28
BAM: The next Lincoln Center
30
Is Solow in sell-off mode?
32
44
FEMA’s new flood zones
116
Making a living as an expert witness
Brokers tackle extreme sports
THEREALDEAL N EW YO R K R E A L E S TAT E N E W S
www.TheRealDeal.com
Vol. 11 No. 3 March 2013 $3.00
Brooklyn’s building bonanza
FACT Asking rent at the proposed 3 Hudson Boulevard is $85 a foot, far more than Midtown South’s average, and may indicate what new office buildings near Hudson Yards will charge. See page 22.
AT A GLANCE Bidding wars get ‘absolutely insane’ Brokers say bidding wars are now taking place in the majority of residential deals in Manhattan, with multiple offers coming in on almost every wellpriced property. The culprit, they say, is the continuing inventory squeeze. See page 14. BY KATHERINE CLARKE A new wave of residential towers is slated to hit the Brooklyn market. With some 14,000 apartments on the way, the pipeline of Brooklyn construction is far fuller than it’s been in
A macro look at micro units Builders: Tiny homes make sense, but zoning doesn’t BY TOM ACITELLI In the wake of City Hall’s micro unit design competition, developers have grown increasingly interested in building tiny apartments. But do the units pencil out without public subsidies? Developers say they do, but that zoning changes are needed first. See story on page 57
recent years, due to the revival of stalled projects and the increasing willingness of lenders to finance projects in the outer boroughs. This month, TRD created a compendium of roughly 100 large new construction projects
MaryAnne’s moment
What Gilmartin’s promotion means for Forest City’s plans BY ADAM PIORE AND HAYLEY KAPLAN For years, MaryAnne Gilmartin has served as chief lieutenant to Bruce Ratner in the fight to develop Brooklyn’s controversial Atlantic Yards. Now, with Ratner reportedly planning to step down as Forest City Ratner’s CEO, Gilmartin is poised to become his successor. Insiders expect her to establish
A big appraisal firm on the brink
Once high-flying, MMJ is casualty of ailing sector
Izak Senbahar on managing his anger
BY GUELDA VOIEN At the market’s peak, Mitchell, Maxwell & Jackson was one of the most dominant appraisal firms in the city. Today, its two principals are fighting to hold onto their licenses and keep the company’s doors open. The downfall was set off by a lawsuit filed by a former employee, but changes that decimated the appraisal industry also played a part.
See page 118.
See story on page 34
PHOTO CREDITS ARE HERE
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that are expected to launch in 2013 or later in prime Brooklyn areas. But unlike in Manhattan, where new condos are on the rise, many of the Brooklyn projects will be massive new rentals. See story on page 46
An ad overhaul
Broker teams on hit list if new rules get passed
her own legacy at the neighborhood-changing development firm by expanding the company’s portfolio and getting more active in industry lobbying. One of the most powerful women in NYC real estate, Gilmartin is part of a wave of female execs breaking barriers in the development and investment arena.
BY TOM ACITELLI New York State could finally pass new advertising rules for the real estate industry this month, the biggest changes in nearly two decades. The measure would have a far-reaching impact on NYC brokers, changing the way agents must deal with social media and even what they can name their teams.
See stories on pages 40 and 42
See story on page 16
How much do New York’s commercial firms make? A ranking of brokerages by sales and leases, plus a first-ever estimate of how much commission they earn
BY ADAM PINCUS In the cutthroat world of NYC office leasing and investment sales, brokerages regularly try to best each other Top investment sales firms and win over new clients. But which and amount sold in 2012: firms actually do the most business? Eastdil Secured: $7B This month, TRD culled together thousands of deals to find out, and CBRE Group: $3.5B also conducted a first-ever estimate Jones Lang LaSalle: $2.09B of how much in commissions those Massey Knakal: $2.05B deals yielded for firms. Rosewood Realty: $1.4B See story on page 36
High Line copycats New York City’s High Line is now spawning copycats globally, with cities like Atlanta and Singapore converting defunct rail lines into public parks. See page 18. St. Patrick’s Cathedral
NYC’s holiest air rights
A behind-the-scenes look at religious institutions lobbying the city to be included inside the pearly gates of a proposed Midtown East rezoning district. The move would allow them to cash in on lucrative air rights. See page 52.
More co-op board members get served Cases at the Dakota and other high-profile apartment towers are making board members fearful of being personally targeted by lawsuits. See page 38.
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BROOKLYN ILLUSTRATION BY CHRIS CYCLE; SENBAHAR PHOTOGRAPH BY MARC SCRIVO
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