kompas INTERNATIONAL A R C H I T E C T S
New York City Real Estate Strategy & Opportunities
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Content: P6PA+Architects Introduction
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Team Executives
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New York City & New Jersey Investment
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New York City Apartment overview
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Case Studies 2012-2013
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Main Team Associates
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Investment Options
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“I fully recommend P6PA+Architects as one of the prime experts professionally covering a wide range of services from Architecture to Real Estate Business.” Patrick Todd City Connections Realty
P6PA+Architects Introduction Our team in Prague is represented by Martin Klejna, the chairman and founder of P6PA+Architects. The team in NYC, is represented by Tomáš Korb and P6PA NEW YORK Inc., which is a subsidiary company of P6PA+Architects. Our Group offers a wide range of services in the field of architecture, development and construction. Aside from the architecture and construction, P6PA manages acquisitions of properties, assisting with mortgage advice, involvement in many international business orientated organizations, such as franchising, joint ventures, business development, business start-ups. Our offices have the balanced amount of Architects, Building Engineers, Real Estate Brokers (Halstead Properties, City Connections, etc.), and Lawyers (Manhattan Residential Group).. P6PA manages several external consultants and experts that have a wide scale of expertise. We are closely co-operating with technical field experts and landmark department specialists. Additionally, we always seek the best partners in the field in order to get the best results. P6PA strives to facilitate our office members so that they may achieve important architectural licenses such as: AIA (American Institute of Architects), ČKA (Czech Chamber of Architects), RIAI (Royal Inst. of Architects in Ireland), CZGBC (Czech Green Building Council), LEED (US Green Building Council). P6PA has worked hard on creating connections with the Manhattan Chamber of Commerce, US Embassy in Czech Republic, Irish Embassy in Prague, Enterprise Ireland, CIBCA (Czech Irish Business and Cultural Association). Subsidiaries and Associated Practices for P6PA+Architects are in Prague, New York City, Boston Area (Cape Cod), London, Dublin Area via Kompas International (Dun Laoghaire), and Guatemala City via Architect José Palacios.
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Team Executives
Martin Klejna, Ing. arch., Intl. Assoc. AIA CEO, P6PA+Architects, Prague Martin has been practicing architecture since 2003 but over the last few years has not only excelled at promoting and demonstrating his style of architecture, but also enlarged his business skill-set with a particular desire to international business. His professional hands-on approach is evident to see in his dealings while also maintaining a strong relationship with clients, investors and affiliates. He enjoys the excitement with business co-ordination, delegation, office expansion, acquisitions and such while having the ability to foresee potential in people and business.
Tomáš Korb, Ing. arch. Director, P6PA NEW YORK Inc., USA Tomáš is co-founder of P6PA NEW YORK Inc. He has practiced architecture in New York since 2006. Tomáš has a significant portfolio of work in both the Czech Republic and in New York City. His intentions are to promote the Czech Republic and its architecture and culture in the USA. Additionally, he wants to deliver new services for both his US and Czech clients. Tomáš is acclaimed by some of the most prized award winning projects in the Czech Republic. Tomáš is a member of Manhattan Chamber of Commerce.
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Dublin London Prague
New York
Boston San Roque
Tlemcen Marrakesh
Guatemala City
Espírito Santo São Paolo
Rio de Janeiro
P
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Prague
Manama
P6PA Partner Networking Practices Kompas Partner Networking Practices
Bronx
New Jersey
“And because no matter who you are, if you believe in yourself and your dream, New York will always be the place for you.�
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Manhattan
Perry
Queens Monmouth
Michael Bloomberg City Mayor
Sackett
Brooklyn Staten Island
Case studies investigated in the report
New York City & New Jersey Investment Real estate market growth The real estate market has been growing and improving in the US for the past number of years. Starting in 2008, the next 3 years were flooded with foreclosures and distressed properties. In 2011, changes and improvements hit the market. Many investors were looking for prime real estate and international buyers were ready to invest again. Foreign investors saw great opportunities in the US to own secondary properties. Due to currency exchange rates the lending opportunities and investment choices in the US, became very profitable. New York City, the unique market New York City, and neighboring towns (especially New Jersey City), attract professionals and entrepreneurs from all over the world who are willing to pay top dollar for real estate. Even in the depth of the real estate crises, New York City stood strong in the market. There were little effects in its real estate market compared to the rest of the United States.
