The Real Deal New York

How the $1.8 billion buy went down Behind the record deal for 666 Fifth Avenue” class=”read-more-link”>[more]

Why so many garmentos head to real estate Developers cut from the same cloth” class=”read-more-link”>[more]

A building from ultra-chic designer Philippe Starck is coming to a less-than-chic part of East 23rd Street in Manhattan, The Real Deal has learned. Shvo Marketing is the sales agent for the project, named Gramercy in an effort to tap into the cachet of nearby Gramercy Park. Starck brings chic to unchic 23rd Street” class=”read-more-link”>[more]

Slowdown gives way to boom as NYC’s residential market rebounds Call it a comeback” class=”read-more-link”>[more]

Slack demand, consolidation increasing illegal practice Mortgage kickbacks on the rise
” class=”read-more-link”>[more]

With a 6 percent commercial vacancy rate in Manhattan and a scarcity of large blocks of space, big companies that want to expand are currently creating office campuses rather than using a single building for their headquarters. [more]

Stores catering to a hipper crowd open on avenue famous for luxury [more]

Manhattan rents dip as boom market eases slightly [more]

In 2006, the value of Manhattan building sales rose a whopping 51.7 percent to $31.1 billion from $20.5 billion a year earlier, according to an analysis provided by Real Capital Analytics, a research firm. The biggest buyers came from all corners of the globe, the research firm found. Money came into the New York market from many avenues, including domestic buyers, foreign buyers, REITs, institutions and investments funds. [more]

Demand for New York City hotel space has reached the airports on the city’s periphery, where developers say they are seeing new construction activity that could blossom into a full-scale building boom. [more]

Times Square office building makes unusual leap back to its hotel roots [more]

Branches open in developing areas, some lesser-known names enter city [more]

Landlords seek to fill empty spaces with smaller, hipper companies [more]

Latest trend leans toward consolidating retail locations [more]

After the eye-popping $1.8 billion sale of a premier Fifth Avenue building set tongues wagging about overpayment, the Kushner Companies may find its Midtown investment paying off as bidders seek some of the world’s priciest storefront space. [more]

 New project will combine shops and garden in high-traffic area [more]

Chetrit selling International Toy Center
The Chetrit Group is considering selling the 15-story International Toy Center. Douglas Harmon of Eastdil Secured is advising the company on the marketing effort, according to the New York Post. Chetrit bought the connected buildings at 200 Fifth Avenue and 1107 Broadway in early 2005 for $355 million.

100 Wall Street to be sold
Beacon Capital Partners has retained an investment bank to market its 29-story, 466,000-square-foot building at 100 Wall Street, the New York Sun reported. The property is expected to fetch close to $175 million, or $375 a square foot. Beacon purchased the building in December 2005 for $134 million from Reckson Associates Realty.

Grand Central office space on market
SL Green is selling the 200,000-square-foot office component of 110 East 42nd Street, the Post reported. Bids are expected in the $600 per square foot range. The building, across the street from Grand Central Terminal, also houses a grand ballroom owned by Cipriani. A Studley team led by Woody Heller and including Will Silverman and David Endelman is marketing the commercial condo for SL Green.

West Village portfolio for sale
A six-building portfolio in the West Village is on the market for sale with an asking price of $101.5 million. Most of the buildings in the Beck Street Portfolio have a mix of retail and rental units and are offered as a package or individually. The properties are located at 367-69 Bleecker Street, also known as 87 Charles Street; 382-84 Bleecker Street, also known as 92-94 Perry Street; 387 Bleecker Street; 625 Broadway, also known as 192 Mercer Street; 82 Christopher Street; and 37 Greenwich Avenue, also known as 2 Charles Street. James Nelson, Brendan Gotch and Billy Simons of Massey Knakal are the exclusive sales agents.

Madison Avenue parcel on the block
A parcel at 635 Madison Avenue is on the market and will likely sell for more than $100 million, the Post reported. The long-term family owners are selling off control of just the land initially, and the buyer will have to wait 45 years to take control of the 140,000-square-foot commercial building on top. Bill Shanahan and Darcy Stacom of CB Richard Ellis are marketing the property.

39th Street Fashion Center on the market
L & L Holdings is selling the 39th Street Fashion Center, the Post reported. L & L bought the 200,000-square-foot building in 2000 for $19 million. The Fashion Center, which counts Anna Sui among it tenants, is expected to go for around $90 million, or $400 per square foot. Cushman & Wakefield’s Jon Caplan, Scott Latham, Ron Cohen and Richard Baxter are marketing the property.

Chelsea development site on the market
The block-through commercial development site at 511-517 West 21st Street near the High Line is on the market for sale, according to the Sun. A developer can build a 100,000-square-foot gallery or hotel. The site is expected to sell for more than $500 per buildable square foot.

Commercial building for sale on UES
The 63,000-square-foot Decorators Center Building at 315 East 62nd Street has been put on the market and is expected to fetch $35 million, GlobeSt.com reported. The 100 percent occupied property is net leased through 2011. It comprises two attached buildings — one six stories and the other three — and has a retail component on the ground level and offices and design showrooms on the upper floors. Ken Zakin, Neil Joffee, Barbara Craig and Randall Liberman of Newmark Knight Frank are exclusively marketing the property.

Kips Bay portfolio for sale
Ten contiguous mixed-use and walk-up apartment buildings in Kips Bay are on the market for sale at an asking price of $28.5 million. The Kips Bay Portfolio comprises 243 East 31st Street, 245 East 31st Street, 247-251 East 31st Street, 563-565 Second Avenue, 567 Second Avenue and 569-571 Second Avenue. The properties total 44,966 square feet and have an additional 40,865 square feet of unused development rights. John Ciraulo, Shimon Shkury and Matthew Parvin of Massey Knakal are handling the sale.

Brooklyn industrial building on the block
A vacant five-story industrial building in Brooklyn’s Sunset Park neighborhood is on the market for sale or lease. The 135,000-square-foot building at 3913 2nd Avenue is asking $26.5 million for an outright sale, or $9 per square foot for a long-term triple net lease. The building can support a variety of commercial uses. Ofer Cohen of Massey Knakal is exclusively marketing the property.

