Insider gentrifying: Amazon employees buy LIC condos before HQ2 announcement

The deals came before the surge that followed the news

TRD NATIONAL /
Nov.November 20, 2018 01:30 PM

Brendan Aguayo and Galarie at 22-18 Jackson Avenue (Credit: Halstead)

Buyer interest in Long Island City has spiked since the announcement that Amazon will build a new campus in the neighborhood. But some employees snagged condos there before the news was public.

Two of the company’s employees bought units at Adam America’s Galerie just before the first reports surfaced, the Wall Street Journal reported. Brendan Aguayo of Halstead Property Development Marketing — which is selling units there — said the buyers currently live in New Jersey and Queens.

Employees are prohibited from insider trading, or buying and selling stocks based on nonpublic information. But lawyers told the Journal they weren’t aware of such restrictions on real estate transactions.

Amazon announced on Nov. 13 that it would split its HQ2 between LIC and Arlington, Virginia. Employees will start arriving in New York early next year. TF Cornerstone, which is developing a portion of the new headquarters, signed a contract to buy a $300 million development site nearby just days before the official announcement.

The report of condo deals comes as brokers in LIC have reported seeing a flood of interest from buyers. Amazon’s move is expected to push up property prices in the neighborhood — with some units already being priced higher. The rental market, meanwhile, is anticipated to see a more gradual shift.

Though it’s unclear how many units have gone into contract in LIC recently, brokers have described “an unprecedented surge,” the Journal said. At the Galerie, for example, Aguayo said 25 deals were done in the last two weeks.

The surge comes as residential deals in New York, particularly on the high end, have slowed and prices have fallen. Sales in Queens dipped 5 percent in the third quarter as inventory expanded — while the Manhattan market saw a more pronounced decline of 11 percent[WSJ] — Meenal Vamburkar


Related Articles

arrow_forward_ios
28 Liberty Street (Wikipedia)

Manhattan’s office leasing sees busiest month since January

Manhattan’s office leasing sees busiest month since January
Maison Kayser (Photo via Tools of Men via Flickr)

Maison Kayser may bid New York adieu

Maison Kayser may bid New York adieu
410 Tenth Avenue and SL Green CEO Marc Holliday (410 Tenth via Google Maps; Holliday via SL Green)

SL Green shopping Amazon-anchored office in Hudson Yards

SL Green shopping Amazon-anchored office in Hudson Yards
Amazon CEO Jeff Bezos with (clockwise from top left: 1055 Bronx River Ave. in Bronx, NY; 3507 W. 51st St. in Chicago; 13200 Southwest 272nd St. in South Miami-Dade, Florida; 28820 Chase Place in Valencia, California (1055 Bronx River Ave via Google Maps; 3507 W. 51st St. via 42 Floors; 13200 Southwest 272nd St. via Google Maps; 28820 Chase Place via IAC Commerce Center)

“Headwind to profitability”: Amazon doubles down on fulfillment centers

“Headwind to profitability”: Amazon doubles down on fulfillment centers
Jeff Bezos and the Beverly Hills home (Getty, Realtor)

Bezos buys Beverly Hills bungalow next to his massive mansion

Bezos buys Beverly Hills bungalow next to his massive mansion
Newmark’s Brian Waterman with 7 Hanover Square (Google Maps, Twitter)

Newmark nabs REBNY prize for deal with NYC Health + Hospitals

Newmark nabs REBNY prize for deal with NYC Health + Hospitals
Hamid Moghadam (iStock)

Prologis CEO: Capital is not an issue, it’s finding properties

Prologis CEO: Capital is not an issue, it’s finding properties
The legislation from a City Council member introduced a bill to temporarily repeal the commercial rent tax for businesses during the Covid-19 state of emergency. (Getty, iStock)

Commercial rent tax cut introduced in City Council

Commercial rent tax cut introduced in City Council
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...