New York City home prices New York Metro home prices
$470k $460k $450k $440k $430k $420k $410k $400k
$180k $170k $160k $150k $140k 2009
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When it comes to real estate, tax breaks are one of the great incentives. Deductions on property depreciation and improvements, 1031 tax deference which allows to invest for years without having to pay taxes on capital gains. Deductions on property improvements and on mortgage interest are some of the biggest tax advantages. For international investors, currency exchanges can also play a big role and, when connected to refinancing opportunities, can be another tax free opportunity on income.
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Buying an Apartment in a Cooperative Ownership structure Co-ops are common in NYC but usually have a lot of restrictions, including investor’s purchase and rental policies. In a co-op, the entire building is owned by a single corporation. Instead of a deed, buyers get shares (stock certificates) in the corporation, and a proprietary lease that allows buyers to occupy a specific unit and lays down the rules and rights much like a lease in a rental building. (In fact, technically speaking, buyers of co-op apartments are referred to as “tenants” or “shareholders,” not “owners.”) Cooperative boards A housing cooperative’s Board of Directors is elected by the membership, providing a voice and representation in the governance of the property. Rules are determined by the Board, providing a flexible means of addressing the issues that arise in a community to assure the members’ peaceful possession of their homes. A co-op building’s board can exercise its own business discretion to impose restrictions on shareholders, and reject prospective purchasers without explanation, as long as the board does not violate federal and state housing or civil rights laws. Monthly charges and assessments Co-op shareholders pay a monthly maintenance fee. Part of the fee goes toward the expense of operating the building. The other part is the amount of property taxes apportioned to each shareholder based on the number of shares assigned to each apartment. Particularly these days, when property taxes and fuel costs are rising sharply, maintenance fees are frequently adjusted upward each year (3%–7% annual increases are quite common). Since the maintenance fee of the co-op is usually used for improvements and payment of the building’s mortgage, the shareholders are allowed to deduct part of their payments from their personal taxes at the end of each years (according to each individual’s brackets and allowances). In addition, co-op boards can require shareholders to pony up extra cash from time to time to boost the reserve fund or pay for a specific project. In a 40-unit building, for example, an assessment to replace an elevator might run $8,000–$15,000 per unit, depending on how many shares you own. Typically, shareholders can spread their payments out over a period of time such as 6-18 months.
Approval to buy Although many condominiums have a similar application process, the big difference is that co-ops can reject an applicant without giving a reason, forcing the seller to find someone else. If a condo rejects an applicant, the building must agree to buy the apartment on the same terms — an option that is seldom exercised, so the approval process is more of a formality. After your offer has been accepted, the building will send you an application asking for your current address and employment history as well as about your finances and any litigation you’ve been involved in. It will also list the documents you have to submit and include forms to sign, like a lead-basedpaint disclosure form. You’ll be expected to write a cover letter introducing yourself and explaining why you like the building. You should also supply a true financial statement. A background check on you will be conducted, so it is better to be honest from the start in the information you supply as misinformation will almost always lead to a straight refusal. In your cover letter you should present yourself as a prospective purchaser, not a future owner. You should arrange your information package so that busy board members can quickly find the information they’re looking for. This type of buying, more suits someone who is away quite often or isn‘t interested in exterior works or repairs as these are covered by the co-op, at a monthly fee to the owner. Minimum down-payment and liquid assets Co-op: Most co-ops require buyers to put down 20–25% of the purchase price, about the same as what most lenders require these days. But the range can be vast, depending on the cooperative — anywhere from 10% down (very rare) to 50% or more at higher-end buildings. Co-ops also expect the buyers to have sufficient money left over (also known as ‘liquid asset requirements’). The required amount can range drastically, from a few months worth of maintenance to 1 to 3 times the purchase price of the apartment. Closing costs Closing costs tend to be substantially lower in coops since only shares are being transferred and not the actual property: You will pay a mortgage recording tax of 1.8% of the mortgage amount for loans under $500,000 or 1.93% for loans above that. Also, your lender will require you to buy title insurance (about 0.5% of the purchase price). Substantially higher closing costs for condos may be temporary, however, as the New York State legislature is trying to extend the mortgage recording tax to co-op purchases as well.
