The Real Deal July 2013 by The Real Deal

More $100/sf office leasing

How firm heads dole out listings

Hudson Square’s building blitz

Gardner: hold the MSG, please

112

A condo with its own perfume

TheRealDeal www.TheRealDeal.com

N ew Yo r k R e a l E s tat e N e w s

What is the Donald really worth?

An exclusive new look at the finances of Trump’s self-promotion machine. p 45

The next benchmarks

Get ready for $100 million condo sales and $2 billion office towers. p 38

Hamptons heavy hitters

The top 10 real estate firms: Who’s gaining and who’s losing out. p 28

The (multi-) Mortgage family man jitters A look at Aaron Jungreis, NYC’s busiest building broker. p 34

Rising rates speed up Manhattan home sales. p 14

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Highlights J U LY

REFLECTING PRESENCE

2 0 1 3

A game-changer for mortgages

Show me the money

By the Numbers: Sandy’s fallout

As interest rates rise, more urgency for New York City home sales.

Developers find a flusher climate for construction loans. A look at the final tally of damage from the epic storm.

Hurricane Sandy

heaven 20 Hauspurg’s The Eastern Consolidated head invites

TRD into his own personal nirvana.

the office market, luxury leads 22 InHigh-end activity heats up in the Plaza District.

words 24 InThistheir month’s funniest and most insightful commentary about real estate.

Peter Hauspurg

As the only building officially on memorial grounds, the National September 11 Memorial Museum Pavilion must echo the somber dignity of its WTC environs while admitting thousands of visitors to its exhibits each day. To achieve these diverse goals, Snøhetta teamed with consultant Front Inc. to design an enclosure that both maximizes the building’s security and mirrors its placid surroundings. Through the changing days and seasons, it offers museumgoers a setting for reflection on the past while looking to the future.

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Frederick Peters, this is your life Warburg’s president talks about cleaning his desk for an hour a day.

Further Lane Farm in East Hampton

28 An East End growth spurt

On the list

Multi-family maverick

TRD’s annual ranking of the Hamptons’ biggest firms shows many are growing as the market recovers.

Brokerage CEOs grapple with how to dole out pricey exclusives to agents.

Rosewood’ s Aaron Jungreis uses oldschool brokerage techniques to blow the competition away. Aaron Jungreis

Billion dollar listings A look inside Manhattan’s recent flurry of commercial megadeals.

Big Apple: A bargain? 40 The New York trophy listings are far cheaper than luxury homes around the world.

Architect: Snøhetta Photo: Snøhetta

8 July 20132012 www.TheRealDeal.com October www.TheRealDeal.com

$90 million club 42 The Which New York City apartments will fetch their sky-high asking prices?

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Highlights continued Donald Trump

SLANT ROUTES

Just how rich is Donald Trump? Armed with an exclusive report from Trump’s accountant, TRD tackles the controversial question of how much the real estate mogul is actually worth.

A challenge for De França With a new team in place under Susan De França, Douglas Elliman is striving to become the city’s top new development brokerage. Elliman’s new development team

In the hopper at Hudson Square After a massive rezoning, developers are battling for sites in this once-quiet area.

SHoP’s design for a new Penn Station

Residential Market Report Columbia University’s new field house, the Campbell Sports Center by Steven Holl Architects, is designed to be a team player with facilities that foster balance between the minds and bodies of student athletes in a range of sports. Inspired by the slanting lines of field-play diagrams, the building’s design relies on point foundations and a lightweight steel structure to achieve its diverse program on a sloped site. The university’s first new athletics building since the mid-1970s, Campbell forms a gateway to the revitalized Baker Athletics Complex, and a new game plan for sports at Columbia.

Structural Steel Right for any application For help achieving the goals of your next project, contact the Steel Institute of New York.

Checking in with brokers to take the pulse of the apartment market.

Commercial Market Report Tracking rents and vacancy figures in Manhattan’s three office districts.

South Florida Briefs

Hold the MSG

Of the four designs for a new Penn Station, SHoP’s is the most buildable, says critic James Gardner.

Real estate news in the Sunshine State.

Battery power

National Market Report

Real estate in Battery Park City has rebounded, but prices are still far below their boom-time levels.

Reports from around the country on significant developments and trends.

Publisher of Metals in Construction 211 E 43 ST | NY, NY 10017 | 212-697-5553 | www.siny.org

The Deal Sheet

112

A roundup of office and retail leases, building buys and financing.

Sniffing out buyers A new condo project hopes to lure purchasers with a fragrance. Matt Muller at the Printing House

Architect: Steven Holl Architects Structural Engineer: Robert Silman Associates Photo: Iwan Baan

10 July October 20132012 www.TheRealDeal.com www.TheRealDeal.com

Closing with Ziel Feldman 114 The The developer talks about his $12 million New Jersey château and playing the accordion.

106

Calendar of Events Check out this month’s activities.

110

Comings & Goings The stories behind the latest job moves and company announcements.

112

We Heard A lighter look at industry buzz.

www.TheRealDeal.com March 2012 00

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THE REAL DEAL N E W YO R K R E A L E S TAT E N E W S PUBLISHER Amir Korangy EDITOR-IN-CHIEF Stuart W. Elliott MANAGING EDITOR Jill Noonan DEPUTY MANAGING EDITOR Candace Taylor EDITORIAL DEVELOPMENT DIRECTOR Melanie Gray

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56 Buildings / 1,010 Residential Units / 63 Commercial Units Brooklyn: Aggregate sales of

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33 Buildings / 1,433 Residential Units / 19 Commercial Units Bronx: Aggregate sales of

$78,280,000

16 Buildings / 874 Residential Units / 12 Commercial Units

ADVERTISING SALES Eran Evron, Abi Laoshe, Nick Mascaro, Robert Stearns, Jennie Durkovic, Nicki Chadi DIGITAL TRAFFIC MANAGER Junaid Zahid WEBMASTER Nima Negahban FINANCE DIRECTOR Kenneth Cyrus ADMINISTRATIVE ASSISTANT Virginia Durso CIRCULATION Paul Destanko DISTRIBUTION Mitchell Newman, Michael Presto ATTORNEY Barry J. Friedberg Trachtenberg Rodes & Friedberg LLP ACCOUNTANTS William T. McCallum, CPA, P.C., Christine Wang

Queens: Aggregate sales of

$49,175,000

12 July 2013 www.TheRealDeal.com

The Real Deal is a registered trademark of Korangy Publishing Inc. Copyright © 2013. Call 212-2601332 or e-mail news@therealdeal.com. Warning: It is illegal to photocopy or reproduce any part of The Real Deal without express written consent. For reprints and duplication rights, call 212-260-1332. Principal office: 158 West 29th St., New York, NY 10001. The Real Deal is published monthly. Annual subscriptions cost $95. Send check or money order to 158 West 29th St., New York, NY 10001.

EDITOR’S NOTE

It ʼs All About Presentation...

Real estate movies I’d like to see

n this new real estate boom, we are achieving price benchmarks as towering as the buildings that are giving rise to them. It’s just a matter of time before the city sees its first $100 million apartment purchase, and the sale of an office building that would break the $2 billion barrier seems just around the corner at the Empire State Building (check out the story on page 38). Developers are even breaking million-dollar benchmarks in promoting their condo projects. Harry Macklowe recently became the first developer to spend $1 million on a marketing film, to promote 432 Park, which will be the tallest residential building in the Western Hemisphere, the New York Times reported (full disclosure: the story was written by Times regular — and my wife — Julie Satow). The four-minute movie (that’s $250,000 a minute) features models, the English countryside and Philippe Petit, the man who walked on a wire between the original two World Trade Center towers. With that budget, I would have instead voted for a remake of the classic 1980s movie “Wall Street,” but this time about the high-flying world of New York City real estate during the mid-2000s. Instead of Charlie Sheen’s Bud Fox, the ambitious but conflicted young broker, you’d have Michael Shvo circa-2006 in the lead role, riding the wave of loose lending and fast talk until the bubble bursts. The sequel? That would be “Real Estate 2: Shvo Never Sleeps,” with Shvo making a comeback, this time as a developer in West Chelsea after years of being out of the game. (I wonder if Oliver Stone will take my call if Macklowe agrees to fund it? After all, the post-Wall Street meltdown thriller “Margin Call” was made for only $3.5 million.) So many New York City real estate personalities are straight out of central casting: the rich old grizzled developer who knows his way around a concrete mixer and owns

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Many New York City real estate personalities are straight out of central casting. fine art; the mummified Upper East Side doyenne broker; the straight-off-the-Brooks Brothers-rack corporate executive (who lives in Westchester invariably); and the beautiful and ambitious newbie broker, seeking love and adventure in the big city. All stereotypes, of course, but there are no shortage of characters in real estate. In residential real estate alone, the span of personalities ranges from Frederick Peters, the head of Warburg Realty (featured in a story on page 26), to Anthony Lolli, the head of Rapid Realty, perhaps the most diametrically opposite agents out there. Peters, of an old-line Upper East Side family, is a classically trained pianist and writes on his blog of “having a last weekend of late peonies” at his Connecticut country house, while Lolli, a muscular guy whose firm is based in the outer boroughs, made headlines by offering employees a 15 percent raise if they get tattooed with the firm’s logo. These two would be perfect as the stars of a buddy flick, in which they would be unsuspectingly thrown together to co-broke an apartment sale, butt heads and finally come to respect one another. Or maybe it’s time one of the local stars of real estate reality TV makes a jump to the big screen — Fredrik Eklund already had a movie career of sorts, after all, and I can picture Ryan Serhant as a leading man. And in fact, the Kleiers, other members of the reality TV coterie, are already working with ABC Family on a “dramedy” based on a fictionalized account of their experiences in real estate. Whatever project Macklowe agrees to back (and The Real Deal did already produce a documentary film last year that aired on PBS), it’s sure to be a better portrayal of those in real estate than some of what’s already out there. In “666 Park Avenue,” the recently canceled prime-time network drama, for example, the landlord is literally the devil (no use for metaphor here). At least he’s probably a better building owner than the people who ran the resort in “The Shining.” But enough of the previews; there’s plenty to check out in our main features this issue. Armed with exclusive never–before-seen data, reporter Kathy Clarke takes an in-depth look at what Donald Trump is really worth, in a story you won’t want to miss starting on page 45. Also, check out our annual ranking of the biggest Hamptons brokerage firms on page 28; a profile of the busiest building sales broker out there, Aaron Jungreis, on page 34; and the development blitz being seen in the newly rezoned Hudson Square, on page 60. Enjoy the show.

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RE S I D E N T I A L MA R K E T BY HAYLEY KAPLAN mid the still-frenzied seller’s market, a curve ball has been thrown into the mix: Mortgage interest rates are again on the rise. During the week of June 21, interest on a 30-year fixed-rate mortgage jumped to 4.46 percent, the highest since August 2011, and

Changing the game

Rising mortgage rates speed up New York City sales

15-year fixed-rate mortgages hit 3.55 percent, the highest since November 2011. The sudden changes are infusing the New York market with a sense of urgency, brokers and mortgage professionals said. “Last week, we got an accepted offer, rates went up and we rushed to have the contract signed before [they] increased further,” said Wei

Min Tan, a broker at Rutenberg Realty. “Abruptly rising rates brought

urgency to buyers. While rates were low, there was less urgency because

“In Manhattan, a half point isn’t going to change people’s minds about buying. [But] it’s going to make them hurry up.” ROLAN SHNAYDER, H.O.M.E. MORTGAGE BANKERS

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everyone assumed rates would continue to stay low.” Rising rates are now propelling would-be buyers to seal the deal, agreed Rolan Shnayder, director of new development lending at H.O.M.E. Mortgage Bankers. “In Manhattan, a half point isn’t going to change people’s minds about buying. [But] it’s going to make them hurry up.” In an effort to stimulate the recovering housing market, the Federal Reserve has purchased billions of dollars in mortgage-backed securities and federal bonds, keeping rates artificially low. Interest rates hit then-historic lows in May 2012: Rates were 3.7 percent for a 30-year fixed-rate mortgage and 3.23 percent for a 15-year fixedrate mortgage. Still, rates continued to drop. And by December of last year, 30-year fixed rates were down to 3.32 percent and 15-year fixed rates were at 2.85 percent. Then rates began to rise steadily beginning in mid-May; at the same time, mortgage applications decreased, data from the Mortgage Bankers Association shows. The increase in rates was expected, said Debra Shultz, senior vice president of mortgage lending at Guaranteed Rate. “Our management has been preparing us for months and months and months now that rates are going to go up,” Shultz said. They’ve been saying to “‘get out there and work on purchases, rates are not going to be down for much longer.’ This has been going on for at least three months.” In Manhattan, sources concurred that rising rates would even out what has been an “insane” seller’s market during the past few months, Shultz said. In the second quarter of the year, Manhattan sales transactions jumped for the third quarter in a row while prices continued their steady rise. According to Douglas Elliman’s Manhattan market report, 3,144 sales closed in the second quarter, an 18.8 percent increase from 2,647 in the same quarter of last year. The median sales price of a Manhattan apartment in the second quarter was $865,000, a 4.3 percent increase from $829,000 in the second quarter of 2012. Jonathan Miller, the president of appraisal firm Miller Samuel, Continued on page 98

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Brother, I can spare a dime

Construction lenders open their wallets, but only to known developers By Tom Acitelli ith the Great Recession winding down, New York residential developer Alchemy Properties was gearing up to start construction on a planned condo conversion at 35 West 15th Street, now known as 35XV. But Alchemy President Kenneth Horn wasn’t sure if he’d be able to get a construction loan,

since the recession had virtually halted financing for new condos in New York. Fortunately, Horn connected quickly with M&T Bank and Capital One, lenders he’d used for years before the recession. In 2010, he secured construction financing of roughly $70 million. Three years later, units at 35XV are on the market asking $1.75 to

$11.5 million. And banks’ purse strings have loosened up even more

Horn — thanks to rising land values and a stronger real estate market.

in New York City have been rentals. But established developers told The

Established developers are now finding a flusher climate for condo construction loans, with M&T Bank, Capital One, Citibank, Wells Fargo and Bank of America among the most active lenders. when it comes to new condos — at least for experienced developers like

For the past few years, most of the new projects hitting the market

Real Deal that they are now finding a flusher climate for condo construction loans, with M&T Bank, Capital One, Citibank, Wells Fargo and Bank of America among the most active lenders. That’s due largely to the health of the condo market, but also to the fact that returns for banks remain generally higher for condo-construction loans than for other types of lending. “There is a much more stable and secure market today,” said Barry LePatner, founding principal of LePatner & Associates, which represents developers in construction projects. “Lenders are, of course, being cautious. But they also want to get that higher interest rate they know they will get on a construction loan.” Still, even longtime developers have to put in more equity than they did during the mid-2000s real estate boom. And newcomers to the market still have a hard time getting financing. “Construction lenders — [the ones] we deal with at least — are still only lending to people who’ve done it before,” Horn said. “They have not reached the point where they are lending to people who are novices. The pendulum hasn’t swung that quickly, to where your first-time developer is able to go out and get a construction loan.”

A stronger market For the last few years, condo projects were seen by lenders as risky bets because of consumers’ difficulty in securing mortgages and a glut of unsold inventory in some areas of the city. If lenders were financing for any residential construction, it was for rentals, which shot up in demand due to the slumping for-sale market. “If you had asked someone about a condo loan a few years ago, they would have laughed at you — it was pretty much nonexistent,” said Andrew Gerringer, managing director for new business development at the Marketing Directors. Several large projects originally planned as condos, such as the Frank Continued on page 96

16 July 2013 www.TheRealDeal.com

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BY THE NUMBERS

The final tally on Sandy’s fallout Compiled by Evan Bleier

t’s been eight months since Hurricane Sandy touched down in New York City. Now the numbers about the epic storm are in. Read on to fi nd out if your home will be underwater in 2050.

$19 billion

Estimated cost of Hurricane Sandy in lost property, jobs and increased government expenditure.

1.1 million

Total size of 199 Water Street, in square feet.

800

$90 billion

Estimated cost of losses of a similar-strength storm in the 2050s.

Number of city buildings deemed structurally damaged or destroyed by Hurricane Sandy.

$20 billion

Estimated cost of Mayor Michael Bloomberg’s proposed system of ﬂood barriers to protect against future storms.

Post-Sandy changes to the building code proposed by the Resilient Buildings Task Force.

53,000

398,100

Properties that received tax reductions to account for property value losses.

800,000

Additional city residents now incorporated into hurricane evacuation zones.

Numbers of New Yorkers now living in the 100-year ﬂoodplain.

600,000

Number of New York City residents projected to be living in the 100-year ﬂoodplain by 2050.

20–30 percent

520

Miles of New York City coastline — more than Miami, Los Angeles and San Francisco combined.

8 million

Gallons of water pumped out of the basement of the ofﬁce tower at 199 Water Street after Sandy.

Increase in anticipated baby deliveries at New York– Presbyterian Hospital/Weill Cornell Medical Center in late July through early August, nine months after Sandy struck.

$14 million

Emergency funds the Staten Island Ferry will receive to cover the cost of preparing for Sandy and re-establishing service after the storm.

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Hauspurg and wife, Daun Paris, Eastern’s co-founder and president, collect antique staircase models such as this one, which Hauspurg said he loves for its “graceful, sweeping beauty.” A half-dozen others are in the couple’s Bedford, N.Y., home, where they stay on the weekends. During the week, they live on the Upper West Side.

“When I need a genie, I will give it a little rub,” he said of this antique lamp he bought years ago in France.

Hauspurg’s dad, Arthur, headed Consolidated Edison from 1970 to 1990. Two gifts that his late father received on the job were this vintage photograph of light bulb inventor Thomas Edison and this sculpture of a sword in a stone, a reference to the legend of King Arthur. For the elder Hauspurg, the artwork represented the challenges that he often faced in running Con Ed.

020 july desk of se FINAL.indd 1

PHOTOGRAPH FOR THE REAL DEAL BY CHRIS MARTIN

THE

DESK

OF:PETER

HAUSPURG

Like many brokers, Hauspurg is admittedly superstitious. When he’s not sure which approach to take, he turns to this pair of dice. If double sixes come up, for instance, “I’ll take a strong position.”

Hauspurg bought this piece of the Berlin Wall in the 1990s on a trip to Berlin — “probably from some curio shop.” Only recently did Hauspurg discover a date on the bit of concrete: Sept. 11, 1989, the day that the wall fell.

Hauspurg received this Buddha statue, imported from Thailand, as a good-bye gift from a departing Eastern employee. The reclining pose reflects the “final passage into Nirvana,” Hauspurg said. “If you have contentious people in here, it tends to calm them down.”

Hauspurg loves photography, such as this print of director Alfred Hitchcock holding a dead duck, and an Annie Leibovitz photo of a young Arnold Schwarzenegger.

Hauspurg received these plaques from the Real Estate Board of New York for helping determine Most Ingenious Deal award winners. “In a difficult city with difficult people,” he said, the contest is “really fun to judge.”

mentos of those many creatively executed deals — mixed in with family photos and even a piece of the Berlin Wall — adorn his corner offi ce at the company’s 355 Lexington Avenue headquarters. B Y G UELDA V OIEN

This photo is of Prince, a Hackney/ Thoroughbred cross the Hauspurg family used to own. Unfortunately, Prince couldn’t take the hilly trails and steep ravines of the upstate reservation where the Hauspurgs run their horses, so they found him a new home, a charity that provides riding lessons to underprivileged kids. Now, Hauspurg has a “big quarter horse named Sky. The rocky terrain doesn’t bother him.”

eter Hauspurg has brokered a slew of impressive sales as chairman and CEO of Eastern Consolidated , the real estate investment powerhouse he founded three decades ago when he was only 30. And me-

6/26/13 2:05 PM

INVENTORY

DEMAND COMMISSION MOVE INTO MORE

2 5 2

S T

AV E N U E

N E W

Y O R K ,

N Y

1 0 0 0 9

8 8 8 . 5 8 2 . 8 6 1 9

COMMERCIAL MA R K E T

High-end office space leads the way More $100-per-square-foot deals signed than last year BY ADAM PINCUS anhattan’s office leasing market bumped along in the first half of the year but got a bit of a boost from increases in the number and price per square foot of highend deals concentrated in the Plaza District. Through late last month, 28

leasing deals with rents of $100 per square foot and above had been signed — the highest at roughly $200 per square foot. That compares with 23 leasing deals for the same period of 2012, with the highest in the $170-persquare-foot-range, preliminary information from leasing tracking firm CompStak revealed.

The top deals of 2013 include an early renewal last month by investment firm Och-Ziff Capital Management Group, at Sheldon Solow’s 9 West 57th Street, for more than $200 per foot on floors 39 and 40; and a branch of Brazilian lender Banco Itaú, which leased about 10,000 square feet in Boston Proper-

ties’ General Motors Building at 767 Fifth Avenue, for about $200 per foot. The deals eclipse last year’s priciest one: Icahn Enterprises took about 28,000 square feet in the GM Building in the high $170s per foot, information from CompStak showed. A combination of a modest recovery in the economy and the low inventory of high-end office space is driving up prices, said Compstak’s research director, Noam Shachar. “The smaller, luxury spaces are harder to come by,” he said. For Manhattan overall, the average asking rent recovered

Manhattan office stats AVAILABILITY AVG. ASKING RATE RENT

Q2 ’13 Q2 ’12

Manhattan 12.1% $56.61 12.1% $56.64

Midtown Q2 ’13 12.3% $66.09 Q2 ’12 12.2% $68.63 Midtown South Q2 ’13 9.2% $51.52 Q2 ’12 8.8% $43.76

Q2 ’13 Q2 ’12

Downtown 15.9% $45.71 16.7% $45.44

Source: Colliers International

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from a yearlong drop-off to nearly match the level of 2012’s second quarter. The average asking rent was $56.61 per foot, compared with $56.64 for the same period last year, according to preliminary figures from Colliers International, a commercial brokerage. The availability rate, which measures space available over the next 12 months, was identical in the second quarter of both years — 12.1 percent.

Midtown Second-quarter asking rents remained far below where they were for the same period last year, and the availability rate ticked up slightly. Both figures, however, showed an improvement over the first quarter. The average asking rent was $66.09 per square foot in Midtown, a $2.54 per foot decline from 2012’s second quarter but a $1.02 per foot increase from the first quarter. The availability rate followed a similar pattern: It stood at 12.2 percent for the second quarter of 2012; then it rose, hitting 12.6 percent in the first quarter, before declining to 12.3 percent for the last quarter. An example of the new leasing activity was at 1001 Sixth Avenue, at 37th Street. Pharmaceutical marketing firm Crossix changed floors and expanded within the 240,000-squarefoot building. Crossix moved from about 5,000 square feet on a portion of the 17th floor, to all of the 12,000 square feet on the fifth floor, which had an asking rent of $45 per foot. The 10-year lease was signed Continued on page 94

22 July 2013 www.TheRealDeal.com

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In their words...

The month’s funniest and most insightful comments on real estate

“We need a recovery program to recover from our recovery.” Mortimer Zuckerman, chairman of Boston Properties, summing up his not-very-rosy perspective of the economy. (GlobeSt.com)

“We know that by stepping up and fighting…, we have made ourselves a target.” Airbnb’s David Hantman, on the apartment-sharing start-up’s defense of an Airbnb host who the city fined for renting out his pad. (WNYC)

“The housing market is out of intensive care and in stable condition, with some strong vital signs when it comes to higher home prices and lower foreclosure activity.” RealtyTrac’s CEO James Moyle on the real estate recovery. (New York Times)

“I find it strange when buyers do not look in other people’s refrigerators ... especially if you are going to keep that refrigerator.” Brown Harris Stevens broker Lisa Lippman, on the role that the icebox plays in selling a home. (New York Times)

“Gary Barnett and I are still friends. … He wanted to go off on his own and do his own thing, and he’s done that.” Kevin Maloney, founder and principal of Property Markets Group, on former partner Gary Barnett, who established Extell Development. (New York Times) 24 July 2013 www.TheRealDeal.com

024 july funny quotes se FINAL.indd 1

“The beauty of pre-construction is it’s all smoke and mirrors.” Peter Zalewski of Condo Vultures, a South Florida consulting firm, warning brokers to beware of the hype surrounding the so-called “condo corridor” in downtown Miami.

“I can talk that way, because I’m from 135th Street.”

John Catsimatidis, real estate mogul and mayoral candidate, explaining to the Young Mortgage Bankers Association that his humble upbringing gives him the credibility to suggest that trade school is a good path to the middle class.

