42
NY’s top listings photographers
44
Joan Swift’s, well, swift Elliman rise
68
Swig v. Macklowe lawsuit gets ugly
77
When will the Seaport recover?
113
Corcoran dogs get TV fame
THEREALDEAL www.TheRealDeal.com
N EW YO R K R E A L E S TAT E N E W S
Vol. 9 No. 1 January 2013 $3.00
The year in real estate Amid fiscal cliff worries, New Year’s forecasts and biggest 2012 deals
BY KATHERINE CLARKE, GUELDA VOIEN AND ADAM PINCUS Big worries like the fiscal cliff, prospective tax changes and a not-thatdistant mayoral election loomed at the end of 2012 for New York City real estate. This month, TRD talked to industry insiders from several sectors
to get their 2013 predictions. Among the forecasts: On the commercial side, experts say sky-high prices for existing buildings will push investors into the riskier development sector this year. On the residential side, they say to expect more super-luxe projects á la One57 and 432 Park Avenue. Meanwhile, TRD also looked back at the best deals of 2012, charting the priciest residential sales, the biggest office and retail leases, and the most expensive building buys. We also took a peek at the biggest blunders of the year. See stories beginning on page 60
FACT Retailer H&M scored two of NYC’s top five biggest retail leases in 2012. It took 103,000 square feet at two new Manhattan locations. See page 64.
AT A GLANCE Manhattan sees year-end sales rush Winter is a notoriously slow time for real estate deals. But 2012 saw a surprise fourth quarter sales spike of 29 percent compared to 2011, prompted partly by the looming increase in capital gains taxes. Appraiser Jonathan Miller said rising prices are next on tap. See page 16.
Office leasing lows Despite a flurry of deals at the end of 2012, the year was one of the slowest in memory for Manhattan office leasing. See page 26.
Newbie no more For WeWork’s Neumann, Woolworth was just start BY KATHERINE CLARKE WeWork founder Adam Neumann wowed industry insiders last year when he put together a mega-deal at the Woolworth Building. Now he’s snapping up NYC office space. See story on page 32
Does giving pay? What NYC donors get for their contributions: A look at philanthropy’s close ties with real estate deal-making BY HAYLEY KAPLAN AND LEIGH KAMPING-CARDER Charity is, of course, about giving back. But for NYC’s real estate elite, philanthropic involvement also gives movers FEATURE STORY and shakers a chance to form fruitful business relationships. This month TRD looked at the biggest givers in the NYC real estate world and what they get in return. See story on page 37
Sifting through Sandy’s wrath
Insurance skyrockets; owners and tenants battle over rent
Michele Kleier: A robbery led me to real estate See page 114.
PHOTO CREDITS ARE HERE
BY ADAM PINCUS There’s a new phase in New York City’s recovery from Hurricane Sandy: the insurance battles and the tenant-landlord disputes. Owners of Lower Manhattan’s hardest hit buildings are seeing short-term insurance premiums skyrocket and are dealing with tenants fighting them over rent payments. See stories beginning on page 48
Ponte power
Family’s massive Tribeca portfolio is finally in play
BY C.J. HUGHES The low-profile Ponte family is sitting on a goldmine after buying up Tribeca properties for decades and rarely selling or developing them. Now they’re finally making moves. See story on page 52
The brokers behind NYC’s priciest rentals
The agents who closed the most lucrative residential leases of 2012 — and how they did it BY HAYLEY KAPLAN Rentals are no longer just for rookies. With the strength of the highend leasing market, more top NYC brokers are moving into the rental domain. This month, with the help of listings website StreetEasy, The Real Deal examined Manhattan’s priciest closed rental deals — and the brokers who put them together. See story on page 74
Top Manhattan rentals, 2012 Waldorf-Astoria apt: $135K a month (Margaret Bay, BHS) Cassa Hotel/Residences apt: $90K (Ashley Teitel, Town) One Beacon Court apt: $75K (Frans Preidel, BHS)
Seven Bryant Park rendering
Cutting corners The planned Seven Bryant Park office tower designed by Pei Cobb Freed looks like it will fall short of the architecture firm’s earlier buildings, critic James Gardner says. The problem is the less-than-subtle corners. The building won’t disgrace the area, but won’t add much either, he says. See page 46.
RLS readies launch REBNY is launching its new listings system this month. The trade group insists the move will bring the portal, which brokers have criticized in the past, into the 21st century. See page 20.
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2013 ILLUSTRATION BY ROBERT PIZZO; KLEIER PHOTOGRAPH BY MARC SCRIVO