City subpoenas rental brokerages to investigate advertising practices [more]

Manhattan’s residential market has a jump on the spring season — traditionally the busiest season of the year for sales. [more]

The buyers are back at open houses — and online, too. Buyers are responding to price cuts sellers made in recent months, leading to an increase in sales activity. [more]

While real estate agents and brokers in other markets around the country have faced slowing sales and falling prices, the New York City market has held its own. [more]

Bulk buying is a tough task in New York, but some find this a lucrative niche [more]

What goes up must come down, so the proverb goes. If that’s the case with New York’s real estate market, experts are wondering whether the recent residential sales revival is only a brief pause on a downward slide that pulls the city into line with the rest of the country. [more]

Heavily attended open houses are the place to be in Manhattan, and the constant crowds are more evidence that the residential market is resurgent. [more]

Rules set qualifications for mortgage originators, aim to reduce predatory practices [more]

New 3-D program furnishes listed apartments with buyers’ choices [more]

As more firms encourage brokers to promote themselves, curbs are put in place [more]

Her first full project, on West 19th, to face off with Gehry and Nouvel [more]

In wake of 40 Bond’s success, 11 Spring Street goes condo in red-hot nabe [more]

New development attracts more families, foreign buyers; speculators largely gone [more]

Battery Park City
The Visionaire
70 Little West Street
The offering plan has been accepted for the 35-story, 251-unit condominium, and the sales office was scheduled to open on March 1. Rafael Pelli of Pelli Clarke Pelli designed the green building, which will have a number of environmentally friendly features. Amenities will include a skylit indoor swimming pool and hot tub. Residents will also have access to a parking garage. The Marketing Directors Inc. is the exclusive sales and marketing agent. Contact: www.thevisionaire.com.

Downtown Brooklyn
Center at Albee Square
The Albee Square Mall, now known as the Gallery at Fulton Street, will be razed and developed to include a high-rise tower, the New York Times reported. New owner Albee Development, which includes MacFarlane Partners of San Francisco, plans to build 1,000 rental apartments, a fifth of which would be reserved for moderate-income tenants. Plans also call for expanding the property’s retail space from 150,000 square feet to nearly 500,000 square feet and for the construction of 125,000 square feet of Class A office space.

East Village
37 East 4th Street
Atlantic Development Group plans a 15-story tower with 147 market-rate apartments on the corner of East 4th Street and the Bowery, Curbed.com reported. The building will include a health club and 23,000 square feet of retail space.

Lower Manhattan
The Setai, New York
40 Broad Street
The on-site sales office is open for the 30-story, 167-unit condominium conversion. The Setai Group and New York-based developer Zamir Equities received a $167.2 million construction and mezzanine loan for the project. The Singer and Bassuk Organization arranged the financing. Studio to three-bedroom units and penthouses will range in size from 475 to 3,424 square feet, with prices running from $670,000 to $6.75 million. Residents will have access to more than 25,000 square feet of amenity space, including the private Setai Club gym and spa. Occupancy is scheduled for June 2007. The Marketing Directors Inc. is the marketing and exclusive sales agent. Contact: www.setainy.com.

Murray Hill
m127
127 Madison Avenue
Sales have opened at Cardinal Investments’ 13-story, nine-unit condominium conversion. SHoP Architects reconfigured the building’s seven existing floors and added five new ones. Units range in size from 1,550 to 2,400 square feet. Stribling & Associates is handling sales. Contact: www.stribling.com.

Tribeca
Tribeca Five
283 West Broadway
Sales are under way for the five units in the Dynamic Group’s condominium conversion of a 19th century building. Interior designer Dorothy Draper & Co. will create the lobby. Prices range from $2.7 to $3.795 million. Occupancy is slated for May 2007. CitySites Marketing is the exclusive sales agent. Contact: www.tribecafive.com.

Upper East Side
The New Yorker Condominium
1474 Third Avenue
RAL Companies & Affiliates has launched sales for the 17-story condominium. The building, which was built in 1982 as a condominium and has two units per floor, has been totally renovated. One- to four-bedrooms are available, as well as a full-floor unit and garden penthouses. Stribling Marketing Associates is the exclusive marketing and sales agent. Contact: www.stribling.com.

Upper West Side
Avalon Morningside Park
Morningside Drive and 110th Street
AvalonBay Communities broke ground in February on a $126 million, 296-unit rental complex, GlobeSt.com reported. The 20-story, 243,000-square-foot building was designed by R.M. Kliment & Frances Halsband Architects and will have a two-story glass entrance opening onto Cathedral Parkway. One- to three-bedroom units will range in size from 500 to 1,350 square feet, and 59 of the units will be reserved for low-income households. The project is being developed under an agreement with the Cathedral Church of St. John the Divine and was financed with $100 million in tax-exempt bonds under the New York City Housing Development Corporation’s 80/20 program. Initial occupancy is expected in summer of 2008, with completion to follow by January 2009.

Upper West Side
350 Amsterdam Avenue
The Related Companies will build a 16-story, 300,000-square-foot condominium designed by Robert A.M. Stern on the western blockfront of Amsterdam Avenue between 76th and 77th streets, the Post reported. The building will include 40,000 square feet of retail and an Equinox health club, a chain that Related owns. Preservationists sought to block the destruction of the current building on the site, the Dakota Stables, which housed horses in the late 19th century and has been used as a parking garage since 1912. Related will also build approximately 40 units of low-cost housing in the neighborhood under the city’s inclusionary housing program, which in exchange allows for a larger new building. Construction is scheduled to start in the next several months and will take 18 to 22 months to complete.

Construction Update

Fort Greene
Fort
230 Ashland Place
Construction is under way for the Clarett Group’s $85 million, 106-unit condominium. The 30-story building will have studios to three-bedrooms ranging in size from 707 to 1,435 square feet, with prices running from $500,000 to $1.3 million. On-site model homes will open in April, with occupancy to follow in fall 2007. Contact: www.fortecondo.com.

Midtown East
The Veneto
250 East 53rd Street
The Related Companies’ 34-story, 137-unit condominium was topped off in early February. At the time, 85 percent of its units had been sold, within nine months of the start of sales. The remaining units range in size from 763 to 1,930 square feet and are priced from $955,000 to more than $2.8 million. Occupancy is slated for fall 2007. Related Sales is the exclusive marketing and sales agent. Contact: www.theveneto.com.

Midtown East
303-307 East 51st Street
Kennelly Development Co. plans to begin construction of a 40-story residential condominium with 117 apartments, according to the New York Sun.

Upper East Side
1425 Second Avenue
World Wide Holdings has begun building the 30-story, 70-unit residential tower, which will also house a 44,000-square-foot Equinox Fitness Center, the Sun reported.