“We would have Thanksgiving and Passover together, which we aren’t doing anymore. I think it’s a loss for all of us.” TF Cornerstone’s K. Thomas Elghanayan on brother Henry’s decision to split up the family real estate empire. (Wall Street Journal)

“$15,400,000 in new listings! Hiiiigh-kick.” Fredrik Eklund, Douglas Elliman broker and reality TV star, on his hot streak. (Twitter)

“It could make sense to tear down a $1.3 billion office building.” Jeff Blau of Related Companies, telling hedge fund gurus how a developer might get in on the city’s thriving retail and condo markets.

“We plan to move as quickly as possible.” City Council Speaker Christine Quinn, on the council’s time line for passing regulations that would make buildings safer during major storms like Hurricane Sandy. (New York Times) www.TheRealDeal.com August 2006 00

6/26/13 2:07 PM

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DAY IN THE LIFE OF:

Frederick Peters The Warburg Realty president talks about hand-picking the firm’s agents and his obsessive cleaning habit.

in day-to-day business transactions, but at the more global level, our interests are highly aligned. [Corcoran Group CEO] Pam Liebman likes to go to Fred’s at Barney’s, because it’s in her building and close to mine. Next Tuesday, I will meet with [Halstead Property President] 7 a.m. I wake up naturally at seven. Then I lie in bed and gather my thoughts for a while. Next, I am sad to admit,

Warburg’s new headquarters at 654 Madison Avenue.

Diane Ramirez at the Lotos Club on the Upper East Side.

I get on the computer and start doing email. And I have

2 p.m. We’re hoping to expand our Tribeca office. It now

my pajamas on, because at this point the kids are grown,

has about 30 desks, but we think we can squeeze in about

and there is nobody in the apartment except for me and

six more. Today I went down there to meet with our ar-

my wife, Alexandra.

chitect, Chandler Pierce, who also designed this office.

8:30 a.m. I usually walk to the office across Central Park from my apartment at 86th Street, which I bought

Peters drinks eight cups of Earl Grey tea throughout the day.

3 p.m. We’re hiring now. I do all the final interviews myself; these people will work for me, and Warburg is

in 1977 — the first home I ever purchased. The walk is

my family name. [Peters’ middle name is Warburg; his

good for clearing my head. I don’t usually eat breakfast

great-grandfather was banker Felix Warburg, whose

unless I’m meeting somebody, like my lawyer and friend

mansion on Fifth Avenue is now the Jewish Museum.]

Barry Mandel [of law firm Seyfarth Shaw]. We always eat at Viand coffee shops. When Warburg was based at 969

Viand coffee shop at 61st and Madison is a favorite breakfast spot for Peters.

We hire agents from other agencies, but I prefer to have people here inculcated from day one.

Madison we used to go to the one at 78th and Madison. Now we’re located at 654 Madison, our new headquar-

4 p.m. I have about eight cups of Earl Grey tea through-

ters, which opened in March. So we go to the Viand at 61st

out the day. It has caffeine, but I can’t drink coffee be-

and Madison. I’m not a fancy breakfast guy — the whole

cause it makes me crazy. I try to call or email my kids

idea of power breakfasts just seems sort of absurd. When

two or three times a week. My daughter, Clelia, 35, is in

I get to the office, I read the Wall Street Journal. I usually save the New York Times for the night. My father, C.

Fred’s at Barneys at 660 Madison Avenue, located in the same building as Corcoran’s headquarters.

New York working for a start-up that handles executive placement. My son, Jack, 32, is an assistant district attorney in Colorado.

Brooks Peters, was a reporter there. He was in Berlin in the 1930s, and covered Kristallnacht, the Nazi pogrom.

5 p.m. I’m obsessive about having a clean desk; I think 9:30 a.m. I’m a very hands-on manager. I meet with ev-

better in an orderly environment. Mess distracts me. I

ery one of my agents face-to-face at least once every two

usually clean it off at the end of the day, which can take

weeks. It’s important for me to make sure there is a palpa-

an hour and a half.

ble connection between me and everybody who is carrying the Warburg card. A lot of our mornings are dedicated

Peters has played the piano since he was 10.

6:30 p.m. I don’t do too many charity events; my wife

to sales meetings, at our headquarters or our other two

and I would rather send a check than send ourselves.

offices. This week I was at 30 East 76th Street. I also still

But I do go to hear a lot of music, mostly contemporary

do deals myself, about six this year. I just sold a two-bed-

classical. My favorite venue in the city is the Brooklyn

room on the Upper East Side, which was listed at $5.53

Academy of Music. Last fall, I saw Philip Glass’s “Ein-

million. But I give most of my leads to other agents — I

stein on the Beach,” which was amazing. I’ve played the

will only take on a deal when a client insists on it. REB-

piano since I was 10 and I have two pianos, one in my

NY [the Real Estate Board of New York] also takes up a

The Jewish Museum on Fifth Avenue is housed in a mansion once inhabited by Peters’ great-grandfather.

apartment and one at my country house in Connecticut.

lot of my time; I’m on three REBNY boards. Tomorrow morning there’s a roundtable at the Brotherhood Syna-

11 p.m. Often, I get home late. And then I get onto the

gogue in Gramercy Park, where I will speak about ethics.

computer and listen to music. Weekends are for classical, but when I check email at night on weekdays, I listen to rock. I’m old, so I like Fleetwood Mac and Patti Smith. I

12:30 p.m. I eat lunch out about once a week with colleagues from other firms. We compete against each other 26 July 2013 www.TheRealDeal.com

Rocker Patti Smith is one of Peters’ favorites.

usually go to bed at midnight. By C.J. Hughes www.TheRealDeal.com March 2012 00 PHOTOGRAPH OF PETERS FOR THE REAL DEAL BY CHRIS MARTIN

Top Brokerages

A growth spurt on the East End TRD’s annual ranking of the biggest residential firms in the Hamptons

By Hayley Kaplan ith interest rates still low for now and the economy recovering, residential real estate firms on the East End of Long Island are seeing a growth spurt. The market for second homes struggled for several years after the 2008 financial crisis, and the vacation communities on the East End along with it. Now, however, East End real estate firms are adding to their agent ranks, opening new offices and expanding into uncharted territory. This year, the 10 largest firms in the Hamptons, Shelter Island and the North Fork collectively had a total of 1,277 agents — up 4 percent from 1,230 agents at this time in 2012, according to The Real Deal’s annual ranking of the biggest East End firms. Six out of the 10 largest brokerages in the region have grown in size this past year, according to TRD’s ranking, which is compiled based on the number of agents listed on the brokerages’ websites. Firm heads said they took advantage of the slow market over the past few years to plan for the recovery, and are now expanding their market share. “It was easier to grow in a bad market,” said Judi Desiderio, who founded Town & Country Real Estate in 2007. With 130 agents and eight offices on the East End, the firm this year climbed to No. 3 in TRD’s rankings from No. 4 last year. “In a bad market, you can negotiate [for] space better,” she said. “Brokers are hungry for something different, because they’re not making money and they’re stalled, so recruiting is easier.” But now that the market has improved, “all of our brokers are making money,” Desiderio said. Douglas Elliman ranked as the No. 1 firm by number of agents, dislodging the Corcoran Group from the top spot. While Corcoran’s numbers shrank slightly from 327 last year to 325, Elliman grew 3 percent from 326 to 337 agents. Paul Brennan, Elliman’s Hamptons regional manager and a top broker at the firm, said the company has hired a number of new agents in the past year, and he’s “hoping that there are a few new stars in that lineup.” With fellow Elliman brokers Michaela Keszler, Victoria Logvinsky and Oren Alexander, Brennan is marketing Elliman’s current priciest Hamptons listing: an estate at 315 Rose Hill Road in Water Mill asking $58.8 million. The eight-bedroom, 11-bath home in-

28 July 2013 www.TheRealDeal.com

Brokers with some of the Hamptons’ priciest listings (from left): Dana Trotter of Sotheby’s, Paul Brennan of Elliman; and Debbie Loeffler of Corcoran, at Loeffler’s 315 Bridge Lane listing in Sagaponack.

Rank 2013 2012

Biggest East End firms 2013

Number of Agents 2012

Douglas Elliman

337

326

The Corcoran Group

325

327

Town & Country Real Estate

130

119

Brown Harris Stevens

125

132

Saunders & Associates

104

Sotheby’s International Realty

100

Nest Seekers International

Daniel Gale Sotheby’s International Realty

Century 21 Albertson Realty

Halstead Property

Source: Agent numbers are from firms’ websites as of early June. Figures do not include managers and administrative personnel.

cludes eight fireplaces and sits on more than four acres. Saunders & Associates, Sotheby’s International Realty and Halstead Property have also seen significant growth in the Hamptons over the past year, as they made moves to open new offices and cover new territory. For example, five-year-old Saunders, ranked No. 5 with 104 agents, expanded to Shelter Island this year, and is in the process of building a third office in East Hampton. Other firms said they view this as a time to reassess their strategy or discard unproductive agents. Brown Harris Stevens, which ranked No. 3 in 2012, this year fell to No. 4. The firm saw its agent count drop 5 percent from 132 to 125, according to Aspasia Comnas, an executive manag-

ing director of Brown Harris Stevens of the Hamptons. North Fork–based Albertson Realty and Daniel Gale Sotheby’s also saw their totals slip from last year.

Gaining Traction The Hamptons real estate market is in the process of a significant rebound. According to an Elliman market report, the number of sales in the Hamptons shot up 20.9 percent to 347 in the first quarter, up from 287 in the same period of 2012. Yet closed sales prices haven’t yet seen a corresponding uptick, though brokers said they are now starting to see prices climbing for homes in contract. The median Hamptons closed sales price fell by 5.1 percent year-over-year to $740,000 from

$780,000, according to Elliman’s report. “We’re getting to a better place: Prices are going up, inventory’s going down, interest rates are going up,” Desiderio said. “The indicators are all saying, ‘start buying real estate.’” Several Hamptons firms are taking advantage of that to expand their East End market share. Town & Country, for example, in the past year opened a second East Hampton office and expanded its Southampton outpost. The firm is also looking to expand its activity in Sag Harbor, which Desiderio described as the “missing link” in the firm’s coverage area. “Our business model is that we really want to make sure that in everything east of the Moriches, that Town & Country is the major player,” Desiderio said.

www.TheRealDeal.com 2011 25 PHOTOGRAPH FOR THE REAL DEALJanuary BY KARL RIVENBURGH

Top Brokerages The agency’s priciest listing right now is Further Lane Farm, a 10-bedroom home at 249 Further Lane in East Hampton, listed for $44.9 million. Town & Country isn’t the only East End firm looking to grow its market share. Saunders recently acquired land at 26 Montauk Highway in East Hampton to build a 6,000-square-foot office, slated

branded, many of these great properties on Shelter Island will find buyers who wanted to be in places like Bridgehampton and Sagaponack.” Sotheby’s, meanwhile, came in at No. 6 on the list, growing from 87 agents in 2012 to 100 this year. The firm is in the process of physically expanding its Sag Harbor office, one of four the company has on the East

Nest Seekers International, which opened its first Hamptons office in April 2011, is ranked No. 7 on TRD’s list. The company has seen its East End agent numbers grow only slightly since last year to 49, but has laid out an ambitious business plan to increase its presence further, according to Geoff Gifkins, regional manager for the company’s four Hamptons

Most expensive listing for biggest East End ﬁrms Douglas Elliman Brokers Paul Brennan, Michaela Keszler, Victoria Logvinsky and Oren Alexander are marketing 315 Rose Hill Road in Water Mill for $58.8 million.

The Corcoran Group A $59 million, 33-acre estate in Sagaponack is on the market with Debbie Loeffler and Julie Briggs.

Town & Country Real Estate Further Lane Farm at 249 Further Lane in East Hampton is listed for $44.9 million.

Brown Harris Stevens In Bridgehampton, 612 Halsey Lane is on the market for $43.5 million.

Saunders & Associates A Bridgehampton spec home is on the market for just under $26 million.

Sotheby’s Dana Trotter’s listing for Three Ponds Farm in Bridgehampton, which is on the market for $60 million.

Top: 20-30 West End Road in East Hampton, which is listed for $75 million with Sotheby’s. Bottom: Further Lane Farm in East Hampton is listed for $44.9 million with Town & Country.

to open in the first quarter of 2014, firm founder Andrew Saunders said. The firm has existing offices in Bridgehampton and Southampton. The company owns rather than rents all its offices, which he said is an integral part of its business model. “Our model is different,” Saunders said. “Most firms, I think, rent their offices. We’ve put significant resources behind making our offices beautiful and elegant and welcoming to our agents.” The firm also recently moved into the Shelter Island market, hiring Shelter Island specialist Penelope Moore away from Corcoran to spearhead the effort, Saunders said. “Shelter Island affords a really beautiful experience at a lower price,” Saunders said. “Our thesis is that if properly promoted and

64 March 2012 www.TheRealDeal.com

End, while actively looking to hire agents with a “track record” in the area, said John Gicking, a Sotheby’s vice president and brokerage manager for East Hampton. Sotheby’s is marketing two of the most expensive listings currently on the market: 20-30 West End Road in East Hampton, which is listed for $75 million with Frank Newbold and Ed Petrie, and a Bridgehampton estate at 939 Scuttlehole Road with a private golf course listed with Dana Trotter for $60 million. The property, known as Three Ponds Farm, has been on the market since 2008. Trotter said the eight-bedroom home also has a pair of three-car garages, and a grass tennis court. “The 60 acres alone are incredibly unique,” she said. “There’s not a single other property [in the Hamptons] that offers a private golf course.”

offices. Nest Seekers’ goal: To double its size by growing to 100 agents by the end of the year, in part to fill a new Bridgehampton office that opened in February, Gifkins said. As part of this recruiting push, Nest Seekers recently hired Laura and Carl Nigro away from Douglas Elliman, Gifkins said. Halstead, a major New York City firm, is also a newcomer to the Hamptons: It entered the market with the purchase of Hamptons real estate brokerage DevlinMcNiff in October 2011. In the past year, Halstead has seen its East End agent total nearly double, from 19 last year to 30, though it remained at No. 10 in the rankings. And the firm is planning to hire even more agents for a new Southampton office at 31 Main

Street, slated to open this month. Anthony DeVivio, the managing director of Halstead in the Hamptons, said that its agents benefit from its smaller presence in the region, since there are a limited number of Hamptons brokers for New York City Halstead brokers to refer clients to. “There are a number of firms that have a large New York presence, but have a very large presence out here as well,” DeVivio said. “Brokers in those firms are sharing that New York presence with 200 or 300 brokers out here. “In the case of Halstead, it’s [30] brokers that are sharing that New York presence,” he said. “So it’s a great referral source.”

Trimming the fat Corcoran may have dropped to No. 2 this year, but its agent count stayed basically the same as last year. Ernie Cervi, the executive managing director of Corcoran’s Hamptons office, said the firm has hired some agents in the past year, but that most brokers are staying in place now that the economy has improved. “In the past year people have been busy, so wherever they are, they stayed,” he said. Corcoran’s priciest listing on the East End is a $59 million, 33-acre estate in Sagaponack listed by Debbie Loeffler and Julie Briggs. The eight-bedroom, 11,700-squarefoot home, at 315 Bridge Lane, is complete with a mahogany-paneled library, limestone entry gallery, six fireplaces and a screened porch. Loeffler dropped the price of the home in early June by $6 million, after it was on the market for nearly a year. Lately, she said, there’s been a lot of European interest in the home, she added. Other firms were clear that they’re getting rid of dead weight. Brown Harris Stevens, for example, has hired about 12 new agents this past year while letting go of a number of part-time agents, Comnas said. “We have parted company with some agents that weren’t full-time, serious agents,” she said. “And we’ve taken on new agents [who] are exactly that. While our [agent total] hasn’t changed all that much, our agent population has changed.” Daniel Gale Sotheby’s International Real Estate, a franchise of Sotheby’s that does business in both Nassau and Suffolk Counties, also saw its total number of East End agents drop this year to 41 from 44, placing it at No. 8 on TRD’s ranking. Daniel Gale’s Carol Tintle, a senior vice president at the firm, seconded Comnas, noting that hiring full-time East End brokers can be a challenge, since the area is largely a seasonal community. “I’d rather have 20 professional agents than 30 part-time people,” she said. Century 21 Albertson was the ninth-largest firm, according to TRD’s ranking, with 36 agents — six less than at this time last year. Owner Tom Scalia said he lost several agents, but has recently hired more to replace them. TRD

www.TheRealDeal.com July 2013 29

REGULATING REAL ESTATE

Growing appeal of going short More baby boomers are choosing 10-year loans for super-low interest rates and a debt-free retirement By Kenneth Harney he refinancing boom may be cooling down, but the move to shorter mortgages — especially 10-year ones among pre-retirees — appears to be accelerating. Once an insignificant niche option, 10-year mortgages are now accounting for increasingly large chunks of business for some community banks. Rockville Bank in South Windsor, Conn., for example, reports that 10-year loans represented a fifth of its residential mortgage originations in dollar terms last year. Plus, a new survey by Freddie Mac, the giant federal mortgage investor, found that 28 percent of refinancings in the first quarter involved shorter terms. Among refinancers with 30-year mortgages, nearly a third switched to shorter-term replacement loans. Though 15-year mortgages have been popular for years among homeowners who want to pay off their

quote much lower than that. Rockville Bank’s current 10-year rate is 2.375 percent with no points. Third Federal’s quote for a 10-year mortgage of $200,000 is 2.79 percent with a closing fee of $450. For community lending institutions such as these around the country, 10-year loans tend to be portfolio investments. Rather than selling the mortgages to Freddie Mac, Fannie Mae or other investors, lenders retain them in-house, which can result in lower rates. And since lenders who specialize in 10-year mortgages want to keep risks as low as possible on their in-house investments, they typically require borrowers to have solid credit histories and significant equity or down payments. Picture this: You’re in your prime pre-retiree years — anywhere from the mid-50s to early 60s. You’ve got a good income, significant equity in

The faster payoff of principal through the 10-year mortgage can be a budget issue for some borrowers. balances quickly, lenders are reporting that the 10year loan — targeted directly at the demographic tsunami of baby boomers planning to retire in the coming decade — is on the upswing. “There’s a lot of interest in this [10-year] product,” said Victoria Stumpf, a loan officer with Third Federal Savings and Loan in Cleveland. Why the increasing attraction of shorter-term loans? Start with interest rates. With an almost-certain increase in rates on the horizon as the Federal Reserve begins to “taper” its purchases of mortgage bonds and Treasury securities, fixed rates on 10year loans remain enticingly low. The average 10year, fixed-rate mortgage goes for 3 percent with a fifth of a point — a point equals 1 percent of the loan amount, according to MyBankTracker.com, which surveys 7,000 lenders nationwide on rates and terms. But many community banks and smaller lenders

your home, good credit scores and you want to refinance to a lower rate. Your home is worth $250,000 and you need a $150,000 loan to leave you mortgage debt-free — or close to it — once you’re into retirement. You don’t want to risk potential interest rate spikes along the way, so adjustable-rate loans are out of the question. How does a 10-year loan stack up? Consider this comparative scenario using current rates and terms for 30-year, 15-year and 10-year loans provided by Jeff Lipes, vice president for mortgages at Rockville Bank: Interest rates: The 10-year’s 2.375 percent rate is the lowest by far. The rate on the 30-year fixed is 3.99 percent; on a 15-year, it is 3.25 percent. Monthly payments: Here’s where the faster payoff of principal through the 10-year mortgage can be a budget issue for some borrowers. The monthly total for principal and interest on the Continued on page 98

GOVERNMENT BRIEFS Mayor pushes new building rules to protect against future disasters like Sandy New York Mayor Michael Bloomberg wants to toughen the city’s building code so that both commercial and residential properties can withstand natural disasters like Hurricane Sandy better, the New York Times reported. The stricter regulations, which must be approved by the City Council, would apply primarily to new construction, major renovations, existing multi-family dwellings and buildings that provide essential services such as hospitals. The Real Estate Board of New York supports the overhaul but points out the changes could be costly. Bloomberg also has proposed an ambitious plan to fortify the city’s infrastructure and 520 miles of coast against powerful storm surges and rising sea levels. The initial phase, estimated at $20 billion, calls for elaborate ocean barriers such as floodwalls, levees and bulkheads (see related story on page 18).

FHA hid higher loss estimate of $115B to avoid public outcry The Federal Housing Administration left out key data from its annual report that shows it could lose as much as $115 billion over 30 years in the event of prolonged severe economic conditions, the Wall Street Journal reported. The loss estimate is based on a methodology by the Federal Reserve that the mortgage insurance agency isn’t California Representative Darrell Issa required to use; an FHA independent actuarial review released last fall put the amount at $65.4 billion. An investigation by the House Oversight and Government Reform Committee uncovered the figure, described as “troubling” by committee chairman Rep. Darrell Issa, R-Calif. The panel reviewed emails from FHA officials that suggested they didn’t want to include the higher number because of the uproar it might cause. The officials, who have since left the agency, stood by their decision, arguing the bigger estimate was less relevant because the housing market was already recovering.

MTA in final stages of selecting developer for restored building in FiDi The Metropolitan Transportation Authority is close to picking a developer for the just-restored Corbin Building, which is next to the agency’s under-construction subway hub in Lower Manhattan. The eight-story building, at Broadway and John Street, will have an entrance to the Fulton Center, the New York Times reported. The MTA plans to lease 31,000 square feet in the century-old Corbin Building — a large corThe Corbin Building ner storefront and upper floors — as well as 30,000 square feet in the transit hall. All the space is for commercial purposes. The agency hasn’t announced a date for selecting a developer but expects the new train station to open next year. Compiled by Sanna Chu

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Brokerage CEOs grapple with how to dole out pricey exclusives

BY KATHERINE CLARKE hen Douglas Elliman brokers Raphael De Niro and Victoria Logvinsky put a Midtown Manhattan penthouse on the market for a record-high $100 million last July, “my name went around the world in the course of weeks,” De Niro told The Real Deal last month. That’s true despite the fact that the property lingered on

the market, and in fact still hasn’t sold. (See story on page 42.) In the wildly expensive world of New York City real estate, one high-profile listing is all it takes to propel a broker to stardom. “Big listings, even if they’re grossly overpriced, can help attract attention to the individual agent, even if the listing isn’t going to sell,” said Donna Olshan, president of Manhattan brokerage Ol-

shan Realty. “The firm is footing the bill for the advertising, but the

gets these exclusives, and how, is among the industry’s most-discussed topics, especially at a time when inventory is scarce but $90 million — and even $100 million — listings seem ubiquitous. Real estate agents are usually on their own when it comes to getting exclusive listings, but for

ers often get involved. When the chiefs of New York City brokerage firms — who are often wealthy and well-connected — bring clients and listings to the firm, they must decide which broker to dole them out to. And it’s not always easy to make the right choice; company

“I’m going to give [listings] to the person who can sell ice to the Eskimos. It’s not that they’re my favorites, it’s that they make me look great.” PAUL PURCELL, RUTENBERG REALTY agent becomes the brand.” So it’s not surprising that who

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In New York City, home-sellers typically sign a listing agreement giving a broker the exclusive right to market their property for a given amount of time, usually 180 days. Typically, brokers secure these exclusive listings by arming themselves with facts and figures, then convincing an owner that they’re the best person to sell a property. But agents also sometimes get clients through their firms; when a potential buyer or seller walks into a storefront office, for example. To distribute these leads, many firms use the so-called “uptime” system, in which an agent is required to be at the office for a certain time period each week to answer phones and be available for walk-ins. That agent is then entitled to represent any new client who walks in or calls during that time. The uptime system is “a pretty equitable way of allocating potential clients,” said Sonia Stock, Continued on page 98

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Pr o f i l e

Multi-family maverick I By Adam Pincus n Bedford-Stuyvesant on a Monday morning, broker Aaron Jungreis is taking stock of a 20-unit apartment building, part of a 12-building, $40 million Brooklyn portfolio he had just been hired to sell. “It’s a little dirtier than I expected,” said Jungreis, founder of Rosewood Realty Group, noting trash outside the building, which he will mention to the seller. “Did you see that cigarette butt?” To prepare a building for sale, he said: “You want it to be crisp, to look nice.” Jungreis is not an imposing figure. He’s just five feet, seven inches tall and a bit stocky — and he looks far younger than his 43 years. That, combined with his Canarsie accent, and a hop to his step, gives the impression that he’s just another junior sales associate. Yet by buildings sold and commissions earned, he’s by far New York City’s top multi-family broker. Jungreis personally topped more than $1 billion in over 200 individual building sales last year, doing more deals than Robert Knakal, chairman of Massey Knakal Realty Services, widely considered the most active broker in the city over the past three decades. And last month, Jungreis, representing both the buyer and the seller, brokered his largest deal ever: a 35-building Manhattan package that is set to close for $247 million. He declined to provide additional information before the sale was finalized. In an industry dominated on the high end by institutional brokerage firms with global connections and flashy research departments, and on the low end by smaller firms limited by geography or product, Rosewood stands out as a firm modeled like a small one yet grabbing deals from the big ones. Founded in 2007, Rosewood brokered $1.4 billion in 124 transactions last year in New York City, an analysis by The Real Deal showed. This year, Jungreis said he expects his 17-person company to top $2 billion. Because of the low-profile nature of multi-family and the outer-borough location of much of the product he sells, Jungreis remains largely out of sight to most of the real estate industry. In fact, one of the city’s top investment sales brokers said he’d never heard of him. But within his market, there is no overlooking Rosewood. Jungreis has brought an aggressive and old-fashioned style to deal-making, and insiders said he’s equally at ease with the Orthodox Jewish black hats of Brooklyn and the white-shoe investors of Park Avenue. “We all thought that old-fashioned brokerage was dead, with the Internet,” said Amit Doshi, executive director at invest-

34 July 2013 www.TheRealDeal.com

Aaron Jungreis, the city’s busiest building broker, goes old school to win business investing in deals he brokers and going so far as lending money to help close deals. “He’s relentless,” said Joshua Eisenberg, principal at New Jersey–based Urban American, one of the city’s large private-equity-backed landlords. “[Some] institutional players are more comfortable with a formulaic marketing process. But if you want a quote unquote off-market or a discreet sale, then Aaron Jungreis is the guy to call.”