20% min. down-payment
Sub-letting Sub-letting can be quite a complexed issue and is completely at the discretion of the co-op and not the buyer if not outlined in the proprietary lease. It is quite uncommon and usually unwanted but the owner can submit a board package outlining the application to sub-let but the boards decision is final. If the board grant a request to sub-let, then the board has the right to apply the same process as used in the approval to buy period with regards to requesting information and conducting background checks, etc., while also applying specific terms regarding the subletting. Some boards (but not many) offer a right of first refusal. That means they can turn down your applicant, but then they have to find someone themselves on their terms or hire a broker to do it. The board may allow subletting if a shareholder is posted overseas for an assignment and is going to be gone for one to two years. Boards can consider allowing shareholders who are having a difficult time paying their maintenance to sublet while they get their financial house in order.
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Buying an Apartment in Condominium Ownership structure: Buying a condo is very much like buying a single-family house. You get a deed to the apartment that gives you ownership of the interior of your unit and the surface of its walls, as well as an undivided interest in the building’s common elements. This is the type of ownership almost everyone has in mind when they think about buying a home, and almost all newer buildings are condos. After you buy your apartment, you will mostly find that the legal ownership structure has little impact on your use of it. Condo boards: Condo owners elect a board of directors, Generally speaking, though, most condo boards tend to be more hands-off when it comes to rule making. Because a condo owner actually owns his or her unit, a condo board can’t evict an owner from an apartment (in contrast to a co-op shareholder, who is legally a tenant). Monthly charges: The monthly charges in a condo building are referred to as common charges. Property taxes are not included; individual owners are billed directly by the government. This is an important nuance to keep in mind when comparing carrying costs of co-ops to condos, because at first glance, condos may look cheaper on a monthly basis. Approval to buy: Condominium is ideal for foreign investors to buy. Approvals and restrictions tend to be easier and more manageable. Minimum down-payment and liquid assets: The typical down-payment required in a condo building is around 10%, depending on the building’s bylaws. Bear in mind, though, that if you’re getting a mortgage, banks these days often require 20%. Closing costs: Closing costs are usually between 2 and 6% of the purchase price and depending on whether there is a mortgage or if it´s a cash purchase. Closing costs include Lien and property searches, attorney fees, deed and mortgage recording and transfer fees. Additional costs that buyers may incur outside of closing are: Condo application fee, appraisal and inspections. Sub-letting: Condo sublet policies are far more liberal. While there may be rules against short-term sublets (say, less than 6 months), there is usually no outside limit nor do boards have the right to turn down a tenant unless they exercise that right of first refusal. Application fees, move-in fees, processing fees, etc., can range from a few hundred to a couple of thousand dollars extra that the potential tenant will have to pay. It is important to remember that landlords are responsible for the condo monthly charge as well as taxes for the property, even when the property is rented.
10% min. down-payment
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Buying a property or an apartment building – New York City or New Jersey
“In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.� Warren Buffett Investor
Apartment buildings in New York City & New Jersey Apartment buildings are ideal for start-up developers. Typically 3-4 story buildings that are pre-war brick buildings are on the market for an affordable price. In cooperation with architects these are possible to renovate and increase the value by adding floors or upgrades to the original layouts. Purchasing an apartment building is often a smart and cost effective choice. An apartment building can be easier to occupy, less time consuming, and can also be the most efficient way to maximize the profits. Property in New York City & New Jersey Buying a property, and constructing a new apartment building is another effective choice. A small property or infill in Harlem, Manhattan, Caroll Gardens, Park Slope, Gowanus in Brooklyn or Hoboken, New Jersey average a minimum price which starts at $1,300,000. Including the construction costs the total investment will be $3,500,000. Pros / cons By far the best option, though, not without its own risks. There is property in Harlem and in Brooklyn that can be purchased that has some possibilities. Buying 3 and 4 family houses that are a bit rundown can be purchased for decent returns (6-7% cap rates). We recommend taking a deep look at that option as it may be your best solution to invest in NYC real estate. It is important to calculate the total uses and estimate tax implications. The difference in taxes is huge. Ground up has a very high rate if there is not abatement. Also there are many code issues that use up space. The investor needs to account for carrying charges, brokers fees when selling, transfer taxes, title insurance, development fees, etc.
