The Real Deal New York

June 2015

The Hamptons’ top brokerages

Big money in the posh East End and which residential firms
are doing the most business

Memorial Day Weekend marked the official opening bell for the Hamptons season. And while most of those flooding into the East End were thinking about which beaches and restaurants to hit, residential brokers were more focused on capturing business. That’s especially true because while prices and sales volume were up in the first quarter on the East End over last year, they were down compared to the fourth quarter. “Everybody […]… [more]

Litwin in the dark

Glenwood’s 100-year-old founder
is at the center of a scandal,
but does he even know?

Since January, Glenwood Management has been ensnared in scandals involving two of the state’s top politicians. Though not charged with any wrongdoing, the firm has been thrust into a glaring […]… [more]

Ziel Feldman:
It was worth every penny

The developer on why his massive $870M development site purchase
is going to pay off

UPDATED, 5:54 p.m., June 10: The first thing you see when you walk into the swanky lobby of HFZ Capital Group’s Midtown office is a sad-looking rhinoceros suspended from a […]… [more]

Ranking Brooklyn’s priciest condo developments

Borough’s new condos hit $2,500
per square foot marker

Brooklyn developers are increasingly smashing through a price threshold previously seen only in Manhattan: $2,000 per square foot. The trend reflects a unique confluence of market realities,… [more]

EB-5 is at a crossroads

Major changes are in store for the
wildly popular visa-funding program

During the dark days of the credit crisis, New York developers discovered something of a silver bullet in a little-known U.S. immigration program. Now wildly popular and well-publicized, the EB-5 […]… [more]

EB-5’s underbelly

Delays and fraud have given the visa-funding program a bad rap

Chinese developer XIN Development made headlines last year when it landed a $165 million loan from Fortress Investment Group to build its South Williamsburg condominium, the Oosten. Now, the developer […]… [more]

Who’s using EB-5?

From the Staten Island Ferris wheel
to Hudson Yards, some big
projects tapping funds

Investors have poured more than $3.7 billion into several dozen projects around New York City via the EB-5 program since 2009. And while the industry lacks a comprehensive database, The […]… [more]

EB-5: Who’s after China?

With Chinese investors forced
to wait for visas, other countries
step into the fray

Attorney Kate Kalmykov flew to China every other month last year to drum up EB-5 business. This year, her travel schedule includes new stops in countries including Vietnam, Brazil, Mexico […]… [more]

Ivanhoe Cambridge:
The quiet giant

A look at Ivanhoe Cambridge, the biggest pension-fund buyer in NYC, and their billion dollar buying spree of Manhattan office towers

About two months ago, on a Sunday evening on a rural road in Quebec, Manuel Delisle lost his temper in a road rage incident. The other driver, Karine Cyr, later […]… [more]

The Closing: Jed Garfield

The townhouse guru on his plan
to join the CIA, the cultural void of Aspen and making a fortune

Jed Garfield is the owner of Leslie J. Garfield Real Estate, the residential townhouse-focused brokerage founded by his father in 1972. Garfield has personally sold more than 600 townhouses — […]… [more]

Features

  • Prices are rising in N.J.'s summer playground, but fall far short of the Hamptons
  • A roundup of news and data on the residential and commercial markets.
  • Marty Burger
  • Real estate happenings
  • Shola Olatoye
  • Big players, funny comments

REIT Execs Rake It In

NYC-focused real estate investment trusts reward top management
for 2014 successes

From SL Green securing TD Bank as anchor tenant at its planned One Vanderbilt office tower to Vornado Realty Trust using the proceeds from its $605 million sale of 1740 […]… [more]

Taking a powder (room)

An extra half-bath becomes the
must-have prize for one-
bedroom condo buyers

When CBSK Ironstate’s 29-story condominium at 301 East 50th Street hit the market last spring, one of the fastest-selling lines in the 57-unit tower was comprised of one-bedrooms with one-and-a-half […]… [more]