‘The Pad’

Aaron Jungreis

Left: 884 West End Avenue; right: the former Bossert Hotel at 98 Montague Street in Brooklyn Heights

“We all thought that old-fashioned brokerage was dead, with the Internet. But Aaron shows you can actually do brokerage [that] way.” Amit Doshi, Besen & Associates ment sales firm Besen & Associates, who has worked with Jungreis on “many” deals over the past two decades. “But Aaron shows you can actually do brokerage [that] way.”

Still, Jungreis has ruffled feathers over several commission disputes, and he’s a maverick among the brokerage community with his openness to discuss his commission structure, as well as admitting to

Neil Rubler, CEO of landlord Vantage Properties, which has purchased and sold thousands of units in recent years, described a Jungreis pitch thusly: “‘I know your building well, I know the 10 people most likely to buy it, and I will get it sold in a way that is quick and efficient,’” Rubler recalled Jungreis saying. “’We are not going to send out 500 books that lead to 20 tours that will lead to the eight people I would have called in the first place.” It works. Jungreis has sold about a half-dozen buildings with more than 750 units for Vantage, Rubler said. Stuart Morgan is a principal with the Morgan Group, the owner of a Bronx portfolio with about 3,000 apartment units. He said he’s bought dozens of buildings represented by Jungreis. Jungreis “knows exactly what I look for,” Morgan said. “Other brokers, I’ll buy one in 10 properties [they offer]. With Aaron it’s about seven out of 10.” Jungreis’ main tools are a cell phone and “the Pad,” a notebook he uses to track scores of daily calls. Every few days he fills more than a page with red and black ink, tracking dozens of current and potential deals in tiny handwriting. To the casual observer, the Pad looks like inscrutable scribbles, but Jungreis has a system. Approximately every other day, he creates a list of all the calls he needs to make: The main contact is in red, and other information — addresses, additional details — is in black. Not the phone number, which he typically keeps in his head. Once he has made the call, he circles the item. The goal is to circle all the items by the end of the day. “I tried Outlook,” he said, but all the popup reminders just became chaotic. Robert Knakal, whose team sold 127 buildings in the city last year, valued at about $1 billion, acknowledged that Jungreis topped him in 2012. “Aaron is a great broker who works tenaciously,” Knakal said. (The firm Massey Knakal with more than 100 employees did about $2 billion in NYC deals last year, edging out Rosewood, TRD’s analysis showed.)

www.TheRealDeal.com 2011 25 PHOTOGRAPH FOR THE REAL January DEAL BY ADAM PINCUS

Pr o f i l e Jungreis did his share of high-profile deals last year. On behalf of a joint venture of private equity firm Westbrook Partners and Ben Shaoul’s Magnum Real Estate Group, Jungreis sold a package of 17 East Village buildings for $130 million in December that had 264 apartments and 24 stores, including 211 Avenue A, a 38-unit building at the corner of 13th Street. The buyer was a joint venture led by Midtown-based Kushner Companies. Kushner has snapped up additional East Village buildings sold by Jungreis this year, including 335 East 9th Street, which Icon Realty Management sold for $28.75 million in March. In addition, Jungreis brought high-profile deals to buyers such as the Chetrit Group and David Bistricer’s Clipper Equity. Chetrit and Bistricer, represented by Jungreis, purchased 98 Montague Street in Brooklyn, the former Bossert Hotel, from the Jehovah’s Witnesses for $81 million in November 2012. And in 2010, Bistricer and Rieder Holdings, represented by Jungreis, bought 752 West End Avenue for $72 million. Last month, Bistricer and Rieder, now represented by Eastdil Secured’s Doug Harmon and Adam Spies, sold it for $120 million. “[Jungreis] is in constant touch with the major owners and sellers of property in the city,” Bistricer said. “No question, he is one of the top brokers in the city.”

Jungreis became the top broker at GFI, and in 2001 was named president and a partner of GFI Realty, running a shop with more than two dozen brokers. In 2007 the firm did about $1.5 billion, according to news reports from the time. Jungreis recalls that during his best year at the firm, he did about $800 million in deals. In the fall of 2007, Jungreis split with GFI. Neither he nor anyone at GFI would comment on the exact reasons why he left.

Rosewood has closed some $649 million through the middle of last month. Of his success, Jungreis said: “I am pinching myself. I can’t believe I am brokering more [multi-family buildings] than anyone in the United States.” (His statement could not be verified, and a search in CoStar did not show any broker coming close. However, there are several major multi-family brokers in the western part of the country.) Yet in the mad rush of deal-making,

71 and 81 Orchard Street

Getting into the business Jungreis was born and raised in Canarsie, the son of Benjamin, a rabbi, and Goldie, an elementary school teacher. Jungreis was the second oldest of five siblings. After graduating from Touro College in 1991, he took an uncle’s advice and gave life insurance a shot. He lasted just eight months. “It fizzled,” Jungreis said. “I think the main reason is, I did not like bothering my friends and family to buy insurance. It was nerve-racking.” His next move was more successful. A cousin of Jungreis’ is married to Allen Gross, CEO of family-controlled GFI Capital Resources Group, which at the time was launching its GFI Realty Services. Jungreis took a job at GFI Realty Services in 1993, cold calling names from the so-called owners book, a compendium of all the landlords in the city formally known as the TRW REDI Book. His first year he did one deal, then eight the next year. He started in Brooklyn, then moved to the Bronx, taking Sundays to walk the neighborhoods and buildings. He had an incentive to work hard: In 1993, he wed Ruthy Ohana. The couple, who now live in a sprawling 9,000-square-foot mansion in Lawrence, L.I., have four children — ages 10, 13, 16 and 18.

PHOTOGRAPH KNAKAL FOR THE REAL DEAL BY BEN BAKER 28 MarchOF 2012 www.TheRealDeal.com

Side, but later brought in a controlling joint venture partner, which acquired the building for $31 million in November 2011. He now holds a stake he described as less than 1 percent in the deal. He also admits things other brokers won’t. In an industry known for its lack of transparency, most brokers shy away from talking about commission structures or how they’d prefer to do a deal without a co-broker. Jungreis, however, freely discusses his willingness to reduce a commission to accommodate a client, and said he’s gone so far as to not specify an exact commission fee, and just leave it up to the parties, saying: “You can decide what to pay me at the closing.” And he’s frank about the fact that he prefers to do direct deals rather than co-broking. “I can’t say in good conscience that I could actually call up the seller and say, ‘hey, I have this other guy.’ I might say, ‘I have another guy, but go with my buyer.’” These unconventional techniques have sometimes landed him in hot water with other brokers. A single deal in 2008 led to Jungreis getting hit with two lawsuits. Brokers Debrah Lee Charatan and Georgia Malone of separate, eponymous firms sued him over the sale of 13 multi-family properties on West 39th Street between Eighth and Ninth avenues. Charatan claimed Jungreis, who represented the Orbach Group that paid $68.5 million for the portfolio, cut her out of a portion of a commission, and Malone claimed he used her analysis of the property without compensating her for it. Charatan’s lawsuit was settled, while Jungreis won his case against Malone in the New York State Court of Appeals in 2012. Despite the disputes, Charatan continues to work with Jungreis, she said. Malone did not respond to a request for comment.

Next phase

Left: Broker Robert Knakal; right: Neil Rubler, CEO of landlord Vantage Properties

Insiders said that there was a dispute over commissions. But Jungreis said he also wanted to take a bigger role in the company, but instead opted to launch his own firm. In November of 2007, Jungreis and a former GFI colleague, David Berger, launched Rosewood Realty Group (along with another broker, who has since left the industry). The company started with five employees. While Jungreis does the bulk of the work, he has junior brokers, such as Michael Guttman, David Sheer, David Cohen and others, who execute deals alone or with him.

Jungreis bends some of the traditional rules of brokerage: He says he occasionally flips contracts he himself inks with sellers, and even invests alongside buyers that he represents. It’s an open secret that real estate brokers invest in some of the deals they broker. What’s unusual is that most won’t admit to it. Jungreis has been an investor in “about 40 to 50 deals,” he said, worth millions of dollars, including several properties he owns outright. For example, he signed a contract to buy the 67-unit apartment building at 884 West End Avenue on the Upper West

Jungreis and his firm have sold the occasional development site and retail unit, but those transactions are few, and he recognizes the challenges of getting into an entirely different buyer base. He’s also got his eye on more institutional business. He says institutional firms like Praedium Group, Vantage, Area Property Partners, Westbrook and Dermot Company represented about half of his deals last year, and he expects they will be about 70 percent of his deals this year. He expected his firm would attract more institutional players, despite not putting out the most comprehensive offering memorandum books. “There will be more business for myself and the guys who work for me, all eager dogs with our tongues out and ready to get more deals done,” he said. TRD

www.TheRealDeal.com July 2013 35

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regarding the decision by The Bellmarc Group to become a Franchisee with Coldwell Banker® Will there be a franchise fee? No. No franchise fee will be paid by a salesperson. The company will absorb all fees as part of its operating expenses. Why did The Bellmarc Group decide to become a Franchisee of Coldwell Banker? There is a tremendous advantage to having the broad recognition and the international referral network of Coldwell Banker in order to meet the demands of the marketplace. Coldwell Banker represents over 3,100 offices worldwide and over 82,000 agents. hy did you pick Coldwell Banker W and not another franchise? Coldwell Banker is the largest and most distinguished franchise in the marketplace. We believe we can best expand our offerings, our network and our prestige position with their support. ill the name of the company W change? We will now be called Coldwell Banker Bellmarc and Coldwell Banker AC Lawrence. ill there be a change in the W management of the company? No. All managers will remain the same and their duties will continue. The company policy manuals will remain in force. Did you sell? No. There is no change in the ownership.

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ecords are set — and broken — all the time, for all sorts of things. Temperatures. Speed. Distances. It’s no different in real estate. Usually, it’s prices that topple, a key sign of a hot market. And that certainly has been the case this year in New York City. On the residential side, $100 million is now the yardstick. Every few weeks, it seems, another extravagant apartment is listed for nine figures. The commercial world is hoeing new ground, too — with a string of $1 billion–plus deals. They’ve come roaring back

2013 is the year of iconic office towers at commanding prices

with a voracity that is surprising even insiders. Both these trends merit an in-depth look at what’s behind them and what might be ahead. First, a breakdown of the billion-dollar sales. Then, a comparison of how Manhattan stacks up against the world in luxury-home prices. We call them the new benchmarks. The question we’re asking ourselves: new for how long?

From left: Doug Harmon of Eastdil Secured, Darcy Stacom of CBRE, Bill Shanahan of CBRE, Chinese billionaire Zhang Xin, Haim Chera of Crown Acquisitions and Joe Chetrit of the Chetrit Group.

BY ADAM PINCUS fter a two-year hiatus, the Manhattan investment sales market is seeing a flurry of $1 billion deals. While 2011 and 2012 saw several partial-interest sales that valued Manhattan towers at more than $1 billion, there hadn’t been a billion-dollar New York City building sale since search giant Google acquired the 2 million-square-foot office building at 111 Eighth Avenue for $1.8 billion in December 2010. Then in January of this year, the market thawed. Sony announced it had signed a contract to sell its United States headquarters building for $1.1 billion. That deal, the first of the new season of billion-dollar transactions, closed on March 15. Since then, New York City has seen three closed sales — and one contract signed — for a total value of $5.1 billion. In addition, two mixed-use office buildings hit the market, and each is expected to fetch more than $1.3 billion. The first Manhattan single-building sale to break the billion-dollar barrier happened in 2002, when Boston Properties acquired Citigroup’s headquarters at 399 Park Avenue for $1.05 billion. Today’s conditions still pale in comparison to 2007 — by June of that year, more than $10 billion of deals had closed, including Kushner Companies setting a single-building price record with its purchase of 666 Fifth Avenue for $1.8 billion, and Macklowe Properties snapping up Worldwide Plaza at 825 Eighth Avenue for $1.7 billion, according to data from research firm Real Capital Analytics. Still, it’s a turnaround. Industry insiders attributed the spate of deals to a number of factors. One is the sharp rise in retail pricing over the past several years, which affected the sales of 650 Madison

GENERAL MOTORS BUILDING

767 Fifth Avenue Transaction value: $1.4 billion

aking up the block between 59th and 60th Streets, the General Motors Building is famous on the outside for the distinctive glass cube on its plaza that belongs to Apple’s flagship store below ground, and on the inside for its high-powered office tenants. Those tenants pay some of the highest rents in the city. The building reported revenues of more than $300 million last year. In March, word came down that Zhang Xin, CEO of Beijing-based real estate de-

38 July 2013 www.TheRealDeal.com

veloper Soho China, had partnered with M. Safra & Co., run by the eponymous Brazilian banking dynasty, to buy a 40 percent stake, valued at $1.4 billion, in the 50-story white marble tower. Boston Properties kept its 60 percent stake. The deal, closed by early June, valued the skyscraper at $3.4 billion, or $1,776 per square foot. Insiders said the 47-year-old Zhang, who co-founded Soho China in 1995 with husband Pan Shiyi, was investing a portion of her family’s personal fortune in the tower as a safe haven, despite the low annual returns given the expense of the

Avenue and 550 Madison Avenue, and probably will influence the pricing of 7 Times Square. In addition, sky-high prices buyers are reportedly paying for condominiums at luxury towers like CIM Group and Macklowe Properties’ 432 Park Avenue and Extell Development’s One57 have encouraged building buyers to underwrite at high numbers. To Dan Fasulo, managing director at Real Capital Analytics, the availability of capital in the debt and equity markets is what’s fueling the movement — along with an expectation that the economy is on a solid footing. “Billion-dollar deals don’t happen unless your buyer is confident the market will support those valuations, and you will get a nice return going forward,” he said. Eric Anton, managing partner at Brookfield Financial, attributes the uptick in activity specifically to the debt market. “Lenders are more comfortable with larger loans,” over the past year, he said. The rash of deals demonstrates the intense competition between two powerhouse brokerage teams: Eastdil Secured’s Doug Harmon and Adam Spies, and Darcy Stacom and William Shanahan of CBRE Group. They have long been rivals, but Eastdil has the leg up so far this year — four of the $1 billion deals and mega-partial interest sales at 1211 Sixth Avenue and Worldwide Plaza. “In terms of the assignments, it kind of snowballs: The more you do, the more you get,” said one industry insider of Eastdil’s current market dominance. Plus, “people think they have better access to the ultimate decision makers.” But Shanahan and Stacom, who handled two of this year’s mammoth deals, are not to be underestimated. They represented the sale of Forest City Ratner’s 49 percent interest in the flashy Downtown residential tower 8 Spruce Street to the pension fund TIAA-CREF, which valued the tower at $1.05 billion.

massive investment. Savvy investors have been eyeing the 2 million-square-foot skyscraper for years as its value climbed. The tower broke the $1 billion mark in 2003, when Harry Macklowe and investors bought it for $1.4 billion from a joint venture of insurer Conseco and Donald Trump. Then in 2008, Boston Properties acquired a 60 percent stake, in a joint venture with two real estate funds — Dubai-based Meraas Capital and Goldman Sachs U.S. Opportunities Fund, which bought the remaining 40 percent share for $2.8 billion from the struggling Macklowe.

While Eastdil represented the seller in the 2003 sale, the powerhouse CBRE team of Stacom and Shanahan represented Macklowe in the 2008 sale, which brought in Meraas and the Goldman investors. Stacom and Shanahan then represented Meraas and Goldman as they sought to sell their stake. Finding a buyer was no easy task: The universe of players that can invest several hundred million dollars in one asset is limited to “a few dozen, max,” said Ronald Dickerman, president of Midtown-based investment firm Madison International Realty.

www.TheRealDeal.com January 2011 25

THE NEW BENCHMARKS 30 ROCKEFELLER CENTER Transaction value: $1.3 billion

nother billion-dollar announcement came in March: Media giant Comcast paid $1.3 billion for a large condominium stake in 30 Rockefeller Plaza, the 70-story tower at the center of the famed Art Deco office complex. The purchase coincided with the $16.7 billion acquisition by Comcast of the remaining portion of NBCUniversal that it did not own. Stacom and Shanahan represented NBCUniversal in the sale; Comcast acquired 51 office condo units that included studio space comprising more than half of the 2.2 million-square-foot building. NBC both owned and occupied the units. The sale equated to $946 per square foot, data from Real Capital Analytics shows. That’s a steep drop off from the $1,508 per foot that General Electric paid for condominiums on six floors totaling 147,290 square feet in July 2007. Some real estate market watchers said Comcast may now be considering a salelease-back deal, in which it would sell the fl oors to a third party and then rent them back, to convert some of the equi30 Rockefeller Center ty into cash. “That money can be invested back into Comcast’s business, which is not real estate,” Real Capital Analytics’ Fasulo said.

paign began in October. At the time, estimates for the tower ranged from $700 million to $1 billion. By December, as many as 20 companies had made first-round offers. And after less than four months on the market, the Sony Building Chetrit Group, in partnership with David Bistricer’s Clipper Equity, purchased the building for $1.1 billion. SL Green, the real estate investment trust, arranged the financing. Chetrit and Bistricer plan to convert the tower into residential condominiums and a hotel. Bistricer told The Real Deal that he doesn’t feel the partners overpaid. “We feel very good about the values,” he said. “Some of the more recent trades are showing the value we paid was a little bit below what other deals are going for.” While it does not always assure a deal, the close relationship between Chetrit and Eastdil couldn’t have hurt, industry insiders said. The two have worked together on eight of the 11 New York City deals over $40 million that Chetrit has been involved in since 2010, according to Real Capital Analytics figures.

650 MADISON AVENUE Estimated value: $1.29 billion

he sale of 650 Madison, an office and retail tower, will set a new record when it closes for $2,165 per square foot,

550 Madison Avenue Transaction value: $1.1 billion

28 March 2012 www.TheRealDeal.com

TIME WARNER CENTER

SONY BUILDING

n 2005, the Japan-based Sony Corporation considered selling its 855,000-square-foot U.S. headquarters building for a reported $360 million. A sale would have brought a tidy profit, considering Sony paid $236 million for the tower in 2002. Yet Sony held on and the delay paid off: A group of investors paid $1.1 billion for the 36-story skyscraper. The sale price worked out to $1,287 per square foot, not a record but high enough to help stoke the market. Eastdil’s Harmon and Spies beat out firms such as CBRE, Jones Lang LaSalle, Cushman & Wakefield and Newmark Grubb Knight Frank to win the assignment, and the public marketing cam-

are largely static, store rents have soared over the past two years along prime shopping corridors such as Fifth Avenue, Madison Avenue and Times Square. Haim Chera, a principal at his family firm, Crown Acquisitions, partnered with Highgate Holdings to buy the 600,000-square-foot tower, which occupies the full Madison Avenue frontage between 59th and 60th streets. Adding to its retail value, the 27-story building is at a pedestrian juncture leading from the top of the city’s priciest retail strip, Upper Fifth Avenue, to the base of Madison Avenue’s prime corridor, which runs from 57th Street to 72nd Street. Retail asking rents jumped 11 percent in that stretch over the past year, to $1,217 per foot, information from Cushman & Wakefield showed. For Crown, the decision to buy the tower from Washington, D.C.-based private equity firm Carlyle Group “was heavily weighted on the fact that we think the retail is worth $1 billion,” Chera said. Eastdil’s Harmon and Spies marketed the property, winning the listing, according to several insiders, in a so-called “hand-off,” meaning Carlyle gave it to them without a competitive process. It did so, according to the sources, because Eastdil had a long track record in the building, including advising Carlyle and Ashkenazy Acquisition in their $680 million purchase of the building in 2008 from Hiro Real Estate. Then two years later, Eastdil helped the owners refinance the tower, bringing in Wells Fargo, the firm’s parent company, as the new first mortgage lender. Again later, in 2011, when Ashkenazy exited the deal and Century Plaza bought a 24.5 percent interest, Eastdil was the brokerage.

650 Madison Avenue

or $1.29 billion, expected later this year. Industry insiders said the high price underscores the strength of the retail market in Manhattan. While Midtown office rents

10 Columbus Circle Estimated value: $1.3 billion

astdil’s Harmon and Spies beat out several other firms to represent Time Warner in the sale of its Columbus Circle headquarters. The 1.1 million-squarefoot condominium interest hit the market in April, and is expected to fetch about $1.3 billion, a person familiar with the process said. While the media firm may stay in its building, it is also considering consolidating its Manhattan locations and relocating, sources said. A wide range of investors — including REITs, pension funds, sovereign wealth funds and even high-net-worth individuals — are expected to take a look at the Columbus Circle building, despite the fact that, because of zoning, it cannot be converted to residential use. (The rest of the 2.8 million-square-foot Time Warner Center complex, which is composed of 240 residential, hotel, retail and commercial

Time Warner Center

condominiums, is not part of the sale.) “Time Warner Center is one of those unique assets where everyone is going to come out of the woodwork,” Fasulo said, adding, “I think you will see a really diverse group.” Industry insiders said a media tenant would be a likely tenant or buyer, because some of the space has been built out for television production. Shows such as CNN’s “Anderson Cooper 360” are broadcast from the building.

TIMES SQUARE TOWER 7 Times Square Estimated value: $1.5 billion

oston Properties is looking to unload 7 Times Square, the 1.2 millionsquare-foot tower it built in 2004. Eastdil has been hired to market the property, but has not put an asking price on the 47-story tower, although it’s expected to attract bids above $1,000 per square foot. One insider familiar with the marketing campaign put the estimated sales price at $1.5 billion or more. Boston Properties originally expected accounting firm Arthur Andersen to be its anchor tenant, but that was before the firm collapsed in the wake of the Enron scandal. Instead, the largest tenant is fashion designer Ann, the parent company of Ann Taylor, which leases about 300,000 square feet. CoStar Group shows the lease running to 2020. It was something of an upset that Eastdil won the assignment, because CBRE Group agents were the leasing brokers, and often that relationship determines who wins the right to market a building for sale. The likely buyer will be “somebody who wants to buy a trophy asset,” said Jonathan Mechanic, chairman of the real estate department at law firm Fried, Frank, Harris, Shriver & Jacobson. “That is not a value-add play. That is more of a core asset.” “I think there is tremendous demand for money to be in New York, [where it is] viewed as both a safe haven and a center for growth,” Mechanic added. TRD

www.TheRealDeal.com July 2013 39

The New Benchmarks

The Big Apple: A Bargain? A look at how Manhattan’s high-end residential market stacks up internationally

By Hayley Kaplan aws dropped when a triplex penthouse at the Pierre Hotel hit the market for $125 million, the highest-ever asking price for a New York City home. But believe it or not, that’s nothing compared to trophy home prices in cities like Monaco, London and Hong Kong, which are also setting new records for residential real estate. The current record-holder for the world’s highest total sale price is bil-

This 35,500-square-foot penthouse at the Tour Odéon condominium in Monaco is asking roughly $391 million, or some $11,000 per square foot.

