The Real Deal New York

But residential market inventory continues sharp decline Residential market weak in the middle” class=”read-more-link”>[more]

Plans for future projects down by half compared to ’06 as boom comes to an end New condo filings fall off” class=”read-more-link”>[more]

The experts pick their favorite neighborhoods and sectors — and what to stay away from Q & A: Which area has greatest upside for investors?” class=”read-more-link”>[more]

A spate of high-end residential development along Chambers Street is transforming perhaps the only truly commercial street in Tribeca from a scrappy strip into what may eventually be an elegant retail thoroughfare. Chambers gets retail revival” class=”read-more-link”>[more]

A look at why the Manhattan market prospers while the rest of the nation’s falters A look at why the Manhattan market prospers while the rest of the nation’s falters” class=”read-more-link”>[more]

Center of gravity for construction shifts north Midtown office development outpaces Downtown” class=”read-more-link”>[more]

Big media firms are among tenants migrating from Midtown to cheaper digs Midtown South office market gets tight” class=”read-more-link”>[more]

Chasm between daily rates at city hotels and rest of the country continues to grow Spending the night: NYC vs. U.S. hotel market” class=”read-more-link”>[more]

Lowest vacancy rates, soaring rent increases highlight city’s gains Manhattan leads nation’s office growth” class=”read-more-link”>[more]

Restaurants open branches in West Harlem in anticipation of Columbia expansion 135th Street’s restaurant row
” class=”read-more-link”>[more]

About 20 projects to develop piers for commercial, recreational use [more]

Neglected relic embarrasses the neighbors in Battery Park City Pier A’s peer pressure to upgrade” class=”read-more-link”>[more]

Two Paramount Group buildings could fetch $1B
The Paramount Group is looking to sell two of its Manhattan office buildings for more than $1 billion, the New York Post reported. One building is 220 West 42nd Street, Clear Channel’s Times Square headquarters, and the other is One Financial Square at 32 Old Slip. The Financial District building could be sold for up to $800 million, while the Times Square property is likely to bring in more than $200 million. CB Richard Ellis is marketing the buildings.

Bush Tower could sell for $165M
The 210,000-square-foot Bush Tower at 130 West 42nd Street is on the market for sale and is expected to fetch $165 million, the Post reported. Nat Rockett and Tom Beneville of Jones Lang LaSalle are marketing the building for owner American Properties.

Swig selling UWS apartment buildings
Developer Kent Swig is selling two six-story buildings at 201 West 92nd Street and 200 West 93rd Street; the asking price is $79.6 million. Swig planned to add a nine-story condo to the top of the buildings but was issued a stop-work order earlier this year. The properties, which total 134 residential units and 14 stores, include 127,606 square feet of development rights. Robert Knakal, Meyrick Ferguson, Jonathan Hageman and Daniel Hagan of Massey Knakal are handling the sale. Swig bought the buildings for $54 million in early 2005.

Lower Manhattan office building asking $60M
The 12-story, 130,000-square-foot office building at 130 William Street is on the market for sale with an asking price of $59.95 million. The building, currently occupied by Berkeley College and Duane Reade, can be delivered vacant and is a candidate for a hotel conversion. Peter DeCheser and Rick DeRuyter of Massey Knakal are the exclusive sales agents.

Sheepshead Bay retail center on the market
The one- and two-story retail center at 3780-3860 Nostrand Avenue in Brooklyn is on the market for sale with an asking price of $43.5 million. The property comprises 46,300 square feet of retail space and 32,646 square feet of office space in five buildings, as well as a garage and outdoor parking. Eastern Consolidated is handling the sale.

Hudson Square warehouse asking $40M
The 57,500-square-foot warehouse at 537 Greenwich Street is on the market for sale with an asking price of $40 million. The property includes 42,500 square feet of air rights and can be delivered mostly vacant. Robert Burton and Nancy Guo of Massey Knakal are handling the sale.

Coney Island development site for sale
The 71,000-square-foot development site at 2955 Shell Road in Brooklyn is on the market for sale with an asking price of $25 million. The site has frontage on Shell Road, Neptune Avenue and West 6th Street, and it can support 213,000 square feet of residential development. Natasha Attal and Michael Harari of Massey Knakal are handling the assignment.

Bronx development site asking $22M
A development site at 5673 Broadway in Kingsbridge is on the market for sale with an asking price of $22 million. The property is currently configured as seven retail stores and a parking lot; it can support 280,000 square feet of development with a community-use bonus. Karl Brumback and Cory Rosenthal of Massey Knakal are handling the sale.

East Village movie theater on the block
The Loews movie theater at 66-72 Third Avenue is on the market and could sell for around $20 million, the Post reported. The site can’t be redeveloped until 2037, when the master lease on the land expires. David Schechtman, Eric Anton and Ronald Solarz of Eastern Consolidated are handling the sale.

Washington Heights co-ops on the block
A total of 84 unsold co-op apartments in five buildings are on the market for sale with an asking price of $16 million, or $190,500 per unit. The buildings are located at 5-9 Pinehurst Avenue, 706 West 180th Street, 715 West 180th Street, 712-718 West 175th Street and 121-131 Fort George Avenue. Jack Botero and Peter Von Der Ahe of Marcus & Millichap are representing the seller, a private family estate.

Lexington Avenue landmark for sale
Investor group Lexington Landmark Properties has put the vacant seven-story, 24,900-square-foot building at 160 Lexington Avenue on the market five months after it bought it from Touro College for $8.2 million. The new owners are looking to net lease the building for about $1 million a year, according to published reports. R. Stuart Gross and Barry Berkowitz are marketing the property.

