NYC Real Estate

Downtown after 9/11

By Philip Askeroth, Licensed NY Real Estate Broker
September 2011 Edition

As we are approaching the 10 year anniversary of 9/11 and the new World Trade Center is starting to take shape, Downtown Manhattan finds itself on the brink of a new golden era.  A residential population that has more than doubled in the past decade, the influx and diversification of retail businesses increasingly flocking to the new found market, as well as the resurgence of new, class A office structures prompt a rebirth that is second to none. By 2016, over 15 million square feet of new office space will have been constructed downtown since 2001.  The buildings offer large floor plates, state-of-the-art technologies and environmental standards sought by many tenants.

Even though recent figures show that the real estate market nationwide is stabilizing, it is, by and large, definitively still a buyers market.  In New York City’s commercial market, where office building sales are once again on the rise and vacancy rates are slowly dropping in both the retail and office sectors, tenants still have the upper hand.  The residential market, however, is suffering from a lack of inventory, primarily caused by the vast absence of new construction during the credit crunch, as supply kept stagnant and the demand for residential property kept on rising.  Rents remain high and incentives scarce as New York is approaching the fall season.

Though transactions have moved forward rather slowly since the credit crunch, the good news is that New York has once again returned to show significant transaction volume. Spurred equally by the return of capital and the need for new development, it is noteworthy that transactions are closing again and faith in the New York market has largely been restored.

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Summer in the Big Apple 

By Philip Askeroth, Licensed NY Real Estate Broker
Summer 2011 Edition

With summer in full swing in the Big Apple, New York City’s real estate market seems as though it is bouncing back strong as ever.
With rental vacancy rates under 1%, good deals are once again becoming increasingly difficult find to those looking to lease an apartment in the city. Manhattan landlords have by and large withdrawn incentives offered to residential tenants in the aftermath of the recession, rents are almost back to peak 2007 levels and going strong, and year-over sales prices are up virtually across the board. Even the heavily downtrodden office and retail sectors have seen an increasingly bright light in an ever shortening tunnel that has been New York’s commercial real estate market of recent history.

New York is oozing of post-recession opportunity for those looking for smart investments, and developers who are ready and willing to put the shovel in the ground seem to abound. FCW (and Home New York) can assist you in finding anything from prime retail condominiums to commercial development opportunities, from office space to some of the most luxurious and rarest residential properties for rent or sale. Contact us for more information, and let us custom tailor a real estate solution that works for you.

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TriBeCA

by Laurielle Noel, licensed NY Real Estate specialist with Platinum Properties
March 2011 Edition

Question from a client:  Hi Laurielle, I received a large sum of money in July of last year and have been looking to buy a loft in Tribeca since then.  I have not been able to find the right place and now that the economy seems to be rebounding I’m afraid I may have lost my opportunity for a great deal.  Do you think it’s too late to get a good deal? 

Answer: That is a great question and one on many peoples’ minds.  In Manhattan, January’s average price per square foot was the highest its been since October 2008 and the average price of an apartment in Manhattan today is already 3% percent higher than it was in December 2010.  This is not an enormous increase, but it is the beginning of an upward trend that is expected to reach 12% by January 2012.  As soon as we entered 2011, quite a number of buyers who were waiting out the recession initiated a meaningful search, hoping to find a residence before prices and interest rates began to rise.  Like you, they still want to get a good “recession deal.”  In my personal experience, the real obstacle to getting a good deal is not price, but lack of inventory, particularly in Tribeca.  Since January alone, one of my clients was out-bid for a loft at 150 Chambers Street and then again at 108 Reade Street, two residences that were on the market for less than a week.  Low inventory coupled with good value caused this bidding situation.  

Over the next month or so, before the weather gets warm, I believe there will still be opportunities to get a good deal.  To take advantage of these opportunities, know exactly how you will finance the purchase ahead of time.  If you are not an all cash buyer, it is important to be pre-approved for a loan. In addition, you should work with someone who knows the market well so you can quickly recognize a good value and be ready to act without hesitation.  This is true even when there is seemingly no competition.  With many more buyers in the market, I have seen competition triple overnight on an apartment that was listed more than 6 months.  This is clearly not the market of 2006, but some of the same principles apply.  Good luck!

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DOWNTOWN NYC

by Laurielle Noel, licensed NY Real Estate specialist with Platinum Properties
January 2011 Edition

From Downtown’s awe-inspiring, historic architecture; to cutting-edge, environmentally sound modern structures; to one of the nation’s most advanced transportation systems: Lower Manhattan is set to redefine the 21st century Metropolis.  Here are the top ten reasons to fall in love with (and invest in) Downtown!

Since 2001…

10. Lower Manhattan is outpacing the rest of the region in both growth and development
9. With a total $10 Billion allocated, Downtown will have one of the world’s most advanced transportation systems
8. Virtually every single street south of Chambers St will be re-vitalized or rebuilt
7. With 17,000 projected new apartments and over 70,000 residents, downtown will become one of NY’s most vibrant residential communities
6. From Stone Street to Front Street, residents and visitors alike enjoy this quickly transforming neighborhood with its lively social scene and plethora of restaurants
5. More than 20 new and improved parks are well under way, including the much anticipated Memorial Park slated to open in less than 12 months
4. With over 800,000 square feet of new retail space and Fulton Street’s river-to-river corridor, Lower Manhattan will become one of NY’s most sought-after retail destinations
3. Over 12.5 Million square feet of spectacular new, class A office space is planned and underway
2.  More than $1 Billion will have been invested in over 60 different cultural institutions and projects
1. With an excess of $30 Billion to be invested, Lower Manhattan marks the single largest development project in New York City’s history!

These considerations, coupled with the fact that prices are deflated as mortgage rates are at an all time low, create an unprecedented opportunity to invest in Downtown Manhattan.

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BATTERY PARK CITY

By Laurielle Noel, licensed NY Real Estate Salesperson with Platinum Properties
October 2010 Edition

Question from a client:  Hi Laurielle, can you give me a brief update on the 2 bedroom condo market in Battery Park City?  What is the current inventory and sales situation?

Answer: The inventory in Battery Park City is very similar to what it was when we were looking about six months ago: plentiful with relatively high monthly carrying charges compared to its neighbor, the Financial District! 

A new building has come onto the market stirring up a lot of interest.  Located at 333 Rector Place is a brand new condo conversion called One Rector Park.  Coming out of two years of financial problems, One Rector Park is closing sales at aggressive prices.  For example, they have a 2 bedroom home listed at $750,000 for 1300 square feet.  That is $577 per square foot compared to the rest of the neighborhood where the average price per square foot is about $1000, and the current median list price for a two bedroom is $1.45 million!  The monthly carrying charges seem to be on the higher side of the neighborhood average, over $2 per square foot.  However, don’t forget that a portion of this is deductible:  because the land is technically owned by the Battery Park City Authority, residents don’t pay taxes; they pay PILOT – Payments in Lieu of Taxes.  If you are considering a purchase in this neighborhood, it is important that you speak to your tax attorney about what portion of your PILOT payments is tax deductible.

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