How many luxury square feet does $1 million buy around the world? City

Square Feet

Monaco

172

Hong Kong

204

London

247

Geneva

344

Paris

409

Singapore

409

Moscow

463

New York

474

Source: Knight Frank

lionaire Rinat Akhmetov’s 2011 purchase of a penthouse at London’s One Hyde Park condominium for a reported £136.6 million, or $219 million — approximately $8,774 per square foot. And a 35,500-square-foot penthouse at the under-construction Tour Odéon condominium in Monaco is now reportedly on the market for £250 million, roughly $391 million, or $11,000 per square foot. “New York real estate today is still undervalued on the global stage,” said Stan Ponte, a Manhattan broker at Sotheby’s International Realty. “If you walk through properties in London and you hear the prices they’re getting on the simplest apartments, it’s shocking.” Knight Frank, the London-based real estate consultancy and brokerage, recently ranked New York City at No. 8 on a list of the world’s most expensive cities. In

40 July 2013 www.TheRealDeal.com

Left: The Crespi Hicks estate in Dallas, which is on the market for $135 million. Right: The world’s highest home sale price to date is £136.6 million, or $219 million, for a penthouse at London’s One Hyde Park condominium.

“The world economy continues to suffer setbacks. People like real assets in those situations, and the U.S. looks like a very good value.” Yolande Barnes, Savills New York, according to Knight Frank, $1 million buys approximately 474 square feet of luxury real estate. The tiny principality of Monaco, where $1 million buys only 172 square feet, was ranked No. 1, followed by Hong Kong, London, Geneva, Paris and Singapore (tied for fifth place), Moscow and, finally, New York. These discounts are one reason deep-pocketed global investors — such

as Russian billionaire Dmitry Rybolovlev, who famously purchased a 15 Central Park West penthouse for a New York City record of $88 million — have been so quick to snap up properties here, brokers said. And while industry observers said they initially expected international buyers’ feverish interest in Manhattan real estate to fade, economic turmoil in Europe over the past few years has pre-

vented that from happening. Yolande Barnes, director of residential research at the London-based real estate brokerage Savills, said she had anticipated interest in global real estate “would cool this year.” Instead, “the world economy continues to suffer setbacks,” she said. “People like real assets in those situations, and the U.S. looks like a very good value.” And despite the ongoing inventory

TOUR ODÉON RENDERING BY TOUR ODÉON; CRESPI HICKS PHOTO BY DOUGLAS NEWBY; ONE HYDE PARK PHOTO BY CANDY & CANDY www.TheRealDeal.com January 2011 25

The New Benchmarks shortage here, New York actually has more housing available than some other cities around the world, said Andrew Hay, the global head of Knight Frank’s residential division. Construction costs and land prices are more affordable in New York than in some other in-demand cities, Hay explained.

for building in the principality limited by nature, but then-ruler Prince Rainier III banned construction of new high-rises in the 1980s. Back in the U.S., the Pierre’s $125 million penthouse isn’t even the most expensive property in the country. Copper Beach Farm, a waterfront estate in Green-

ker Douglas Newby of Douglas Newby and Associates. Newby said the Crespi Hicks estate, which comes with a guesthouse and pool, is the largest residential property located in any U.S. city. The mansion is located in the exclusive Mayflower Estate area of Dallas, which is also home to former

the West Coast. And neither the 25-acre Crespi Hicks estate nor the 50-acre Copper Beach Farm are nearly as expensive as New York City when it comes to price per square foot.

European palaces

European cities boast some of the most expensive real estate in the world. One of the most expensive listings in the world Take Monaco — home to the glamis Copper Beach Farm, a 50-acre waterfront orous casino and resort destination of estate in Connecticut, which hit the market in Monte Carlo — which has long attracted May for $190 million. vacationing celebrities. The royal ban on new construction there was lifted in 2008, and the first high-rise to be built since then — the under-construction Tour Odéon — may soon surpass One Hyde Park as the most expensive condo development in the world. The building, which will offer residents an in-house caterer and chauffeur, is being developed by Monaco-based Groupe Marzocco, designed by architect Alexandre Giraldi and marketed by Fred Schiff of Knight Frank. A spokesperson for the project said prices at the building start at $9,215 per square foot. As for the $391 million penthouse: It has five floors and an infinity pool overlooking the Mediterranean Sea. At London’s One Hyde Park, units for sale in the building are priced at an average of £7,000, or $11,240, per square foot, according to Knight Frank. When it hit the market in 2007, One Hyde Park “redefined the market in London and globally,” Hay said. Developed by British developer Christian Candy and Waterknights — a company owned by the Prime Minister of Qatar — One Hyde Park is adjacent to, and managed by, the Mandarin Oriental Hotel, and offers a private squash Left: Christian (left) and Nick Candy. Right: Dallas broker Douglas Newby, who is marketing the Crespi Hicks estate. court, spa facilities and valet services. The eponymous interior design firm Candy founded with his brother Nick is the projCity Address/Name Price (U.S. Dollars) ect manager and interior designer. Monaco Tour Odéon $391 million A spokesperson for Candy & Candy said that there are three sponsor units London 18 Carlton House Terrace $391 million still available at the property, where 82 Singapore 33 Nassim Road $242 million apartments, worth some $2.9 billion, Greenwich, Conn. Copper Beach Farm $190 million have been sold so far. In London overall, the average price Los Angeles Owlwood Estate $150 million per square foot for a high-end residenParis Palais Montmorency $140 million tial condo is about £4,000, or $6,122, per square foot, Hay said. By contrast, the avDallas Crespi Hicks estate $135 million erage price for the top 10 percent of all New York The Pierre at 795 Fifth Ave., Manhattan apartments sold in the first $125 million PHE-PHW quarter was $1,925 per square foot, according to a market report from New York Hong Kong 5 Henderson Road $90.2 million City brokerage Douglas Elliman. And the The Frank Gehry–designed average price per square foot of closed Opus Hong Kong condominium. Source: Brokerage websites, news reports and The Real Deal research. sales at Manhattan über-condo 15 Central “New York’s supply has been quite gen- wich, Conn., hit the market in May for President George W. and Laura Bush, Park West was $5,009 as of mid-June, acerous, whereas in other locations [the] $190 million with David Ogilvy & Associ- and Newby estimates that the land alone cording to real estate data provider Cityamount of product is incredibly limited,” ates. The Owlwood estate in Los Angeles, is worth some $50 million. Realty. (At Extell Development’s hyped said Hay, who is based in London. which sits between Sunset Boulevard and Yet Dallas real estate doesn’t have One57 in Midtown Manhattan, two pentThe famed resort destination of Mo- the Los Angeles Country Club in Holmby the same kind of international appeal as houses are in contract for between $90 naco, for example, borders the Mediter- Hills, is on the market for $150 million. New York, he said, noting that most of the million and $100 million, a spokesperson ranean Sea on a tiny strip of land about And in Dallas, the Crespi Hicks estate was out-of-town potential buyers so far have said, but those units haven’t yet closed.) the size of Central Park. Not only is space listed in January for $135 million by bro- hailed from California and other parts of Continued on page 100

Highest total asking prices by city

28 March 2012 www.TheRealDeal.com

www.TheRealDeal.com July 2013 41

The New Benchmarks

The $90 million club E By Hayley Kaplan ver since financier Sandy Weill’s apartment at 15 Central Park West hit the market — and quickly sold — for a record-breaking $88 million in December 2011, a $90 million New York City listing no longer comes as a shock. In fact, some 16 New York City homes in the $90 million-plus range — including 10 penthouses at new construction condo 432 Park — are now on the market or in contract. “What the 15 Central Park West sale did was catapult the market into uncharted ter-

Do these prime NYC apartments warrant their trophy listing prices?

ritory,” said Nick Jabbour, a broker at Nest Seekers International. “[It’s] a market where anything is possible.” Just what qualities does a NYC home need to justify a $90 million-plus price tag? For starters, brokers recommended proximity to Central Park, more than 10,000 square feet of space, and a prestigious address, such as Park Avenue or Central Park West. We asked a panel of experts to weigh in on the city’s recent high eight-figure listings and tried to find out (when brokers were forthcoming) what they might sell for.

Niro of Douglas Elliman; taken off the market in January 2013; relisted in May with Colleen Brooks of Klar Realty.

The penthouse at the Pierre Hotel, on the market for $125 million

Square footage:

8,000 Current owner:

The Pierre Hotel 795 Fifth Avenue, PHE - PHW Asking price: $125 million Status: Listed in April with Elizabeth Sample, Brenda Powers and Serena Boardman of Sotheby’s International Realty Square footage: Undisclosed Current owner: The estate of financial expert Martin Zweig Features: Co-op units at the Pierre offer residents a 24/7 on-call physician, twice-daily maid service and elevator attendants. This triplex penthouse, once the ballroom of the hotel, features 360-degree views of Manhattan. Expert opinions: Part of the unit’s value

is its “iconic” location inside an internationally recognized luxury hotel, said Stan Ponte, a luxury broker at Sotheby’s. Plus, “anyone who looks at those pictures and looks at that space — if you could afford that, you would buy it,” he said. But would-be buyers have to get past the stringent co-op board, and that shrinks the pool of potential purchasers, explained Max Dobens, a broker at Douglas Elliman. “It’s not [just] a matter of having the money,” he explained. “Co-ops are like country clubs. They’re exclusive and prestigious. Not everybody will get in.”

One Beacon Court 151 East 58th Street, PH51W Asking price: $115 million

Listed in April with Deborah Grubman of the Corcoran Group Square footage: 9,000 Current owner: Hedge fund founder Steven Cohen Features: This duplex penthouse features 24-foot ceilings, two walls of windows, Venetian plaster, maple floors and a security system, according to the listing. One Beacon Court, also known as the Bloomberg Tower, offers concierge services, a chilStatus:

Elizabeth Sample (left) and Brenda Powers of Sotheby’s International Realty, who are marketing the Pierre penthouse

42 July 2013 www.TheRealDeal.com

One Beacon Court at 151 East 58th Street

dren’s playroom, and business and fitness centers. Expert opinions: Several brokers told TRD that they are skeptical that this apartment will fetch its hefty asking price. “I would be very surprised if it sold for that price,” said Richard Steinberg, a broker at Warburg Realty, who estimated that the unit will eventually trade for $75 to $80 million. “Nothing in the building has even rivaled that [$115 million sum]. The location is not prime — it’s not on Fifth; it’s not on Park.”

CitySpire 150 West 56th Street, PH Asking price: $100 million Status: Listed July 2012 with Raphael De

Real estate develThe CitySpire condominium oper Steven Klar Features: This triplex penthouse has the highest terrace in the U.S., some 73 to 75 stories up. The 3,000 feet of exterior space has 360-degree views of the city. The apartment also includes a private elevator, a wine cellar and separate maid’s quarters. The CitySpire condominium, built in 1987, has a 50-foot pool and a parking garage. Expert opinions: This apartment “definitely is not worth” $100 million, said Frank Ragusa, an independent broker who has had listings in the building. Based on the unit’s 8,000 square feet and CitySpire’s amenities and age, he predicted the unit will sell for $30 to $40 million. Klar told TRD: “I will admit it’s not a new building like One57, and it may not have the cachet of 15 Central Park [West], but what it has, which they don’t have, is the outdoor experience. I can walk outside and I can see every part of New York City.” But he added: “Will I say it’s going to be $100 million or nothing? No.”

Two penthouses at One57 157 West 57th Street Price: $90 million to $100 million each Status:

In contract Square

footage:

10,923 and 13,554 Features: When complete, Extell Development’s 1,000-foot-plus One57 condominium, above a Park Hyatt hotel, will include an indoor pool, a fitness center, a performance

An exterior rendering of One57 Continued on page 100

www.TheRealDeal.com January 2011 25

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Pr o f i l e

The $8 billion dollar man? Donald Trump

A look at what Donald Trump really owns

By Katherine Clarke n the peach- and white-veined marble lobby of Trump Tower on Fifth Avenue, tourists can shop for items from Donald Trump’s clothing line and buy his best-selling book, “Trump: the Art of the Deal.” In the Trump Organization’s offices on the 26th floor, the walls are decorated with images of “The Apprentice” star on the covers of magazines, from Esquire to Playboy. And at the top of the building lies Trump’s personal residence, a gold- and marble-clad Louis XIV–style penthouse spread over three floors, where the 67-year-old real estate developer lives with his wife Melania, a former model, and

their seven-year-old son, Barron (a child who is reportedly swabbed with caviar-enhanced moisturizer each night before bed).

a-kind, über-luxury properties. “Unless it’s going to be iconic, I have no interest,” he said. “The word ‘trophy’ is not even good enough.”

“TrumpNation” author Timothy O’Brien of under-estimating his wealth. (He filed a defamation suit in 2006 against O’Brien, who had estimated Trump’s net

Trump accused Forbes of undercounting his wealth, and sued the author of “TrumpNation”over an estimate. It’s easy to see how life behind those gold-plated doors could lead to an inflated sense of self, and even in an industry full of billionaires, the outspoken Trump is known for his ego. An example of his trademark bravado: In an interview at Trump Tower last month, Trump told The Real Deal that he’s only interested in acquiring one-of-

In addition, he said: “I would not be surprised if my cash position was stronger than anyone in the [real estate] industry.” But many are skeptical of such claims of grandiose wealth, and over the years, the question of Trump’s actual net worth has become a controversial one. Trump has accused both Forbes magazine and

worth at between $150 and $250 million, claiming that the assertions in his book were inaccurate and had cost the Trump Organization deals. The suit was eventually dismissed.) Among the most outspoken skeptics of Trump’s claims are those in the New York City real estate industry, who note that he no longer owns many properwww.TheRealDeal.com July 2013 45

PR O F I L E ty assets here. Trump is well known for building Trump Tower, of course, and for developing a number of residential high-rises, such as Trump Park Avenue at 502 Park Avenue and Trump World Tower at 845 United Nations Plaza, from the late 1980s to the early 2000s. But most of those properties have long since been sold to individual unit owners. And Trump hasn’t bought or developed any New York City buildings in recent years. Meanwhile, a Trump Organization spokesperson confirmed that Trump also no longer owns the properties he inherited from his late father, Fred, who started the family real estate business in outer-borough neighborhoods like Coney Island, Sheepshead Bay and Flushing. The Trump Organization sold most of those buildings in 2004, according to a spokesperson. “Donald Trump is not a major player

in New York City real estate,” said Jordan Barowitz, director of external affairs at the Durst Organization. “My guess is [that he owns] about 1.5 million square feet total. For comparison, the Durst Organization owns 13 million square feet in Manhattan.” (In fact, Trump owns more than 2 million square feet of commercial space in New York City.) Or as Michael T. Cohen, president of the tri-state region at Colliers International, put it: “Trump casts a very large image on the real estate scene considering that he only has [a few large] assets.” But others noted that Trump has an asset most developers don’t: fame. “Consumers know his name,” said fellow billionaire and New York real estate titan Richard LeFrak. “That’s what sets him apart.” And Trump has an uncanny knack for parlaying that fame into various money-making opportunities. Trump “understands people,” said

Beauty pageants

Steve Roth, chairman of real estate giant Vornado Realty Trust. “He understands what they want to buy, and what they don’t want to buy.” The Trump Organization concedes that there’s an air of mystery surrounding its portfolio, which includes core real estate assets in New York and internationally as well as an array of unrelated enterprises, such as the Miss Universe

“The Apprentice” franchise

Talent and modeling agency

pageant and “The Apprentice” television franchise. Much of the confusion stems from the fact that Trump frequently licenses his name to products — and build-

Real estate

Miss Universe

Miss America

Office and retail buildings

Residential

Resorts, golf courses and casinos Includes Mar-a-Lago Country Club, Trump National Golf Club, Doral Golf Resort and Spa and others.

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Niketown

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46 July 2013 www.TheRealDeal.com

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Mar-a-Lago

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East Side townhouses

PR O F I L E ings — he has not developed and does not own, such as the hotel and condominium Trump Soho in Manhattan and the Trump International Hotel & Tower in Dubai. Forbes’ most recent assessment put Trump’s total net worth at $3.2 billion, but the Trump Organization said the true figure, including the value of the Trump brand, is around $8.6 billion. In an attempt to prove it, the company pro-

Airplanes

Cash and securities

vided TRD with a 2012 financial report prepared for Trump by his accountant, WeiserMazars, a major national firm. The report puts Trump’s total net worth at approximately $4.56 billion, including $1.38 billion worth of New York City commercial real estate; $351.55 million in New York residential properties; $1.57 billion in golf courses, resorts and related facilities across the world; and $823 million in interests in joint ventures. He also has some $451.7 million in debt and other commitments, plus personal cash and marketable securities in the amount of $169.7 million, according to WeiserMazars. In addition, and most controversially, the company said it believes the Trump brand is worth some $4 billion. Using the WeiserMazars report and public records, as well as information provided by industry sources, TRD has inventoried Trump’s most significant real estate assets. The Trump Organization

The Trump brand

Building license deals Includes Trump Soho, Trump International Dubai.

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declined to provide the net operating income or the estimated dollar value of any of its individual properties to The Real Deal. The WeiserMazars report didn’t provide values for each individual asset, but instead grouped assets into categories and then provided figures for those categories. (As a sidenote, several assets straddled different categories.) Finally, we also asked industry insiders to estimate what individual assets are worth. Read on for a closer look.

The Trump Brand

Trump’s estimated value:

$4 BILLION

n the Trump Organization’s eyes, its most valuable asset is the Trump name itself. For decades, Donald Trump has diligently cultivated his brand, and he’s now a TV star in his own right due to the ongoing success of “The Apprentice,” which is now in its 13th season. It’s not all theoretical. Trump has found numerous ways to monetize his brand. Most notably, he’s licensed his name to no less than 17 different kinds of products, from clothing and perfume to vodka and mattresses, as well as glassy high-rise towers as far afield as Istanbul and the Philippines. At projects such as the Trump Soho hotel/condominium at 246 Spring Street (developed by a partnership between the Bayrock Group and New York City developer Tamir Sapir) Trump is paid for the use of his name, but does not invest any of his own capital. Trump sometimes manages these projects, as he did in the case of Trump Soho, and always takes a licensing fee of $5 to $10 million, according to news reports. In some cases, he also takes a portion of potential future sales at the building. Trump’s most recent licensing deal, announced last month, is for a hotel and condo tower in downtown Vancouver. Terms of the agreements made with the developers of Trump-branded properties vary, and the Trump Organization declined to provide details of all the specific arrangements. But the company did say it has some $74.14 million worth of real estate licensing deals. And publicly available court records reveal that Trump pocketed more than $3.2 million in royalties for his clothing line, which is sold at Macy’s, between 2005 and 2007. Sources agreed that these licensing deals are likely very profitable. “If you can make licensing deals work, it’s a beautiful thing,” said developer Izak Senbahar of New York–based Alexico Group, which is currently developing the condo 56 Leonard, which will be the tallest building in Tribeca. “You’re not taking the risk, you’re only giving your name and taking a fee plus upside.” He added: “You have to give [Trump] credit for creating such a brand. Who else can go to Panama City or Istanbul and li-

cense their name that way?” LeFrak compared the licensing deals to “going to the box office and taking [a share of ] the gross.” “He’s using something he has to his best advantage,” LeFrak said. “It’s very clever what he’s been able to do.” But Trump has faced criticism for these licensing deals, which have occasionally landed him in legal trouble with buyers. In 2011, for instance, buyers at three separate Trump-branded properties, including the Trump International Hotel and Tower Fort Lauderdale, sued the mogul for allegedly misleading them into believing he was the developer and later pulling his name from the projects once they went belly-up. The Trump Organizations denies those claims. Some of those lawsuits, however, are still ongoing. And Trump has not put his name on a U.S. property since his Soho project began construction in 2007, leading some branding experts to speculate that it no longer holds the same weight it once did in the U.S. James Fox, CEO of the strategy firm Red Peak Branding, which does work for large companies such as Intel and Amer-

Richard LeFrak of the LeFrak Organization

ican Express, said the Trump Organization’s brand estimate of $4 billion “seems like a very high number given that, certainly in the U.S., his brand has been in pretty steady decline.” The Trump brand likely had the most cachet in the 1980s and 1990s, he said, when “American capitalism was on the rise, and he was its poster boy. He acted kind of like a rock star, with beautiful women and beautiful cars. People aspired towards that, because all of culture was moving in that direction.” Since the recession, however, American consumers are gravitating towards more humble, “authentic” brands, Fox said. In part, he said, that’s why Trump has started targeting consumers in other markets, which are more susceptible to what he called “the Trump idea of materialistic success.” “All developing markets go through a period of conspicuous consumption,” Fox said. “There’s an emerging middle class, and people want to show and wear the wealth.” www.TheRealDeal.com July 2013 47

Pr o f i l e In response, Trump told The Real Deal that while he was “hot” in the 1980s, he was only “hotter” now, thanks in part to “The Apprentice.” The reason he does not do so many licensing deals in the U.S., he said, is because the economy is weak here and he’s focused on buying assets rather than licensing his name. And the Trump Organization stands by its estimate of $4 billion for the brand, which came from a valuation the company commissioned six years ago from the brand strategy firm Predictiv. Predictiv pegged the value of Trump’s brand at $3 billion, and the Trump Organization estimated that it has increased to $4 billion since then. Jon Low, a partner at Predictiv, said his analysis found that Trump-branded projects generally commanded prices and rents between 9 and 17 percent above the average for the areas in which they’re located. “There are people who will pay a premium to stay at a Trump-branded property, even when other accommodations are available at a lower price,” Low said.

Newmark Grubb Knight Frank, estimated the total value of Trump Tower’s commercial and retail spaces at $460 million. The Trump Organization said the building was refinanced for $100 million in August 2012, allowing Trump to take a cash distribution of over $73 million. The loan, with an interest rate of 4.2 percent, matures in 2022. Another one of Trump’s major commercial assets is 40 Wall Street, a 1.3 million-square-foot office building where

tenants are paying as little as $30 per square foot, despite official asking rents of roughly $50 a foot. Trump’s son Donald Trump, Jr., who heads commercial leasing at the property, told TRD that some tenants in the lower portions of the building are paying in the $30s per square foot but the overall average for the building is between $40 and $60 a foot. Trump also has the leasehold at the Niketown building at 6 East 57th Street. The eight-story retail building, which From left: Donald Trump, Ivanka Trump, Eric Trump and Donald Trump, Jr.