Silvercup, Steiner and Kaufman studios plan to double NY shooting spaces [more]

Dominating a submarket boosts owners’ leverage with tenants Lords of the location” class=”read-more-link”>[more]

Jump in Manhattan sales volume beats increase for condos and co-ops [more]

This month, Tracy McNamara drops in on open houses in Gramercy [more]

High taxes, environmental issues present formidable obstacles in struggling cities [more]

Wendy Sarasohn, senior vice president, the Corcoran Group [more]

Experts say gap between vibrant city and stagnant national markets may widen [more]

President and chief executive officer of Hovnanian Enterprises, the sixth-largest homebuilder in the United States. The firm has delivered close to 300,000 homes since his father founded it in 1959.
The Closing: Ara Hovnanian” class=”read-more-link”>[more]

Developers hope sales method popular in Midwest, South, catches on in tri-state area Condo auctions going once, going twice” class=”read-more-link”>[more]

More developers add on enticing amenities, but for a price Rentals get bells and whistles” class=”read-more-link”>[more]

Discounts and previews give agents a leg up on regular buyers [more]

Chelsea
The Modern
343 West 16th Street
Ventura Land Corporation is developing the six-story, eight-unit luxury rental project. The green building will have one- and two-bedroom and penthouse apartments with terraces and private outdoor space. Rents will range from $4,000 to $12,500 per month, and leasing will begin this summer. JC DeNiro & Associates is the exclusive leasing and marketing agent. Contact: www.themodernny.com.

Clinton Hill
FultonOnClinton
936 Fulton Street
Developer Ore International’s 11-unit conversion of a prewar cathedral is expected to open for sales this month. One- and two-bedrooms will range in size from 635 to 1,100 square feet, with prices from the mid-$300,000s to the low $600,000s. The building will also include two retail spaces. Occupancy is slated to begin in September 2007. Prudential Douglas Elliman is the exclusive sales agent. Contact: www.fultononclinton.com.

Downtown Brooklyn
be@schermerhorn
189 Schermerhorn Street
Wachovia Bank closed $100 million in financing to SDS Procida and Jamestown Properties Corp. for the construction of a mixed-use project that will include a 25-story tower and a six-story loft building connected by a garden. Amenities in the 246-unit condominium complex include a greenhouse, fitness room and entertainment lounge. The project will have 15,000 square feet of ground-floor retail space and an underground parking facility. Occupancy is slated for fall 2008.

East Williamsburg
Olive Park
100 Maspeth Avenue
Sales are under way for the seven-story, 87-unit new construction condominium. The L-shaped building will be the first in its area to have an indoor swimming pool, according to sales and marketing agent Aptsandlofts.com. Units range in size from 450-square-foot studios to a 1,300-square-foot penthouse, with prices running from $330,000 to nearly $1 million. Contact: www.aptsandlofts.com.

East Williamsburg
TwoOneNine Withers
219 Withers Street
Sales are under way at the five-story, 12-unit condominium. The project will include two 1,600-square-foot one-bedrooms on the ground floor; nine 1,000-square-foot two-bedrooms; and one 1,750-square-foot, three-bedroom penthouse that has already been sold for $1.3 million. Residences are priced from $610,000. The Developers Group is the sales and marketing agent. Contact: www.thedevelopersgroup.com.

Park Slope
The Crest
302 2nd Street
Boymelgreen Developers and the Katan Group are developing the 68-unit luxury condominium between Fourth and Fifth avenues. The building’s one- and two-bedroom homes range in size from 550 to 985 square feet, with prices for available units ranging from $396,000 to $712,000. Occupancy is slated for fall 2007. Corcoran Group Marketing is the exclusive sales and marketing agent. Contact: www.crestparkslope.com.

Soho
135 Crosby Street
AS Realty Partners have retained Sonnenblick Goldman to arrange a $25 million construction loan for the development of the eight-story, 11-unit luxury rental building. The project will include ground-floor retail space. AS Realty Partners will also use the loan to help finance construction of its eight-unit rental at 372 Lafayette Street. Both will be LEED-certified green projects.

Soho
151 Wooster Street
Local developers Michael and Izak Namer are working with architect Lee Skolnick to convert the building — reportedly home to the first art gallery in Soho, which opened in 1968 — into 10 condominium lofts and two penthouses. The three-bedroom lofts will be 3,000 square feet each, with 11-foot ceilings and stone-clad fireplaces. Prices run from $3.5 to $9.5 million, and occupancy is slated for spring 2008. Corcoran Group Marketing is the exclusive marketing and sales agent. Contact: www.151wooster.com.

Upper East Side
Azure
333 East 91st Street
The Singer & Bassuk Organization arranged $156 million in financing from HSBC Bank for the construction of the 245,000-square-foot, 128-unit luxury cooperative building. Residences will average 1,400 square feet. The developers, the DeMatteis Organizations and the Mattone Group, will also construct a school on an adjacent parcel of land, according to GlobeSt.com.

Upper East Side
1381-1389 Third Avenue
Skyline Developers will build a luxury high-rise residential rental building in place of five residential and commercial buildings. The site was purchased for $36 million and will allow for 150,000 square feet of development once the current buildings are demolished. The project will contain two floors of retail space.

Construction Update

Long Island City
28-10 Jackson Avenue
Tishman Speyer will develop a residential high-rise building with ground-floor retail space on currently contaminated land pending state permission, the Queens Chronicle reported. TST LIC Development, a company affiliated with Tishman, would rehabilitate the property under the Brownfield Cleanup Program.

Soho
Trump Soho Hotel Condominium New York
246 Spring Street
Having received a permit from the Department of Buildings, Donald Trump’s hotel-condo project is expected to be completed by spring 2009. The sales center will open soon for the 45-story, 413-unit building. It is being developed by the Bayrock Group and the Sapir Organization. Core Group Marketing and Prodigy International are the exclusive sales and marketing agents. Contact: www.trumpsoho.com.

