimes the broker’s client pays.
A penthouse sponsor condo unit in the former McBurney YMCA building at 213 West 23rd Street languished on the market for two years, until the seller turned to the boutique development marketing company Core Group Marketing for assistance. Core used traditional marketing methods for three months, but to no avail.
Though there was “some [potential buyer] activity, the images [of the raw space] were doing nothing for the property,” said Shaun Osher, the founder and CEO of Core.
Core paid $4,000 for a digital image of the living room, illustrating wooden floors, foliage, window treatments, furniture, artwork, a vase with flowers and even sunlight streaming in.
Within 10 days of Core displaying the rendering, the apartment sold for $7 million, $500,000 over the asking price.
The cost can be prohibitive, so staging — virtual or even live — may seem like a less expensive option, but it is not the same thing as a rendering. And staging is only possible if an apartment is already built out.
“Renderings and virtual staging are related,” Philip Kent Kiracofe, executive vice president of sales and marketing at Century 21 NY Metro, said in an e-mail interview. “The first step is to create a rendered version of an apartment or room before the virtual staging can take place. The rendering is generally a blank slate, like walking into an empty condo. Virtual staging is the art form whereby a designer can create a beautiful layout, one or many, using the blank rendering.”
The same is true for buildings where the facades remain intact but the space inside is being radically renovated or is an empty shell.
Jane Bayard, executive vice president and director of sales at Warburg Realty, had a rendering done for an eight-room co-op in a Park Avenue building. The owner had started renovating, including tearing down walls, and then sold the unit before the work was done.
Bayard didn’t actually use the rendering in the end since it came out poorly, but she said she’d use the same approach again.
“I think it’s a very unique way to launch and market a resale apartment,” said Sharon Held, a senior vice president at Corcoran who uses renderings.
“I don’t know why it hasn’t caught on,” she added, in the sale of existing homes. “When it’s empty, your eye goes to the worst wart.”
Held said she used a rendering to market a 4,800-square-foot work-live artist’s loft in a cooperative at 106 Spring Street. The space was barren except for a bathroom and kitchen that had not been renovated in a couple of decades.
As of mid-July, Held was negotiating a contract for the space. The asking price was $5.125 million.
One drawback of using renderings is that people have different visions of what the unit should look like.
“You cannot cater to everyone’s needs,” Teplitzky said. “It’s very difficult to pinpoint what is the absolute best use of the space. It’s just an idea.”
She used a virtual image to sell a loft at 345 Grand Street, a four-unit conversion on the Lower East Side that hit the market in 2005. The rendering cost $3,000, and the unit sold in 2006 for the full asking price of $1.85 million.
The seller had bought the unit from the developer in 2005 for $1.35 million and opted to sell the unit the following year rather than move in.
“I think that without that it would have been very, very difficult,” she said.
The bottom line is that renderings are a way to put your best foot forward, particularly on the Web, a key marketing tool. “In everything you do you create an illusion, and I don’t think this is different from every product you sell,” Teplitzky said.
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Bulk purchases make up big part of new development sales [more]
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This month, Tracy McNamara drops in on open houses in Harlem [more]
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Few requests for fixer-uppers as preferences shift to new development [more]
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Initiatives under way to increase shared listings on Long Island’s East End [more]
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Conservative design joins edgy neighbors in West Village
[more] -
In current market, a 20 percent profit margin elusive for developers [more]
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Builders pair with ferry operators to guarantee stops [more]
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How the Big Apple, global cities rate in skyscraper construction NYC vs. the world in race for tallest buildings” class=”read-more-link”>[more]
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New projects to bring about 1,000 units to Tribeca area 146 Chambers adds more beds to new condo row” class=”read-more-link”>[more]
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Forest Hills
Novo 64
64-05 Yellowstone Boulevard
The Horizon Group is developing the 93-unit condominium located just west of Flushing Meadows Corona Park in Queens. Units range in size from 640-square-foot studios to 2,300-square-foot townhomes. Andres Escobar designed the interiors. Prices for available one-bedrooms range from $455,000 for 719 square feet to $750,000 for 1,629 square feet. Completion is slated for spring 2008. Triumph Property Group is the exclusive marketing and sales agent. Contact: www.novo64.com.Harlem
At the Noble
237 West 111th Street
Vargas Realty’s eight-story, 16-unit condominium will be half market rate and half affordable. Most of the units will be two-bedrooms, and plans also include two three-bedroom penthouses. The penthouses will have terraces and unobstructed views of Central Park. The market-rate apartments are expected to sell at around $750 per square foot. The Corcoran Group is the exclusive sales and marketing agent.Long Island City
Hunters View
11-15/19 49th Avenue
Simone Development’s 12-story, 73-unit project will offer one- and two-bedroom homes ranging in size from 640 to 1,240 square feet. Prices run from $400,000 to $870,000. Amenities include private rooftop space. Completion and occupancy are scheduled for June 2008. Brown Harris Stevens Project Marketing is the exclusive sales and marketing agent.Lower Manhattan
45 John Street
Sales are under way for the 14-story, 84-unit luxury condominium conversion developed by Manhattan Capital LLC with RREEF Opportunity Fund Group. The building’s one- and two-bedroom lofts will range in size from 590 to 1,360 square feet, with prices running from $660,000 to more than $1.9 million. The conversion is scheduled to be completed in 2008. Contact: www.45john.com.Lower Manhattan
95 Wall Street
After announcing conversion plans for the office tower and subsequently canceling them, the Moinian Group confirmed that the 500,000-square-foot building will become a 507-unit luxury rental. Amenities will include a fitness center, lounge and outdoor deck. Occupancy is expected in 2008. Moinian acquired the building in 2004 for $130 million.Midtown
11 West 53rd Street
The development team of Hines Interests and Whitehall Street has commissioned Jean Nouvel to design the 60-plus-story mixed-use tower. Plans include luxury condominiums. The 17,000-square-foot site, which was purchased for more than $750 per buildable square foot from the Museum of Modern Art, will also contain office space and a 75,000-square-foot extension of the museum, according to the Slatin Report.Midtown
The Centurion
33 West 56th Street
The first ground-up residential project designed by I.M. Pei and his son L.C. Pei will have 48 units priced from $1.9 to more than $10 million. The 19-story building, developed by Stillman Development International and Antonio Development, will offer one- to four-bedroom units ranging in size from 750 to 3,400 square feet. SLCE Architects designed the interiors. Contact: www.centurioncondominium.com.Midtown East
10 United Nations Plaza
Zeckendorf Development LLC purchased the site at 823 First Avenue from Macklowe Properties for $160 million with plans to build a luxury condominium. Zeckendorf will demolish a two-story building and build a 242,000-square-foot condominium with a 20,000-square-foot footprint.Ozone Park
86-43 90th Street
The three-story building — located just west of Woodhaven Boulevard in southern Queens — will be one of the first condominiums in a neighborhood of predominately single-family homes and rentals. The nine one-bedroom units range from 700 to 800 square feet in size, with prices running from $300,000 to $380,000. Occupancy is expected to begin later this summer. The Square One Group is the exclusive marketing agent. Contact: 212-796-5010.Soho