Williamsburg
The Aurora
30 Bayard Street
The 13-story, 51-unit condominium celebrated its topping off in mid-January. By that time, 11 months after sales began, 80 percent of the units had been sold. Prices for the 10 available units range from $535,000 for a 772-square-foot one-bedroom to $1.05 million for a 1,064-square-foot two-bedroom. The Developers Group is the exclusive marketing and sales agent. Contact: www.thedevelopersgroup.com.

Financing

Chelsea
100 11th Avenue
Fremont Investment & Loan arranged $110 million in construction financing for the 72-unit, 250-foot tall condominium designed by Jean Nouvel and Beyer Binder Belle. The units will average 1,550 square feet in size. Cape Advisors is the developer.

Greenpoint
110 Green Street
Strategic Capital Solutions closed $53.4 million in financing to New York-based 110 Green Development LLC for the construction of the six-story, 130-unit condominium. The 51 one-bedrooms, 73 two-bedrooms and six three-bedrooms will range in size from 675 to 1350 square feet. Sales are slated to begin in August 2007. Completion is scheduled for August 2008.

Upper East Side
Manhattan House
200 East 66th Street
While the 583-unit building is slowly being converted from rentals to condominiums, questions remain about the project’s controversial financing structure, which involves $450 million in securitization bonds. Fitch Ratings released a statement in February citing concerns about the project’s delay, noting there have been no sales or contracts signed for any of Manhattan House’s units since the loan for the project was remitted in January. The property’s owners contend that the project is not delayed, and note that sales cannot begin until the project’s offering plan is approved by the New York State Attorney General’s office.

Sales Update

Chelsea
Onyx Chelsea
261 West 28th Street
By the middle of February, four months after the start of sales, the 11-story, 52-unit condominium was more than 70 percent sold. Prices range from $700,000 to $2.5 million. Core Group Marketing is the exclusive marketing and sales agent. Contact: www.onyxchelsea.com.

Harlem
Loft 124
138 West 124th Street
Blesso Properties sold one of the condominium conversion’s two penthouse units for $1,007 per square foot, a record price for a condominium north of 110th Street, according to exclusive sales agent Corcoran Group Marketing. The two-bedroom, 1,300-square-foot penthouse is on the 11th floor and has four exposures. Half of the project’s 21 units, which range in size from 960 to 2,028 square feet, had gone into contact by early February. Prices for available units range from $950,000 for a 1,338-square-foot one-bedroom to $1.85 million for a 1,952-square-foot two-bedroom. Sales began last fall. Contact: www.loft124.com.

Long Island City
4720 Center Boulevard
The first rental building in Rockrose Development’s EastCoast complex had reached 80 percent occupancy in January, within 5 months of opening. Units range in size from 500-square-foot studios to 1,500-square-foot duplex penthouses. Rents for available one-bedrooms run from $2,550 to $2,870; two-bedrooms rent for $3,650 to $3,950. Contact: www.eastcoastlic.com.

Murray Hill
45 Park Avenue
By the end of January, 50 percent of the condominium’s 105 units had been sold. Contact: www.45parkave.com.

Tribeca
Tribeca Summit
415 Greenwich Street
The eight-story, 65-unit condominium conversion was 60 percent sold as of mid-February. Developers Joel Silver and Ethan Eldon are now offering a 12,000-square-foot penthouse with 7,700 square feet of outdoor space and will build it according to the buyer’s design. The price is $32.5 million. Prices for the other units start at $2.25 million. Occupancy is slated for spring 2007. Prudential Douglas Elliman is the exclusive marketing and sales agent. Contact: www.tribecasummit.com.

Upper West Side
10 West End Avenue
The 33-story, 173-unit condominium saw the sale of 20 units totaling more than $25 million between Thanksgiving and Christmas. One- to four-bedroom units range in size from 750 to 2,600 square feet, with prices running from $806,000 to $5.7 million. Apollo Real Estate Advisors and Cambridge Development and Construction are developing the project. Occupancy is scheduled for spring 2007. The Sunshine Group is the exclusive marketing and sales agent. Contact: www.10wea.com.

Upper West Side
The Apple Bank Building Condominium
2112 Broadway
The 29-unit condominium conversion was 40 percent sold by the end of January. One- to four-bedroom units range in size from 1,359 to 4,500 square feet, with prices running from $1.85 to $7.1 million. Occupancy was scheduled to begin in February. Brown Harris Stevens is the exclusive sales agent. Contact: www.brownharrisstevens.com.

Upper West Side
Avery
Riverside Boulevard and 65th Street
Extell Development’s 32-story, 274-unit condominium was more than 50 percent sold as of late January. Prices for the one- to three-bedroom units range from $850,000 to more than $3 million. Corcoran Group Marketing is the exclusive marketing and sales agent. Contact: www.averyriverside.com.

Development in Brief

Manhattan (north to south)

200 East 86th Street
Later this year, the Related Companies will begin development of a 20-story, 190-unit residential tower with 14,000 square feet of retail space, the New York Sun reported.

305 East 85th Street
Plans are in place for a 21-story, 117,663-square-foot residential tower with 4,125 square feet of retail at the site, according to the Sun.

230 West 78th Street
Urban Residential Properties plans a 20-story, 34-unit residential condominium on the site, according to the Sun.

1480 Second Avenue
The 60,000-square-foot development site was expected to be sold in February to a developer who plans to build a condominium, the Sun reported.

141 Fifth Avenue
Savanna Partners has begun converting the 14-story landmark building into a residential condominium. Architect Cetra/Ruddy is handling the exterior restoration and designing the interiors.

21 Ann Street
Construction is scheduled to begin this spring on a 150,000-square-foot mixed-use building at the site, which includes a parcel at 109-113 Nassau Street. Plans include 125,000 square feet of residential condominiums, the Sun reported.

151-161 Maiden Lane
A 250,000-square-foot mixed-use hotel condominium is planned for the site. It will have 80 residential condominiums and 100 hotel-condo units, according to the Sun.

New Developments from Previous Month

New development projects outside New York City [more]

Senior partner of Costas Kondylis and Partners, and one of the city’s most prolific architects.

What is your name?
Constantine Andrew Kondylis.

When is your birthday?
April 17, 1940. I’m an Aries.

Where do you live?
I live on 81st Street and Lexington Avenue. My apartment is my sanctuary, my shelter. I don’t use my house as a place to impress people with my architectural skills.