Upper East Side
85th Street and Second Avenue
Ascend Group LLP has paid $45.25 million for the three vacant buildings and plans to build a 21-story, 105,000-square-foot luxury condominium project on the site, the New York Post reported. Architectural firm Cetra/Ruddy designed the L-shaped tower.

Williamsburg
144 North 8th Street
Following a successful lawsuit that resulted in the under-construction “Finger” building in Williamsburg being capped at 10 stories rather than 16, plaintiff Scott Spector is calling for the building’s developers — who include Mendel Brach, Moshe Owen and architect Robert Scarano — to tear down the entire building. Spector originally sold the Finger site to the development team in 2004, and he owns many adjacent properties. Spector’s attorney says the Finger’s development team used land and air rights that actually belonged to Spector in order to construct the building, and that the incomplete building must therefore be razed, the Architect’s Newspaper reported.

Financing

East Harlem
225 East 111th Street
A seven-story, 12-unit loft-style condominium building is planned for the currently vacant site. Houlihan Parnes/iCap Realty Advisors LLC arranged $800,000 in financing for the purchase of the land.

Financial District
127 Fulton Street
AFC Realty Capital has arranged $23.8 million in acquisition and development financing for the condominium conversion project. Once renovated, the 1892-vintagebuilding will have eight full-floor residences and ground-floor retail space.

West Village
397 West 12th Street
Sonnenblick Goldman has arranged a $27 million acquisition and construction loan, provided by the Bank of New York, for Tamarkin Co.’s development of the 10-story, four-unit condominium with ground-floor retail. The homes will range in size from 3,600 to 6,600 square feet.

Sales Update

Dumbo
133 Water Street
The 12-story, 52-unit rental building was 15 percent leased by early May, within the first week of marketing. The building has studio, one-, two- and three-bedroom apartments renting for between $2,700 and $6,500 per month. Amenities include a refrigerated storage room, common roof deck and fitness center. The marketing and sales agent is aptsandlofts.com. Contact: www.133water.com.

Flatiron
141 Fifth Avenue
Savannah Partners’ 38-unit luxury condominium was more than half sold by mid-May, after 10 days of sales, the Post reported. One-bedrooms start at $1.6 million, two-bedrooms start at $2.6 million, and three-bedrooms are priced from $3.2 million. Core Group Marketing is the exclusive sales and marketing agent. Contact: www.141fifthavenue.com.

Greenwich Village
48 Bond Street
The 11-story, 17-unit luxury condominium was more than 50 percent sold as of late May, when it celebrated its topping out. The building, designed by architects Deborah Berke and David E. Gross, features loft-style homes ranging in size from 1,500 to 3,700 square feet. Amenities include a 60-foot swimming pool and a gym. Stribling Marketing Associates is the exclusive sales and marketing agent. Contact: www.48bond.com.

Harlem
The Kalahari
40 West 116th Street
By the beginning of June, the 12-story, 129-unit condominium was more than 50 percent sold. Prices run from the $500,000s to more than $1 million for one-, two- and three-bedroom units. The two-tower project will be completed in early 2008. The Marketing Directors Inc. is the exclusive sales and marketing agent. Contact: www.kalahari-harlem.com.

Lower Manhattan
be@william
90 William Street
Sales are under way at SDS Procida’s 16-story, 113-unit condominium conversion. Studio and one-bedroom units range in size from 640 to 1,000 square feet, and are priced between $480,000 and $793,000. Two-bedroom units from 1,000 to 1,200 square feet start at $1 million. Occupancy is slated for fall 2007. Corcoran Sunshine Marketing Group is the exclusive sales and marketing agent. Contact: www.90williamstreet.com.

Midtown West
The Hit Factory
421 West 54th Street
The seven-story, 27-unit condominium building was 65 percent sold by mid-May. The Arpad Baksa-designed project offers one- to three-bedroom loft-style homes ranging in size from 1,100 to 3,400 square feet. Six penthouse duplexes have private terraces spanning 225 to more than 1,400 square feet. Prices run from $1.1 to more than $4 million. Occupancy is slated for summer 2007. Contact: www.thehitfactorycondo.com.

Murray Hill
45 Park Avenue
By the end of May, SJP Residential Properties’ 22-story, 105-unit condominium was more than 75 percent sold. One office condominium with a separate entrance also remains available. Contact: www.45parkave.com.

St. George
The Pointe Condominium
155 Bay Street
Sales are under way for developer Leib Puretz’s six-story, 57-unit condominium complex in northeast Staten Island. The project will include one- and two-bedroom luxury apartments, as well as 19,000 square feet of community and retail space on the ground floor. Prices start at $465,000. Casandra Properties is the exclusive sales and marketing agent. Contact: www.thepointestgeorge.com.

Tribeca
200 Chambers Street
Jack Resnick & Sons’ 30-story, 258-unit condominium was 95 percent sold as of early May, and residents have begun moving in. The remaining two- and three-bedroom units are priced from $1.95 to $3.01 million. The Marketing Directors Inc. is the exclusive marketing and sales agent. Contact: www.200chambersstreet.com.

Tribeca
Tribeca Summit
415 Greenwich Street
The eight-story, 65-unit luxury loft condominium developed by Joel Silver and Ethan Eldon was more than 75 percent sold as of early May. Units are priced from $2.4 to $32.5 million. Amenities include a fitness center, children’s playroom and 24-hour attended parking. Prudential Douglas Elliman Developments is the exclusive marketing and sales agent. Contact: www.tribecasummit.com.