Mulberry Views Condominium
180 Hester Street
The seven-story, four-unit condominium consisting of floor-through apartments and duplexes will be available for occupancy late this summer. A keyed elevator opens directly into each apartment, and all residents will have access to the roof deck. Prices start at $800,000. Warburg Marketing Group is the exclusive marketing and sales agent. Contact: www.warburgrealty.com.Construction Update
Downtown Brooklyn
Center at Albee Square
Acadia Realty Trust and MacFarlane Partners’ revised plans for the project include a scaling down from 1,000 to 650 rental apartments, 20 percent of which will be affordable housing, the New York Observer reported. The development will also include 125,000 square feet of offices and a 475,000-square-foot mall.Dumbo
Dock Street and Water Street
Two Trees Management will apply for rezoning approval to build a mixed-use complex that includes rental apartments, retail space and a public school. The $200 million development would include 400 apartments, including 80 affordable rentals. Plans also call for 10,000 square feet of retail and a 40,000-square-foot school. The proposed project, designed by Beyer Blinder Belle, would be a LEED-certified green building and constructed to minimize obstruction of Manhattan and East River views from the neighborhood.Hunts Point
1140 Tiffany Street
Atlantic Development Group recently purchased the 18,750-square-foot South Bronx parcel for $2.5 million. The company plans a residential building on the site, which allows for 65,000 to 75,000 square feet of ground-up construction.Long Island City
One Hunters Point
5-43 Borden Avenue
Construction is under way for Simone Development’s 12-story, 131-unit luxury condominium. The project will contain one-, two- and three-bedroom residences, most of which will have private outdoor space. Prices range from $371,000 to $1.1 million. Newman Design Group is the architect. Brown Harris Stevens Project Marketing is the exclusive sales and marketing agent. Completion and occupancy are expected in June 2008.Lower Manhattan
50 West Street
Time Equities’ plans to develop a 63-story hotel-condominium tower have been approved by Community Board 1, CityRealty.com reported. The project will have 259 residences and 155 hotel rooms. The ground floor will have an art gallery, restaurants and retail. Gruzen Samton LLC and Helmut Jahn of Murphy/Jahn Architects of Chicago designed the project.Financing
Astoria
The Piano Factory
31-01 Vernon Boulevard
Meridian Capital Group has arranged $34.85 million in construction financing for developer TTW Realty’s mixed-use condominium conversion of the Sohmer & Co. Piano Factory Building. The six-story, 100,000-square-foot warehouse will be converted into 69 condominium units and 9,200 square feet of ground-floor retail space. The landmark warehouse, built in 1886, was most recently home to the Adirondack Chair Factory.Riverdale
Riverdale Avenue
Hudson Realty Capital has arranged $6.75 million in acquisition and pre-development financing for two seven-story condominium towers. The 53-unit project will offer one-, two- and three-bedroom units, and it will include 36 parking spaces. The developer, Q-Real Estate Partners, purchased the adjacent parcels, which total 19,380 total square feet, with the foundation already in place.Sales Update
Dumbo
99 Gold Street
The 88-unit condominium conversion has begun leasing units. Studio, one- and two-bedroom units, which range in size from 600 to 1,300 square feet, will rent for between $2,000 and $6,000 a month. Amenities include a basketball court, private gym and rooftop terrace. The new development marketing division of aptsandlofts.com is the leasing agent. Contact: www.99goldstreet.com.Gramercy
Gramercy YOO by Starck
340 East 23rd Street
The 21-story, 207-unit condominium was more than 65 percent sold as of mid-July, within two months of sales. The project was designed by Yoo by Starck, Philippe Starck’s residential design collaborative. Victor Homes Development is the developer; GKV Architects is the architect. Shvo Marketing is the exclusive marketing and sales agent. Contact: www.gramercystarck.com.Harlem
111 Central Park North
The Athena Group’s 19-story, 48-unit luxury condominium was more than 70 percent sold as of mid-June, according to the New York Sun. The remaining two- and three-bedroom homes are priced between $1.5 and $8.5 million. The project is scheduled to be completed in September 2007. Halstead Property is the sales and marketing agent. Contact: www.111centralparknorth.com.Riverdale
Solaria
640 West 237th Street
The 20-story, 65-unit condominium recently opened a furnished model two-bedroom residence. The project contains one- to five-bedroom units starting at $660,000 that are expected to be ready for occupancy this summer. The Marketing Directors Inc. is the exclusive sales and marketing agent. Contact: www.solariariverdale.com.Times Square
The Platinum
247 West 46th Street
SJP Residential’s 43-story, 220-unit luxury condominium was more than 50 percent sold by the end of June, within three months of sales. Available units range in size from 600-square-foot studios to 3,500-square-foot duplex penthouses. Residences are priced from the $800,000s to $7.5 million. The Marketing Directors Inc. is the exclusive sales and marketing agent. Contact: www.platinumnyc.com.Upper East Side
The Lucida
151 East 85th Street
By late June, Extell Development’s 18-story, 110-unit condominium was 69 percent sold, the New York Post reported. Since the sales office opened, the LEED-certified project’s two- to five-bedroom homes have undergone four price amendments. The units, which range in size from 1,440 to 3,500 square feet, are currently selling for an average $1,953 per square foot. Completion is slated for early 2009. The Corcoran Sunshine Marketing Group is the exclusive sales and marketing agent. Contact: www.thelucida.com.Upper West Side
10 West End Avenue
The 33-story, 173-unit condominium developed by Apollo Real Estate Advisors and Cambridge Development and Construction was more than 80 percent sold as of mid-June. The building’s one- to four-bedroom homes range in size from 750 to 2,600 square feet. The Sunshine Group is the exclusive sales and marketing agent. Contact: www.10wea.com.Upper West Side
15 Central Park West
As of late June, the 201-unit condominium was sold out, according Barron’s. Sales in the Robert A.M. Stern-designed building totaled $1.8 billion. It is estimated that residents could resell their homes for 30 percent more than what they paid.Upper West Side
The Element
555 West 59th Street
The 35-story, 198-unit condominium was 75 percent sold by mid-June. The project was developed by Brack Capital Real Estate, Coalco International and Continental Ventures Realty, and it was designed by SLCE Architects. The building’s one- to four-bedroom homes are priced from around $850,000 to $6.5 million. Occupancy is slated for fall 2007. Corcoran Group Marketing is the exclusive sales and marketing agent. Contact: www.elementcondominium.com.Development in Brief
Manhattan (north to south)
22 Renwick Street
Philip Johnson/Alan Ritchie Architects proposed a design for the 12-story condominium, Curbed.com reported.Brooklyn (north to south)
37-45 Bridge Street
The seven-story commercial property in Dumbo was recently sold for $13.5 million. Plans have been approved for a residential conversion.192 Water Street
The four-story warehouse in Dumbo recently sold for $5.7 million, with approval from the Board of Standards and Appeals to be converted to a residential building.111 3rd Street
The Hudson Companies purchased the development site in Carroll Gardens for $7.8 million with the intention of building a collection of townhouses. The site can support 46,700 square feet of development. -
Big new development projects around New York City Condos in the Country” class=”read-more-link”>[more]
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Development director of Alexico Group, a development company formed by Izak Senbahar and Simon Elias, where she has worked since July 2006; co-chairwoman and founder of Sundezio, a global online media company that Sunshine started with her son, Paul Sunshine, in December 2006; and founder and former CEO of the Sunshine Group, the real estate marketing and sales company that was bought by NRT in 2002 and merged with the Corcoran Group.