New York median sales price
New Jersey Manhattan
below $400k
Brooklyn
$400k-$600k $600k-$800k $800k-$1.0m $1.0m-$1.2m $1.2m-$1.4m $1.4m and above
Staten Island
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“Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.” Marshall Field Macy’s
New York City Apartment overview If you thought it was impossible to buy a decent NYC apartment for under a million, let alone $600,000, think again! These apartments — albeit small — do exist, so if you’re flying solo, have a small family or are simply looking to make an investment in real estate, take note. Go really low with a $299,000 one-bedroom co-op on 8th Avenue in Park Slope Brooklyn between President and Carroll Streets. Though it’s a walk-up, the unit’s been redone, is in move-in condition and boasts a Juliette balcony. Maintenance at $387 is a plus. A studio co-op for $349,000 on West 12th Street between 6th and 7th Avenues in Greenwich Village also has relatively low carrying charges (maintenance $497). There’s no doorman, but the buying policy is flexible, allowing parents purchasing for their kids, Pied-a-terres and unlimited subletting for lease terms as short as six months. Over on the East Side in Yorkville, no planning board approval is necessary for a $575,000 two-bedroom condo between 1st and 2nd Avenue on East. The renovated apartment with a private garden, and central a/c can become your new home or your newest investment (it’s currently being rented for $2,500/month). Common charges of $248 for a $599,000 two-bedroom prewar condo on 7th Street in Park Slope Brooklyn and to add to the perks of this walk-up, which has a custom kitchen with Bosch appliances and a hi-capacity W/D. The R, F and G trains are just two blocks away, and public schools on 5th Avenue are steps away. New Subway line T currently under construction (2016 deadline) will appreciate the value of its neighborhood. The Upper East side area between 55th and 106th street is the most undervalued at this time.
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About Manhattan Manhattan has been described as the economic and cultural center of the United States. Anchored by Wall Street in Lower Manhattan, New York City functions as one of the financial capitals of the world, has an estimated GDP of over $1.2 trillion, and is home of both the New York Stock Exchange and NASDAQ. Manhattan’s real estate market is among the most expensive in the world, and many multinational media conglomerates are based in the borough. Many districts and landmarks in Manhattan have become well known to New York City’s approximately 50 million annual visitors. Numerous colleges and universities are located in Manhattan, including Columbia University, New York University, which have been ranked among the top 50 in the world. Chelsea - The neighborhood is primarily residential, with a mix of tenements, apartment blocks, city housing projects, townhouses and renovated row houses. Its many retail businesses reflect the ethnic and social diversity of the population. The western part of Chelsea has become a center of the New York art world, with many art galleries located in both new buildings and rehabilitated warehouses. Flatiron District - The designation “Flatiron District” for this area is of relatively recent vintage, dating from around 1985, and came about because of its increasingly residential character, and the influx of many restaurants into the area – real estate agents needed an appealing name to call the area in their ads. With a wide variety of retailers and nightlife options and a similarly diverse array of restaurants. Hell’s Kitchen - also known as Clinton and Midtown West, this Midtown neighborhood is a haven for arts of all stripes, from theatrical to culinary. The 1969 edition of the City Planning Commission’s Plan for New York City reported that development pressures related to its Midtown location were driving people of modest means from the area. Today, the area is gentrifying. Lower East Side - It has undergone rapid gentrification starting in the mid2000s, prompting The National Trust for Historic Preservation to place the neighborhood on their list of America’s Most Endangered Places. It has become a home to upscale boutiques and trendy dining establishments along Clinton Street’s restaurant row. Lower Manhattan - The Lower Manhattan business district forms the core of the area below Chambers Street. It includes the Financial District (often referred to as Wall Street, after its primary artery) and the World Trade Center site. Midtown - As New York’s largest central business district, Midtown Manhattan is the busiest single commercial district in the United States, and among the most intensely used pieces of real estate in the world. The majority of New York City’s skyscrapers, lie within Midtown. It is a growing center of finance, second in importance within the United States only to Downtown Manhattan’s Financial District. TriBeCa - Its name is an acronym from “Triangle Below Canal Street”. TriBeCa is dominated by former industrial buildings that have been converted into residential buildings and lofts, similar to those of the neighboring SoHoCast Iron Historic District. Upper West Side - Like the Upper East Side, the Upper West Side is an upscale, primarily residential area with many of its residents working in more commercial areas in Midtown and Lower Manhattan. It has the reputation of being home to New York City’s cultural, intellectual hub (with Columbia University located at the north end of the neighborhood), and artistic workers (with Lincoln Center located at the south end).