Upper East Side
Maison East
1438 Third Avenue
By the beginning of June, Broad Street Development’s condominium conversion was more than 75 percent sold, within six months of sales. Homes are priced from $800,000 to $3.2 million and available for immediate occupancy. Residences range in size from 775 to 2,000 square feet. Prudential Douglas Elliman is the exclusive sales and marketing agent. Contact: www.maisoneast.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 by the end of May. The one- to four-bedroom homes range in size from 750 to 2,600 square feet, and many have private balconies or terraces. Occupancy is slated for summer 2007. The Sunshine Group is the exclusive marketing and sales agent. Contact: www.10wea.com.

Upper West Side
The Harrison 76
205 West 76th Street
The sales center for the Related Companies’ LEED-certified condominiums will open this summer. The two-tower complex, which was designed by Robert A.M. Stern Architects, will offer studio, one-, two-, three- and four-bedroom apartments and include an Equinox Gym. Contact: www.theharrison76.com.

Upper West Side
The Apple Bank Building
Condominium
2112 Broadway
The luxury condominium conversion was ready for occupancy and more than 70 percent sold as of late May. Brown Harris Stevens is the exclusive sales and marketing agent. Contact: www.brownharrisstevens.com.

New Developments from Previous Month

NYC among top cities in U.S. for total residential development; first for multi-unit buildings [more]

Team responsible for starchitect craze is back with a new project [more]

Rebranding encourages buyers to give troubled projects a second look Changing a new development’s name to spur sales
” class=”read-more-link”>[more]

One Madison Park proved to be a better name for 60-story condo project now rising Don’t say Saya-nara to towering aspirations” class=”read-more-link”>[more]

Four Seasons Ocean Residences will be first-ever wholly residential cruise ship First cruise ship condo ready to set sale” class=”read-more-link”>[more]

New condo projects hide the appliances, increase shower space Redesigning the kitchen and bath” class=”read-more-link”>[more]

Plan may bring housing near new Mets CitiField stadium Willets Point: Home, sweet home plate” class=”read-more-link”>[more]

Atlanta

A developer has proposed a $2.1 billion project in Roswell, which would be the biggest development ever in the suburb north of Atlanta. Charlie Brown’s plans for Roswell East include a mixed-use community with green space and high-rise towers of up to 27 stories, the Atlanta Journal-Constitution reported. The project as proposed has met with some criticism from community members who are concerned about its density, the traffic it will create and the height of the buildings.

Boston

Boston’s 46-story One Financial Center office tower recently went on the market and is estimated to draw bids in the range of $850 to $900 million, or at least $800 per square foot. Rose Associates Inc. and MetLife Real Estate Investments are selling the 1.1-million-square-foot tower at a time when prices for prime Boston office properties are rising rapidly, the Boston Globe reported. The similarly sized State Street Financial Center sold for a record $870 per square foot last year. Average rents for premium space in the Financial District exceed $50 per square foot.

Two adjacent Back Bay Beaux-Arts townhouses are up for sale, and one could set a record for Boston’s most expensive single-family home at nearly $15 million, the Chicago Tribune reported. The buildings, at 128 and 130 Commonwealth Avenue, are made of white limestone and overlook the boulevard. The mansions are among five houses currently listed for sale at $10 million or more in Back Bay and Beacon Hill. The current record is $9.12 million, paid for 51 Commonwealth Avenue in 2003.

Chicago

Developers have proposed a 421-foot condominium high-rise on the same block in Evanston where another team has already made plans for a 523-foot condo tower. Although it is unlikely that both will be built, either skyscraper would supplant the 418-foot Oakbrook Terrace Tower as the tallest building in Chicago’s suburbs, the Chicago Tribune reported. The 421-foot tower would reach 37 stories and have 250 to 275 apartments, shops and parking in the middle of the block.

Irish investors have their sights set on Chicago real estate, the Chicago Tribune reported. Recent activity includes Dublin developer Garrett Kelleher’s plans to erect the 150-story lakefront Chicago Spire, and Anglo Irish Bank Corp.’s financing this year of the $93 million purchase of 625 North Michigan Avenue by a syndicate of Irish investors. In the first quarter, Irish investors funneled $133 million into their own commercial market, while $2.4 billion went abroad. Only 2.5 percent of the foreign property investment went to the U.S. and cities like Chicago, but that number is expected to grow.

Las Vegas

Florida-based developer R. Donahue Peebles has proposed the construction of a massive $2.5 billion hotel and mixed-use condo project at 3550 Paradise Road, the Las Vegas Review-Journal reported. The 4.5-million-square-foot Las Palmas Hotel and Residences would sit on 13 acres, have four 55-story glass towers with 800 luxury hotel suites and 1,000 condos, and include upscale restaurants and shops. Condo prices will range from $600 to more than $1,000 a square foot, and hotel room rates will range from $400 a night to several thousand dollars for suites. Credit Suisse provided $65 million in acquisition financing for the land.

Los Angeles

The home of Manhattan Beach Studios sold for $150 million, or $263 per square foot, to a Washington investment company. The 22-acre studio complex on Rosecrans Avenue was purchased by Oaktree Capital Management for $100 million in 2004. Shows such as “CSI: Miami” and “Boston Legal” are filmed in the studio, which has 14 soundstages, nine production offices and the four-story Media Center office building. The complex was built in 1999 by Burbank-based Shamrock Holdings at an estimated cost of $82 million, the Los Angeles Times reported.

Sales at major new-home communities in Los Angeles, Orange and San Diego counties picked up in April, despite weaker figures in other parts of the state. Between March and April, Los Angeles sales rose 12.2 percent, Orange County sales rose 14.1 percent, and San Diego sales rose 2.2 percent, the Los Angeles Times reported. By contrast, sales fell 18.3 percent in San Bernardino and Riverside counties from the previous month and were down 54 percent from a year earlier, while the median price fell 4 percent to $419,000 from last year. Sales throughout the state were down 40 percent from a year ago, with median asking prices falling 6.2 percent.