What is your full name?
Louise Mintz Sunshine.
What is your birth date?
December 2, 1940.
Where do you live?
Palm Beach, Florida; Roxbury, Connecticut; and I maintain a pied- -terre at One Beacon Court [at 151 East 58th Street, at the top of the Bloomberg Tower, a building she marketed while at the Sunshine Group].
Where is your office?
I have an office at Alexico. I have an office at Sundezio, but my real love is my kitchen. Right now I am actually working from my kitchen. I call it “my kitchen cabinet.”
What was the first job you ever had?
The first job I ever had was with Donald Trump. [She was executive vice president of the Trump Organization between 1975 and 1985.] He turned out to be the greatest teacher I ever had, and I probably turned out to be one of his greatest students.
Did you have any jobs earlier in your life?
I never worked a day in my life before that.
What did you want to be when you grew up?
A wife and a mother.
What’s something people don’t know about you?
I guess they don’t know that I’m shy and insecure.
How do you cover it up?
By being bold and outspoken.
What is the best piece of advice you have received?
To always be honest with myself and everybody else around me.
Who’s the boss at home?
Do you think somebody has to be the boss? I think second marriages are collaborative relationships. [Sunshine is on her second marriage; her husband, Martin Begun, is on his first.] Nobody has the upper hand.
What one word would you use to describe yourself?
Intuitive.
What word would other people use to describe you?
Determined.
How do you deal with antagonists?
Ignore them.
How much money is in your wallet right now?
About $260.
Do you earn as much money as you’d like?
That’s a hard question. Probably not.
What do you read every day?
The New York Times, the Wall Street Journal, the Financial Times and everything I can get my hands on.
What’s the last book you read?
“Brandscapes: Architecture in the Experience Economy,” by Anna Klingmann. I’m just finishing it now. I find it extremely interesting. Anna Klingmann wrote a beautiful inscription to me [in the book]. It says: “To Louise: I am dedicating my first copy of this book to Louise Sunshine, the founder of brandism in architecture. Best wishes, Anna.”
What do you have on your night table?
I have baby orchids in a beautiful Daum vase. I have photographs of my children, my grandchildren, my husband and my dogs.
How did you start your day today?
I awoke at 5:30 a.m., and I went down to the fitness center at One Beacon Court where I worked out for one hour with my trainer and physical therapist. She has also given me therapy for my frozen shoulder, which is a real pain in many different ways. I took my two loving dogs, Sundance and Domino, for a one-hour walk. They are twin Lowchens and will be four on my birthday. They’re adorable and love unconditionally. Even picking up their poop is just a pleasure for me because they’re just fantastic. I mean, the process of picking up their poop and giving them a treat is fun.
Do you cook?
I don’t eat at home. Do you know that I got a notice from Con Edison that said they’re going to turn off the gas because I’ve never turned on my stove? I must say, however, that I am hiring a chef who cooks organic foods in the hopes that I will eat at home once in a while.
Where do you eat?
I’m taking this diet pill called Acomplia. It completely makes you lose your appetite. I’ve lost 30 pounds in the past two months. It’s not approved here by the FDA, but my doctor greatly recommends it. [And] I will have a delicious dinner tonight at Le Cirque with my husband.
Do you have anything in your refrigerator?
Coffee, yogurt, Diet Coke, bottled water, apricots, carrots and dog food — oh, and cottage cheese. Know what I do have a lot of in my house, though? Webkinz [a stuffed animal with a virtual life on the Web]. I have the two most luscious grandchildren, and they are members of the Webkinz club. Wherever I go, I collect Webkinz for them, and I have one whole closet in my house full of them.
Do you watch television?
Not much. I watch anything that helps keep me apprised of global issues. I watch a lot on the History Channel, and I watch the news.
How about any shows for entertainment?
“Desperate Housewives.”
What do you like about the show?
I was once one of them… Been there, done that.
Interview by Lauren Elkies
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Web sites popularized by teens now used by big names [more]
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From his rooftop garden on Central Park West, the Corcoran Group’s Robby Browne can see the roses, gardenias and lilacs he cultivates as well as the blossoming Upper West Side neighborhood he has helped nurture.
For 20 years, Browne has been a unique figure in Manhattan’s real estate world, known for his charm, love of storytelling and penchant for riding a bicycle to showings — and for his success as a broker.
Recognized as one of the city’s top sales agents, with a team of brokers once ranked among the nation’s 10 biggest sellers, Browne set a record in 2003 when he swung a $42.5 million deal for a penthouse unit at One Central Park in the Time Warner Center.
It was the highest-price residential sale in Manhattan at the time, a distinction it held until 2006, when it was topped by a $45 million penthouse sale at 15 Central Park West. [That record, in turn, was broken by the sale of a seventh-floor condo at the Plaza, which sold for more than $50 million last month].
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Atlanta
The inventory of unsold homes in the greater metro Atlanta area skyrocketed in every county between May 2006 and May 2007, the Atlanta-Journal Constitution reported. Suburban Cobb County had an eight-month supply of homes on the market, a 21 percent increase from a year ago, while Rockdale County saw a 70 percent increase in inventory from the previous year to more than a one-year supply. Still, there may be cause for optimism: Metro Atlanta is gaining about 500 new residents every day.