Office buildings and residential real estate

Trump’s estimated value:

$2.9 billion

onald Trump started out as a real estate developer, and property holdings do make up the lion’s share of his holdings (aside from his brand). The Trump Organization said it has a total of $2.9 billion worth of commercial and residential real estate. In addition to more than $74 million in real estate licensing deals, that includes $1.38 billion in New York City commercial buildings, $351.55 million in New York residential buildings and $823.3 million worth of real estate in joint ventures. According to TRD’s research, however, these estimates may be slightly high. For example, while the Trump Organization values its combined interests in Trump Tower, Niketown, 40 Wall Street, 1290 Sixth Avenue and 555 California Street, located in San Francisco, at some $2.13 billion, industry experts said the total is likely closer to $1.86 billion. Commercial real estate Trump’s best-known — and likely most valuable — commercial real estate asset is his headquarters, Trump Tower, a 68-story mixed-use tower at 725 Fifth Avenue. The building, which is now 100 percent leased, was developed by a partnership of Trump and the Equitable Life Assurance Society of the United States in 1983, but Trump now has full control of the commercial and retail components of the tower, records show. Robert Von Ancken, chairman of Landauer Appraisal Services, a division of 48 July 2013 www.TheRealDeal.com

Trump has had the leasehold since 1995. Michael Cohen, in-house counsel at the Trump Organization, said the mogul had paid $1 million for the leasehold; other reports say $10 million. Either way, the value of the leasehold has increased exponentially since Trump bought it; experts said it’s now worth $350 to $400 million. And the pre-tax net operating income at the building as of 2011 was $20.89 million, according to the Department of Finance, while expenses totaled $14.4 million. However, Trump has a $160 million mortgage attached to the property with an interest rate of 5.71 percent, according to WeiserMazars. Tenants in the building include Countrywide Insurance, Walgreens/Duane Reade and the American Precious Metals Exchange. Industry insiders said that due to generous tenant incentives, some

abuts Trump tower, is the national flagship of sports brand Nike. Von Ancken said Trump’s leasehold is likely worth some $200 million, taking into consideration the fact that Nike’s lease in the building expires in 2017. While there does not appear to be a mortgage on the property, the building serves as collateral for bonds held by Trump to the tune of $46.4 million, according to WeiserMazars. Trump acquired the last two significant pieces of his commercial real estate holdings, 1290 Sixth Avenue and San Francisco’s 555 California Street, in an unusual way: through a property swap. It all started in 1994, when Trump was facing foreclosure on the Riverside South residential high-rises he’d developed on Manhattan’s far West Side. He sold a majority interest in the buildings to a con-

sortium of Hong Kong investors, who then made a deal to swap the properties with Extell Development and the Carlyle Group in exchange for 1290 Sixth Avenue and 555 California Street. Trump objected to the exchange, thinking it undervalued the Riverside South properties, but as a minority owner, he had no legal way to stop it. His name still adorns many of the Riverside South properties, for which he also has a management contract. Today, Trump owns a 30 percent stake in both 1290 Sixth Avenue and 555 California Street. A 43-story trophy office tower, 1290 Sixth is worth $1.5 billion, Von Ancken said, with Trump’s stake worth around $450 million (without considering taxes or liabilities). And 555 California Street, a 2 millionsquare-foot building with tenants such as Microsoft and AXA Equitable, would likely sell for around $800 per foot, or $1.36 billion, San Francisco brokers said. That makes Trump’s interest worth in excess of $400 million. Residential real estate The Trump Organization values its holdings in New York City residential properties at more than $350 million, according to WeiserMazars. But just as in commercial real estate, industry experts said that figure may be too high. For example, Trump in 1995 paid $7.5 million for a 213-acre estate just outside the town of Bedford in Westchester County. Called Seven Springs, the property features a 13-bedroom mansion, but is also zoned to allow for the construction of 13 additional homes at the site. Local brokers put the property’s value at around $40 million, noting that Westchester County’s highest-ever home price was the December sale of the 100-acre Devonshire estate for $21 million. The Trump Organization declined to give a specific figure but it said it believes the estate is worth more than seven times that, based on the projected cash flow it would derive from the sale of the 13 properties on the site. Trump originally planned to build a golf club on the site, but revised those plans in the face of opposition from local authorities. The company has no immediate plans to build the houses, the company said, but may bring in a third party to develop them eventually. A mortgage on the property has an outstanding balance of $7.52 million, according to WeiserMazars. Another significant part of Trump’s residential portfolio is the plethora of New York residential high-rises with the Trump name. There’s Trump Park Avenue, Trump World Tower, Trump Palace on East 69th Street, Trump Parc at 106 Central Park South, Trump Parc East at 100 Central Park South, Trump Plaza on 61st Street and Trump International Hotel & Tower at 1 Central Park West. Continued on page 95

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RISING 56 STORIES ABOVE THE BAY, studio, one-bedroom and two-bedroom condominiums starting at $257,900 NoVe Kitchen Sidewalk Café • New Models • Oversized Pool & Spas Dramatically Designed Lobby • State-of-the-Art Fitness Center • Fully-Equipped Residents’ Lounge 24/7 Security & Concierge Service • On-Site Garage with Valet Service AmericanAirlines Arena • Museum Park • Arsht Center for the Performing Arts Sales center open daily at 1750 N. Bayshore Drive, Suite 101, Miami, FL 786.361.0512 • operatower.com • Fortune Development Sales All features, dimensions, drawings, conceptual renderings, plans and specifications are subject to change without notice, and Developer expressly reserves the right to make modifications. All prices are subject to change without notice. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS MAKE REFERENCE TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. All borrowers are subject to credit approval. For leaseback, Seller may be substituted with affiliated entity. Terms and conditions of seller financing and leaseback are subject to change without notice. Other restrictions and limitations may apply. WE ARE PLEDGED TO THE LETTER AND SPIRIT OF THE U.S. POLICY FOR THE ACHIEVEMENT OF EQUAL HOUSING OPPORTUNITY THROUGHOUT THE NATION. WE ENCOURAGE AND SUPPORT AN AFFIRMATIVE ADVERTISING AND MARKETING PROGRAM IN WHICH THERE ARE NO BARRIERS TO OBTAINING HOUSING BECAUSE OF RACE, COLOR, RELIGION, SEX HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN.

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Pr o f i l e

De França’s grand designs With a new team in place, can Elliman unseat Corcoran Sunshine as the city’s top new development brokerage?

By Katherine Clarke n a cordoned-off area of leafy Madison Square Park last month, Douglas Elliman Chairman Howard Lorber mingled with brokers and posed for photographs with company CEO Dottie Herman and Susan De França, head of the firm’s new development division. The Elliman bigwigs were there to celebrate the launch of sales at 10 Madison Square West, a new condo conversion being marketed by the firm’s new development division. Lorber’s Florida-based Vector Group is also an investor in the project, alongside developer Steven Witkoff. Elliman is the city’s largest brokerage and a leader in resales, but its new development group, Douglas Elliman Development Marketing, has suffered in recent years: The department was hit hard by the economic downturn and the 2010 departure of division head Andrew Gerringer, who decamped for the Marketing Directors. Since then, the sector has been dominated by Corcoran Sunshine Marketing Group, the new development arm of the Corcoran Group, Elliman’s chief rival. But De França is trying to change all that. Formerly a top marketing executive at the national development firm the Related Companies, she joined Elliman a year after Gerringer’s departure. Since then, De França has recruited heavily to beef up the division, instituted new policies for Elliman’s on-site sale offices, and secured exclusives for more new development rental projects — previously somewhat uncharted territory for the firm. De França said her goal is nothing less than to make Elliman the dominant new development player in the city. “I made a promise to Dottie and Howard when I joined them that I would use my best efforts to grow the largest and strongest new development division in the city,” De França told The Real Deal in an interview last month. “I believe we’re on our way to doing that.”

A new phase When the financial crisis slammed into New York City in 2008, condo sales slowed dramatically as buyers found they could no longer get mortgages in new developments, while construction financing for new projects was all but nonexistent. Elliman’s new development division was hit particularly hard, thanks in part to its focus on con-

PHOTOGRAPH FOR THE REAL DEAL BY CHRIS MARTIN 32 January 2013 www.TheRealDeal.com

Douglas Elliman Development Marketing executives, clockwise from top-left: John Albino, Clifford Finn, Horacio LeDon, Susan De França and Karen Mansour

Elliman’s new development business has leapt dramatically year-over-year, with $300 million in sales for 2012 and a projected $3 billion in contracts and sales for 2013. dos rather than rental projects. In TRD’s 2009 ranking of new development firms, Elliman came in at number two behind Corcoran Sunshine by number of projects and number of units. By 2011, Elliman had fallen to fifth place for number of units and fourth for projects. “The market when I left was in a pretty distressed spot,” said Gerringer, who is now managing director of new business development at the Marketing Directors. “All of us that were in marketing just had the projects we were working on at that time. Anything else wasn’t getting financed.” In the past, Gerringer has said another reason for his departure is Elliman’s so-called “hybrid model” of marketing, in which new condo projects are marketed by resale brokers rather than a

dedicated on-site sales team. Critics of this approach say sponsor units shouldn’t have to compete for attention with other brokers’ other listings. Asked about his departure by TRD in a 2011 interview, Gerringer said he felt that Elliman awarded preferential treatment to its superstar resale brokers by assigning them new developments, even as they could be seen to be grabbing buyers from new developments for their other exclusive listings. (Gerringer had a sunnier outlook when asked last month about De França’s influence on the firm: “I like Susan,” he said. “I think she’s terrific.”) But Herman told TRD that she believes strongly in incorporating resale brokers into new development sales. “I never believed in the Sunshine model,” Herman said. “I tell the devel-

opers, ‘If it was me, and it was my money, I would want the best of the best. I would want the best real estate brokers working for me, and most of those brokers won’t give up their entire business to work for you.’ ” As she and Lorber sought out a replacement for Gerringer after his departure, they had trouble finding someone who shared that viewpoint. “We weren’t going to settle,” Herman said, adding that the replacement “had to have the same vision.” Ultimately, they hired De França, who embraced the hybrid model, but began instituting procedures to address some of its perceived problems. Now, while top Elliman brokers like Leonard Steinberg and Raphael De Niro head sales efforts at new development projects throughout the city, market-

www.TheRealDeal.com July 2013 51

Pr o f i l e ing materials and procedures at all onsite sales offices must be approved by Elliman executives. That way, the firm has a cohesive brand platform backing every deal. Town Residential CEO Andrew Heiberger said he’s observed the fruits of De França’s labors first-hand when visiting sales offices for 150 Charles Street, which is being marketed by Elliman brokers Leonard Steinberg, Raphael De Niro and Darren Sukenik, and the Sterling Mason at 71 Laight Street, handled by Ellimans’ Bruce Ehrmann and former Town broker Reid Price. Heiberger called Elliman’s performance at those projects “first-class, from the curb through the sales center.” That’s high praise coming from Heiberger: Price’s move provoked threats of litigation from Town, which claimed he breached the terms of his contract. Heiberger declined to comment on the dispute, but said in the past, Elliman brokers “controlled the new developments. It wasn’t cohesive, and there wasn’t a standard of systems and procedures put in place. They’re certainly in place now, as evidenced by the two sites I was on.” The changes seem to be paying off so far. As new condo developments have

Above: 150 Charles Street; below Douglas Elliman Chairman Howard Lorber

come back, Elliman has attracted its fair share of business, including the Marquand, a 14-story condo building by Ziel Feldman’s HFZ Capital at 11 East 68th Street, which launched sales last month, and 33 East 74th Street, a boutique condo developed by healthcare entrepreneur Daniel Straus, where the units are slated to be priced upwards of $13 million. Downtown, Elliman is marketing units at the newly repositioned Puck Building at 239 Lafayette Street, the Schumacher at 36 Bleecker Street and the Leonard at 101 Leonard Street, in addition to Witkoff ’s 150 Charles and 71 Laight, which is being developed by the Taconic Investment Group. Elliman’s new development business has increased dramatically year-overyear, De França said, with $300 million in sales for 2012 and a projected $3 billion in contracts and sales for 2013. There are now 35 dedicated employees in the division, excluding onsite workers, up from 10 in 2011. But Elliman still has a long way to go before catching up with Corcoran Sunshine, which has a formidable amount of new product coming down the pike. Corcoran Sunshine has $20 billion in new development condos in its pipe-

line, a company spokesperson said, including the inventory left to sell in its current portfolio.

Investment help One factor working in Elliman’s favor is Lorber’s willingness to invest in projects the firm is marketing through his Florida-based Vector Group, a publicly traded company best-known for its association with tobacco giant the Liggett Group. Vector is also a 50 percent owner of Douglas Elliman. Of the brokerage’s current projects in Manhattan, Lorber said he’s invested in four: HFZ’s 11 East 68th Street and 11 Beach Street, and Witkoff ’s 10 Madison Square Park and 101 Murray Street. Despite rumors to the contrary, Lorber said he has not invested in 150 Charles, though he would have liked to. When Lorber invests in a project, it often means Elliman gets the exclusive marketing contract. “Obviously, if I liked it as an investment, then I’d say we also want the sales,” Lorber said. “If I put money in it, are you going to go hire Corcoran or someone else? It wouldn’t make sense.” Elliman new development execs said they approach all new business pitches Continued on page 96

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1970: Poverty drives down Bronx values

or the first time in 25 years, the city’s assessed property values declined in one of New York City’s boroughs. Noting the impact of poverty on housing values, tax officials cut $14 million from the assessed value of Bronx real estate 43 years ago this month. The $14 million was a net decrease in the borough’s assessed values. In some areas, for example, Co-Op City, property values were rising. But in specific areas of the borough that were hit hard by poverty, such as the South Bronx, The South Bronx the city cut $64 million from assessed property in the 1970s values. The lowered value was “a reflection of our realization of the real estate situation in the spreading ghettos of the Bronx,” the city’s chief assessor, Philip Click, said at the time. The Bronx’s overall assessment for the tax year 1970 to 1971 was $3.8 billion. The city’s total tax picture remained bright despite a brief national recession in 1970, as new office towers opened in Manhattan that boosted assessed values in that borough by $870 million to $15.8 billion, a record high. Queens had the second highest assessed value, at $7.9 billion, followed by Brooklyn at $6.7 billion, and then Staten Island at $1.2 billion. The city overall had an assessed value of $35.3 billion, up about $1 billion from the previous year.

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1995: Trump sells Plaza Hotel at loss

eal estate developer Donald Trump sold the iconic Plaza Hotel for $325 million 18 years ago this month. The sales price represented a major loss for Trump and his investors, who purchased the property seven years earlier for $400 million. Trump (who is also featured in a profile on page 45 of this issue) acquired the hotel during the upswing in the real estate market, and launched The Plaza Hotel a program to rehabilitate the 20-story building and its more than 800 rooms. But the tough real estate market in the early 1990s caught up with him, and in 1992 he agreed to turn over 49 percent of his interest in the hotel to a group of lenders led by Citibank. That was followed by the 1995 sale to Saudi Arabian Prince Alwaleed bin Talal and British hotel company Millennium & Copthorne, led by chairman Kwek Leng Beng. The sale did not net any cash for Trump. Instead, the new owners took over Trump’s loans. Citibank retained an ownership stake, as did Trump, he said at the time. The French Renaissance chateau-style structure facing Central Park was built in 1907 and was named a city landmark in 1969. Israeli developer Elad Properties purchased the building in 2004 for $675 million, subsequently converting it to residential, hotel and commercial condominiums.

1927: Vanderbilt Fifth Avenue mansion sells for $6.6M

ighty-six years ago this month, a developer with plans to build the future home of the luxury department store Bergdorf Goodman concluded the drawn-out $6.6 million purchase of the opulent chateau-style mansion built by Cornelius Vanderbilt II. The home occupied the entire block front of Fifth Avenue, between 57th and 58th streets. Frederick Brown’s purchase necessitated a judge’s approval of a sale plan. Even before the approval was given, workmen were demolishing the turreted residence to make way for the store. The high annual taxes on the property, which reached some $140,000 per year, burdened Vanderbilt’s widow, and was an impetus to sell the home, the New York Times reported. Cornelius Vanderbilt II commissioned Richard Morris The Vanderbilt Mansion Hunt, the renowned architect behind the Metropolitan Museum of Art, to design the home, which was completed in 1894. Cornelius’s widow, Alice Vanderbilt, owned the property at the time of the sale, and the proceeds were to be divided by more than 50 heirs. The mansion was first reported sold for an undisclosed price in 1920 to another developer, and then again in 1925 with a price of $7.1 million, but those transactions were never finalized. Bergdorf Goodman moved into a new building, erected at the site, in 1928. Compiled by Adam Pincus

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6/27/13 2:43 PM

VITAL STATS NAME: David Barry AGE: 48 TITLE AND COMPANY:

President and CEO, Ironstate Development HOMETOWN:

Maplewood, N.J. CURRENTLY LIVES:

Hoboken, N.J.

BUILDING BLOCKS How many buildings does Ironstate own? We own about 40 buildings, about 80 percent rental and 20 percent hotel. Typically, our rental projects have between 150 and 500

and into New Jersey, every municipality has different specificities and politics.

units. We’re primarily focused in the Hudson County [New Jersey] Gold Coast, but we have some projects and hotels in Manhattan. We’re developing a rental project

What’s the best part of the job? I love the development and creation aspect.

at 200 East 39th Street with Charlie Blaichman

We’re always trying to be a step ahead of

and Scott Shnay. It’s 93 units. It’s actually under

the residents, thinking about what they

construction right now and will be completed by

might desire, and what’s going to have

the spring of 2014.

a better chance of retaining those tenants. Maybe that property manager

You’re also developing a 900-unit rental com-

was extra-friendly, or maybe some of

plex at the former Navy Homeport site on

the events we do or the technology we

Staten Island. Is there enough demand in

have makes it easier to maintain their

Staten Island for a project of that size?

lifestyle.

One of my general suppositions is that if you’re within commuting distance of New

How do retention rates vary between

York City and you price appropriately,

New York City and New Jersey?

there will be demand. For the type of units

Jersey City and Hoboken have a little

we’re doing, we’re projecting about $30 a

more turnover because there are a lot of

foot. I don’t necessarily think I’m going

other options that are similarly located

to get an influx of people from other bor-

and priced. But if [tenants] like a partic-

oughs, but I think that within Staten Is-

ular submarket in the city, [they] want to

land, there are plenty of people who will

stick with it.

want the opportunity.

BOTTOM LINE How did you get into real estate?

How did the recession impact your business?

My father, Joseph, was a lawyer who got into

Rents were reduced by about 15 percent or 20 per-

real estate development. He started in Hobo-

cent at the worst point. Now, rents are the highest

ken. Throughout the 1970s and 1980s, he was

they’ve ever been — and trending higher.

very active in affordable development. When my brother Michael and I graduated from college, we decided we wanted

How about Hurricane Sandy?

to go into development, but take it in a new direction. We had

Most of our buildings tend to be newer construc-

a feeling that the outer boroughs and the Gold Coast would at-

tion, so we’re building to FEMA specifications. The

tract young professionals. So we came to Hoboken and formed

stuff that got really damaged by Sandy tended to be

a market-rate urban housing business. We then got into con-

older-generation stuff that was built in the 1950s and

dominiums when it made sense.

1960s. Some of our older buildings at the back of town [in Hoboken] — rehabs of older housing stock — had

How much of your rental portfolio did you develop yourself?

their basements flooded, so we had some issues there.

About 25 percent of our portfolio is rehabilitated stuff, but for the last 15 years, we’ve just been doing new builds. Twenty-five years ago, there was still off-the-beaten-path, under-utilized

People keep saying Jersey City is the new Williamsburg. How is that impacting rents?

residential where you could fix it up and lease it at much higher

Jersey City was like a foreign country a few years ago. No-

rents. But the days when you could buy old apartments and fix

body had any perspective on it; it was just this other state,

them up don’t really exist anymore in urban areas.

somewhere far away. I think that Brooklyn, and Williamsburg in particular, is so pricey now that there’s almost no

LANDLORD LIFE What are the challenges of being a landlord in the New York City area?

price advantage to living there. The rents in Jersey City are two-thirds of those in Williamsburg. It’s a $42 per-squarefoot market, compared to $60 to $70.

One really nice thing about New York City is that it really has one set of rules and regulations. When you get outside the city

56 July 2013 www.TheRealDeal.com

By Katherine Clarke

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NEIGHBORHOODS

Honing in on Hudson Square A look at where developers are snapping up hotel and condo sites following a major rezoning

BY KATHERINE CLARKE

udson Square, a partly industrial area sandwiched between the trendy downtown neighborhoods of Soho and Tribeca, is characterized by gas stations, warehouses and postal facilities. Over the last decade, creative industries have begun leasing office space in the area, but until now, the neighborhood has remained largely deserted at night and on weekends. That’s set to change, thanks to a massive rezoning approved in March by the City Council. Now ripe for dense residential, retail and hotel projects, the area has attracted swarms of developers trying to assemble prospective sites and coax longterm owners, such as the Ponte family and Trinity Real Estate, to partner with them on development deals. Hudson Square is “a sleepy area that is now an awakening

giant,” said Robert Burton, senior vice president of sales at Massey Knakal Realty Services. Already, sale prices for development sites in the area have jumped to $400 to $800 per buildable square foot from around $150 three years ago, Burton said. There are currently about 16 prospective condominium or hotel development sites in the Hudson Square area, according to research conducted by The Real Deal. Some of these are already slated for new projects, while others are up for grabs or their owners are scoping out opportunities. On tap so far for the area: a 150-unit condo project from the national homebuilder Toll Brothers, a new condo from billionaire investor and developer Jeff Greene, a new school, and more. Read on to find out what else is in store for Hudson Square.

W. HOUSTON 12 1

6 T H AV ENUE

WEST SIDE HWY

1. 82 KING STREET The telecommunications giant Verizon currently parks trucks inside a one-story warehouse on this 20,000-square-foot site. But Toll Brothers paid $56.5 million for the site in December 2012, and is planning a condo project with roughly 150 units, according to David Von Spreckelsen, a senior vice president at Toll. The company’s plans have been delayed by an existing lease with Verizon, which doesn’t expire until 2017. Before Toll can move forward, Verizon must find an alternative location nearby, but “a bunch of brokers are on it,” Von Spreckelsen said, “so hopefully something comes through.”

4 14 11

2. 74 CHARLTON STREET Gary Barnett’s Extell Development has held the ground lease for this 15,142-square-foot vacant lot since 2007, when records show Barnett paid $17.5 million to take over the lease from investor Steve Tzolis. Extell later filed plans with the city’s Department of Buildings to construct a 36-story hotel designed by the architect Lucien Lagrange, but those plans have been scrapped. Then in May, Extell sold its 90 percent interest in the leasehold to Angelo Gordon & Co. for $52 million. That transaction paves the way for a high-end residential project at the site, which can support a development of up to 181,535 square feet. Barnett confirmed that the partnership is now planning to build either a rental or a cond-op at the site. The expiration date on the leasehold has been extended through 2163, according to Dana Roffman, a senior executive in

60 July 2013 www.TheRealDeal.com

15 8 19

20 7

10 9

Angelo Gordon’s real estate group.

3. 108 CHARLTON STREET Last year, the Manhattan-based real estate development and investment

ET 13

firm DHA Capital went into contract to buy this site for $12.43 million from its longtime owner, Yuet Tong Lam Kong of Kong Mee Food Corp. But court documents show that DHA backed out of the

deal and filed suit against Kong, claiming that Kong had declined to extend the due diligence period after Hurricane Sandy left the property flooded. The parties battled over a $1 million deposit sub-

www.TheRealDeal.com January 2011 25

Neighborhoods mitted by DHA, which Kong allegedly failed to return. The suit is ongoing and it was not immediately clear if DHA or any other buyer would proceed with the purchase. A spokesperson for DHA declined to comment and Kong could not be reached.

4. 100 Vandam Street Billionaire investor and developer Jeff Greene told The Real Deal he is planning a 140,000-square-foot condo project at 100 Vandam Street. Greene acquired two buildings on Vandam Street last year: a 14,700-square-foot commercial building at 92 Vandam for $21.3 million and a 40,000-square-foot office building at 100 Vandam for $27.5 million. Following the expiration of several leases at 100 Vandam this fall, Greene plans to clear the site to make way for a roughly 75-unit building. The upper floors of the project will likely have one apartment per floor, he said, while the lower floors could have up to four units. While pricing had not yet been determined, Greene said that the units would likely ask somewhere between $2,000 and $3,000 per square foot.

5. 15 Renwick Street At 15 Renwick Street, Izaki Group Investments is developing a luxury condominium in partnership with the real estate investment firm Glacier Global Partners. The property was formerly owned by embattled developer Harry Jeremias, who had planned to bring a 44-unit condo to the location before defaulting on a $55.3 million loan. Jeremias first bought the site in 2005 from the Ponte family, a major landlord in northwest Tribeca. Izaki and Glacier purchased the non-performing note and took control of the property last year. Jeremias retained a small financial interest in the project.

6. 525 Greenwich Street A $60 million hotel designed by Japanese architect Nobutaka Ashihara is under construction at 525 Greenwich Street. The 124-room hotel is being developed by Fortuna Realty Group’s Morris Moinian and his nephew Matthew (the brother and son of real estate mogul Joseph Moinian). Fortuna bought the site, previously home to an auto repair shop, at auction in 2011 for $12.75 million. The hotel will have a 90-seat restaurant and charge an average room rate of $400, Moinian said. The hotel is slated to open in late 2013.

7. 2 Renwick Street, 231 Hudson Street and 503 Canal Street The real estate investment firm Eagle Point Hotel Partners is planning a 90,000-square-foot hotel at this threelot parcel, after snapping up the lease

64 March 2012 www.TheRealDeal.com

from Sam Chang’s McSam Group for just under $50 million earlier this year, city records show. The Ponte family owns the three lots, but leased them in 2011 to McSam, which planned to build two separate hotels there. Barone Management, which had been McSam’s partner on the deal, is no longer an owner, but is developing the parcel on Eagle Point’s behalf, a Barone spokesperson told TRD.

8. 22 Renwick Street Orange Management and Helix Partners launched sales at a condo project at this site in 2008, but halted construction during the recession. Then, in 2012, Michael Shah’s DelShah Capital acquired the mortgage debt on the property, and later wrested control of the development and completed construction. Apartments in the 18-unit building, dubbed Renwick Modern, are now on the market with Brown Harris Stevens Select.

9. 60, 62 and 64 Watts StREET The owners of the three multi-family brownstones at 60, 62 and 64 Watts

changed course two years later, applying instead to build an 84-unit residential building. Shalimar, which has owned the site since 1999, did not respond to a request for comment.

12. 550 Washington StREET

extensive office portfolio, Trinity Real Estate owns four sites primed for development: Duarte Square, a 0.45-acre triangular park where Trinity is slated to build a 444-seat elementary school; a four-building site at 4 Hudson Square with up to 1.2 million square feet of development rights; 122 Varick Street, a parking lot with some 80,000 squarefeet of buildable space; and 555 Greenwich Street, a parking lot with room for a 200,000-square-foot project. Jason Pizer, Trinity’s president, said the company hopes to have an agreement in place to develop the school by next year, and is looking for partners with which to develop the other sites. Trinity has received dozens of inquiries from developers, he said, but has not yet selected a partner for any of the remaining sites. While Pizer declined to comment on which companies have expressed interest in the site, he said they include all the “usual suspects.”