Philadelphia

A developer wants to build a $500 million project on a 4.5-acre tract at Broad Street and Washington Avenue in South Philadelphia. Samir Benakmoume’s plans include two 31-story twin towers, including condominiums, rentals, a hotel, retail and office space, and parking. The mega-development is expected to generate a total of 860 residential units, 543,000 square feet of retail space and 301,000 square feet of office space, the Philadelphia Daily News reported. If the developer gains approval from the City Council, construction could begin in late 2008 and be finished in three years.

Phoenix

Arizona’s slumping housing market is not expected to recover until 2008, and job growth will continue to lag, the Arizona Republic reported. The amount of money generated by real estate sales dropped about 18 percent, to $6.9 billion, from the first quarter of 2006 to the first quarter of 2007. Growth in non-farm employment is projected to slow from about 108,000 jobs in Phoenix in 2006 to 66,000 in 2007, and just 36,500 in 2008. Wages are increasing at about 4 percent a year, and retail sales are also lagging.

Twelve apartment complexes around the Valley sold for a record $427.5 million to the Bethany Group. The price works out to $82,561 per unit. Bethany, a California-based real estate and investment firm, plans to completely remodel the 5,100-plus apartments’ interiors, the Arizona Republic reported. The average apartment rent is currently about $800, and rents are expected to rise between $120 and $140 within two years, when renovations are finished. The seller was Scottsdale-based Bascom Arizona Ventures LLC.

San Francisco

Bay Area home sales continued to decline in May, according to figures released last month. In the nine-county area surrounding San Francisco, 5,487 existing single-family homes were sold in May, down 17.4 percent from May 2006, according to DataQuick Information Systems, the San Francisco Chronicle reported. The mix of sales moved toward more higher-priced houses, and the median price was up 5.9 percent to $720,000 compared to a year ago. Some of the most affordable neighborhoods are seeing the biggest declines in sales, according to brokers.

Washington, D.C.

A group of Los Angeles investors announced the purchase of the landmark Hilton Washington for $290 million. Basketball great Magic Johnson’s Canyon-Johnson Urban Fund and Lowe Enterprises acquired the hotel from the Hilton Hotels Corp. with plans to spend more than $100 million on renovations. The property, at 1919 Connecticut Avenue NW, has 1,119 rooms, 110,000 square feet of meeting space and a 36,000-square-foot ballroom, the largest in Washington, the Washington Post reported. The renovation will add a smaller, 18,000-square-foot ballroom. The hotel is the site where John Hinckley shot President Ronald Reagan in 1981. It will retain its name and the Hilton management.

Vacation home rentals cut into hotel market

Recent condo buyers who bought units and hoped to flip them are now looking to house snowbirds and sun-loving tourists. That growing interest in vacation rentals is apparently affecting South Florida’s hotel market. Marcus & Millichap Real Estate Investment Services cited a 5 percent drop in room rentals for Miami-Dade hotels in 2006.

Some vacation condos are available at cheaper rates than comparable lodging at hotels. A new condo building in downtown Miami charged $900 for weekly June rentals, while a week’s stay at the nearby Biscayne Bay Marriott cost $1,243, the Miami Herald reported.

Housing sales in South Florida are down 29 percent from a year ago, and the 22,000-plus condominium units currently under construction in Miami will only make things tougher for sellers.

Mortgage delinquencies spike

The number of homeowners facing foreclosure in Broward and Palm Beach counties has ballooned since January, the Sun-Sentinel reported. In Broward, 1,135 residents were behind on mortgage payments in April, the latest month for which figures were available, compared to just 248 a year earlier. Palm Beach County didn’t fare any better, as the number of consumers with delinquent mortgages rose to 814 from 174.

Experts cite a range of reasons to explain why so many residents might be on the verge of losing their homes, including high property taxes, rising homeowner’s insurance and ballooning monthly payments from variable rate subprime home loans. The surge in foreclosures in the near future is expected to glut the market and continue to depress property values.

Faltering developer may unload condos in bulk

A glut of unsold units is the impetus for a $168 million deal that illustrates how developers are coping with the faltering condo market. Boca Developers may sell 236 units in three different South Florida projects to New York-based Cabot Investment Properties after its pre-sale strategy faltered in a weakened market.

Unlike many condominium developers, which sell all or most units before construction begins, Boca pre-sold only the number of units required by their lenders and kept the rest. The surplus didn’t sell, owing to the housing market’s slowdown, and Boca is now trying to cut debt by selling those units for around $342 per square foot, well below building costs, according to the Miami Herald.

The bulk sale would include condos at Marina Grande in Riviera Beach, Peninsula II in Aventura and Oaks I at Biscayne Landing in North Miami, the paper reported.

Such mass sales in a down market are not unprecedented, and speculators like Cabot are commonly referred to as “vulture fund” buyers. Following the purchase, they plan to rent the units out until the market improves, at which time they will sell them.

Master plan promotes towers in downtown Fort Lauderdale

A new master plan for downtown Fort Lauderdale emphasizing tower development awaits approval from the city council.

New height limitations would be imposed in areas adjacent to residential neighborhoods, while the center of downtown will continue to have no height restriction. Buildings erected near downtown would have a 30-story limit.

The area’s makeover would require developers to pay particular attention to buildings’ aesthetics, the Sun-Sentinel reported. The plan asks developers to build slim towers instead of bulky buildings, and multiple-tower developers are to place towers at least 60 feet apart.

The plan’s passage also is required before the city can allow 3,000 more residential units — condos, apartments or homes — to be built downtown, the paper reported.