Cushman & Wakefield is relocating from One Atlantic Center in midtown Atlanta to the Allen Plaza project at 55 Ivan Allen Jr. Boulevard in downtown. The move is another indication of downtown’s growing appeal as a business center, boosters say. The commercial real estate company will be moving its 110 or so employees into its new headquarters in the spring, the Atlanta-Journal Constitution reported. Barry Real Estate Cos. is developing the nine-block mixed-use Allen Plaza project, which calls for more than 2 million square feet of Class A office space. Investment in the development is projected to reach $1.95 billion.
Boston
After peaking in 2005, home prices continue to slide in counties north of Boston, the Boston Globe reported. The number of single-family home sales in Essex County dropped 3.9 percent from January to May, the most recent figures available, while the median price declined 2.8 percent to $343,000, according to data compiled by the Warren Group. Home sales throughout Massachusetts fell 2.9 percent, while the median price fell 3.6 percent to $313,000. A bright spot was Gloucester: The city saw its median home price rise to $412,500, a 17.5 percent increase from January to April.
The long-stalled Waterside Place development on the South Boston waterfront was approved in late June by city officials. Developer John Drew, president of Drew Co., is heading the 1.1-million-square-foot project, which will include an urban shopping plaza, a hotel and a residential complex. Construction is expected to begin in early 2008. It would be the second major mixed-use project to get started on the waterfront, following an office building on Fan Pier set to break ground this fall, the Boston Globe reported.
Chicago
Vacancies at office properties in downtown Chicago dropped in the second quarter, according to a report from CB Richard Ellis. Vacancy dropped to 13.7 percent from 16.8 percent a year ago. The second-quarter figure is the lowest since the first quarter of 2004. Job growth and the lack of new office buildings have driven up rents. A total of 40,300 jobs have been added in the region since May 2006, according to the Chicago Tribune. Space in the West Loop is said to be the most expensive in the city, with rents as high as $55 per square foot.
Chicago-area home sales dropped 20.7 percent between May 2006 and May 2007, while statewide sales declined 18.6 percent and national sales were down 10.3 percent in the same period, the Chicago Tribune reported. The median price of a Chicago home rose to $252,388, up 1.2 percent from a year ago, while prices statewide remained flat compared to a year ago at $205,500. Still, despite the year-over-year numbers, the number of sales rose for four straight months, according to the Illinois Association of Realtors.
Detroit
More buyers in Michigan’s sluggish housing market are opting to acquire homes through an untraditional method called rent-to-own, the Detroit Free Press reported. There are two types of rent-to-own deals: option contracts, which require the buyer to make a down payment and pay monthly rent, portions of which are applied to the home’s mortgage and asking price; and land contracts, which send portions of lease payments to the landlord for other housing fees, while the asking price stays the same. The new trend is fueled in part by a rise in foreclosures, a decrease in subprime mortgage lending and some buyers’ inability to make down payments.
Las Vegas
The Las Vegas housing market may be slumping compared to a year ago, but month-to-month home sales figures show signs of strength, the Las Vegas Review-Journal reported. New home sales dropped 43.8 percent in the first half of 2007 from a year ago, with median prices down 4.4 percent from 2006. But new single-family home sales rose 11.7 percent to 1,751 from April to May, though the median price slipped 3 percent in the same period to $308,874.
Los Angeles
A Beverly Hills mansion hit the market last month with an asking price of $165 million, becoming the most expensive listing in the country. The Beverly House, once owned by publisher William Randolph Hearst and actress Marion Davies, sits on 6.5 acres and contains three swimming pools and 29 bedrooms. The H-shaped complex, now owned by attorney-investor Leonard M. Ross, includes six residences, including four houses, an apartment and a cottage for security staff. No U.S. home sale has ever reached the $100 million mark; the $94 million paid by Gary Winnick for a Bel Air estate in 2001 holds the current record, according to the Los Angeles Times.
Despite fears of a slumping housing market in the Los Angeles area, the county’s property tax assessment rolls for 2006 topped the $1 trillion mark for the first time, the Los Angeles Times reported. The county’s assessed value rose by $88 billion, up 9.3 percent from a year ago, compared to the average annual growth of about 7 percent over the last three decades. The city of Los Angeles had the largest tax rolls; Long Beach, Torrance, Santa Clarita and Glendale trailed by large margins.
Philadelphia
A landmark shopping center in the Philadelphia suburb of Ardmore sold for $210 million to one of the country’s largest real estate developers, New York-based REIT Kimco Realty Corp., the Philadelphia Inquirer reported. The 360,000-square-foot retail center, known as Suburban Square, has 53 stores and is anchored by a Macy’s. Built in 1928, it was among the nation’s first shopping centers. It is said to command the highest rents in the area. The property sold for more than $500 per square foot, with a capitalization rate under 6 percent.
Phoenix
Metropolitan Phoenix ranked third in the nation for the number of single-family home building permits issued for the year to date, the Arizona Republic reported. Only Atlanta and Houston placed ahead of Phoenix, even though Phoenix’s housing permits dropped 22 percent in 2007 from a year earlier and the city’s housing market remains sluggish. Phoenix was ranked as the top homebuilding market in 2004 and 2005 but slipped to fourth place last year, behind Atlanta, Houston and Dallas, according to the National Association of Home Builders.
San Francisco
The San Francisco hotel market is poised to have its best year since the start of the decade following a solid winter and strong spring, the San Francisco Chronicle reported. Average room rates in the first quarter, the latest period for which figures were available, rose to $167, up 2.9 percent from the same time last year. Occupancy fell slightly during that period, to 76.9 percent from 77.6 percent in 2006. Northern California hotels had an average room rate of $133 in the first quarter, up 5.8 percent from a year ago.
Seattle
In a deal between two corporate pillars of the Puget Sound area, Microsoft purchased an unused 28-acre parcel of land in Redmond from Nintendo of America, the Seattle Times reported. Though the sales price was not disclosed, the property is worth more than $26.5 million, according to King County assessment records. Nintendo bought the land for $601,277 in 1987. The game giant plans to keep its North American headquarters in Redmond, but Microsoft’s long-term plans for its new property are unclear. The 300-space parking lot on the site will help ease congestion at Microsoft’s RedWest campus.
Washington, D.C.
The sale of a small retail building in Georgetown set a big per-square-foot price record, the Washington Times reported. A two-story property at 1329 Wisconsin Avenue NW sold to a New York-based firm for $1,597 per square foot, exceeding the old record of $1,034 by more than 50 percent. Sivan Properties paid a total of $6.7 million for the 4,195-square-foot building. The property is fully leased through 2016 to Jones New York’s Easy Spirit and Bandolino shoe stores.