Do you have a country house?
I bought a potato barn in Southampton. It’s like a loft — a huge Soho loft inside a barn. I exhibit my sports cars in my living room.

Is that home more about showing off your architectural skills?
Yes.

How often do you go out there?
I try to go out most weekends.

What are your passions?
I’m passionate about architecture and another passion of mine is automotive design. When I was small, I thought I would become an automotive designer.

Why didn’t you go in that direction with your career?
Back then there were no schools for the study of automotive design.

Where are you from?
I tell people I’m an island boy — Manhattan, Long Island and Samos [a Greek island] — the three islands.

Do you have family in Greece?
I have family in Greece, friends in Paris, and very good friends in Geneva. One of my hobbies is sports cars — racing cars — so I keep a Ferrari at a dealer in Geneva. When I fly to Europe for vacation, I pick up my car and go to Southern France or to Italy, Tuscany or Venice. I love traveling by car in Europe.

Do you have a girlfriend?
Yes.

How long have you and your girlfriend been together?
Six months.

How old is she?
37.

Were you ever married?
My wife died of breast cancer about 11 years ago. We lived together for 17 years. I sit on the board of directors of a cancer research foundation called the Samuel Waxman Cancer Research Foundation. I do that in memory of my late wife.

You design a lot of buildings for Donald Trump. Some critics have said your work is formulaic. Do you agree?
I think every project is designed to stand on its own merits in its own context. There’s never been a formula to apply in development. People buy real estate with the idea of an investment. I wanted to prove you could marry commerce and art.

What advice would you give someone starting out as an architect?
Persevere and go into the business if you are passionate about the business. If your purpose is to make a lot of money, don’t become an architect.

How much money do you have on you?
$100. I typically have $200 to $300 in petty cash.

What was your first job?
My first job was when I was at the University of Geneva School of Architecture. I got a summer job as an architectural draftsman at a Swiss firm.

What do you read every day?
I read the New York Times, automotive magazines and the [International] Herald Tribune, because it has more news on what’s happening in Europe. It’s the paper I read when I’m on vacation in Europe. When I read it, I feel like I’m in Europe.

What’s your greatest vice?
Staying up late at night. I feel like I’m wasting time going to bed.

What is the last movie you saw?
I saw the new James Bond movie ["Casino Royale"].

What would you want people to say about you after you die?
He was a great pragmatic architect.

Interview by Lauren Elkies

Atlanta

Residential/Commercial
Some developers say Atlanta’s skyline is undergoing “Manhattanization” and is becoming denser. More residents are living within walking distance of work and are not driving to jobs and recreation. To meet growing demand, the Related Group is planning a multiple high-rise “city within a city” development one block from Lenox Square Mall. The 16-acre CityPlace at Buckhead includes 4,000 residential units and retail space. Other amenities include small parks, fountains, walkways and dog parks. A group of developers including Pope and Land Enterprises Inc., Wood Partners, Novare Group Inc., Post Properties and Duke Realty Corp. will build a 925,000-square-foot, mixed-use twin-tower development on four acres at the northwest corner of Peachtree Road and Peachtree Dunwoody Road. The project will include a 40-story tower with 14,000 square feet of retail, 411,000 square feet of office space and 134 residential luxury condo units. An all-residential, 260-unit second tower will be added later. A third high-rise condo project near Lenox Square is being developed by a partnership of Related and Simon Properties Group.

Boston

Residential
Boston’s condo market made a significant rebound at the end of 2006. The year saw a 3.4 percent decline in condo prices and a 9.8 percent decline in sales from 2005, but sales and prices increased in the fourth quarter, raising broker hopes for 2007, the Boston Globe reported. According to the Listing Information Network, the median price for the 3,494 condos sold in 2006 was $449,000. Boston’s waterfront saw the greatest increase in sales, 73 percent, in the fourth quarter of 2006.

Residential
Boston banks last year auctioned off almost twice the number of foreclosed homes as in 2005. According to the Warren Group, a mortgage market analysis firm, lenders advertised 1,007 foreclosure auctions in 2006 for Boston and in surrounding Suffolk County. There were 521 auctions advertised in 2005. Analysts say the increased auction activity was caused by 2006′s sluggish housing market, the Boston Herald reported. Falling prices — the aftermath of the recent housing slowdown — left homeowners in financial trouble.

Chicago

Commercial
While downtown office vacancy rates have fallen, they are likely going to be heading back up, thanks to five new office buildings hitting the market. The high-rises, set to open by late 2009, will add almost 4.4 million square feet of additional office space to the market, Crain’s Chicago Business reported. According to a report by John Buck Co.’s Strategic Advisory Group, the new buildings will push vacancy rates to about 16 percent, from around 14 percent this year. Because of competition for office space, rents are expected to climb 6 percent during 2007, reaching their highest level since 2002.

Residential
McKinley Park, a working-class neighborhood on the Southwest Side of Chicago, is experiencing a burst of condo and townhouse development. The new housing is attracting young professionals, most of them first-time buyers. Development projects in the area include McKinley Gardens, a complex with 69 townhouses built around three parks at 3250 S. Western Avenue, and McKinley Park Village, with 134 townhouses and 110 condos at 3600 S. Western Avenue. Prices range from the upper $100,000s for a condo to the upper $300,000s for a large four-bedroom townhome, the Chicago Sun Times reported.

Las Vegas

Commercial
The second of eight buildings at World Market Center is now open. The $345 million, 1.6-million-square-foot addition is part of a $3 billion multi-tower development, GlobeSt.com reported. When completed, the World Market Center will total 12 million square feet — making it the largest trade show complex in the world. World Market Center hosts the biannual Las Vegas Market, a home furnishings trade show, and had 1,200 exhibitors at the 2007 Winter Market. The first building, a 1.3-million-square-foot exhibition hall, opened in mid-2005. A 2.1-million-square-foot building is scheduled to open in 2008.

Residential/Commercial
The average price for an acre of vacant land in Las Vegas jumped 78.4 percent from a year ago to $1.24 million at the end of 2006, the Las Vegas Review-Journal reported. Analysts say increased development densities and relatively low interest rates have calmed concerns about a real estate bubble burst. In one example showing the rise in prices, ADG Development of New York, which recently broke ground on the mid-rise luxury condo project Loft 5 on Pebble Road near Las Vegas Boulevard, paid less than $1 million an acre for 10 acres about three years ago. They recently paid $2 million an acre for five adjacent acres where another project, L5 Lofts, is planned. Continued demand in the commercial real estate sector is also driving up land values. The office market is reporting its most robust level of new construction in years, nearly 4 million square feet, which could outstrip demand for office space, analysts say.