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Manhattan Real Estate Dynamics StreetEasy Manhattan Condo Market Index The Manhattan market has continued its steady pace toward recovery with rising listing prices, shrinking inventory and increased contract activity. The StreetEasy Manhattan Condo Market Index shows that Manhattan Condo Market in September had a 9.9% increase from a year ago. This is the seventh consecutive month that the index has seen a Year-over-year increase. StreetEasy Market Report StreetEasy Market Report is based on over 1,000 broker sources and provides an in depth look at inventory, contracts and price movements. The current market is only 0.8% below the March 2008 peak. Overall, contract volume rose 10.0%, compared to one year ago. Inventory has continued to fall across all major markets - an overall decrease of12.8% since last year. The Upper West and Upper Manhattan had the biggest decline in inventory. Median listing price in Manhattan increased 9.5% since a year ago. There were 8.4% more price increases than the previous year. The used data taken from StreetEasy Market Report is actual to August 2013.
New York median sales price $2000 $1500 $1000 $500 $0 2000
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New York number of sales 10 000 1000 100 10 0 2000
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New York average price per square foot $3000 $2000 $1000 $0 2000
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About Brooklyn Brooklyn stands out from the other boroughs with its distinct cultural neighborhoods. Many Brooklynites have a great deal of pride in their borough, and most New Yorkers consider Brooklynites to have an identity distinct from that of other New Yorkers. Attractive neighborhoods in Brooklyn Park Slope - Park Slope is considered one of New York City’s most desirable neighborhoods. The quaint, tree-lined streets closer to the park house, brownstones, townhouses, full service apartment buildings, and even a few full scale urban mansions on the park side. Cobble Hill - Old-time Italian neighborhood with great pizza and Italian places. Williamsburg - It is now what Greenwich Village used to be - including the artsy scene complete with eclectic galleries and off-beat bars. Red Hook - It was a formerly bustling industrial area that is on the upswing. Many artists call Red Hook their home. Carroll Gardens - In the 1950s and further back in time, this area was part of Red Hook. Smith St. has a newly charged restaurant row, but there are still plenty of old school Italian-American gems to be found. Fort Greene – The neighborhood is listed on the New York State Registry and on the National Register of Historic Places. The area has some great restaurants and the Brooklyn Academy of Music, which features an arthouse cinema, theater, and concerts.
$8 billion will be invested in creating apartments, affordable housing, commercial spaces and cultural buildings in the Brooklyn Down town area over the next 5 year period!