Officials in Rockville, a suburb northeast of Washington, D.C., hope last month’s opening of the new Rockville Town Square will revitalize the city’s downtown district, the Washington Post reported. The 12-acre, $370 million development features 27 shops and restaurants; all of the storefronts have been leased, with 20 more stores and eateries expected to open by year’s end. In the past year, 100 luxury condominiums had been sold, with prices ranging from $350,000 to $1 million. An additional 496 units will be rented. The city invested $50 million in the project, Montgomery County contributed $46 million, and the state added $6 million.
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Tougher licensing standards for Florida mortgage brokers
A new law will establish tougher licensing requirements for Florida mortgage brokers when it takes effect in October. Brokers will be required have at least a high school education and have to give clients more detailed information about adjustable-rate mortgages, the Miami Herald reported.
The legislation follows many complaints that brokers push risky loans to reap higher commissions but often fail to correctly explain the terms of the mortgages.
The Florida Association of Mortgage Brokers contends that current licensing requirements for brokers — a 24-hour class, state exam and $200 fee — are too lax. Florida doesn’t license loan officers either, which easily allows rogue players to enter the industry, according to the trade group.
The number of Florida mortgage brokers has more than doubled from 28,000 in 2001 to 67,000 in 2006.
Critics of the tougher standards say they won’t yield lasting change.
“What you see is greed getting in the way,” said Jim Greer, president of Gold Coast Real Estate Schools. “I don’t know [whether] a 24-hour course or a 60-hour course is going to make an impact.”
South Florida home sales lag
Buyer indifference in the spring selling season resulted in the worst May for Broward County home sales since the Florida Association of Realtors started tracking them in 1994, the Sun-Sentinel reported.
Sales of existing homes were down 33 percent compared to the year before and down 1 percent from the previous month.
Meanwhile, the situation was even worse in Miami-Dade County.
Single-family homes sales in May, the most recent data available, dropped 44 percent from a year ago and 7 percent from the month before.
Sales are expected to lag into the summer despite a statewide property tax reform package signed into law in June, according to the Miami Herald.
The median price for a Broward single-family home was $367,700 in May, down 3 percent from a year ago but up 1 percent from the prior month.
Miami-Dade prices did better. The median price for a single-family house was $401,100, up 6 percent from last year and 5 percent from April.
Liberty City ready for revitalization
The Liberty City neighborhood of northwest Miami, home to more than half of Miami-Dade County’s African-American population, is ready for some major economic development. At a recent meeting of commercial and residential developers, the Liberty City Community Revitalization Trust presented data from two studies supporting the area’s need for local economic and job opportunities. The surveys were conducted by Washington-based advocacy group Social Compact.
One study found that the population of Liberty City, defined as the area between State Road 112 and the city border, was almost 50,000, a figure 55 percent higher than the U.S. Census Bureau’s 2006 projection. The Census Bureau also underestimated the neighborhood’s total income by nearly 70 percent. The revised figure approaches $500 million.
The survey found that more than 60 percent of residents leave the neighborhood for groceries, clothing stores, restaurants and dry cleaners. City Commissioner Michelle Spence-Jones said if retail and restaurants come to the area, they will prosper, the Miami Herald reported.
Arts district zoning approved for South Beach
Miami Beach’s planning board passed a new zoning code to create a new arts district in South Beach. The city commission is expected to pass the measure in September, the Miami Herald reported. The area, known as the Cultural Arts Neighborhood District Overlay, is bounded by 24th Street and North Lincoln Lane to the north, Meridian and Lenox avenues to the west, South Lincoln Lane to the south and the ocean to the east.
The new code offers developers incentives to provide affordable housing for artists making between 51 and 120 percent of Miami-Dade’s median annual income of $55,900. It allows developers to rehabilitate existing buildings and construct new ones with smaller units than typically allowed, but only if a portion of the project is set aside for work space or affordable rentals or condos for artists.
Residents of the affordable homes must be artists or work for a cultural arts organization. Members of the planning board sought a more specific definition of “artist,” and the requirements are expected to be defined by September.
South Miami mall set for overhaul
The Town & Country Mall in suburban Kendall, seven miles south of Miami, will soon undergo a complete overhaul, the Miami Herald reported. Flagler Real Estate Services’ plans a $90 million demolition and redevelopment of the property, which currently has 400,000 square feet of retail and another 10,000 square feet of restaurants. It also calls for the renovation of a nearby strip mall and the construction of two medical office buildings.
Once finished, the 1-million-square-foot complex will welcome 50 new stores, including Nine West, Jenny Craig, Mattress Giant and a Wachovia bank. The majority of the shopping center is expected to open simultaneously in fall 2009. The mall’s new anchor, a fashion department store that will replace Sears, has not been named.
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From “roof strapping” to raising rents, commercial owners try to offset spiraling costs For South Florida office towers, hurricane insurance legacy lingers” class=”read-more-link”>[more]
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Three years after residents fought McMansions, prices are stable Peace after the battle of Throgs Neck” class=”read-more-link”>[more]
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Last-minute addition of outlying neighborhoods like Red Hook to exemption zone could impact building Fringe area fallout from 421-a changes?” class=”read-more-link”>[more]
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Hudson Yards opened up for bidding
Calling it a project the city and region “desperately needs,” Governor Eliot Spitzer last month officially released the request for proposals for the development of the Hudson Yards on Manhattan’s far West Side. The announcement formally opens up the bidding process for the 26-acre site, which is expected to bring in more than $1 billion for the Yards’ owner, the MTA. The RFP allows a developer to either purchase or obtain a long-term lease for both the eastern and western sections of the Yards, which are handled by separate requests. The request covers both real property and air rights on the Yards, which run on the east and west sides of 11th Avenue from 30th to 33rd streets. Some potential developers have criticized the plan for potentially clustering office towers in one location and not guaranteeing that the MTA will complete the construction of the No. 7 subway line extension to 34th Street and 11th Avenue.NYC foreclosures increase
Foreclosures in New York City are on the rise, according to second quarter reports from PropertyShark.com and RealtyTrac, but increasing at a far slower rate than most of the rest of the country. RealtyTrac’s data found that foreclosure filings in the city were up 42 percent over this time last year, but national rates were up an average of 87 percent, the New York Times reported.Atlantic Yards oversight lacking
The Empire State Development Corporation, which announced it would put certain oversight measures into place with respect to the Atlantic Yards project, has failed to implement most of the measures it said it would, the New York Daily News reported. The ESDC has not appointed an Atlantic Yards ombudsman, created a group to oversee transportation issues, or held regular meetings with elected officials as it said it would following a partial building collapse at the Prospect Heights site in April.Mitchell-Lama loophole closed
Governor Eliot Spitzer and Manhattan Borough President Scott Stringer announced a regulatory decision last month that closes a loophole affecting Mitchell-Lama rental buildings constructed before 1974. The loophole allowed landlords who were taking properties out of Mitchell-Lama to claim that leaving the affordable housing program qualified as a “unique and peculiar circumstance” that allowed them to hike rents to market rate. Because of the decision, thousands of units that may have been subject to market-rate rents will be protected by the rent-stabilization program.Fort Greene/Clinton Hill get rezoned
At the end of last month, City Council voted to rezone 99 blocks in Fort Greene and Clinton Hill. The rezoning places stricter height limits on buildings constructed on residential blocks while allowing for higher buildings on Fulton Street and Myrtle Avenue, the neighborhoods’ main commercial drags.Lawsuit against Pinnacle announced
A lawsuit was filed in federal court last month against mega-landlord Pinnacle Group and its principal, Joel Weiner, for allegedly fraudulently inflating rents, failing to make needed repairs, and groundlessly harassing tenants as “part of a coordinated business strategy to boost profits and drive middle-income tenants from their apartments,” according to statements. The lawsuit was announced in a press conference held by Public Advocate Betsy Gotbaum and Manhattan Borough President Scott Stringer. “I have never seen the mere mention of a landlord create so much fear,” said Stringer.CU: No eminent domain for residents
Columbia University announced it would not ask the state to use eminent domain to evict West Harlem residents in the area where the school plans to expand. Columbia may still ask the state to use eminent domain in order to evict some commercial businesses in its expansion footprint, the Times reported. -
New jumbo reverse mortgages allow more baby boomers to retire existing home loans [more]
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A story in the July issue, “Don’t say Saya-nara to towering aspirations,” about new condo project One Madison Park, incorrectly referred to when the building went on sale and the amount of units currently sold. Sales for the project began in June 2007, and the building was 79 percent sold after just one month.