Los Angeles

Residential/Commercial
City officials plan to spend $2 billion to revitalize the Los Angeles River. The plan is to convert the 32-mile concrete channel into a sequence of parks, walkways, bike paths and housing, the San Diego Union-Tribune reported. The proposal also includes redeveloping industrial land into residential developments. The plan, which is not yet funded, would take a minimum of 25 years to complete and involve approximately 239 projects. Officials say breaking down the redevelopment process into phases will allow for several funding sources. The proposal will allow for construction of approximately 6,200 residential units along the river in Canoga Park and 4,665 units near Chinatown.

Residential
A tower constructed in the 1960s is set for a large condo conversion in downtown Los Angeles. The 42-story Crocker-Citizens National Bank at 6th Street and Grand Avenue may be the largest adaptive reuse project in Los Angeles history, the Los Angeles Times reported. According to the Los Angeles Planning Department, the New York-based Chetrit Group, which bought the building in 2005, plans to convert it into a mixture of commercial and residential condominiums. Most of the loft and condo development in Los Angeles has been outside the downtown area. Brokers say the Crocker-Citizens building conversion would come on to the market at the same time as several new residential buildings in the South Park district.

Philadelphia

Commercial
Philadelphia’s suburban office markets are becoming tight. Eight of the city’s 11 suburban office markets experienced positive absorption, rising rents and a decrease in vacancy in the final quarter of 2006, according to GlobeSt.com. Industry analysts expect vacancy to reach 15 percent as the existing tenant base continued to grow, down from 18 percent in 2006. While it’s still a tenant’s market, many brokers say the market will change in favor of landlords during 2007, according to commercial brokerage GVA Smith Mack. New spec-built office buildings, including BPG Properties’ 1000 Continental in King of Prussia and Brandywine’s Metroplex in Plymouth Meeting, are a sign developers see the market as healthy.

Residential
Condo projects in Philadelphia fared better than expected last year. The sales climate was less volatile and prices were more stable in Philadelphia than across the nation. According to market observers, mid-range condos — priced from $300,000 to $750,000 — are the strongest segment of the market. But the $1 million-plus condo market took a downturn when high-end suburban buyers seeking to move were not able to sell their houses, the Philadelphia Inquirer reported.

Phoenix

Residential
More than 100 homes will be auctioned off in a housing sale in downtown Phoenix in late March. Home sellers are resorting to the auction block to sell stale listings, the Arizona Republic reported. The National Real Estate Auction Corp. will auction the properties at prices ranging from the $100,000s to the multimillions. The Valley’s housing market is struggling with more than 40,000 resale homes on the market, 10,000 to 15,000 more than historic-high levels of inventory.

San Francisco

Residential
California developers say 2007 will be tolerable, the San Francisco Chronicle reported. Developers expect to build roughly the same number of homes this year as last. According to a forecast by the California Building Industry Association, builders are unlikely to slash prices further after the dramatic price drops of 2006. For example, Standard Pacific Homes dropped prices 10 to 20 percent at its Bay Area projects last year. Between 155,000 and 170,000 new homes, condos and apartments will be built this year, according to the industry forecast. In the San Francisco Bay area, 30,000 condo units are in the pipeline for the near future. Industry analysts say the Bay area accounts for just 10 percent of new single-family homes in the state.

Hotel room rates continue to rise
Miami-Dade County ranks third after New York and Oahu in Hawaii as the country’s most expensive hotel market. The average room rate in Miami was about $142 in 2006, and prices continue to rise. According to a Smith Travel Research survey, Miami’s rate went up 11 percent last year. But the rise in rates and the threat of a busy hurricane season pushed down occupancy levels, the Miami Herald reported. The occupancy decline would have been greater if a number of hotels weren’t closed for renovations and condo conversions, market watchers said.

Home, condo sales drop in 2006
The number of home sales in South Florida reached a low point during 2006. Fewer single-family houses in both Miami-Dade and Broward counties sold in the past year than in the last 12 years, the Miami Herald reported. For 2006, single-family home sales fell 21 percent in Miami-Dade and 26 percent in Broward compared to the year before. Condominium sales fell even further — there was a 24 percent drop in Miami-Dade and a 32 percent slump in Broward in the same period. Still, in Miami-Dade, prices went up 7 percent over the year and prices in Broward County went up 2 percent, according to the Florida Association of Realtors.

Higher prices for office space
The South Florida office market is tightening up. At the end of 2006, the average rental rate for luxury downtown office space in Palm Beach County was $40.69 a square foot, up from $36.42 the previous year, according to a Cushman & Wakefield report. Broward’s rental rate increased from $29.29 a square foot in 2005 to $31.08 a square foot by the end of 2006. By the end of 2006, Palm Beach County’s office vacancy rate was 11.3 percent and Broward’s rate was 11.7 percent. Analysts attribute the increased demand to limited office development.

Plan aims to blunt growth impact
A massive government plan to guide development in the South Miami-Dade area will be released in this month. The $4 million Watershed Plan from the County Commission’s Infrastructure and Land Use committee has 68 recommendations to minimize the impact of growth in Miami-Dade, which will gain an estimated 204,000 new households by 2050, the Miami Herald reported. The plan attempts to even out residential density along state highways and encourage townhouse and low-rise condo development near mass transit lines located in single-family housing neighborhoods. Local officials say expected growth over the next several decades will burden county infrastructure.

Trump, Perez to build luxury condos
Two major developers are pressing ahead with plans for a $200 million luxury high-rise, despite the softness in the condo market. The Sun-Sentinel reported that Donald Trump and Jorge Perez recently announced plans to work together for the third time to build the 23-story Trump Tower Palm Beach in West Palm Beach. The project will have 150 two- and three-bedroom condos priced from $900,000 to more than $2 million. Construction will start next year. Trump and Perez are also working on luxury condos in Hollywood and Sunny Isles Beach in Broward County. However, recent overbuilding in South Florida has left many investors unable to find buyers and some projects, like 550Q in West Palm Beach, have been halted.