Flat prices keep sales sluggish

Sellers in South Florida are struggling to unload properties in a buyer’s market. Home sales plunged in April while prices remained steady, the Miami Herald reported.

Single-family home sales in Miami-Dade County fell 37 percent to their lowest level for April in 10 years. Broward County home sales were down 16 percent in April from a year earlier.

One local broker said the market was still in a “correction phase” and that buyers are waiting for prices to come down before entering the market. But prices remained flat in April, with median prices for single-family homes up 1 percent compared to last year in Broward County, to $363,800, and up 2 percent in Miami-Dade, to $382,300. But sellers may be coming around, as houses in April sold for about 3 percent less than they did in March.

Atlantic Yards plan attracted new condos, but sales at some falter [more]

Conversion initially stirs fear that development will alter area 166 Montague: The height of change in Brooklyn Heights” class=”read-more-link”>[more]

High residential prices blur the differences between Upper East and West sides UES vs. UWS: Uptown rivals bury the hatchet
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Subpoenas add pressure, but real target likely mortgage brokers [more]

421-a reform bill passes Legislature
As expected, a bill revamping the 421-a tax-abatement program passed the State Legislature last month, Crain’s reported. Under the bill, the 421-a exclusion zone will be extended to include large swaths of upper Manhattan, Brooklyn and Queens. At present, the exclusion zone only applies to Manhattan between 14th and 96th streets. In the areas covered by the law, 20 percent of units in new developments will need to be affordable to a family of four earning $42,000. The bill, which Gov. Spitzer is now expected to sign into law, is more far-reaching than the 421-a plan the Bloomberg administration and the City Council agreed on last December. The state’s version of the bill has a larger exemption zone and more affordably priced housing.

City, Extell buy land for new Hudson Boulevard
The city appears to be buying up buildings next to the far West Side’s Hudson Yards in order to build the Hudson Boulevard, which planners envision as an eight-block thoroughfare running from 42nd to 34th streets between 10th and 11th avenues. In a deal that recently closed, the city spent $66.1 million to buy 528 West 34th Street and a smaller adjacent building, 524 West 34th Street. Mega-developer Extell Development Company kicked in another $13.9 million to buy part of the properties, according to public records.

Sunnyside Gardens named a historic district
At a public meeting last month, the Landmarks Preservation Commission voted unanimously to designate Sunnyside Gardens a historic district. The 17-block neighborhood will be Queens’ largest historic district. Sunnyside Gardens was constructed in the 1920s as a “garden community” for low- and middle-income residents. The one-, two- and three-family attached brick houses that dominate the neighborhood were constructed around open center courts, leafy pathways, and private and communal flower gardens. Many residents were opposed to the restrictions that will be placed on home design as a result of the designation.

Columbia University rezone review can begin
The Department of City Planning certified last month that Columbia University’s application for the proposed rezoning of West Harlem is now complete. The certification means that public review of the proposed rezoning can now begin. If the rezoning goes through, it will allow the university to construct buildings that are up to 25 stories high as part of its expansion plans.

UWS downzoning gains momentum
Manhattan Borough President Scott Stringer submitted a recommendation last month calling for a section of the Upper West Side to be rezoned. Stringer’s recommendation came a day after Community Board 7 unanimously voted in favor of the same rezoning. The measure calls for new buildings to be capped at a maximum height of 14 stories in the area bounded by 97th and 110th streets to the south and north, and Riverside Drive and Central Park West to the east and west, the New York Sun reported.

HDC says ’07 financing is tapped
The New York City Housing Development Corp. says it has run out of tax-exempt bonds that go to financing the creation and preservation of affordable housing, Crain’s reported. The agency’s funding shortage this year comes as HDC announced it was allocating $320 million in financing to build or preserve 2,285 apartments in the city. HDC’s lack of funds means that right now it has no more money to allocate in 2007 for low-income, mixed-income or 80/20 housing unless state or federal officials raise its private activity bond volume cap. HDC’s cash shortage not only impacts developers seeking to build affordable housing as part of 421-a regulations; it comes at a time when the city is losing massive amounts of affordable housing. According to a recent report from the Community Service Society of New York, 21,500 subsidized apartments in the city are currently in danger of being lost.

In a tough national market, some agents get full 6 percent or even higher [more]

Suit alleges property information is remarketed illegally [more]

Mumbai to curb soaring prices with more development
Mumbai is trying to put a lid on soaring real estate prices by allowing more development.

The state legislature is considering changing a law that limits the amount of land available for development in the Indian city of more than 17 million people. The current law limits individuals to developing no more than 5,400 square feet.

The increase in developable property is expected to help lower spiking rents and prices for offices and homes by adding supply.

Office rents in Nariman Point, Mumbai’s financial district, for instance, rose 40 percent in the first nine months of 2006, more than three times as fast as those in New York, the International Herald Tribune reported. The district’s average office rents were $8.65 per square foot as of March, the highest price in 11 years.

Mumbai is home to India’s biggest companies and is the main trading center for stocks, gold, diamonds and oil. It may house as many as 22 million people by 2015, making it the world’s third-most-populous city after Tokyo and Dhaka in Bangladesh, according to a United Nations report.

Morgan Stanley to buy largest office landlord in Australia
Morgan Stanley last month agreed to buy Australia’s largest publicly traded office landlord, Investa Property Group, for $3.9 billion in cash. The move is the largest foreign acquisition of Australian real estate to date, the International Herald Tribune reported.

Investa was valued at $3.08 a share in the deal, 14 percent higher than its closing price one day earlier. It has a stake in more than 33 office buildings throughout Australia. Before the buyout, the company had switched its focus to commercial real estate as the residential market was slowing down.