A story in the July issue, “Mixed Prospects: Atlantic Yards plan attracted new development, but sales at some falter,” incorrectly referred to details on two new condo projects. A project at 540 St. Marks Avenue has not yet broken ground or started sales. The story incorrectly referred to a project at 425 Pacific Street — the correct address is 925 Pacific Street. In addition, the story mischaracterized the future home of the Nets in the Atlantic Yards development — the team will be housed in an arena, not a stadium.
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Milan redevelopment boom
Builders in Milan are taking advantage of obsolete manufacturing space to make room for new residential and office properties. Long known as an industrial capital, Italy’s second-largest city has made the transition to a service economy and is shifting its land use accordingly.The Italian research institute Scenari Immobiliari reported last year that the city has 2.4 square miles of industrial land, much of which is no longer used. The same institute reported an estimated 150 urban redevelopment projects in Milan either at the design stage or in construction, and an estimated $20 to $27 billion currently invested in these projects.
The largest redevelopment project planned for Milan is called Santa Giulia; it involves turning 3.6 million square feet of unused industrial land into residential property and a convention center with an 81-acre park.
Construction will begin soon on the Porta Nuova, a project with a 950,000-square-foot footprint surrounding the city’s major train station, Garibaldi Station. When completed in 2012, Porta Nuova will include 1.2 million square feet of office, residential and commercial space, as well as a park. About $2.8 billion of the $3.5 billion invested in the project is from private sources, an unusually high proportion for a project of its size.
Bangkok threatened by housing glut
A condominium building boom in Bangkok may turn into a housing glut, and the country’s current political instability is also hurting home sales.
There are 27,000 new condominium units expected to be completed by 2009, according to a report by the property brokerage Jones Lang LaSalle. Meanwhile, sales have been falling. Total sales of incomplete projects dropped from around 7,000 units in the first half of 2006 to 2,400 in the second; the last quarter of the year also saw a dip in average property value.High-end condominiums are already drawing less interest. The luxury condominium agency Hamptons Property reports that inquiries from prospective buyers dropped 40 percent in the last six months. Yet property analysts predict that in the long run the oversupply will hurt the lower end of the housing market the hardest.
Another factor hurting the housing market is that many prospective buyers are expatriates. Thailand is recovering from a coup in September and the government is making it harder for foreigners to settle there or get work permits and long-stay visas. The government plans to tighten legal loopholes that allow foreigners to run Thai-based companies and own land.
Bangkok’s homes already sell for much less on average than other Asian cities’: $185 per square foot compared to Hong Kong’s $1,600 per square foot.
China to construct world’s first eco-city
Construction will soon begin on Dongtan, a development on an island near Shanghai that its planners call the world’s first fully sustainable, carbon-neutral city. The $1.3 billion project will house 500,000 people and cover an area the size of Manhattan. The project is designed by London-based engineering firm Arup and developed by the public-private company Shanghai Industrial Investment. Arup is also developing four other eco-cities in China, where the pace of development has created widespread environmental trouble.The first phase of Dongtan will be completed by 2010. It will include 15,000 residential units in four- to eight-story buildings surrounding a network of canals through Chongming Island, north of the city. Cars will be banned from the development; it will be connected to Shanghai by a 15.6-mile bridge and a tunnel. The city’s energy will be derived from the burning of rice husks, an array of solar panels and a wind farm on the city’s outskirts. Sixty-five percent of Chongming Island will be dedicated to farms and parks.
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In the past, when investors were looking to put all their eggs in the Manhattan basket, they picked SL Green, the biggest office landlord in the borough.
Now, that is changing as the REIT, whose holdings were once made up entirely of Manhattan properties, is making property purchases in other boroughs — and even (gasp!) the suburbs.
The publicly traded company recently bought its first office building in Brooklyn and scooped up some more in Stamford, where it suddenly owns more than 20 percent of the office market.
The company’s portfolio is transitioning because the “core Midtown Manhattan office market is not conducive to a lot of near-term external growth,” said Marc Holliday, CEO of SL Green.
In June, SL Green purchased 1010 Washington Boulevard in Stamford from BPG Properties for $38 million, or $265 per square foot. The 11-story office building, with 143,400 square feet of Class A office space, is across the street from 1055 Washington Boulevard. The latter was part of the $4 billion Reckson Associates portfolio acquisition SL Green completed earlier this year.
The REIT announced that it planned to continue to grow into Stamford’s largest landlord.
“We already have other properties in Stamford with an existing platform and hands-on leasing,” said SL Green managing director Isaac Zion. “We’re looking at pockets where we have an existing presence.”
At the end of June, SL Green also acquired 16 Court Street in Downtown Brooklyn for $107.5 million. The company plans to reposition the 38-story office building, which is Brooklyn’s tallest office tower, as Class A office space.