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Brooklyn Real Estate Dynamics Trulia real estate overview The Brooklyn borough is one of the most attractive and fastest growing locations for real estate market. The number of sales haven’t rapidly changed since 2004, while the median sales price and average listing price constantly grows. Average price per square foot for Brooklyn NY was $402, an increase of 1.5% compared to the same period last year. The median sales price for homes in Brooklyn NY for Jun 13 to Aug 13 was $575,000 based on 1,461 home sales. Compared to the same period one year ago, the median home sales price increased 1.6%, or $9,250, and the number of home sales decreased 27.7%. The average listing price for homes for sale in Brooklyn NY was $815,541 for the week ending Sept. 25 2013. Popular neighborhoods in Brooklyn include Bedford - Stuyvesant and Bay Ridge & Fort Hamilton, with average listing prices of $818,405 and $517,097. The used data taken from Trulia Market Report is actual to October 2013.
Brooklyn median sales price $800 $600 $400 $200 $0 2000
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Brooklyn number of sales 10 000 1000 100 10 0 2000
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Brooklyn average price per square foot $600 $400 $200 $0 2000
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About Hoboken New Jersey The city is part of the New York metropolitan area and contains Hoboken Terminal, a major transportation hub for the region. Hoboken is also the location of the first recorded game of baseball and of the Stevens Institute of Technology, one of the oldest technological universities in the United States. The character of the City has changed from a blue collar town to one of upscale shops and condominiums. Hoboken is part of the New Jersey Gold Coast. During the late 1970s and 1980s, the city witnessed a speculation spree, fueled by transplanted New Yorkers and others who bought many turn-ofthe-20th century brownstones in neighborhoods that the still solid middle and working class population had kept intact and by local and out-of-town real-estate investors who bought up late 19th century apartment houses often considered to be tenements. Hoboken attracted artists, musicians, upwardly mobile commuters (known as yuppies), and “bohemian types” interested in the socioeconomic possibilities and challenge and who valued the aesthetics of Hoboken’s residential, civic and commercial architecture, its sense of community, and relatively (compared to Lower Manhattan) cheaper rents, and quick, train hop away. Maxwell’s (a live music venue and restaurant) opened and Hoboken became a “hip” place to live. Amid this social upheaval, so-called “newcomers” displaced some of the “old timers” in the eastern half of the city. This gentrification resembled that of parts of Brooklyn and downtown Jersey City and Manhattan’s East Village, (and to a lesser degree, SoHo and TriBeCa, which previously had not been residential). The initial presence of artists and young people changed the perception of the place such that others who would not have considered moving there before perceived it as an interesting, safe, exciting, and eventually, desirable.
15min. traveling time from Hoboken to Wall St.
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Hoboken Real Estate Dynamics The improvement in new home sales shows that the growing appetite for residential real estate goes beyond foreclosures and other distressed sales targeted by investors. Traditional homebuyers, including those who have to sell another property to upgrade, are coming off the fence. Hoboken and Downtown Jersey City are currently two of the strongest housing markets in the United States. Both cities construct the heart of the Hudson Waterfront or ‘New Jersey Gold Coast’, a term coined in the 1980’s by real estate developers who realized the investment potential of the area due to its unparalleled location next to New York City. Median sales price in Hoboken increased 11.8% since a year ago. Average price per square foot for Hoboken NJ was $697, a decrease of 24.6% compared to the same period last year. The median sales price for homes in Hoboken NJ for Jun 13 to Aug 13 was $573,500 based on 99 home sales. The statistics should not be taken in a misleading fashion. Hoboken is seen as a great opportunity to live close to Manhattan at significantly lower costs for those who don’t require the status of living in Manhattan. Compared to the same period one year ago, the median home sales price increased 11.8%, or $60,500, and the number of home sales decreased 32.7%. There are currently 328 resale and new homes in Hoboken on Trulia, including 9 open houses, as well as 41 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. This area is gaining popularity with many young people / couples beginning to settle down there hence the drop in sales activity. The average listing price for homes for sale in Hoboken NJ was $662,201 for the week ending Sept. 25, which represents a decrease of 1.6%, or $10,856, compared to the prior week. With prices at a stable rate, investment here could prove to be quite a good idea. Getting in early is the key to maximizing any potential.
Hoboken median sales price $800 $600 $400 $200 $0 2000
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Hoboken number of sales 400 300 200 100 2000
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Hoboken average price per square foot $1500 $1000 $500 $0 2000
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panorama of Manhattan viewed from DUMBO district
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Case Studies 2012-2013
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Not even the recession was able to make much of a dent in the desirability of one of the most coveted neighborhoods in New York City, the West Village, where getting a place to call home is getting increasingly difficult.