A shortage of commercial development and decreasing unemployment allowed Investa’s real estate earnings, 85 percent of which are from office space, to more than double in the second half of 2006.

Office vacancy rates in Australian cities have fallen each year since 2004. In Sydney, Australia’s biggest city, office vacancy rates are expected to decline to 6.5 percent by the end of next year from 9.4 percent currently, according to a forecast by the Australia and New Zealand Banking Group.

Post-communist real estate boom ends in Prague
The real estate boom that followed the 1989 overthrow of communism in Prague is over.

The Czech Republic’s capital city is giving investors lower returns — albeit at lower risk — than it did in the past.

Capital appreciation on investments is now running about 5 percent on average, compared to closer to 8 percent only a few years ago, according to a story in the International Herald Tribune.

The reduced returns are due mostly to a larger supply of apartments, at least in the lower and middle ranges of the market. In 2005, a record 33,000 apartments were completed in the Czech Republic, almost 20 percent of them in Prague.

Prices are still rising in the city’s much smaller luxury housing market, which currently includes only a few hundred apartments. High-end residences now go for around $260 per square foot and include new projects like Central Park Praha and River Diamond.

While Prague’s stability and established system of mortgages and legal advice is a draw, speculators looking for greater potential upside are heading to cities like Bucharest, Istanbul and Marrakech, investors say.

Coldwell Banker Hunt Kennedy has joined Coldwell Banker Previews International to capture a greater share of the high-end Manhattan market.

Coldwell’s national Previews division, which specializes in properties priced over $1 million, has helped give the conglomerate a 56 percent share of the $1 million and up market across the country, and the brokerage says it sells more million-dollar homes than all other real estate companies in the U.S. combined.

But in Manhattan, the localized operation known as Coldwell Banker Hunt Kennedy faces stiff competition in the high-end market from Corcoran, Prudential Douglas Elliman, Brown Harris Stevens and Sotheby’s, as well as from boutique firms. In a survey of the dozen biggest residential brokerages in Manhattan in May, The Real Deal found that Coldwell Banker Hunt Kennedy had only one listing for a property over $4 million. Only one other firm on the list, Bond New York, had fewer listings in that price range.

The new Manhattan division of Previews will be headed by Stan Ponte, formerly a senior vice president at Stribling & Associates. The new president has been traveling to Madrid, Paris and Beverly Hills to bring business to Manhattan.

New York City has its own way of doing business compared to the rest of the country, and some brand names — like Previews — that are recognizable elsewhere are not recognizable here. But Ponte says that can change. “Why not open doors in New York City and gain market share?” he asked.

Coldwell Banker Hunt Kennedy CEO David Michonski said expanding the Previews program to Manhattan is a good fit in the highest-priced market in the country.

“We wanted to make sure that in New York City, we’re tapping in to the network,” Michonski said.

Still, if Coldwell Banker Hunt Kennedy grows its high-end business, it won’t likely be a large share of its total sales. According to appraisal firm Miller Samuel, property sales of $4 million and above — which it defines as the “luxury” segment — make up about 3 percent of total sales in the Manhattan market.

“Previews isn’t about quantity,” Michonski said. “It’s the extreme upper end of the market where there are not a lot of unit sales. It’s about connecting very boutique marketing to the rest of the world.”

“It’s a matter of educating the brokerage community,” Michonski added.

In a saturated and highly competitive market for new condo projects, a number of developers have recently switched marketing firms to help spur sales.

Last month, developer Andre Balazs fired Corcoran Sunshine Marketing Group as the sales agent for his William Beaver House condo in the Financial District. Core Group Marketing has since been hired as a replacement.

Farther uptown, at 23rd Street and Madison Avenue, Slazer Development swapped Cantor Pecorella for Brown Harris Stevens’ newly formed ID Marketing Group to sell their 60-story condo building One Madison Park.

When the market is sluggish and sales are slow, developers often change marketing firms to jumpstart demand. Market insiders say there could be a number of other reasons for the recent marketing substitutions.

“I think that if a developer sees sales aren’t going as they projected, then they look at their options and find someone that they feel will fill in the gaps,” said Andrew Gerringer, managing director of new development for Prudential Douglas Elliman.

That appeared to be the case with the William Beaver House, which changed its marketing team six months after sales began. Sexy promotional items developed during Corcoran’s tenure have been removed from the marketing campaign.

A Corcoran Sunshine spokesperson had nothing but nice words for the project, though.

“We have enjoyed partnering with SDS William on the launch of William Beaver House,” the spokesperson said. “It has been a great success and a terrific addition to the Financial District and to Downtown in general.”

Sometimes, though, marketing teams are switched before sales even begin — for example, with One Madison Park and the District condo in the Financial District.

JC DeNiro & Associates says it has signed on to market a number of residential projects where sales have not yet started. Most recently, the firm took over marketing of Africa Israel’s District development at 60 Ann Street.

“We took on the District long before it was on the market,” said Christopher Mathieson, managing partner of JC DeNiro & Associates. “I had several months to understand the location and strong points that every development has going for its favor. Some marketing programs aren’t addressing what the market wants and what the building has to offer.”

Schrager, Marriott enter partnership
Marriott International and Ian Schrager announced last month that they would partner to create a boutique hotel brand. Marriott, which has more than 2,900 hotels worldwide, has no boutique properties, while Schrager’s boutique projects include the Gramercy Park Hotel, the Hudson and the Royalton. Marriott and Schrager said the partnership may result in as many as 100 hotels worldwide.

Developers Group launches new mortgage, rental divisions
The Developers Group recently launched two new divisions, TDG Equities and TDG Rentals. TDG Equities will offer mortgage lending services, and TDG Rentals will target rental apartments in Manhattan and Brooklyn. The firm recently expanded its sales and marketing services to New Jersey, where it is marketing four new developments along the Gold Coast.