Demand slows for pre-built condos
CondoFlip.com, a Web site for investors who flip condos in Miami, has closed. Using CondoFlip.com, buyers were able to resell units before construction was complete. But an oversupply of units slowed demand among investors to buy pre-construction units, the South Florida Business Journal reported. According to Miami’s planning department, from September 2005 to September 2006, more than 6,000 units were completed in Miami. There are more than 22,000 units under construction. The creator of CondoFlip.com is launching Condo Super Center, a site that taps into the downward-spiraling market with a service that connects “desperate” sellers with buyers.

Limited inventory fuels higher rents
South Florida’s rental market remains robust, with low vacancy and rising rents, the Sun Sentinel reported. According to investment brokerage Marcus & Millichap, Miami ranked 13th and West Palm Beach ranked 15th in apartment markets across the nation. A condo conversion craze in 2005 reduced the inventory of apartments in South Florida, and brokers say the limited supply has led to strong rent growth in many submarkets. Analysts expect a number of condos to revert to rental stock as developers abandon conversions or speculators rent their units because they can’t flip them. Marcus & Millichap predicts Broward County’s apartment market will continue to have low vacancy rates and healthy rent gains throughout 2007. Lack of affordable housing in Broward will raise rents by 6 percent, to an average asking rent of $1,163, say analysts. Rents in Palm Beach County are projected to rise 5.6 percent this year, to an average asking rent of $1,179. In Miami-Dade County, asking rents are projected to increase by 5.8 percent, to $1,151 per month.

Housing slowdown to impact retailers
The slower housing market in South Florida has building supply and home furnishing retailers concerned about the health of their businesses. According to the National Retail Federation, retail sales are expected to grow by 4.8 percent in 2007 — a significant drop from 2006′s growth of 6.3 percent. Analysts also saw a marked decline for retailers of building materials, furniture and appliances. Growth in sales for these retailers fell from 16.5 percent in 2005 to 2.5 percent last year, the Sun-Sentinel reported. The slowdown in the housing market will continue to have an impact on furniture and home improvement stores, brokers say.

Miami Briefs from Previous Month

Commercial developers move from office condos to for-lease projects as rents rise [more]

City prepares rezoning plan to spur construction projects along canal [more]

Developers overcome land-use restrictions with spate of new projects [more]

Former development chief denies allegations that may tarnish legacy [more]

Energy, housing crisis prompts city to address conservation [more]

New self-certification laws target scofflaws Comments

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Developers looking to the future have a new slogan: buses could be the new subway. Comments

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City law still requires approval by state legislature [more]

Building permits near record high citywide
U.S. Census Bureau figures show that there were 30,927 construction permits issued for residential units in New York City last year, down only 2.1 percent from 2005. All together, the number of permits issued in 2005 and 2006 is the highest for any two-year period since 1965, when reliable data collection on city permits began. Brooklyn had the most permits of any borough, with 9,191, Crain’s reported.

Quinn proposes tax credit for renters
Council Speaker Christine Quinn proposed a $300 tax credit to renters in her State of the City address last month. The tax credit would cover a range of renters, from individuals earning $43,000 or less to married couples with two children who earn $75,000 or less. The plan would cost $261 million to implement.

AG: No condo conversion for Starrett City
State Attorney General Andrew Cuomo landed another blow last month to the pending $1.3 billion Starrett City sale by saying that David Bistricer, who heads the group that won the bid for the property, has been banned from converting rental buildings in New York state to condominiums or cooperatives because of financial improprieties, the New York Times reported.

Blackstone eyes buying Freedom Tower
Sources say the Blackstone Group has approached the Port Authority about buying the Freedom Tower. Blackstone is said to be one of several real estate firms interested in purchasing the under-construction building, the New York Post reported.

Landlords worry about Albany shift
New York City landlord groups are worried a Democratic takeover of the state Senate could result in more stringent rent regulations. Many Senate Democrats say they are in favor of increasing the rent-stabilization decontrol threshold from $2,000 to $4,000. The president of the Real Estate Board of New York, Steven Spinola, told the New York Sun, “It doesn’t mean it will be terrible, but it clearly makes us nervous.”

Lawsuit over Salvation Army sale
A group of tenants is filing a lawsuit against the Salvation Army over the organization’s plans to sell its two Gramercy Park SROs, the Times reported. The tenants say the Salvation Army should not be permitted to evict them if the buildings are sold. A spokesperson for the Salvation Army said the organization had been working with tenants for more than a year to help find them other housing.

MTA: No. 7 extension needs $1B
Elliot “Lee” Sander, the MTA’s executive director and chief executive, said he would stop plans for building the No. 7 extension unless the city pays more for cost overruns on the project, AM New York reported. The $2 billion project is now estimated to have $1 billion in cost overruns. Construction on the project, which would extend the line to 34th Street and 11th Avenue, is set to begin at the end of this year.

Coney housing plan criticized
Amanda Burden, chair of the city’s Planning Commission, said Thor Equities’ plans to build a high-rise, 700-unit luxury condo in Coney Island was “incompatible” with the area’s amusement zoning, the Sun reported. Thor, which is also constructing a $2 billion amusement and retail complex in Coney Island, has threatened to not build the complex if the city doesn’t allow it to develop condos.

Calatrava hub design will be tweaked
The Port Authority said plans for the World Trade Center transportation hub designed by Santiago Calatrava will need to be re-engineered because the project is now up to $1.2 billion over budget, the Times reported. The authority said it will work with Calatrava to retain the architect’s fundamental vision for the hub. The project was originally expected to cost $2.2 billion, but recent estimates show it costing between $2.7 and $3.4 billion.

Signs include more delinquencies, subprime loan makers shutting down [more]

In survey, 90 percent report feeling demand to inflate property values [more]

Congressional push for tougher rules to protect consumers from predatory practices [more]

Developers target wealthy nonresident Indians

Residential developments in Delhi are targeting investors among the more than 25 million people around the world who are nonresident Indians or who qualify as Persons of Indian Origin, an official government designation.

According to a recent study by India’s Associated Chambers of Commerce and Industry, residential property values have increased by 25 to 40 percent in the last five years. Analysts predict property values will continue to increase by 33 percent a year over the next five years.

Foreigners cannot buy land in India without permission from the Reserve Bank of India. But the government places no restrictions on purchases by individuals the government categorizes as Nonresident Indians or as Persons of Indian Origin, the International Herald Tribune reported.

Local developer Oxame is building several residential complexes including Forest, a complex with 105 units, and the Nonresident Indian City development.

London office market frenzy results in record tower sale

The recent sale of the London office tower known as the Gherkin set a record for the city’s main financial district.