“Sixteen Court Street represented a unique opportunity for us to establish a presence in Brooklyn at a substantial discount,” said SL Green president and chief investment officer Andrew Mathias. “In addition to office upside, the retail redevelopment opportunity is significant.”
Westchester may be yet another market the REIT will focus on going forward.
Although Manhattan will still be its primary focus, SL Green could profit from other suburban acquisitions in the next five years as near-record rents in Midtown are driving tenants out of the city, according to Zion. “We’re looking for opportunistic and value-added investments in the tri-state area that are near or adjacent to transportation hubs,” said Zion. “It’s something that we’ve always looked at. But the core of our focus is still on Midtown Manhattan and Manhattan in general.”
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The Trump heirs are climbing the ranks at their father’s company.
Last month Ivanka Trump joined the board of Trump Entertainment Resorts, the gaming branch of the Trump Organization. Only 25 years old, Ivanka is the first of the three siblings to become a board member. But she probably won’t be the last.
She said that her brothers Donald Jr., 29, and Eric, 22, could soon follow as board members of one of Donald’s companies. Donald Sr. is chairman of the Trump Entertainment Resorts board.
Ivanka, who currently holds a vice president title within the Trump Organization, is working side-by-side with the family on hotels, residential developments and golf clubs.
“I can bring a lot to the board by representing a new demographic,” Ivanka said. “As the only female on the board who is essentially younger, I’ll have a chance to bring an unheard voice.”
Filling the niche demographic was mainly why Ivanka was chosen over her older brother Donald Jr., who’s been with the company longer, she added.
Ivanka was officially expected to be voted in as a board member in early August, after receiving her license from the state Casino Control Commission.
Prior to joining her father’s company in the fall of 2005, Ivanka attended University of Pennsylvania’s Wharton School and worked for real estate developer Forest City Enterprises.
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While Stribling & Associates might be most closely identified with white-shoe areas of the Upper East Side, the firm’s marketing division is making moves in Brooklyn’s high-end new development market.
The firm was recently named exclusive sales and marketing agent for One Hanson Place, also known as the Williamsburgh Savings Bank Tower. Stribling took over the marketing assignment from the Corcoran Group.
Although sales at the condo conversion of the iconic building were going well, according to developer Andrew MacArthur of the Dermot Company, Stribling was brought in to market the high-end units in the building.
Penthouse units ranging in price between $4.5 and $8.5 million in the 189-unit condo tower will enter the market in the second half of the year.
“We felt that Stribling, which has had spectacular success with high-end residential sales at such properties as One Brooklyn Bridge and the Plaza, would be the right match for us,” said MacArthur.
Earlier this year, the brokerage launched marketing and sales for One Brooklyn Bridge Park in Brooklyn Heights. Sales began in April for the 449 units in the 14-story former Jehovah’s Witnesses distribution center at 360 Furman Street. Prices range from $500,000 for a studio to $7 million for the penthouse, according to Steven Rutter, the executive vice president at Stribling who supervises the company’s marketing efforts in Brooklyn.
The transition into Brooklyn’s high-end market is a natural one for Rutter, who oversaw marketing at Corcoran for Brooklyn-based projects On Prospect Park and Beacon Tower before moving to Stribling in late 2006.
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Blackstone buying Hilton Hotels for $26B
The Blackstone Group announced last month that it would buy Hilton Hotels for $26 billion. The purchase, which is Blackstone’s largest since the firm went public in late June, comes hot on the heels of Blackstone’s acquisition of Equity Office Properties for $39 billion earlier this year.New, $900M offer for Barneys
Jones Apparel Group said last month that it received an offer for the Barneys New York retail chain that is significantly higher than the $825 million buyout offer from Istithmar that Jones agreed to the previous month. Jones said Japan’s Fast Retailing Co. has offered $900 million for Barneys. If Jones decides to terminate its agreement with Istithmar, it will have to pay the Dubai-based investment firm, which has been a big buyer of all kinds of Manhattan real estate in recent years, around $21 million, the Associated Press reported.iStar buys Fremont’s commercial lending arm
New York-based REIT iStar Financial last month announced that it closed on its $1.9 billion purchase of Fremont General Corp.’s commercial real estate lending business and part of its commercial loan portfolio. The deal, which was first announced in the spring, nearly doubles the number of iStar’s employees.GE selling subprime unit
General Electric announced last month that it will sell its subprime unit, a move that will take the company out of the U.S. mortgage business, the Wall Street Journal reported. GE took a $500 million pretax charge in the first quarter because of losses on subprime loans, and it sold off around $3 billion in subprime loans in the second quarter.NJ developer announces Web site for brokers
Metro Homes has launched Metro Pro, a new brokers-only Web site that features exclusive information on the developer’s properties. The site also provides access to listings, floor plans, special promotions and commission incentives. Metro Homes is currently building four residential developments in New Jersey: Trump Plaza Jersey City, the Esperanza, Metrostop and Gull’s Cove.Millennium Homes targets NJ cities
A firm known for building homes in suburban New Jersey is moving into the state’s urban areas, including development-rich Hudson County. Millennium Homes, which has focused primarily on suburban Essex, Morris and Union counties, has launched several projects in the state’s cities and is planning to construct condos in booming downtown Jersey City. The company’s projects include the River Park condo project in Harrison; a 614-unit project across from Giants Stadium; and a 101-unit project in Fort Lee.CBRE adopts energy-saving program
CB Richard Ellis recently adopted the Building Owners and Managers Association’s BOMA Energy Efficiency Program, or BEEP. Through a series of seminars, BEEP will offer energy savings solutions to commercial real estate professionals. CBRE intends to train more than 500 employees nationwide over the next three years.HPD launches new Web site tool
New Yorkers can now go online to check housing litigation cases in which the Department of Housing Preservation and Development is a party for any registered residential building. The new feature tracks open housing code violations, registration information, emergency repairs in progress, status of complaints to 311 and other information. -
Residential
Barak Realty
Fumiyo Hayashi, Barkima Lane, William Keeler, Rachel Max and MaryJo Palumbo Taubner joined the firm. Julie Larson joined as director of communications.The Clarett Group
Annu Chopra joined as senior acquisitions director. She was previously corporate development director for Lennar Corp.Terra Holdings
Mitchell Haviv joined as information technology director and vice president of operations. He was previously vice president and global technical strategist at Morgan Stanley.Commercial
A & I Broadway Realty
Greg Litman was promoted to director of sales from associate broker.Granite Partners
Meredith Oppenheim joined as senior vice president. She was previously principal of Oppenheim Real Estate Ventures.Grubb & Ellis
Gerald Gibian joined as managing director. He was previously corporate vice president at the Estee Lauder Cos.ING Clarion Partners
David Gilbert joined as managing director and portfolio manager. He was formerly a managing director at JP Morgan Real Estate. Sally Haskins joined as director of client service and marketing. She had been head of property for the Asia Pacific region at Russell Investment Group.Itzhaki Properties
Ofer Cohen joined as an agent.Jack Resnick & Sons
Dennis Brady was promoted to executive managing director of leasing from managing director.Kaufman Organization
Jamie Adler and Howard Rosenblum joined the firm as associate salespeople.Massey Knakal
Philip Huang joined as an associate in the Manhattan office. Courtney Puttick was promoted to associate from intern in the Brooklyn office. Miguelangel Burdier and Michael Amirkhanian joined as associates in the Brooklyn office. Josh Davis joined as director of information technology. Dianna Alveris rejoined as an executive assistant.NCB
John Donahue was appointed vice president and business development officer of the national real estate and CMBS capital markets.Sinvin Realty
Michael Glanzberg joined as managing director and general counsel.Swig Equities
Andrew Flamm joined as vice president of project development. He was previously assistant vice president of the Downtown Alliance.UrbanAmerica
Thomas Poitevent joined as vice president of project management. He was previously director of project management for Starwood Hotels. Marea Parker joined as assistant deputy counsel. -
Some real estate events around town are now featuring less schmoozing and more intellectual stimulation. Instead of the usual industry gatherings centered on drinks and talking shop, broker parties in New York City are taking a more cerebral turn, offering backgammon, astronomy lessons and modern art with their cocktails.