New Jersey Manhattan Perry
Queens
Brooklyn
8 Perry St., Manhattan, NY Greenwich Avenue area is a hot location of East Village, Manhattan. It is only 2 min to the closest Subway station and 15 min from the famous Washington Sq. Local brownstones are typical for this spot. Property Summary Lot Size (SQFT) 3 125 Building Size (Gross SQFT) 3 320 Investment Desire Value (1-5) 5 Financial Summary Purchase Price $4 800 000 Closing Costs apx. 5% $240 000 Construction Costs per SQFT (proposed use) $200 - 230 Carrying Costs (annual insurance and others) $12 600 Soft Costs (architectural, marketing, construction carrying costs, approvals, surveys, etc.) apx. $280 000 Sale Price per SQFT (according to chosen standards) $3300 - 3500 Commission & Closing Costs apx. 7% $800 000 Investment Period (months) 21 - 24 Annualized ROI (varies according to investment scenarios) 20 - 24% All pricing is simulated according to certain scenarios of standard construction units and vary due to specific management of the site. Building costs do not include tax optimization and bank mortgage rates. Each sub-scenario will be properly explained and consulted separately in detail.
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Carroll Gardens is the ideal neighborhood for a small(ish) town experience while remaining close to the city.
New Jersey Manhattan Queens Brooklyn Sackett
341 Sackett St., Carrol Gardens, Brooklyn, NY Located in Carrol Gardens, a very intimate part of Brooklyn, 10 walk to Brooklyn Downtown (Atlantic Ave./Flatbush Ave.), and a 15 min traveling distance to Manhattan Midtown by Subway. Property Summary Lot Size (SQFT) 2 400 Building Size (Gross SQFT) - Current 2 440 Building Size (Gross SQFT) - Proposed 4 800 Investment Desire Value (1-5) 4 Financial Summary Purchase Price $1 100 000 Closing Costs apx. 3,5% $38 500 Construction Costs per SQFT (proposed use) $170 - 200 Carrying Costs (annual insurance and others) $9 100 Soft Costs (architectural, marketing, construction carrying costs, approvals, surveys, etc.) apx. $230 000 Sale Price per SQFT (according to chosen standards) $700 - 850 Commission & Closing Costs apx. 6% $124 000 Investment Period (months) 15 - 18 Annualized ROI (varies according to investment scenarios) 16 - 19% All pricing is simulated according to certain scenarios of standard construction units and vary due to specific management of the site. Building costs do not include tax optimization and bank mortgage rates. Each sub-scenario will be properly explained and consulted separately in detail.
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The property is centrally located on Grand Street, near the other property on Jefferson Street, and is between the Hudson-Bergen Light Rail and PATH train stations.
New Jersey Manhattan Queens Monmouth
Brooklyn
471 Monmouth St., Jersey City, NJ New Jersey shore site is amazingly clean and quiet, located only a couple minutes from Manhattan by PATH, the local Subway. Little Italian and Irish bars and deli markets have a particularly unique atmosphere. Manhattan Skyline surprises you from 7th Avenue. Property Summary Lot Size (SQFT) 3 125 Building Size (Gross SQFT) - Current Building Size (Gross SQFT) - Proposed 11 515 Investment Desire Value (1-5) 4 Financial Summary Purchase Price $850 000 Closing Costs apx. 3% $25 500 Construction Costs per SQFT (proposed use) $140 - 160 Carrying Costs (annual insurance and others) $4 700 Soft Costs (architectural, marketing, construction carrying costs, approvals, surveys, etc.) apx. $155 000 Sale Price per SQFT (according to chosen standards) $425 - 550 Commission & Closing Costs apx. 5% $310 000 Investment Period (months) 12 - 15 Annualized ROI (varies according to investment scenarios) 13 - 16% All pricing is simulated according to certain scenarios of standard construction units and vary due to specific management of the site. Building costs do not include tax optimization and bank mortgage rates. Each sub-scenario will be properly explained and consulted separately in detail.