The 41-story building was bought by IVG Immobilien AG and Evans Randall Investment Management Ltd. for $1.2 billion. The tower’s previous owner, Swiss Reinsurance Co., will be the primary tenant, Bloomberg reported. The Gherkin was designed by Sir Norman Foster and opened in 2004.

London’s office market is experiencing an influx of private and global investment, market analysts say. Evans Randall, an investment bank, bought more than 2 billion euros’ worth of property in the past 18 months, including Financial Services Authority’s headquarters in Canary Wharf and HBOS PLC’s headquarters on Old Broad Street. According to Investment Property Forum, office properties will generate annualized returns of at least 10 percent in the next three years.

Shortage of space is also pushing up office rents in London because of job growth. Analysts predict rents for prime office space in London are expected to rise to $169 a square foot by 2014. According to commercial brokerage Cushman & Wakefield, parts of London remain the world’s most expensive office market at $241 a square foot per year.

New EU member Bulgaria anticipates boom

Bulgaria recently joined the European Union, which analysts say is boosting confidence in the country’s real estate market.

Bulgaria has some of the lowest property prices in the EU. According to the National Statistical Institute, a 350-square-foot apartment in Bulgaria’s capital Sofia would sell for $62,608, or around $178 a square foot.

Brokers say demand for housing is picking up because residents are upgrading their homes and foreign investors are now confident in the financial status of the country. Foreign investment in the fourth quarter of 2006 rose 24 percent over the same period in the previous year, the International Herald Tribune reported.

Developers, investors set eyes on Mexican coasts

Spain is conquering the hotel and second-home market in Mexico. A number of Spanish developers are building large-scale residential and hotel developments in Mexico. According to a Mexican development agency, Spain is now its leading investor in tourist-related hotel and housing development.

Spanish developer Obrasc n Huarte Lain is building a mixed-use development on Cancun’s coast. The first phase opened last year and includes several luxury hotels and residential villas on 100 acres. Other Spanish developers including Fadesa, Grupo Mall and Grupo Lar are moving into the Mexican market, the International Herald Tribune reported.

According to Mexican government statistics, Americans are buying 10,000 homes a year in Mexico. That number is expected to double in the next five years.

Commercial brokerage CB Richard Ellis has done a lot of pruning in the wake of its $2.2 billion acquisition of Trammell Crow. [more]

Blogging will soon be the only source of income for Jon Brownstoner, the pseudonym of the man behind the Brooklyn real estate Web site Brownstoner.com. [more]

After eight years with Newmark Knight Frank, Ben Fox has moved on to build another commercial brokerage. [more]

Blackstone officially wins EOP bid
Equity Office Properties shareholders voted last month to accept Blackstone Group’s $39 billion buyout offer. The deal closed after Blackstone defeated Vornado Realty Trust in a fierce bidding war for the REIT in the largest leveraged buyout in history. Blackstone’s original $48.50-per-share bid rose to $55.50 a share.

New brokerage courts first-timers
Two independent New York rental brokerages have merged to form a firm that will focus on clients hunting for their first apartment. The merger brings together partners Anthony DeGrotta and Larry Friedman of A.C. Lawrence with Ty Byrd of Aventana Real Estate under the A.C. Lawrence and Company name, said the owners. The new firm will have a combined 40 agents in two offices, at 151 West 25th Street and 14 East 34th Street.

Bond New York opens Tribeca office
Residential real estate firm Bond New York opened its fifth location with the launch of a Tribeca storefront at 25 Hudson Street. The 3,300-square-foot office has 32 feet of frontage and will house 48 agents.

Brown Harris Stevens launches condo group
Residential real estate firm Brown Harris Stevens announced the formation of the Russell Condominium Group, a new internal broker group specializing in luxury condominium purchases and sales. Senior vice president and managing director Doug Russell founded the group.

Mortgage company to relocate and expand
Refinance.com, formerly known as Homebridge Mortgage Bankers, will be relocating its Manhattan office to the entire fourth floor of 55 East 59th Street in spring 2007. The new 15,000-square-foot space will allow the company to expand by hiring 80 new loan officers.

Shea Commercial changes name to SAXA
Arizona-based Shea Commercial announced last month that its development operation will now be known as SAXA. Daren Hornig, the managing partner based in New York, will continue his role as head of the development division in the tri-state area.

Icon Funding Group launches with Manhattan office
Richard Martin has launched the Icon Funding Group with offices located at 100 Park Avenue. The company specializes in both residential and commercial mortgage financing with an emphasis on servicing affluent clients.

SL Green, Reckson merger complete
SL Green Realty’s $6 billion buyout of Reckson Associates Realty is complete, SL Green announced in late January. The deal added 5.6 million square feet of New York City office space to SL Green’s portfolio, making the REIT the largest commercial landlord in the city.

Residential

Bond New York
Nelson Cabassa joined as managing director of the Upper East Side office. He was formerly a manager at Mark David & Company.

Brown Harris Stevens
Burt Savitsky was promoted to senior vice president from director.

Charles Rutenberg Realty
Michael Barbolla joined as sales manager. He was formerly a managing director with CitySites Real Estate Group. Peter Chernin, John Costello, Esther DeLince, Jonathan Duke, Marcy Evanina, Susan Forrest-Reynolds, Matthew Glowski, Charles Kupfer, Dena Najafi, Don Pravda, Mair Rosh, Jeffrey Rothenberg, Raisal Saien, Michael Steinberger and Dixie Tracy joined as agents.

JC DeNiro & Associates
Danielle Sevier was promoted to vice president from associate broker in the West Village office. Suzun Bennet and Peter Denby joined the Chelsea gallery office, Michelle Jubran joined the West Village gallery office, and Creighton Redenbo joined the Upper West Side gallery office as licensed real estate salespersons.

Prudential Douglas Elliman
Max Dobens was promoted to vice president and associate broker from sales associate.

Commercial

Atlantic Development Group
Matthew Snyder joined as senior project manager. He was a director at Newmark Knight Frank.

Brack Capital Real Estate
Jeffrey Stern joined as senior vice president. He was previously vice president at Skanska USA Building.

CB Richard Ellis
James Ackerson and Brad Needleman were promoted to the post of vice president. Both had been senior associates.

CBRE Melody
Keith Braddish was promoted to managing director. Michael Sherman and Geoff Rice were promoted to the post of senior director. Jason Gaccione was promoted to vice president.