The gargantuan St. John’s Terminal Building at 550 Washington Street is ripe for development, industry insiders said. The mostly vacant, 1.3 million-

17. & 18. 456 Greenwich Street, 440 Greenwich Street

11. 180 Sixth Avenue Quinlan Development Group and partner Tavros Development Partners are reportedly planning to bring a 14-story, 25-unit condominium to a vacant lot at 180 Sixth Avenue. The project was facilitated by Quinlan’s purchase of 19,000 square feet of air rights from the charity organization God’s Love We Deliver, which owns the building next door. While details of the condo project are sparse, the New York Times reported that it will have a second-floor terrace and that residents will share a rooftop garden with the charity.

Sale prices for development sites in the area have jumped to $400 to $800 per buildable square foot, up from $150 three years ago. Street told TRD the buildings are being eyed by developers. Daniel Acquilante, owner of the townhouse at 60 Watts Street, said DDG Partners’ Joe McMillan recently approached him and a neighbor about selling their townhouses, with an eye towards building a larger project on the site. Acquilante said McMillan is partnering with Black Diamond Capital, a Soho-based real estate investment and development firm, and offered him close to $7 million for the brownstone, though the property was appraised at about half that price. All three townhouses have four or five units and are fully occupied, but the tenants are market rate and on month-to-month leases, which means they can be vacated quickly. Black Diamond and DDG did not respond to requests for comment.

square-foot building could be redeveloped as a hotel, condo or office building — or even all three. The building has long been owned by Eugene Grant, who earlier this year sold his controlling stake in the property to his partners — a group led by Fortress Investment Group, Atlas Capital Group and Westbrook Partners — for $250 million. Grant had owned his share of the building since the 1960s, while the other three parties initially acquired their minority interest in 2006. The partners did not immediately respond to requests for comment about their plans for the building.

10. 100 Varick Street

The Hudson Square rezoning effort was initiated by Trinity Real Estate, an affiliate of Trinity Church. Trinity owns approximately 40 percent of the built space in the Hudson Square area — some 6 million square feet spread across 18 buildings. In addition to an

Developer Charles Fridman of Shalimar Management has flip-flopped over his plans for this now-vacant lot, which previously housed a three-story commercial building. In 2009, Fridman filed plans to bring a 26-story hotel to the site, but

13–16. DUARTE Square, 4 Hudson Square, 122 Varick Street and 555 Greenwich Street

The Ponte family controls two prospective development sites, both currently used for parking garages. One, at 456 Greenwich Street, has 19,849 square feet of unused air rights, according to PropertyShark. The other site, 440 Greenwich Street, has 16,478 square feet of unused air rights. The Pontes could not be reached for comment.

19. 460 Washington Street At 460 Washington Street, the Pontes recently entered a joint venture with the Related Companies to develop a 141,000-square-foot, 107-unit residential and retail property designed by architect Ismael Levya. It was previously reported that Related would be doing environmental remediation at the site until the summer; construction could take an additional 20 months after that. It is not clear whether the property will house rental units, condos or co-ops. A Related spokesperson did not immediately respond to a request for comment.

20. 568 Broome Street At 568 Broome, the Archdiocese of New York is close to unloading one of its former churches, Our Lady of Vilnius, which had been on the market with an asking price of $13 million. The church shuttered in 2007 and was listed for sale in March by Massey Knakal’s Burton, Carlos Olson and Joshua Gruber. It sits on a 3,800-square-foot lot and could support a commercial or residential development of up to 45,600 square feet, according to the marketing materials. Burton said a buyer is under contract for the property but declined to comment on his or her identity. TRD

www.TheRealDeal.com July 2013 61

ARCHITECTURE REVIEW

JA M E S G A R D N E R

Hold the MSG

n a few months we will celebrate, if that is the word, the 50th anniversary of the annihilation of the old Penn Station, McKim, Mead & White’s BeauxArts masterpiece. If, in the normal course of a city’s life, anything could possibly be more catastrophic than that demolition in October of 1963, surely it was the ensuing construction of Madison Square Garden, which opened to the public in the very spot once occupied by the old Penn Station building on Feb. 11, 1968. Madison Square Garden is the perfect example of bad architecture that leads to even worse architecture, or at least to a coarsening of the surrounding cityscape. A century ago, this part of Manhattan’s West Side was a rather fashionable place, as it remained until after the Second World War. In addition to the old Penn Station, it was graced by such distinguished structures as the James A. Farley Post Office Building and Macy’s department store. Obviously, the degeneration of the area had many causes, and the new Madison Square Garden was as much a consequence as a cause of that decay. But once this drearily conceived and poorly fabricated, sludge-colored drum went up, everything in a four-block radius was inevitably sucked into the black hole of its ugliness. It is somewhat shocking to consider that in less than five years, it will have been around even longer than the jewel it replaced. The architect of the atrocious new building was Charles Luckman, a well-connected and unfortunately rather prolific mediocrity, who is remembered these days mainly in the curses of those citizens of New York who still haven’t gotten over what was done to the majestic building that once occupied that site. Almost from the day when the new Madison Square Garden opened, New Yorkers have dreamed about and debated what should be done to atone for its construction. The recent and unanimous vote of the Manhattan Community Board 5 against renewing in perpetuity Madison Square Garden’s permit is certainly a step in the right direction toward its goal to build a new Penn Station in its place. Recently, the Municipal Arts Society solicited contributions from four eminent architectural firms — H3 Hardy Collaboration Architecture; Diller Scofidio + Renfro; SHoP Architects; and Skidmore, Owings and Merrill — to reconceive either Penn Station, Madison Square Garden, or both. Each of their designs, revealed to the public in late May, call for demolishing the existing Garden and moving the arena elsewhere. At this stage, there is a certain pie-inthe-sky feeling to all the submissions. That said, my favorite of the proposals is that of

62 July 2013 www.TheRealDeal.com

Design for new Penn Station by SHoP outclasses rival proposals

Proposed designs for a new Penn Station by (top to bottom) H3 Hardy Collaboration Architecture; Diller Scofidio + Renfro; SHoP Architects; and Skidmore, Owings and Merrill.

SHoP Architects, which alone of the four submissions looks as though it could actually be built. This firm proposes relocating Madison Square Garden to Hudson Yards

and constructing a rather pleasant-looking box of a building whose interiors — with their lofty ceiling and expansive curtain walls, propped up by pillars — come

close to suggesting, in a post-modern vocabulary, the effect of the original Penn Station, with its openness and generous proportions. This feeling is enhanced by the exterior, where a park would be constructed facing the Farley Post Office. The new structure — like all the others proposed — cannot compete with the grandeur of the original, but it would gain in functionality and pleasantness what it lacks in design. SOM’s contribution looks, in many respects, splendid. If there were any realistic chance of its being built (and I didn’t have to pay for it with my tax dollars), I’d be all for it. Guided by one of the firm’s principals, Roger Duffy, SOM’s design recalls in cross-section that astounding ancient structure, the Temple of Fortuna Primigenia in Palestrina. It is conceived as a superblock with four curtain-walled and rectilinear towers (the usual SOM fare) at the corners, with a crazy amalgam of structures in the center, looking like a cross between a whirlwind and a partially docked spaceship. Far below these two in every respect is DS+R’s design, a city-within-a-city concept that is not especially adventurous, with a clamorously deconstructed exterior that recalls several of the firm’s other efforts around the city. It is so loathsome that, were it ever built, we might one day come to regret the loss of the present Madison Square Garden. The equally deconstructed interiors are scarcely better, with their hyperactive criss-crossing sky-bridges and multi-leveled, oddly angled floors that seem to implode into one another. But at least it’s not boring, which cannot be said of H3 Hardy’s design. The façade along Seventh Avenue, a flat expanse of curtain wall and clerestory windows with an awning supported by visually insufficient pillars, looks as drab as the sort of mid-century Modernism that inspired many a postwar American embassy in the Third World. The interiors are equally pallid, though conceived in the Deconstructivist style. At least when DS+R uses the style, one senses a wayward commitment to the cause; with Hardy, one has the unshakable sense that the firm is struggling to keep up with what they imagine to be the latest taste. We must remember, however, that this is not the first occasion on which pleasantly colored renderings for a new Penn Station have been solicited and published, and that all of them have thus far come to nothing. Manhattan Borough President Scott Stringer was quite right when he told the Daily News recently that “moving the arena is an important first step to improving Penn Station.” TRD

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Q&A

Battery Park City, the original With the city considering a new planned community, a look at the one we already have

BY MELISSA DEHNCKE-MCGILL AND CANDACE TAYLOR ast month, Mayor Michael Bloomberg proposed the construction of a so-called Seaport City in Manhattan just south of the Brooklyn Bridge. The project, intended to help protect the city from powerful storms and rising sea levels, would be modeled after Battery Park City, the 92-acre planned community built with landfill from the construction of the World Trade Center and other projects. Before the city builds a new version of Battery Park City, The Real Deal decided to take a closer look at the original. In this month’s Q&A, we talked to local brokers and industry experts to find out what’s happening in the Lower Manhattan neighborhood. Battery Park City is something of an anomaly in Manhattan: It’s owned and managed by the Battery Park City Authority, a public-benefit corporation created by New York State. During the real estate downturn, that caused problems for would-be homebuyers in the neighborhood, who found banks reluctant to lend in buildings on land leased from the BPCA. In 2011, however, a group of homeowners negotiated with the authority to prevent a planned spike in monthly ground rents. That, along with the citywide inventory short-

age, has helped jumpstart the residential real estate market in Battery Park City, and new residential projects like 225 Rector Place and 1 Rector Park are now close to selling out. But home prices still haven’t rebounded to their boom-time levels, brokers said. Office buildings in Battery Park City include Brookfield Place, a complex of four towers formerly known as the World Financial Center. Brookfield Office Properties, the real estate investment trust that owns the complex, is looking to fill space there after several large tenants (including Nomura Securities and Bank of America) moved out or reduced office space. Meanwhile, Goldman Sachs’ newly built headquarters opened in 2009 at 200 West Street. In part due to Goldman’s building, Battery Park City has gotten several new stores and restaurants lately; Danny Meyer’s North End Grill and Shake Shack both opened near the Goldman building, and luxury retailer Hermès has inked a deal for a storefront space at Brookfield Place. Also, after years of delays, the redevelopment of Pier A in Battery Park City — with an oyster bar, catering hall and tourist-information center — is slated for completion by May 2014. For more on what’s happening in Battery Park City, we turn to our panel of experts.

Nick Jabbour

mand, values will go up.

senior vice president, Nest Seekers International What is the available inventory of homes for sale in Battery Park City? Like the rest of the Manhattan market, Battery Park is experiencing an unprecedented inventory shortage. Currently, inventory is at the lowest point in five years, with only about 30 properties available. This is nearly 80 percent off the average inventory of 125 to 150 properties. What’s going on with residential sales prices and rents in Battery Park City? Sale prices have remained fairly steady, with median sale prices ranging between $500,000 to $800,000 for the past two years, as opposed to $750,000 to well over a million between 2008 and 2010. This is likely a result of the new developments selling out, while the older Battery Park buildings have more actively traded as resales and turned over at a steadier rate. The older condos in northern Battery Park tend to trade at relative discounts. Which price ranges and housing types are performing best right now in Battery Park City? People are mostly seeking properties in the $2 to $2.5 million range, with three or more bedrooms. Battery Park is best known for its friendliness to growing families who are moving up from smaller properties. … The market in Battery Park is performing pretty well across the board. There’s a tremendous variety of property types and levels of service and finishes in BPC, ranging from the super luxury Visionaire, the Ritz, Millennium Tower, 225 64 July 2013 www.TheRealDeal.com

Rector, and then relatively older buildings, typically in north Battery Park, that offer great options for first-time buyers that can’t really be had elsewhere. What do you think of Mayor Bloomberg’s proposal to build a so-called “Seaport City” to be modeled after Battery Park City? Battery Park City has a feel to it that very few other areas of Manhattan do, which is a result of the maintenance being overseen by the Battery Park City authority. Because of this, the parks, trees, grass and other outdoor areas are particularly wellkept and up-to-date. A lot of the charm of Battery Park is the open air space and the proximity to the river. I think it would be good to have an alternative to Battery Park for people who find a quieter neighborhood desirable while maintaining the convenience of Manhattan life. During the real estate downturn, homebuyers had difficulty getting mortgages in Battery Park City. What impact has that had on the real estate market? The land-lease situation in Battery Park is a concern to many buyers and banks alike. Because of this, I typically describe it as a market that can’t be compared to other Manhattan areas. As buildings have sold out, though, lenders appear to have become much more lenient, and I do think that they see Battery Park as safe collateral, the land leases notwithstanding. How has the new Goldman Sachs headquarters impacted the area? Without a doubt it has had a positive impact on the real estate market, both commercial and residential. The ability to walk to work for some of the thousands of Goldman Sachs employees is definitely desirable, and whenever you increase the pool of potential buyers or see greater de-

How long are properties staying on the market in Battery Park City and how does that compare to a year ago, two years ago and during the boom? Running parallel to the Manhattan market at large, perhaps a bit longer, the absorption rate is now at around one-third of what it was in 2009. We’re seeing apartments staying on the market, on average, for five to seven months, where in 2009, properties languished as long as 15 months. Who are the most active buyers in Battery Park City right now and how does that differ from the past? Battery Park’s inherent kid- and petfriendliness makes it particularly attractive for growing families. But you can also purchase a great studio in the mid-$300s, making it a great place to start off.

Sofia Song

vice president of research, StreetEasy How is residential sale volume in Battery Park City and how does that compare to a year ago, two years ago and during the boom? Based on the volume of closings this year from January to May, Battery Park City is up 62 percent from the year prior, but it’s still down 42 percent from the boom. Where are residential prices in Battery Park City today? Are they up or down compared to a year ago, two years ago and during the boom? The median sales price in Battery Park

City [so far] this year is $779,000, down 57.9 percent from the peak median price of $1.48 million. Keep in mind that Battery Park City had a lot of new development sales during the boom. In contrast, Manhattan’s median price is at $790,000, an 11.7 percent decrease from the peak. The median rental price in Battery Park City is currently at $3,800, which is up 7.5 percent from two years ago and down 15.6 percent from the peak. Which price ranges and apartment types are performing best right now in Battery Park City? One-bedrooms are selling the best in Battery Park City as they’ve made up 40 percent of all closings in 2013 to date. Three-bedroom apartments also seem to be highly popular here, as they made up 25 percent of all closings. Which price ranges and apartment types are struggling the most now in Battery Park City? I’m not so sure that any type in particular is struggling because inventory has been so tight across the board. However, I will say that we’ve only seen one closing this year for an apartment with more than three bedrooms, and no closings above $3 million. But I think that is more a [result] of the limited inventory. Did Hurricane Sandy impact the real estate market in the area? Judging by the numbers, no. There were 94 closings in Battery Park City in the fourth quarter of 2012, immediately following Hurricane Sandy. The year before, there were only 34. This was an increase of 177 percent. What do you think of Mayor Bloomberg’s proposal to build a so-called “Seaport City?” www.TheRealDeal.com January 2013 77

Q&A The city needs more housing, especially for those who are not in the market for luxury product. If that’s what Seaport City can be, then great. However, the Brooklyn Queens Expressway would be a huge barrier to access the neighborhood — much more so than West Street is to Battery Park City. So it may take longer for Seaport City to mature into a ‘hot’ neighborhood.

Which price ranges and housing types are performing best right now in Battery Park City? Water views, and larger apartments for families.

Retail has escalated tremendously to almost triple what it had been since 9/11. Asking rents on Broadway have exceeded $500 per square foot.

Which price ranges and housing types are struggling the most now? Buildings with less-favorable land-lease terms.

During the real estate downturn, homebuyers had difficulty getting mortgages in Battery Park City. How has that impacted the real estate market? Battery Park City condos were having a tougher time getting financing — especially during the downturn — because of the high ground rents the buildings had to pay the BPCA . But in 2011, the ground rents were renegotiated so that the monthly charges for residents wouldn’t be so exorbitant. This has opened up financing and has made the area more attractive to buyers.

How has the presence of Goldman Sachs’ new office building impacted the real estate market in the area? Very positive, especially the new retail, restaurants, renovated cinemas and hotel. Every new restaurant or retail option can only attract more residents. Tenants like Danny Meyer and Hermès are stamps of approval for other tenants to join in as well.

principal, Avison Young How has the presence of Goldman Sachs’ newly built headquarters impacted the real estate market in Battery Park City? It validated Downtown as still being the center of financial service companies. Clearly, Goldman could have looked at a lot of other places to go. They made a commitment to stay Downtown … it is an important statement for the overall market. They have also thought about the new retail amenities and the food choices as if they were looking at it not from the highest dollar, but what they may find not to be there today.

What’s the impact of new retail in the area, such as Danny Meyer’s North End Grill and Shake Shack? They make the area more desirable and build its character, [so that] people will stop thinking of it as an alternative for people who got priced out of Tribeca. What are the biggest challenges to selling or leasing property in Battery Park City today and how do those challenges differ from what you’ve seen in the last few years? The monthly carrying charges and taxes are very high compared to the rest of the city. It means that buyers can afford less here than other comparable neighborhoods. Additionally, winter can be pretty harsh here and West Street can feel particularly isolating. Still, those challenges have been mitigated by the renegotiated ground rents, the increase in residential amenities and destination restaurants, and the increase in [the number of ] residents, which adds to the liveliness of this area.

Ariel Cohen

executive vice president, Douglas Elliman What’s going on with residential sales prices and rents in Battery Park City? The best buildings and views are commanding $1,400 to $1,600 per square foot, while the average is around $1,000 to $1,100 per square foot. Prices will always be lower than comparable areas in other parts of Manhattan due to high monthly charges, since all of BPC is on leased land. 78 January 2013 www.TheRealDeal.com

How long are properties staying on the market in Battery Park City and how does that compare to a year ago, two years ago and during the boom? Thirty to 45 days today, compared to 180 days at the worst [of the downturn]. What are the biggest challenges to selling or leasing property in Battery Park City today? For selling, it’s high monthly charges, and for leasing it’s the perceived isolation of the location.

Gary Trock

senior vice president, CBRE Which upcoming commercial projects do you think are going to have a big impact on Battery Park City and why? The rebuilding of the World Trade Center and its retail space, the World Trade Center Transportation Hub designed by Santiago Calatrava and the reconfiguration of the retail at Brookfield Place will be huge game-changers for Downtown. How are new restaurant and retail options impacting the real estate market in the area? Never before have there been such tremendous retail choices for Downtown residents, office workers and tourists. The rebuilding of the WTC and the construction of the [Sept.11] memorial and museum will bring millions of tourists to this submarket daily. The retail market has reacted accordingly, with more upscale retail than had existed previously. What is the range of retail rents in the area, and how has that changed over the past few years?

John Ryan III

As you mentioned, Battery Park City has recently seen an influx of new restaurants, they include Danny Meyer’s North End Grill and Shake Shack, and the luxury retailer Hermès just inked a deal at Brookfield Place. How are new restaurant and retail options impacting the real estate market in the area? By offering both of those from a price-point standpoint, and having [Goldman] employees walk only a few steps and not have to go seven or eight blocks is real genius. Regarding the Hermès announcement at Brookfield Place, having represented Bank of America, it was part of the overall decision to recommit to both 2 World Financial Center and 4 World Financial Center. … We clearly wanted to understand what their plans were for the retail and how their redesign of the amenity package [would support] the businesses that were there. What are the most surprising trends you’re seeing in the Battery Park City real estate market right now? The trend [is] for media and technology to commit to go Downtown. On the one hand, it’s surprising because it doesn’t have the funky feel that those firms culturally migrate to, but the alternative is being in an overpriced market: Midtown South. Obviously Condé Nast making the commitment that they made [signing a deal to lease about 1.2 million square feet at 1 World Trade Center] has increased the credibility for that industry that in going Downtown, you are not an outlier. When we represent a client they say culturally we want to be in Midtown South, we want to be in a funky cool space, but [then] they see a value opportunity in what’s Downtown.

What are the biggest challenges to selling or leasing property in Battery Park City? The one issue from an office tenant’s standpoint is that it is a bit of a walk from the existing transportation. But once the new transportation hub is built and delivered it’s a very short walk, a lot of it can be done underground, and I think that negative really goes away.

Marc Shapses

executive managing director, Studley Which upcoming residential or commercial projects will have the most impact on the real estate market in and around Battery Park City? The World Trade Center is huge. It’s recreating Downtown. It’s going to be an incredible complex when it is done. What is the current range of asking rents for office space in Battery Park City? I have done a lot of work Downtown. It was always the best value in the city building for building, dollar for dollar. It was lacking retail, but the value that you’ve always been able to get there is first-class office buildings at substantially less rent than anywhere else in the city, with large concession packages with great views. Nowhere else in the city can you get [these] water views, because it is so narrow Downtown. Some people didn’t want to go down there because it was lacking a 24-hour community, but that has been changing since the mid-’90s. Now we are getting to the point where many corporations, law firms and media companies, who were all pretty focused on Midtown for most of their existence, are seeing the value and what you get from going Downtown. Are there still concession packages that are being offered? Oh, sure. Between big cash allowances for work letters and large free rent packages, they are getting upwards of $100 a square foot in concession packages to go down there. For Downtown as a whole rents are in the mid-$30s to $50s per square foot on a majority of the space. At the World Financial Center and the World Trade Center, it’s the mid-$40s up to the mid-$70s depending on which building and which space. How did Hurricane Sandy impact the area? Most of the buildings are redoing all of their electrical power and moving it above grade. They are investing in the buildings, to protect them against this happening again. TRD www.TheRealDeal.com July 2013 65

SOUTH FLORIDA

Real estate news in the Sunshine State TheRealDeal.com/miami

BRIEFS

Red-hot luxury sales lead So. Fla. housing recovery

A face-off for a $1B public project in Miami Beach

South Florida’s luxury market is on fire, leading the region’s housing recovery with a spurt of priciestever sales. A $30 million deal for New York Yankees slugger Alex Rodriguez’s nine-bedroom home set a new mark for Miami Beach and the $17.5 million paid for a Fort Lauderdale mansion smashed the Broward County record, the Miami Herald reported. “We’ve seen an increase in prices and demand,’’

Two development teams are vying for the $1 billion-plus contract to overhaul the Miami Beach Convention Center and 52 acres of public land, the city’s biggest public works project in a century. Developers PortmanCMC and South Beach ACE are facing off for the project.(One of the companies behind South Beach ACE is New York–based Tishman Hotel and Realty,

A-Rod’s Miami Beach house

said Sheryl Hodor of Prudential Florida Realty. During the real estate crisis, she said, the ultra-high end sagged but didn’t plummet. As Beth Butler of One Sotheby’s put it: “Last to drop, first to rally.”

headed by Dan Tishman.) The project’s costs will be roughly split between the city, through a new penny tax on hotel beds, Convention Center

and the developer, who will lease the land. Both plans for the 52 acres call for condo homes, parks,

cultural venues, retail shops and a hotel. City commissioners are expected to vote on the proposals July 17.

Related Group returns to affordable housing The Related Group of Florida, the Miami area’s biggest developer, is investing more in affordable housing — both to ease the city’s acute shortage of low-income units and to balance its luxuryheavy portfolio, principal and cofounder Jorge Perez told The Real Deal. One in three of the Related Group’s 41 projects are in the affordable housing sector. When Jorge Perez

$600,000,000 Joint Venture Equity Investment 1.8 Million Square Feet

the real estate market collapsed, Perez had 11 condo projects under construction; 80 lenders held well over $2 billion in debt. “It’s partly diversification — we’re looking to not put all our eggs in one basket into condominiums,” said Perez. “It’s partly demand.”

More young New Yorkers go south for second homes

Office Portfolio New York, Washington D.C. and Boston Arcturus provided investment advisory and underwriting services in connection with this transaction.

Many New Yorkers have found their second homes in South Florida. And they’re younger than ever before, brokers say. Today’s buyers are a hipper crowd and are “looking at Miami like they are looking in the Hamptons,” Douglas Elliman’s Jacky Teplitzky, who sells in both markets, recently told rewJacky Teplitzky

Hotel

Multi-Family

Office

Retail

www.arcturusgrp.com

Single-Family

online.com. Manhattanites want Sunshine State homes that have all the extras — swimming pool, tennis court, spa, ocean view — and that are close to high-end shopping centers. Compiled by Emily Schmall

66 July 2013 www.TheRealDeal.com

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Commercial and residential real estate news briefs from around the U.S.