NYC’s office sharing stars

TRD ranking puts WeWork and Regus way ahead, but others are also in expansion mode

In New York City’s shared-office world, there is WeWork and Regus, and then there is everybody else. That’s according to The Real Deal’s ranking this month of the largest shared-office […]… [more]

Developers eye Cuba

While policy changes are still
needed, opportunities on the
underdeveloped-island draw interest

American developers started dreaming about Cuba’s 2,300 miles of undeveloped coastline and its expansive beaches the moment President Barack Obama announced plans to normalize relations in December. But a lot must happen before … [more]

Scandal and renewal

Viewpoints diverge on the impact
of the shakeup in Albany and
proposed revisions to major real-
estate related legislation

Real estate issues took center stage in the corruption scandals that toppled the leadership of the State Assembly and Senate at a time when vital legislation is on the agenda. […]… [more]

Talk of froth as retail leasing costs keep rising

Big deals may be overshadowing
signs of overreach on rents

Attention-grabbing deals for large retail spaces are distracting from awareness of the fact that pockets of vacancies in some areas of the city may indicate that rents have topped out, […]… [more]

On Charles, in charge

CookFox gives a block of the
West Village a new past

It is almost hard to imagine that the firm of CookFox, which gave the world One Bryant Park, could have produced a building like 150 Charles Street, whose aesthetics are so vastly different…. [more]

Beyond blueprints

New tomes, by Bjarke Ingels and Robert A.M. Stern, highlight the starchitects’ very different approaches

Sometimes, you can judge books by their covers. Two recent tomes from architects enjoying a moment in the New York sun show, from their very book jackets, the contrasts between […]… [more]

Urban outletters

City gets a swath of off-price
stores seeking to draw
bargain-hungry shoppers

For years, the city’s department stores — not to mention their landlords — have watched New Yorkers and tourists alike climb into buses, cars and trains and travel… [more]

Cushman may top CBRE as largest commercial firm

$2B buyout puts brokerages
on par in revenue

When Brett White’s DTZ completes its $2 billion acquisition of the giant global firm Cushman & Wakefield later this year, the newly combined New York office will displace CBRE as […]… [more]

Super-liens pose perils for condo, co-op buyers

May result in higher rates,
tougher standards

Could some of the nearly 67 million Americans who live in communities governed by homeowner associations — condominiums, cooperatives and others — face much tougher underwriting… [more]

What they’re reading now

Insights from the desks of
Aleksandra Scepanovic,
Doug Williford, Michael Weiser

Aleksandra Scepanovic Managing Director, Ideal Properties Group What are you reading right now, or what did you finish most recently? I just finished “Stuff Hipsters Hate” by Brenna Ehrlich and […]… [more]

Neighborhood Dive: Inwood

New restaurants — and a Starbucks! — plus rising prices point to
neighborhood transformation

Despite a long subway ride for many of its residents, Inwood, on the northernmost tip of Manhattan, is becoming fashionable. The enclave is bordered by the Harlem River to the north and east and the Hudson… [more]

Foreign financiers behind
the boom

Domestic lenders take back seat at NYC’s tallest towers

When Gary Barnett’s Extell Development began building One57 in 2011, he secured a $700 million construction loan from a syndicate led by Bank of America. In hindsight, the financing deal […]… [more]

Editor’s note:
Work-life (im)balance

Forget work-life balance. That supposes you have to choose between the two. The big players in New York City real estate work hard and play hard — often at the same time. It makes a lot of sense during the summer, when nothing beats being outside even as the office beckons,… [more]

Northern NJ home values hit record-breaking heights

Wealthier counties are seeing many cash buyers, which is good news
amid fears of an interest rate hike

New Jersey’s residential luxury market, particularly in well-heeled Bergen, Hudson and Essex counties, is topping the charts when it comes to expensive real estate. Realtors say a steady uptick in […]… [more]

A lesser-known Kushner
bets big on Jersey

Kushner on his $1 billion luxury development Journal Squared, and where he thinks the market is headed

Jonathan Kushner may live in Manhattan, but the 37-year-old president of the Kushner Real Estate Group is betting big on Jersey City. His Bridgewater, New Jersey-based company owns and manages […]… [more]

“Making Art Dance,” one of many installations seen at Mana Contemporary, included a David Salle backdrop and costumes for “The Elizabethan Phrasing of the Late Albert Ayler,” a ballet. Photo by Joe Schildhorn.