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Main Team Associates
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Yale Klat, Esq Associated Lawyer, Manhattan Residential Group, USA Yale Klat received his Bachelors and Masters degrees from Cornell University in Environmental Management, and Juris Doctor from the City University of New York School of Law. For six years he consulted for developers on their compliance with local, state, and federal regulations. Yale also secured public funds for renewable energy systems and efficiency retrofits and proudly serves on various committees at the New York County Lawyers Association, New York City Bar Association and Manhattan Chamber of Commerce. Yale is our partner for Manhattan and Brooklyn.
Amit Baria Managing Partner, ND20 Real Estate Partners, USA Amit is our real estate partner for New Jersey who is focused on distressed, value-add multifamily properties and condominium conversion acquisitions eligible for repositioning within New Jersey and New York. Facilitate planning and execution of renovation projects; oversee contractors and subs. Lead Business Development efforts to maintain existing and foster joint venture partnerships. He is an analyst for a Commercial Real Estate Investment Fund with a focus on analysis of multi-unit apartment buildings for acquisition, repositioning and sale. He also co-founded “Spark Summit”, an annual conference that connects entrepreneurs to a viable base of resources for business success. Amit is a Startup Ambassador and Co-Organizer of NJ Tech Meetup, whom are focused on entrepreneurship and technology.
Stephanie Thomas Associate Expediting Specialist, Jam Consultants Inc., USA Stephanie Thomas is the main point of contact for the company’s New Building, Alteration Type I and Place of Assembly projects, working closely with my team members, architects and engineers to navigate both the 1968 and 2008 Building Codes as well as the intricacies of the New York City Department of Buildings. Responsibilities encompass the daily coordination and execution on dozer of individually formidable projects, including resolving audited applications, processing amendments and obtaining approval on disapproved applications
Mark Curran, Dip. Arch., B.Sc.Arch., M.R.I.A.I. Director, Smith & Kennedy Architects After qualification, Mark Curran worked on a wide variety of projects with Burke-Kennedy Doyle and Murray O’Laoire. In 1999 he joined Smith & Kennedy Architects as a Senior Architect and was subsequently promoted to Director. Mark has been involved in several complex design projects in the high-end residential, leisure and educational projects with the firm over the last number of years including The Ice House Hotel and Spa in Ballina, County Mayo, Ireland. He has a dearth of experienced in all aspects of design, project management, contract administration, with strong leadership skills.
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Investment options P6PA offers flexibility for a capital source to provide any amount of equity for a single, or multiple commercial real estate project that lasts about one year or more. P6PA+Architects also considers tax flexibility with LLC, Inc. structures in potential projects for international investors. Apart from an individual investment, the investment can take on several forms. P6PA+Architects is able to organize each of these possibilities for a potential client. Real Estate Investment Trusts (REIT) REITs are a hedge fund in which individuals invest their money and a team of people acquires and manages the properties and the leasings. Most of the high rise buildings in midtown and downtown Manhattan are controlled by REITs. Investment Groups They usually consist of around four people who pool their money to make investments. It is important to be clear about ideas relating to growth. Coops A building owned by a corporation, comprised of the tenant shareholders of the building. Each tenant shareholder owns a number of shares in the corporation associated with his or her apartment rather than owning the apartment itself. In a coop, the building and it’s tenant are subject to rules and regulations set forth in the by-laws of the corporation. Condominiums Condominiums are classified as “real property”. The buyer attains the deed just like buying a house. The apartment can be rented to anyone. An approval process is usually required, but it is not as difficult as it is with coops. Condominiums are generally much more liberal than coops when it comes to financing, leasing rules and regulations.
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Contact: Martin Klejna +420 776 655 030 klejna@p6pa.cz Tomáš Korb +1 917 310 8346 korb@p6pa.cz
© 2013 P6PA+Architects P6PA+Architects by P6PA NEW YORK Inc. 125 Maiden Lane, Manhattan, 10038 NY
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