NATIONAL MARKET REPORT

Washington, D.C.

Robert Griffin III

SUBURBAN D.C. Washington Redskins quarterback Robert Griffin III paid $2.5 million for a three-acre estate about 30 miles west of the nation’s capital, Curbed reported. The 8,800-square-foot home, in Loudon County’s exclusive Creighton Farms golf course community, has five bedrooms and four baths. Public records show the property is appraised at $1.8 million. Bruce Willis

Washington, D.C.

Investors, the Dallas Morning News reported. The partnership did

Liberty Property Trust has paid $133.5 million for an eight-story

not disclose the sale price; the red granite skyscraper, designed by

office building that is halfway between the White House and the

famed architects Philip Johnson and John Burgee, changed hands

exclusive Georgetown neighborhood, Yahoo Finance reported.

the last time in 2006, for an estimated $216 million. Bond holders

At the intersection of M Street NW and 21st Street NW, the

who had a $178.6 million loan on the high-rise have been search-

290,762-square-foot tower is 77 percent occupied. Tenants in-

ing a buyer since lenders foreclosed on part of the debt last year.

clude George Washington University, the Urban Institute, Stewart

Comerica Bank has had its headquarters in the landmark building

& Stewart and a UPS retail store. Liberty also received the convey-

since 2007 but has no financial ties to the property.

ance of 105,000 square feet of transferable development rights, which allows the company to increase the building to 415,000

Las Vegas

square feet.

Fourteen apartment communities across Las Vegas are now owned

Boston

by the Wolff Company of Scottsdale, Ariz., a real estate private equity firm, Business Wire reported. Wolff purchased the 3,098-

Boston’s 112-year-old Copley Square Hotel is being offered up

unit “Oasis Portfolio” for $200 million from Sierra Nevada Multi-

for sale just as the Beantown hospitality market surges, the Bos-

family Investments. “This portfolio represents an excellent mix of

ton Business Journal reported. The owner, Virginia-based Cap-

assets with strong in-place operations and a potential value-add

Star Copley, could see bids for the 143-room hotel as high as $65

opportunity as the market continues its recovery,” said Wolff ’s

million; in 2007, CapStar Copley and the now-defunct Lehman

CEO, Fritz Wolff. “We are continuously seeking similar opportu-

Brothers Holdings paid $35.5 million for the seven-story build-

nities nationally.”

ing, in the heart of the Bay Back neighborhood. The listing comes as investors are looking for hotels to buy downtown, their inter-

Atlanta

est piqued by the city’s steadily rising room and occupancy rates

A Los Angeles–based fund backed by CBRE Global Investors is

— $167.55 and 72 percent, respectively, compared with $110.66

the new owner of a 31-story office tower, Commercial Property

and 62 percent nationwide. In May, California-based Sunstone

Executive reported. CBRE Strategic Partners U.S. Value 6 paid

Hotel Investors paid $250 million for the 941-room Boston Park

$144.3 million to Colonial Properties, of Birmingham, Ala., for

Plaza Hotel.

the Three Ravinia building in Altanta’s Central Perimeter sub-

Dallas

market, the largest concentration of office space in the Southeast. InterContinental Hotels Group occupies almost half of the

Comerica Bank Tower in downtown Dallas has a new owner, end-

813,750-square-foot skyscraper, which currently has an occupancy

ing its mortgage struggles of the last few years. The 60-story office

rate of 91 percent.

building is now owned by M-M Properties Inc. and CBRE Global

Compiled by Evan Bleier

68 July 2013 www.TheRealDeal.com

BEVERLY HILLS “Die Hard” star Bruce Willis wants to sell his walled-and-gated acreage for $22 million, OMG Yahoo reported. The main house has five bedrooms and the guest house has four bedrooms. The combined space is 10,000 square feet. Built in 1923, previous owners include Lucille Ball and Desi Arnaz, and Michael Jackson. Willis purchased the property in 2004 for $6.3 million.

Tom Hanks and Rita Wilson

LOS ANGELES Two-time Oscar winner Tom Hanks and actress wife Rita Wilson have listed their Pacific Palisades home for $5.2 million. The Spanish-style house, built in 1929, has four bedrooms, five baths and a half bath in 6,289 feet. The last time it changed hands was in 1988, for $1.9 million.

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ON THE MARKET

Commercial properties recently placed on the market

Midtown South prewar office tower asking $35 million

Upper East Side mixed-use building on the market for $19.9 million

A 70,200-square-foot building at 247 West 30th Street is for sale with an asking price of $35 million, or about $486 per square foot, the New York Post reported. The 16-story tower, between Seventh and Eighth avenues, is owned by Infinity Real Estate and Katz Properties, and is being marketed by the Brookfield Financial brokerage team of Eric Anton, Ron Solarz and Eric Weinberg. The owners acquired the property, built in 1926, for $14.75 million in 2008. Floor plates range from 2,500 to 5,500 square feet, and setbacks provide outdoor spaces on the upper floors, according to the brokerage team.

A five-story townhouse at 52 East 64th Street that is home to the Park East Animal Hospital has been listed for $19.9 million, according to StreetEasy. Veterinarian Lewis Berman owns the 8,740-square-foot property, which dates to 1920, and operates the pet clinic. The top floors are configured as three floor-through rental apartments. Berman has merged his practice and the new partners are building out another clinic, prompting the sale, listing broker Carol Sacks of ABS Partners told The Real Deal. Sacks is working with colleague Jay Caseley.

Adjoining Midtown West residential properties for sale

324 West 47th Street

Walk-up apartment buildings at 324 and 326 West 47th Street, between Eighth and Ninth avenues, are on the market for $22.5 million. Together, the buildings have 36 apartments, a common laundry room, basement storage and four stores. Total space is about 21,385 square feet. Michael Besen and Glenn Raff of Besen & Associates are representing the owner.

williamsauction.com

70 July 2013 www.TheRealDeal.com

Brooklyn development site available

1821 Emmons Avenue

A property at 1821 Emmons Avenue in the Sheepshead Bay neighborhood is on the market for $15.9 million. The lot is on the northeast corner of Emmons Avenue and Sheepshead Bay Road, and faces the water. It measures 169 feet by 244 feet and has an acre of developable land. El Greco Diner occupies the existing one-story, 7,252-square-foot building on the site. Alex Svetlakou of Massey Knakal has the listing.

Noho retail property has $7M price tag A 4,300-square-foot retail triplex at 620 Broadway is for sale with an asking price of $7 million. The property also has the address of 154 Crosby Street and its main entrance is on Crosby Street; its secondary entrance is on Broadway. Features of the building, which will be delivered vacant, include frontage, 15-foot ceilings, a finished gallery and loft space. The triplex would be ideal for a showroom or a gallery because of its interior configuration along with its visibility from Houston Street and proximity to the Broadway-Lafayette subway station, according to a statement 620 Broadway from Ariel Property Advisors, which has the listing. The sales team is made up of Randy Modell, Howard Raber, Shimon Shkury, Victor Sozio and Michael Tortorici. Compiled by Linden Lim

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Deal Sheet summary

The Deal Sheet, on pages 74 to 90, covers transactions from 5/11/13 through 6/10/13. Please submit future deals to deals@therealdeal.com.

Sales

Overview

By type

Property sales Deals Dollars

53 $1,870,600,000

Financing Buildings Aggregate value

Development

Hotel

Industrial

11.32%

0.00% Mixed-use

5.66% 13.21% 56.60% 5.66% 7.55% 100.00%

Multi-family

Transactions

By dollar volume (in millions)

Office

Retail

11.32% 0.00% 5.66% 13.21% 56.60% 5.66% 7.55% 100.00%

68.38 0 22.15

Mixed-use

140.97

Multi-family

198.94

Office

1,407.81

Retail

32.35

$1,389,380,000

Leases Office

106

Retail

Total

167

Leases square feet Office

1,117,212

Retail

315,681

Total

1,432,893

Office leases Office leases by industry Industry

Office leases sf by industry Leases

Industry

Top tenant reps for office leasing by sf

Square feet leased

Advertising & Marketing

Architecture & Design

Education

Entertainment

Fashion*

18,809

Financial

221,512

Health & Beauty

Human Resources

Legal

Media Medical

NGO

Tenant representative

Square feet leased

16,614

CBRE Group

159,010

18,359

Newmark Grubb Knight Frank

133,993

184,460 7,971

37,916

Cushman & Wakefield

37,431

Colliers International

34,300

Cassidy Turley

31,598

M.C. Oâ&#x20AC;&#x2122;Brien

31,400

Human Resources

31,376

Adams & Co.

27,204

Legal

32,322

Fountain Realty

24,933

Media

147,862

Murray Hill Properties

23,165

Medical

78,865

Rice & Associates

19,338

NGO

71,692

Helmsley Spear

7,333

Studley

Health & Beauty

17,488 10,000

Other

80,469

New Street Realty Advisors

Public Relations

46,632

City Commercial Real Estate

8,680

Real Estate

37,857

Winoker Realty

7,500

Science & Technology

Magee Realty Consultants

5,488

Other

115,079

Retail leases Top tenant reps for leasing by sf

Retail leases by industry

Broker

Discount

21,690

Fashion

41,060

Square feet leased

Retail leases sf by industry

Crown Retail Services

108,723

Kassin Sabbagh Realty

22,630

Food & Beverage

43,246

PD Properties

15,025

Health & Beauty

169,276

SCG Retail

14,500

Medical

Citywide Properties

11,750

Other

NYCRS

10,921

Ripco Real Estate

10,590

ABS Partners

10,500

SRS Real Estate

7,477

Open Realty

7,047

Milestone Associates

6,800

New Star Realty

4,000

073 july deal sheet summary se FINAL.indd 1

Medical Other

7,908 32,501

9,800

RKF

(*includes showroom space)

www.www.TheRealDeal.com July 2013 73

6/26/13 2:08 PM

Deal Sheet

Commercial deals in New York City Deals are listed from largest to smallest in square feet leased or bought. The Deal Sheet covers transactions from 5/11/13 to 6/10/13. Please submit future deals to deals@therealdeal.com.

Office leases Address

Size

Tenant / Representative

Landlord / Representative

Notes

West 34th St and Broadway

160,000

ASA College / n/a

JEMB Realty / n/a

The school signed a long-term lease to expand to the fourth through seventh floors. The tenant is relocating from the building’s first three floors, and is consolidating its classroom and administrative space from throughout Manhattan.

1290 Sixth Ave

148,421

Morgan Stanley / n/a

AXA Equitable / M. Astrachan, M. Liebersohn, P. Glickman, Jones Lang LaSalle

The bank signed an 11-year sublease for the entire 12th and 13th floors of the Vornado Realty Trust–owned building.

620 Sixth Ave

88,387

Mediaocean LLC / S. Zarba, F. Fackelmayer, B. Friedland, G. Tosko, G. Maurer-Hollaender, CBRE

RXR / Represented in-house

The Internet advertising technology company signed a lease on the sixth floor. The tenant is relocating from 115 West 18th Street.

110 East 59th St

70,434

Lenox Hill Hospital/North ShoreLong Island Jewish Health System / B. Waterman, B. Ozarowski, Newmark Grubb Knight Frank

Jack Resnick & Sons / Represented in-house

The hospital signed a 15-year lease for the eighth through 10th floors, the New York Post reported. The asking rent was $70 per square foot, according to the publication.

120 Park Ave

68,000

Bloomberg LP / n/a

Eastgate Realty / Paul Glickman, Jones Lang LaSalle

The media company signed an expansion lease on three floors, the New York Post reported. The tenant is adding to its existing 400,000 square feet of space at the building.

685 Third Ave

58,527

Crain Communications / M. Tighe, D. Hollander, K. Meyerson, P. Stimpfle, B. Herlihy, CBRE

TIAA-CREF / R. Alexander, H. Fiddle, Z. Freeman, CBRE

The publishing company signed a 15-year lease on the ninth and 10th floors. The tenant is relocating from 711 Third Avenue.

1166 Sixth Ave

38,166

5W Public Relations / n/a

D.E. Shaw & Co. / Roger Griswold, CBRE

The public relations firm signed a sublease. The reported asking rent was $46 per square foot. The tenant is relocating from 888 Seventh Avenue.

1301 Sixth Ave

32,000

Overseas Shipholding Group / Moshe Sukenik, Newmark Grubb Knight Frank

Commerzbank / John Cefaly, C&W

The oil tanker operating company signed a sublease, the New York Post reported. The tenant is relocating from 666 Third Avenue.

25 Elm Pl (Brooklyn)

26,400

FEDCAP / William O’Brien, M.C. O’Brien

JW Mays / Robert Hebron, Ingram & Hebron

The nonprofit signed a lease.

1441 Broadway

21,300

Jay Suites / Richard Doolittle, Murray Hill Properties

L.H. Charney Associates / Richard Doolittle, Murray Hill Properties

The office-space provider signed an 11-year lease for the entire third floor. The tenant is adding to the 21,700 square feet it has on the fifth floor.

666 Third Ave (Chrysler Building)

18,478

Robinson & Cole LLP / n/a

n/a / n/a

The law firm signed a lease for the entire 20th floor. The tenant is relocating from 885 Third Avenue.

469 Seventh Ave

17,000

Summit Business Media / Alan Wildes, C&W

n/a / E. Meyer, M. Meyer, Colliers International

The media and information company signed an eight-year lease to relocate and expand to the building’s 10th floor. The tenant is relocating from 475 Park Avenue South.

120 Wall St

16,506

American Institute of Chemical Engineers / L. Manoff, R. Kennedy, Colliers International

Silverstein Properties / Represented in-house

The nonprofit signed a long-term lease for the entire 23rd floor.

61 Broadway

15,293

Corporation for Supportive Housing / David Carlos, Studley

Broad Street Development / Represented in-house

The nonprofit signed a new lease on the 23rd floor.

757 Third Ave

15,115

TEKsystems Inc. / L. Smith, M. Norris, J. Schindler, Cassidy Turley

RFR Realty / RFR Realty; M. Konsker, A. Chudnoff, Jones Lang LaSalle

The staffing services company signed a 10-year lease on the 12th floor. The tenant is relocating and expanding from the second floor.

1250 Broadway

15,000

Regus / n/a

Jamestown Properties; Murray Hill Properties / Mitch Arkin, C&W

The office-space provider signed a lease on the 36th floor, Crain’s reported. The asking rent was in the $50s-per-square-foot range, according to the publication.

1359 Broadway

14,307

FLSV Fund Administration Services / R. Silver, A. Sciacca, Newmark Grubb Knight Frank

W&H Properties / W. Cohen, R. Kass, N. Rubin, A. Weisz, Newmark Grubb Knight Frank

The accounting firm signed an expansion lease, nearly quadrupling its occupancy.

757 Third Ave

13,551

Aerotek Inc. / L. Smith, M. Norris, J. Schindler, Cassidy Turley

RFR Realty / RFR Realty; M. Konsker, A. Chudnoff, Jones Lang LaSalle

The staffing services firm signed a 10-year lease on the eighth floor. The tenant is relocating and expanding from the second floor.

55 Broadway

10,370

CSA Group / Seth Hecht, Colliers International

Broad Street Development / Represented in-house

The architectural and engineering consulting firm signed a lease for the entire 14th floor.

101 West 116th St

10,000

Standing Tall Inc. / J. Kaufman, M. Gorman, J. Gettler, New Street Realty Advisors

Mitchell Enterprises / n/a

The school signed a lease.

708 Third Ave

10,000

International Safety Group / Gregg Slotnick, HelmsleySpear

n/a / n/a

The occupational risk management firm signed a four-year sublease.

276 Fifth Ave

8,680

Ocean & Coastal Engineering PC / Dan Chillemi, City Commercial Real Estate

n/a / Elliot Klein, Winoker Realty

The engineering company signed a five-year, five-month lease for two office suites of 4,340 square feet each on the 10th floor.

159 West 25th St

7,500

Journelle Inc. / Howard Epstein, Winoker Realty

n/a / n/a

The lingerie company signed a 10-year office lease on the fourth floor.

570 Lexington Ave

7,465

Rodman & Co. / n/a

Volvo / Keith Cody, CBRE

The investment bank signed a sublease.

675 Third Ave

7,286

Burnbaum Esq., PC / B. Strati, D. Berke, C&W

Durst Organization / Represented in-house

The law firm signed a long-term lease on the eighth floor. The company is relocating from 300 East 42nd Street.

One Grand Central Place

7,000

Allianz Real Estate of America / G. Taubin, J. Perla, Studley

W&H Properties / W. Cohen, R. Kass, Newmark Grubb Knight Frank

The property investment and asset management firm signed a lease. The company is relocating from 1114 Avenue of the Americas.

1040 Sixth Ave

6,842

Up / B. Needleman, J. Silverman, CBRE

Skyline Developers / W. Cohen, R. Kass, Newmark Grubb Knight Frank

The satellite and cable TV channel signed a 10-year lease on the 18th floor. The reported asking rent was $51 per square foot.

510 Madison Ave

6,553

LH Financial / L. Leighton, E. Margolin, Studley

Boston Properties / CBRE; Boston Properties

The investment firm signed a 10-year lease, the New York Observer reported. The company is relocating from 150 Central Park South.

10 West 33rd St

6,021

Horizon Import Inc. / David Levy, Adams & Co.

Ten West Thirty Third Associates / David Levy, Adams & Co.

The importing company signed a seven-year lease renewal. The reported asking rent was $39 per square foot.

74 July 2013 www.TheRealDeal.com

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www.TheRealDeal.net December 200

6/26/13 2:12 PM

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Office leases continued Address

Size

Tenant / Representative

Landlord / Representative

Notes

55 Broadway

5,796

Murphy & McGonigle PC / Represented in-house

Broad Street Development / Represented in-house

The law firm signed a lease renewal on the 16th floor.

110 West 40th St

5,670

Wood, Witt, Dealy & Sons Inc. / D. Levy, B. Maslin, Adams & Co.

One Ten West Fortieth Associates / D. Levy, B. Maslin, Adams & Co.

The advertising agency signed a lease renewal and expansion. The reported asking rent was $48 per square foot.

49 West 23rd St

5,600

Riot Games / Javon Johnson, Fountain Realty

n/a / James Buslik, Adams & Co.

The technology firm signed a five-year lease on the second floor. The deal was completed at a rent of $43 per square foot.

40 Wall St

5,488

Paulson Investment Company / G. Slotnick, HelmsleySpear; Magee Realty Consultants

n/a / n/a

The financial services firm signed a five-year lease.

1071 Sixth Ave

5,336

David Geller Associates Inc. / Newmark Grubb Knight Frank

Ten Seventy One Associates / D. Levy, J. Schwartz, Adams & Co.

The marketing company signed a four-year lease renewal. The reported asking rent was $54 per square foot.

55 Broadway

5,289

Dom N’ Tom Inc. / Eric Ferriello, Colliers International

Broad Street Development / Represented in-house

The web designer signed a new lease on the seventh floor.

121 East 24th St

5,186

Local 81 Pensions & Welfare Funds / James Buslik, Adams & Co.

Kofler Associates / James Buslik, Adams & Co.

The union signed a 10-year lease renewal. The reported asking rent was $40 per square foot.

55 Broadway

5,000

Beach RE Ltd. / Frank Centro, C&W

Broad Street Development / Represented in-house

The global reinsurance firm signed a new lease on the 21st floor.

22 West 27th St

5,000

Fashion GPS / Elizabeth Juviler, Rice & Associates

Via 27 LLC / Riki Malik, AR Holdings

The enterprise software company for the fashion industry signed a lease.

57 Willoughby St (Brooklyn)

5,000

Brooklyn Autism Center / William O’Brien, M.C. O’Brien

Helen Keller Services for the Blind / CPEX Real Estate

The nonprofit inked a lease.

350 Fifth Ave (Empire State Building)

4,534

Rexford Holding Management LLC / Evan Margolin, Studley

W&H Properties / W. Cohen, R. Kass, Newmark Grubb Knight Frank

The financial services firm signed a lease.

30 Vandam St

4,500

AGSK Public Relations Firm / Elizabeth Juviler, Rice & Associates

Dara Partners / Mark Epstein, Ossa Properties

The public relations firm signed a lease on the third floor.

325 East 101st St

4,488

Life Adjustment Center / Thomas Jacobs, Rice & Associates

The Church of the Resurrection / Tasha Trice, AC Lawrence

The nonprofit signed a lease.

747 Third Ave

3,929

Long Point Capital Inc. / Craig Lemle, Studley

William Kaufman Organization/ The Travelers Cos. / F. Doyle, C. Wasserberger, A.Petrus, D. Wassel, Jones Lang LaSalle

The private investment firm signed a lease on the 22nd floor. The tenant is relocating from 437 Madison Avenue.

147 Remsen St (Brooklyn)

3,900

Xtend Barre / Winslow & Co.

147 Remsen Street Associates / M.C. O’Brien

The fitness company signed an office lease.

747 Third Ave

3,835

Reef Road Capital LLC / B. Goldman, M. Lorberbaum, Newmark Grubb Knight Frank

William Kaufman Organization/ The Travelers Cos. / F. Doyle, C. Wasserberger, A.Petrus, D. Wassel, Jones Lang LaSalle

The financial services firm signed a lease for part of the 19th floor.

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Office leases continued Address

Size

Tenant / Representative

Landlord / Representative

Notes

1556 Third Ave

3,616

Icahn School of Medicine at Mount Sinai / Represented in-house

Muss Development / Represented inhouse

The school signed a new, 10-year expansion lease on the fifth floor. The tenant now occupies 8,424 square feet in the building.

887 East New York Ave (Brooklyn)

3,500

Little Flower Preparatory School / H. A. Jones Realty & Management

Blake Christopher NY LLC / Karen Cohen, M.C. O’Brien

The school signed an office lease.

37 West 20th St

3,433

Woodbolt International / Rosanne Lucarelli, Handler Real Estate

Olmstead Properties / Represented in-house

The nutritional products company signed a five-year lease.

111 Broadway

3,333

Sun Broadcast Group / Jeff Sellers, Fountain Realty

n/a / Sam Spillane, Capitol Properties

The marketing firm signed a five-year lease. The deal was completed at a rent of $37 per square foot.

10 West 33rd St

3,177

Gina Group LLC / n/a

Ten West Thirty Third Associates / David Levy, Adams & Co.

The accessories company signed a nine-year, 10-month expansion lease on the third floor. The reported asking rent was $42 per square foot.

30 West 22nd St

3,150

Studio Rodrigo / Julie Lee, Metropolitan Realty Group

Sierra Realty / G. Isaacs, F. Discolo, Lee & Associates

The product strategy and design consultancy signed a five-year lease on the fourth floor. The reported asking rent was $39 per square foot.

61 Broadway

3,015

The Austrian Tourist Office Inc. / B. Weinstable, C&W; S. Anderson, CBRE

Broad Street Development / Represented in-house

The tourism office signed a new lease on the 17th floor.

570 Seventh Ave

3,000

Tully Construction / David Gomez, Fountain Realty

n/a / Whitney Meyer, Avison & Young

The construction firm signed a five-year lease. The reported asking rent was $45 per square foot.

1556 Third Ave

2,952

LL UES II LLC / n/a

Muss Development / Represented inhouse

The tenant signed a new office lease.

10 West 33rd St

2,944

Gina Group LLC / n/a

Ten West Thirty Third Associates / David Levy, Adams & Co.

The accessories company signed a nine-year, eight-month lease on the fourth floor. The reported asking rent was $44 per square foot.

44 Wall St

2,932

SmartAsset / Theodora Livadiotis, Cassidy Turley

n/a / K. Lipstein, J. Kreisberg, A. Nelson, ABS Partners

The technology firm signed a lease on the seventh floor.

1350 Broadway

2,930

InterGuard Ltd. / Jeff Lovell, C&W

W&H Properties / W. Cohen, R. Kass, N. Rubin, A. Weisz, Newmark Grubb Knight Frank

The computer monitoring software company signed a lease.

44 Wall St

2,916

Style House PR / Matthew Hoffman, Focus Real Estate Group

n/a / K. Lipstein, J. Kreisberg, A. Nelson, ABS Partners

The public relations firm signed a lease on the seventh floor.

100 Wall St

2,871

Beghou Consulting Inc. / Robert Sattler, Newmark Grubb Knight Frank

Savanna / S. Cahaly, M. Konsker, Jones Lang LaSalle

The consulting firm signed a seven-year lease on the 14th floor.

111 Broadway

2,851

VAGA / Chris Salizzoni, AC Lawrence

Trinity Centre LLC / Sam Spillane, CBRE

The artists’ rights society signed a lease on the 10th floor.