C & W buys Sonnenblick Goldman
Cushman & Wakefield’s purchase of a majority stake in real estate investment banking specialist Sonnenblick Goldman could close by the early third quarter, Commercial Property News reported. Cushman & Wakefield, which is the world’s largest privately held commercial real estate services firm, said that Sonnenblick Goldman’s principals would be retained. The financial terms of the deal were not made public. Last year, Cushman & Wakefield completed more than $50 billion in property sales and financings, and Sonnenblick Goldman completed $7.5 billion worth of capital transactions.

Tishman Speyer, Lehman to acquire mega-REIT Archstone-Smith for $22B
Tishman Speyer Properties and Lehman Brothers agreed in late May to purchase mega-REIT Archstone-Smith Trust for $22.2 billion, including $6 billion in debt. But should the deal fall through before closing, according to an Archstone-Smith regulatory filing last month, Archstone will have to fork over $235 million to Tishman and Lehman. Archstone-Smith’s core investments include rental units and land in major urban centers across the U.S. and in Europe. The deal would give Tishman Speyer control of more than 15,000 apartments in New York City.

Cappelli Enterprises launches site with daily updates on projects
Developer Cappelli Enterprises, whose projects include Renaissance Square in White Plains and the Trump Parc Stamford, recently launched a new Web site, www.cappelli-info.com. The site will be updated daily with news on the developer’s projects in White Plains, New Rochelle, Yonkers, Ossining, Yorktown, Stamford and the Catskills.

New real estate professionals networking site launches
New York City-based architects Jennifer Magee and Oisin Clancy have launched UPworld.com, a networking Web site for real estate and building professionals. The site allows members to create profiles and share their portfolios. All of its services are currently offered for free.

GeoData Plus adds pre-foreclosure data
Real estate data provider GeoData Plus recently announced the release of lis pendens information in New York City and Nassau and Suffolk counties. A Web-based tool allows users to find out about distressed properties and access sales comparables and owner data.

Residential

Barak Realty
Renald Ganthier, Diana Goldberg, Tom Holmes, Don MacIver, Shirley Pachas, David Salazar, Eugene Torand and Sasha Yates joined the firm.

Bond New York
Folasade Arogundade, Jason Barrocas, Christian Benites, Helen Byrne, Joseph Boroski, Anthony Ciano, Cary Gerson, Alex Haven, Brandon Isner, Zev Keisch, Tony Lara, William Lluberes, Beth Lustbader, Fanny Mendez, Jayson Mirchin, Peter Pugachevsky, Melissa Reilly and Sylvie Sandell joined the firm.

Brown Harris Stevens
Karen Duncan was named director of sales at the Apple Bank Building Condominium.

The Corcoran Group
Robert Maximilian Saar was appointed vice president. He was formerly a senior director at Sumitomo Real Estate.

DJK Residential
Phyllis Pezenik was promoted to vice president of residential sales.

Halstead Property
Michaela Gold joined as a vice president. She was previously a sales associate at Phyliss Koch Real Estate. John Crafton joined the firm. He was previously at Barak Realty.

Commercial

Ackman-Ziff
Svetlin Ganchev and Mark Owens joined the firm’s hospitality group as managing directors. Linda Yang joined as a director. All three were previously at Sonnenblick Goldman.

Besen & Associates
Abraham Akhavan joined the firm’s Platinum Team as an associate sales broker.

CB Richard Ellis
John Maher joined as executive managing director of global corporate services. He was an executive vice president at Colliers International.

The Clarett Group
Frank Stephan was promoted to senior managing director.

Coldwell Banker Commercial Properties Unlimited
Frank Gerage was named commercial sales manager. He was previously a director at Domain Properties.

GFI Capital Resources Group
Mitchell Sabshon was appointed executive vice president and chief operating officer. He previously worked at Goldman Sachs.

Hidrock Realty
Jack Terzi joined as an associate director. He was previously a leasing agent at Maxam Realty Corporation.

Itzhaki Properties
Ron La’at joined as a salesperson. He was previously a real estate specialist at the Prime Homes Group in Brooklyn.

Massey Knakal
Juan Arevalo joined as an executive assistant in the Brooklyn office. Chantelle Moore was promoted to full-time administrative assistant in the Manhattan office.

W Financial Mortgage Fund
David Heiden joined as a partner. He was formerly a senior vice president at BRT Realty Trust.

In addition to helping hopeless sellers, home stager Ilaria Barion is also helping hopeless singles. Barion, who makes properties on the market more appealing to buyers, is using the same techniques to help the romantically challenged. Barion’s new service “Staged to Date” aims to make properties more relationship-friendly.

“When you see a property to buy, you realize in the first 90 seconds whether you like it or not,” Barion said. “The same thing happens when you see the apartment of someone you’re dating. People can be turned off by the condition of the apartment.”

According to Barion, who is based in Manhattan, there is a huge market for her romantic renovations.

“An apartment can tell more about who the person is than just where they live,” she said.

“A neglected home won’t impress anyone and makes the person look dirty or careless,” Barion added. “I usually recommend hiring a cleaning lady. Other things are less obvious, like having photographs around.”

Barion will also decorate the apartment and remove unsightly items for her lovesick clients. But it isn’t cheap — prices range from $295 for a consultation to $495 for a home visit.

And for those who are more concerned with business relationships, one broker thinks finding the perfect fit may take only three minutes.
[more]

When building buyers are willing to spend big, they want a different perspective on their investments. For brokers at Itzhaki Properties, that means taking prospective buyers on helicopter tours of New York City. [more]

The Real Deal takes a look back at some of the big stories in New York City over the past century.
[more]