Jersey City:
The new Brooklyn?

An influx of artists is transforming the area into a creative scene that developers can brag about

A refurbished tobacco factory in Jersey City, now home to a sprawling arts complex called Mana Contemporary with studios, exhibition spaces and museum archives, is drawing crowds and undergoing an expansion. […]… [more]

Industrial market looks up

Distribution centers multiply in North Jersey, spurred by the growing needs of e-commerce businesses

Duke Realty welcomed the first warehouse it ever developed in New Jersey last October, in Linden. A second opened there in April. The construction projects follow the Indianapolis-based real estate […]… [more]

More schools + more
families = more building

Schools expand programs and take more space to meet demand as developers build bigger units

In recent years, Hudson County private schools have grown rapidly in response to the uptick in demand from families who want to raise their children in the area. Some families […]… [more]

New brokerages open offices to seal deals in Hudson County

Despite a decline in the overall number of agents, the region is fertile ground for those still in the game

Developers aren’t the only real estate players making the most of surging interest in the Gold Coast. Brokers are in on it, too. Early last year, long-time Hoboken broker Renée […]… [more]

A-listers on the move

Ice-T, Sean “Diddy” Combs and Nick Cannon among those buying, selling or leasing homes in Northern New Jersey

With its vast array of multimillion dollar estates just minutes from Manhattan, New Jersey has attracted silver screen celebrities, professional athletes and Wall Street titans for years. The state features […]… [more]

Old homes come down
as the market heats up

Teardowns are back in vogue as
small developers place big bets
on residential real estate

With new home building picking up steam in the Northern New Jersey suburbs, investors like Joe Gorga — a cast member of “The Real Housewives of New Jersey” and brother […]… [more]

Developers dig the Gold Coast

A ranking of the top firms in Hudson County by number of units recently
built and in the pipeline

Hudson County, which includes urban areas like Jersey City, Hoboken and Weehawken, is radiating cool these days, with its hip restaurants, arts scene and proximity to New York City. That […]… [more]

Northern Jersey office leasing market stuck in neutral

State incentive programs look to counter challenges including older buildings, lack of modern amenities

Despite some momentum from tenants relocating from Manhattan, the office leasing market in Northern New Jersey continues to crawl along. The 26 percent… [more]

Jersey’s malls buck
national trend

Wealthy Garden State residents make for low vacancy and strong sales at upscale shopping centers

While malls across the country struggle to survive, their more chichi brethren — upscale shopping centers — are thriving, raking in sales that more than double the national average. Industry insiders like Howard Davidowitz, […]… [more]

Squeezing high-end housing into Hoboken’s waterfront

Developers build more luxury condos to satisfy both New York transplants and growing young families

At first glance, you’d think Hoboken couldn’t squeeze in another square inch of residential construction. Not only is it just one square mile, but development in the former industrial city […]… [more]

Top 10 building sales in Northern Jersey

Some of the region’s hottest retail, commercial and residential properties changed hands over the past year

1) 651 Kapkowski Road (Mills at Jersey Gardens), Elizabeth Property Type: Retail Sale Price: $951.6M Listing Brokerage: N/A Sale Date: 1/15/15 Buyer:… [more]

How rival states stack up

A certain subset of New Yorkers (read: hipsters with growing families) likes to think they recently “discovered” New Jersey. While this is clearly a myopic — and maybe even an antagonistic […]… [more]

Editor’s note

Like the ‘49ers back in the day, who set out on a quest for glittering precious metals, New Yorkers are increasingly heeding the call to “go west,” this time around heading to New Jersey’s […]… [more]