In the last two months, Arc Development, the developer of the 65-unit Solaria condominium in Riverdale, has hosted multiple star-gazing parties from the building’s rooftop observatory to kick off sales.
Members of the Amateur Astronomers Association of New York assisted brokers and potential buyers with the observatory’s Meade telescope, an unusual amenity for a residential building. In addition to the star-gazing, buyers and brokers had a chance to view a model apartment.
The rooftop observatory was a logical amenity for the high-rise condo, since “the Solaria is higher than other buildings in the area,” said Joseph Korff, developer of the building.
Korff said he hopes the observatory will be more than just a sales gimmick. The Amateur Astronomers Association will maintain a relationship with the condo, giving owners a chance to learn about the night sky every season. Residents of the Solaria will receive one-year memberships to the association and to the Museum of Natural History’s Rose Center Planetarium.
In another twist on brokers’ parties, the Cipriani Club Residences at 55 Wall Street welcomed 150 people in July to play backgammon in the condo development’s newly completed library. The condo began sales last year, with nine units — ranging in price from $1 to $3 million — remaining.
Brokers, investors and condo owners played to win prizes contributed by fashion designer Steven McDermott — and viewed the properties at the same time.
“Usually [guests] tend to drift off, but this time we had to push people out the door,” said Peter Acocella, chairman of the Acocella Group, a brokerage that helped organize the event. “We had an interesting mix of people in an extraordinary space. It was a good way to generate interest and also have fun.”
It isn’t all fun and games, though. Some traditional networking events are also going slightly more intellectual.
Over 2,000 industry professionals attended a networking event at the Guggenheim Museum last month held by Aaron McCann, known for hosting quarterly industry get-togethers. McCann said the museum was an obvious choice because of its cultural significance.
Attendees were able to view the art exhibits after hours and exchange business cards over drinks. Past McCann events have been held in the lobby of the Trump Tower and at luxury hotels around the nation.
“I believe the caliber of the venue and atmosphere brings a quality group of people together,” said McCann, who is also a consultant for Ackman-Ziff Real Estate. “I heard numerous times that it was the best event to date.”
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It isn’t easy being a green condo in New York City, but one project is getting a leg up from former vice president Al Gore. Marketing for Riverhouse at One Rockefeller Park is using Gore’s Academy Award-winning documentary, “An Inconvenient Truth,” to appeal to environmentally conscious buyers.
Print advertisements for the 32-story, 264-unit development in Battery Park City, which began sales in September 2006, offer potential buyers “convenient truths” — pointing out transportation tips, neighborhood parks and green amenities featured in the building.
“There are so many amenities and messages to get out about the development,” said Monique Roeder, director of marketing for the Sheldrake Organization, the developer of Riverhouse.
According to Roeder, Riverhouse will be on the last waterfront property available in Battery Park City and is the only condo high-rise with a gold-level LEED (Leadership in Energy and Environmental Design) designation, a voluntary green rating and certification system developed by the U.S. Green Building Council. The condo will have twice-filtered air and water, self-irrigated landscaping, an aquarium, a yoga studio and an outdoor terrace.
Riverhouse will have to compete for sales with the Visionaire, another green high-rise in the neighborhood, which began sales in April 2007. The Visionaire includes a children’s playroom, an aquarium and an outdoor terrace in its quiver of amenities.
Marketing for Riverhouse has succeeded in generating traffic since it began in June, said Roeder. “We’re able tie into something bigger than we are,” she said.
Riverhouse will also have a media cafeacute; managed by City Bakery, a green bakery in Manhattan.
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A new real estate reality television show is putting the spotlight on Manhattan brokers. With a focus on the New York City residential market, “Open House NY” began airing in the tri-state region in June on WNBC, channel 4.
The program recently featured boutique brokerage Barak Realty as part of a regular eight-minute segment of the show called the Hunt, which follows brokers and their buyers to listings.
“Real estate is the office sport of New Yorkers,” said Morgan Hertzan, CEO and executive producer of LX.TV, the show’s producer. “New York realtors are great characters, lots of drama and very watchable.”
Real estate is always such a hot topic, added Barak Dunayer, president of Barak Realty, that a local TV show makes sense.
“You see it on cable and national shows, but this is the first show on what’s happening in New York City,” he said. “You get to see real buyers and brokers and real properties on the market.”
In the pilot, Antonio del Rosario, managing director and executive vice president at Barak Realty, took a buyer out to see two- and three-bedroom listings on the Upper West Side. Del Rosario said Open House NY does a good job of depicting the nature of an apartment search, but — television being television — skims over the length of time brokers spend with their clients.
“Buyers don’t usually make an offer after seeing one property,” he added. “On average, brokers spend two months with a buyer; but they edit the parts that are boring to watch.”
Other segments on the show include features on home improvement, new residential developments and environmentally friendly buildings.
Del Rosario said the program focuses more on high-end properties — anything over $1.5 million.
New episodes will air every Saturday at 6 a.m. on WNBC and repeat on Fridays at 11:30 a.m.
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The Real Deal takes a look back at some of the big stories in New York City over the past century This month in real estate history” class=”read-more-link”>[more]