Cushman & Wakefield
Bernhard Weinstabel joined as a director in the Downtown office. He was previously at GVA Williams.

Hudson Realty Capital
Karim Demirdache was promoted to managing director from director. Joshua Goldenberg was named vice president.

Itzhaki Properties
Marcel Fridman and David Warren joined at the level of associate. Edan Cohen joined as sales agent and principal representative.

Massey Knakal
Megan Brooks joined the Northern Manhattan division as an executive assistant to managing partner Shimon Shkury. Ernesto Rivera and Philip Kean were promoted to the position of sales director from associate in the Brooklyn office. Marin Nelson joined as an associate in the Brooklyn office. Stephen Preuss joined as a sales director in the Queens office.

SL Green
Lawrence Swiger was promoted to senior vice president of leasing from vice president.

When guests stay at the Pod Hotel in Midtown, they will be able to mingle in person as well as in cyberspace.

Recently opened at 230 East 51st Street, the hotel is launching a blog in mid-March where young guests can chat, find local events and make plans to meet up. It will be similar to the Living with Legends blog about the Hotel Chelsea, legends.typepad.com.

The Pod Hotel is geared toward attracting wired, gadget-savvy guests. The space-efficient rooms at the economy hotel come equipped with iPod docking stations, wireless Internet and plasma televisions. Rates start at $89 for a 100-square-foot unit with bunk beds.

“I didn’t want to charge $300 to $400 a night and compete with all the other hotels,” said David Bernstein, general manager of the Pod Hotel. “I’ve always liked the lower end of the market.”

Guests, who Bernstein says include “anyone who thinks they’re 18 to 25 years old,” can stay in rooms with a private bath or share bathrooms with other guests.

The rooms don’t get much larger than 200 square feet, but the Pod Hotel has a concierge, a rooftop deck and an indoor/outdoor cafeacute;. Plans are also in place to open a restaurant next door in a few years.

According to Bernstein, the Pod Hotel has rented approximately 70 percent of its 348 rooms a night since opening in mid-January.

The Pod Hotel is Bernstein’s fifth hotel renovation in Manhattan. He is also responsible for On the Ave Hotel at 222 West 77th Street; Milburn Hotel at 242 West 76th Street; Hotel Thirty Thirty at 30 East 30th Street; and Hotel 57 at 130 East 57th Street.

“This one has been the most fun,” Bernstein said. “I wanted this to not only be inexpensive lodging but a place where guests can have fun.”

For brokers who dislike continuing education classes, one industry professional is making going back to school more productive — and possibly a bit more fun.

Eric Barron, president of Barron Mortgage Group, will start coaching a series of one-day boot camps at Gotham Comedy Club this month for both real estate agents and mortgage brokers. Course topics will include time management, branding, sales skills and loan programs.

The boot camps are aimed at everyone from rookie sales agents to top-tier brokers who need some refreshers, said Barron.

“I’m not reinventing the wheel, but the New York market is starved for someone that is going to make them accountable and ensure that they maximize their potential — the true meaning of success,” Barron said.

Barron, a DiSC accredited coach, has trained more than 2,500 agents in the past eight years with his introduction to sales skills seminar. The boot camp sessions are approved for the 22.5-hour continuing education requirement for real estate agents.

Along with live sessions, Barron will have dozens of three-minute, reality television-style videos online at EricBarronLive.com, where students can get a taste of the curriculum.

“To maximize potential, agents and brokers must supplement their in-house education,” Barron said. “I want to show them that learning can be interesting and fun. They need to get motivated, inspired and feel like they’ve had three or four ‘wow’ experiences that will make them a better broker.”

The classes at Gotham Comedy Club, which is located at 208 West 23rd Street, begin on March 27; for more information, contact events@ericbarronlive.com.

Models in brocade jackets, silk blouses and chiffon dresses commuted several blocks west of Bryant Park to strut on the runway in the lobby of the Atelier last month.
[more]

Real estate publicist Kelly Kreth is almost as well known as her high profile New York clients like Century 21 New York Metro, Gotham Capital Mortgage and Darren Sukenik of Prudential Douglas Elliman. Now she’s becoming just as visible in the United Kingdom.

Kreth became famous after the publication of a New York Post article on her dismissal from brokerage Dwelling Quest in 2005 for keeping an online blog about her work experiences.

Now a publicist, Kreth is moonlighting as a New York City trend reporter for British morning show “LK Today” on Good Morning Television, which is seen only in the U.K. The network boasts more than 13 million viewers. Kreth covers trends unique to New York.

Blurring the line between journalism and public relations, Kreth has found ways to include her real estate clients in her second 15-minute burst of fame. Her first segment included a clip about the “singles maps” designed by Manhattan-based real estate Web site PropertyShark.com, another client. The map highlights pockets of rich, unmarried men and women in major U.S. cities.

Another segment on giving men spa treatments for Christmas featured a cameo by Mike Simon, president and CEO of Century 21 New York Metro, also a client of Kreth’s.

“It’s always peppered with real estate people,” Kreth said. “I tend to deal with them the most.”

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

Some buyers leap before they look

Your article, “Buyers Waiting to Look Before They Leap,” in the February issue quoted me as saying the buying frenzy has subsided. It mentioned that the Onyx Chelsea is our client, but did not include my comment that the Onyx Chelsea is among the several projects now under construction around the city that are getting strong advance sales. Since going on the market in September, the project has sold nearly 70 percent of its units, a remarkable occurrence considering all of the sales were made while the building has been under construction.

Andrew Oliver
Managing Director and Principal
Sonnenblick-Goldman LLC

A story in the February issue, “Residential Firms, from staid to splashy,” incorrectly referred to the title of Samantha Kleier Forbes at Gumley Haft Kleier. She is an executive vice president.

The Deal Sheet in the February issue incorrectly listed information about a lease by fashion designer Elie Tahari. The new space at One Bryant Park will measure 29,674 square feet on the 50th floor of the 51-story building. Tahari was represented by Norman Bobrow of Norman Bobrow & Co.

A story in the February issue, “Developers hold back prime properties to pique buyer interest,” incorrectly attributed the term “warehousing” to Tricia Hayes Cole, chief operating officer of Corcoran Sunshine Marketing Group. The term is sometimes used to describe the practice of developers and marketers making only a few units available for sale in a new residential building to create a sense of urgency among buyers. The story also incorrectly cited Cole as saying that offering plans for new developments generally specify that a developer can reserve the right not to put all units on the market at the same time.