317 East 34th St

2,844

New York University / David Levy, Adams & Co.

317 East 34th Street LLC / David Levy, Adams & Co.

The university signed a lease renewal. The reported asking rent was $60 per square foot.

1556 Third Ave

2,800

Huntington Learning Center / n/a

Muss Development / Represented inhouse

The office tenant signed a lease renewal.

Atlantis Worldwide / David Silberberg, 10:45:52 AM Spaceworks

Broad Street Development / Represented in-house

The medical equipment provider signed a new lease on the 16th floor.

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Office leases continued Address

Size

Tenant / Representative

Landlord / Representative

Notes

61 Broadway

2,710

Kelly Services Inc. / Eric Cagner, Newmark Grubb Knight Frank

Broad Street Development / Represented in-house

The staffing agency signed a lease renewal on the 22nd floor.

747 Third Ave

2,505

Fourth Freedom Forum / Paul Bostick, Brentler

William Kaufman Organization/ The Travelers Cos. / F. Doyle, C. Wasserberger, A.Petrus, D. Wassel, Jones Lang LaSalle

The nonprofit signed a lease for part of the fourth floor. The tenant is relocating from 305 East 47th Street.

381 Fifth Ave

2,500

Century Sourcing Group LLC / A. Kassin, A. Manopla, Kassin Sabbagh Realty

276 Managers LLC / Elliot Klein, Winoker Realty

The apparel company signed a 10-year lease.

381 Fifth Ave

2,500

Urban Angler / Barbara Craig, Newmark Grubb Knight Frank

n/a / Elliot Klein, Winoker Realty

The outdoor sporting goods company signed a 10-year office lease.

552 Seventh Ave

2,500

The Performing Option Inc. / Gregory Rogers, Rice & Associates

Dayan 26-552 LLC / Catherine O’Toole, Tarter Stats O’Toole

The performing arts coach signed a lease.

747 Third Ave

2,239

Murex Capital LLC / Paul Walker, CBRE

William Kaufman Organization/ The Travelers Cos. / F. Doyle, C. Wasserberger, A.Petrus, D. Wassel, Jones Lang LaSalle

The financial services firm signed a lease for part of the 19th floor. The tenant is relocating from 880 Third Avenue.

61 Broadway

2,200

City & State NY LLC / Ben Shapiro, C&W

Broad Street Development / Represented in-house

The government and politics publication signed a new lease on the 28th floor.

44 Wall St

2,135

Handelsblatt / Leon Manoff, Colliers International

n/a / K. Lipstein, J. Kreisberg, A. Nelson, ABS Partners

The German publication signed a lease on the seventh floor.

1040 Sixth Ave

2,134

Alpha4x Asset Management LLC / William Carr, Williamson, Picket, Gross

Skyline Developers / W. Cohen, R. Kass, Newmark Grubb Knight Frank

The asset management firm signed a five-year lease on the 15th floor. The reported asking rent was $51 per square foot.

61 Broadway

2,000

New York City Osteopathy / Gregg Slotnick, HelmsleySpear

n/a / n/a

The medical practice signed a five-year lease.

23 West 36th St

2,000

Berges Institute / David Gomez, Fountain Realty

n/a / Andy Udis, ABS Partners

The language institute signed a five-year lease on the third floor. The deal was completed at a rent of $35 per square foot.

61 Broadway

1,865

Satori Consulting Inc. / Andrew Silvester, Murray Hill Properties

Broad Street Development / Represented in-house

The business solutions firm signed a new lease on the 11th floor.

1556 Third Ave

1,653

Bright Kids NYC Inc. / n/a

Muss Development / Represented inhouse

The tenant signed a new office lease.

231 West 39th St

1,588

LA DI DA Inc. / James Buslik, Jeff Buslik, Adams & Co.

231/249 West 39 Street Associates / James Buslik, Jeff Buslik, Adams & Co.

The apparel company signed a lease renewal for showroom and office space. The reported asking rent was $35 per square foot.

1071 Sixth Ave

1,563

Joseph Industries Inc. / D. Levy, J. Schwartz, Adams & Co.

Ten Seventy One Associates / D. Levy, J. Schwartz, Adams & Co.

The office tenant signed a lease renewal.

231 West 39th St

1,563

Simpatico Corp. / James Buslik, Jeff Buslik, Adams & Co.

231/249 West 39 Street Associates / James Buslik, Jeff Buslik, Adams & Co.

The office tenant signed a lease renewal. The reported asking rent was $35 per square foot.

1556 Third Ave

1,557

Toll Brothers / n/a

Muss Development / Represented inhouse

The real estate development firm signed an office lease.

1556 Third Ave

1,548

Nancy Cromer-Grayson, C.S.W.; Lois Berman, PhD; and Robert H. Willis, M.D., PC / n/a

Muss Development / Represented inhouse

The physicians signed a five-year lease renewal and expansion.

61 Broadway

1,500

Mongoose Atlantic / Daniel Miraglia, Fountain Realty

n/a / Irina Forkosh, Mongoose Atlantic

The design firm signed a five-year lease. The deal was completed at a rent of $45 per square foot.

149 West 24th St

1,500

Grassroots Campaigns / Javon Johnson, Fountain Realty

n/a / Monique Han, My Realty

The nonprofit signed a three-year lease. The deal was completed at a rent of $30 per square foot.

1751 York Ave

1,450

NNS Dental Gallery / Daniel Miraglia, Fountain Realty

n/a / Steve Maschi, Glenwood Mgmt

The dental office signed a seven-year lease. The deal was completed at a rent of $49 per square foot.

411 Fifth Ave

1,360

Approach Textitles Inc. / David Levy, Adams & Co.

411 Fifth Avenue Associates / David Levy, Adams & Co.

The textile company signed a lease renewal. The reported asking rent was $42 per square foot.

437 Madison Ave

1,175

Zedo Inc. / Betty Posner, NYCRS

FATE Realty Corporation / Michael Lenchner, Sage Realty

The Internet advertising company signed a lease on the 39th floor.

110 West 40th St

1,129

Entertainment Link LLC / D. Levy, B. Maslin, Adams & Co.

One Ten West Fortieth Associates / D. Levy, B. Maslin, Adams & Co.

The entertainment company signed a lease renewal. The reported asking rent was $44 per square foot.

1556 Third Ave

1,129

Puppy Pappelinos International Inc. / n/a

Muss Development / Represented inhouse

The tenant signed a new office lease.

45 West 34th St

1,100

805 Suite Inc. / Albert Tawil, Kassin Sabbagh Realty

41 West 34th St LLC / n/a

The women’s apparel company signed a 10-year lease.

1501 Broadway

1,100

Tully Construction / David Gomez, Fountain Realty

n/a / Whitney Meyer, Avison & Young

The construction firm signed a five-year lease. The deal was completed at a rent of $60 per square foot.

325 Broadway

1,100

Abigail Martone / Jessica Luciere, Fountain Realty

n/a / Alexis Feldman, Feldman Properties

The marketing firm signed a five-year lease. The deal was completed at a rent of $35 per square foot.

115 West 30th St

1,050

VSC PR / Matthew Kurzban, Rice & Associates

Justin Management / Represented in-house

The public relations firm signed a lease on the 11th floor.

260 West 35th St

1,000

Lefleur / Gregory Rogers, Rice & Associates

260 West 35th LLC / Represented inhouse

The tenant signed an office lease on the seventh floor.

260 West 35th St

1,000

Mayi-Theater Company / David Gomez, Fountain Realty

n/a / David Haddad, Fashion Optics

The theater company signed a five-year lease. The deal was completed at a rent of $35 per square foot.

315 Fifth Ave

800

Cleaning Building Services / Lidice Mendoza, Rice & Associates

Gilar Realty / Represented in-house

The cleaning services provider signed a lease on the eighth floor.

1556 Third Ave

762

Law Offices of Robert L. Geltzer / n/a

Muss Development / Represented inhouse

The law firm signed a lease renewal.

1556 Third Ave

668

Ivan K. Goldberg, MD, PC / n/a

Muss Development / Represented inhouse

The medical office signed a lease renewal.

61 Broadway

607

DLD Asset Management LP / Lance Leighton, Studley

Broad Street Development / Represented in-house

The asset management firm signed a new lease on the 26th floor.

36 West 44th St

600

Pacha International Tours / Javon Johnson, Fountain Realty

n/a / Ben Asher, TBF Group LLC

The tourism company signed a three-year lease. The deal was completed at a rent of $50 per square foot.

152 West 36th St

600

Shore Group / Kristen Summer, Fountain Realty

n/a / Carlos Silberman, Falcon Properties

The technology firm signed a three-year lease. The deal was completed at a rent of $40 per square foot.

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WE NEEDED A PLACE BIG ENOUGH FOR ALL OF US TO HAVE A TIME OUT

Office leases continued Address

Size

Tenant / Representative

Landlord / Representative

Notes

252 West 38th St

600

M. Botiglieri LLC / Jessica Luciere, Fountain Realty

n/a / Carlos Silberman, Falcon Properties

The design firm signed a two-year lease. The deal was completed at a rent of $35 per square foot.

330 West 38th St

600

Defining Trends Media Group / Javon Johnson, Fountain Realty

n/a / EJMB Realty Co.

The design firm signed a three-year lease. The deal was completed at a rent of $35 per square foot.

325 West 38th St

500

Focal Media Group LLC / Jessica Luciere, Fountain Realty

n/a / Carlos Silberman, Falcon Properties

The technology firm signed a three-year lease. The deal was completed at a rent of $35 per square foot.

110 West 34th St

450

SG Industries / Daniel Miraglia, Fountain Realty

n/a / Joe Jemal, ISJ Management

The technology firm signed a three-year lease. The deal was completed at a rent of $35 per square foot.

110 West 40th St

280

CRT Restaurant Inc. / D. Levy, B. Maslin, Adams & Co.

One Ten West Fortieth Associates / D. Levy, B. Maslin, Adams & Co.

The restaurant company renewed its office lease. The reported asking rent was $42 per square foot.

1556 Third Ave

210

Uriu LLC / n/a

Muss Development / Represented inhouse

The office tenant signed a lease renewal.

Retail leases Address

Size

Tenant / Representative

Landlord / Representative

Notes

423 West 55th St

29,400

Planet Fitness / J. Barker, R. Chera, Crown Retail Services

The Winter Organization / Represented in-house

The fitness chain signed a lease for 24,500 square feet on the ground floor and 5,000 square feet on the mezzanine level. The space was previously occupied by Vebo Fitness.

25 Broadway

28,576

Planet Fitness / J. Barker, R. Chera, Crown Retail Services

Wolfson Group / B. Surry, R. Levine, G. Kamenetsky, CBRE

The fitness chain signed a lease. The space includes 832 square feet on the ground floor, 14,038 square feet in the basement and 13,706 square feet in the sub-basement.

3555 White Plains Rd (The Bronx)

23,700

Planet Fitness / Isaac Mograby, Crown Retail Services

Calmark Properties Corp. / n/a

The fitness chain signed a 15-year lease for space on the ground, second and lower levels.

495 Flatbush Ave (Brooklyn)

20,000

Planet Fitness / Isaac Mograby, Crown Retail Services

495 Flatbush Avenue LLC / n/a

The fitness chain signed a 15-year lease for space on the ground and second levels.

32-27 Steinway St (Queens)

16,000

Blink Fitness / n/a

n/a / Ezra Saff, Retail Zone

The gym signed a lease.

2374 Grand Concourse (The Bronx)

15,000

Blink Fitness / n/a

Comjem Realty / Ezra Saff, Retail Zone

The gym signed a lease.

833 Flatbush Ave (Brooklyn)

15,000

Blink Fitness / n/a

JEM Realty / Ezra Saff, Retail Zone

The gym signed a lease.

339 Adams St (Brooklyn)

14,500

Rocco’s Tacos and Tequila Bar / Jordon Cohn, SCG Retail

Muss Development / R. Spitalnick, Muss Development; A. Schuster, B. Segal, RKF

The Florida-based restaurant and bar signed a 15-year lease for its first New York City location.

151 West 30th St

11,750

Dragon Sphere NY / M. Majerovsky, S. Majerovsky, Citywide Properties

151 West 30th Street LLC / M. Majerovsky, S. Majerovsky, Citywide Properties

The handbag retailer signed a 10-year lease.

250 Utica Ave (Brooklyn)

10,590

Deal$ by Dollar Tree / M. Mahony, E. Bukai, R. Senior, Ripco Real Estate

Utica Place Commercial LLC / Christina Warner, L & M Equities

The discount chain signed a lease for another location.

214-50 Jamaica Ave (Queens)

9,100

Deal$ by Dollar Tree / Erin Grace, SRS Real Estate

RW 214-50 Jamaica Ave., LLC / R. Senior, E. Bukai, Ripco Real Estate

The discount chain signed a lease for another location.

440 Broadway

9,000

Foot Locker / Mark Tergesen, ABS Partners

Thor Equities / n/a

The footwear company signed a 10-year net lease for a two-story building with a lower level. The tenant is relocating from 541 Broadway.

48 West 48th St

8,000

48 Rockefeller Corp. / Tony Park, PD Properties

ELO Group LLC / Tony Park, PD Properties

The tenant signed a new retail lease.

151 Court St (Brooklyn)

7,047

J.Crew / Crown Retail Services; Open Realty

Arista Real Estate / Schuckman Realty

The apparel retailer signed a 10-year net lease for a two-story building.

560 Fifth Ave

6,800

Oakley / D. Rosenberg, B. Rosen, RKF; E. Kiely, Milestone Associates

n/a / Mark Stempel, CityVest Realty Corp.

The sports and lifestyle accessories retailer signed a lease for a flagship location. The space includes the ground floor and the second and lower levels.

244 East 84th St

5,700

AKT InMotion / n/a

Sierra Realty / G. Isaacs, F. Discolo, Lee & Associates

The fitness studio signed a 10-year retail lease. The reported asking rent was $42 per square foot.

1820 Madison Ave

5,108

Madison Imaging Resources / n/a

Lancaster Madison Associates / New Street Realty Advisors

The radiology office signed a long-term retail lease at the Lancaster Madison, a new mixed-use development.

753 Ninth Ave

5,000

Oxido Corp. / J. Famularo, R. Idnani, NYCRS

n/a / J. Famularo, R. Idnani, NYCRS

The tenant signed a retail lease.

105 East 29th St

5,000

Kidville / Deborah Stewart, NYCRS

n/a / Karen Kemp, Corcoran

The children’s retailer and play center signed a lease.

26 East 23rd St

4,800

McDonald’s / n/a

Flamingo LLC / n/a

The fast-food chain signed a 99-year triple net lease for the entire two-story building.

306 Fifth Ave

4,400

MD Express 32 Inc. / Tony Park, PD Properties

Laokoun Property / Tony Park, PD Properties

The tenant signed a new retail lease.

40-28 College Point Blvd (Queens)

4,000

Limited Editions for Her / n/a

Onex Real Estate Partners / n.a

The women’s fashion retailer signed a lease at the Shops at SkyView Center.

299 Seventh Ave

4,000

Caffe Bene / Sam Ahn, New Star Realty

299 7th Avenue Realty / Tony Park, PD Properties

The café signed a new lease for another location.

1128 Eastern Pkwy (Brooklyn)

4,000

Fitness 40/40 / n/a

Maor Jewelry Inc. / M.C. O’Brien

The fitness studio signed a lease.

455 Sutter Ave (Brooklyn)

4,000

Bright Light Day Care / Morris Sabbagh, Kassin Sabbagh Realty

Bermuda Realty / Morris Sabbagh, Kassin Sabbagh Realty

The adult care center signed a 10-year retail lease.

90 Third Ave

2,900

Han Dynasty / Brian Kanarek, BKR Partners

MGM Management / Jared Lack, Newmark Grubb Knight Frank

The Chinese restaurant signed a lease.

347 Flatbush Ave (Brooklyn)

2,800

Premier Care / n/a

n/a / R. Condren, K. Triglia, G. Danut, CPEX Real Estate

The urgent care center signed a retail lease.

432 Park Ave South

2,800

Hale & Hearty Soups / M. Gorman, J. Gettler, New Street Realty

Samco Properties / Represented inhouse

The soup chain signed a lease for another location. The space includes 1,800 square feet on the ground floor and 500 square feet each on the mezzanine and lower levels.

3 East 1st St

2,463

Blue & Cream / n/a

Avalon Bay / n/a

The designer boutique signed a lease renewal and expanded, the New York Post reported.

223 First Ave

2,000

Mee Noodle Shop / Conrad Bradford, Miron Properties

223 1st Ave Realty Corp. / Conrad Bradford, Miron Properties

The restaurant signed a lease.

82 July 2013 www.TheRealDeal.com The

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Retail leases continued Address

Size

Tenant / Representative

Landlord / Representative

Notes

165-16 Jamaica Ave (Queens)

2,000

RHX Stores / Albert Manopla, Kassin Sabbagh Realty

Braha Industries / Albert Manopla, Kassin Sabbagh Realty

The discount retailer signed a 10-year lease.

42-61 Hunter St (Queens)

2,000

Top Spa / Albert Tawil, Kassin Sabbagh Realty

42-61 Hunter St LLC / Albert Tawil, Kassin Sabbagh Realty

The spa signed a 10-year lease.

831 Third Ave

2,000

Gold Spa Inc. / Albert Tawil, Kassin Sabbagh Realty

Friedland Realty / n/a

The spa signed a 10-year lease.

160-23 Rockaway Blvd (Queens)

1,900

The UPS Store / William O’Brien, M.C. O’Brien

Leo Torillo / n/a

The shipping outlet signed a lease.

2039 Broadway

1,600

Paris Baguette America Inc. / Tony Park, PD Properties

Howjo Associates / Davie Berke, Jones Lang LaSalle

The Korea-based bakery signed a new lease for another location.

28-18 Steinway St (Queens)

1,500

Top Spa / Albert Tawil, Kassin Sabbagh Realty

Colonade Commons LLC / n/a

The spa signed a 10-year lease.

30-63 38th St (Queens)

1,500

American Rainbow / Albert Tawil, Kassin Sabbagh Realty

Newport Construction / Albert Tawil, Kassin Sabbagh Realty

The spa signed a 10-year lease.

245 East 124th St

1,500

Art Alliance / M. Tergesen, R. Kempner, ABS Partners

Jonathan Rose Companies / Represented in-house

The art studio signed a lease on the ground floor of the Tapestry, a 185-unit apartment building.

1891 Coney Island Ave (Brooklyn)

1,400

1 Above Spa / Albert Tawil, Kassin Sabbagh Realty

1891 Coney Island Ave LLC / n/a

The spa signed a 10-year lease.

24-07 Jericho Turnpike (Queens)

1,300

Relaxation Nails / Albert Tawil, Kassin Sabbagh Realty

Danbar Associates / Albert Tawil, Kassin Sabbagh Realty

The nail salon signed a 10-year lease.

144 Dyckman St

1,200

Perfect Brows / Albert Manopla, Kassin Sabbagh Realty

JEM Realty / Albert Manopla, Kassin Sabbagh Realty

The salon signed a 10-year lease.

49 Nassau St

1,100

Dunkin’ Donuts / Bunny Escava, Kassin Sabbagh Realty

Zabar Brothers / Christine Emery, Lansco Corp.

The coffee chain signed a 15-year lease for another location.

533 West 23rd St

1,074

Anna Zorina Gallery / Earl Bateman, Rice & Associates

23rd Chelsea Associates / n/a

The art gallery signed a lease.

591 Lexington Ave

1,025

Paris Baguette America Inc. / Tony Park, PD Properties

52nd Lex Company LLC / Dan Dermer, Dermer Real Estate

The Korea-based bakery signed a new lease for another New York location.

530 Seventh Ave

1,000

Café Grumpy / S. Kummings, M. Schoen, Savitt Partners

Bob Savitt / B. Neugeboren, N. Goetz, Savitt Partners

The bar signed a lease, the New York Post reported. The asking rent was $125 per square foot, according to the publication.

1592 First Ave

1,000

Le Pain Quotidien / n/a

n/a / Jill Lovatt, Massey Knakal

The bakery signed a lease for another location.

147 Third Ave

950

Luxeye Optical / Albert Manopla, Kassin Sabbagh Realty

Harmony Realty Holding LLC / n/a

The eyewear retailer signed a 15-year lease. The reported asking rent was $120 per square foot.

519 Broome St

900

Anyway Café / Albert Manopla, Kassin Sabbagh Realty

Is-Ila Realty Corp. / B. Gotch, M. Hefferon, Massey Knakal

The café signed a 10-year lease. The reported asking rent was $130 per square foot.

82 Christopher St

850

Anyway Café / Albert Manopla, Kassin Sabbagh Realty

Jayvanka II LLC / Albert Manopla, Kassin Sabbagh Realty

The café signed a 10-year lease. The reported asking rent was $140 per square foot.

139 East 12th St

750

Lefkas Hospitality / Jared Lack, Newmark Grubb Knight Frank

MGM Management / Jared Lack, Newmark Grubb Knight Frank

The hospitality group signed a lease to open a coffee and wine bar.

350 West 14th St

700

Pinkberry / Mark Kapnick, SRS Real Estate

CBNTACT 350 W 14th Street LLC / Marc Finkel, RKF

The frozen yogurt chain signed a 10-year sublease.

281 Mott St

677

Otte / Christopher Johnson, RKF

BLDG Management / C. Zelnik, A. Weinblatt, Zelnik & Co.

The tenant signed a retail lease.

139 Essex St

550

Patacon Pisao / MCR NY Realty

n/a / D. Barcelowsky, Y. Ak, Misrahi Realty

The Venezuelan restaurant signed a lease.

233 Bleecker St

530

Vivi Bubble Tea / Albert Manopla, Kassin Sabbagh Realty

Delmar Realty / n/a

The café signed a 10-year lease for its fifth New York City location. The reported asking rent was $340 per square foot.

711 Second Ave

511

Artisan Sandwich Co. / H. Demetrious, I. Donath, NYCRS

n/a / Brandon Berger, Zelnik & Co.

The sandwich shop signed a 10-year lease.

4734 Broadway

500

Tonnie’s Minis / Kristy Schunk, Besen Retail

ALP Realty LLC / Matthew Mager, Besen Retail

The cupcake shop signed a lease.

206 Varick St

500

Perfect Brows / Albert Manopla, Kassin Sabbagh Realty

230 West Houston Street LLC / n/a

The salon signed a lease for another location. The reported asking rent was $150 per square foot.

2856 Third Ave (The Bronx)

500

Perfect Brows / Albert Manopla, Kassin Sabbagh Realty

n/a / Albert Manopla, Kassin Sabbagh Realty

The salon signed a 10-year lease. The reported asking rent was $150 per square foot.

239 Columbus Ave

420

Juice Press / A. Weinblatt, J. Turner, Zelnik & Co.

Aywid Realty / Rafe Evans, Walker Malloy

The juice bar signed a lease.

954 Third Ave

410

EDO Foods / H. Demetrious, I. Donath, NYCRS

n/a / Solil Management

The hummus shop signed a 10-year lease.

384 East 149th St (The Bronx)

400

Joey Pepperoni / Albert Manopla, Kassin Sabbagh Realty

Gotham 149 Realty / Albert Manopla, Kassin Sabbagh Realty

The pizzeria signed a 10-year lease for its eighth location. The reported asking rent was $250 per square foot.

Buys Address

Size

Buyer / Representative

Seller / Representative

Notes

767 Fifth Ave

50-story, 2 million sf office bldg

Sungate Trust / n/a

Goldman Sachs / D. Stacom, B. Shanahan, CBRE

A 40 percent stake in the General Motors Building sold for $1.4 billion, the Wall Street Journal reported. The sales price values the property at roughly $3.4 billion, making it the country’s most valuable office building. The buying entity is comprised of Chinese real estate developer Zhang Xin’s family and Brazilian banking magnate Moise Safra’s New York–based investment arm M. Safra & Co. Boston Properties retains a 60 percent stake in the building and isn’t looking to sell, according to the Journal.

Bowery portfolio

11 mixed-use bldgs, 143,230 sf total

Joseph Betesh / n/a

n/a / J. Ciraulo, M. Azarian, R. Burton, M. DeCheser, Massey Knakal

The package sold for $62 million. The properties are located at 83, 85, 88, 103, 105, 219, 221, 262, 276, 280 and 284 Bowery.

138 Spring St

18,850 sf mixed-use bldg

138 Spring Owners LLC / J. Fishman, B. Segall, A. Jacobs, J. Butwin, RKF

Rivercrest Realty Investors / J. Fishman, B. Segall, A. Jacobs, J. Butwin, RKF

The property sold for $48.5 million.

84 July 2013 www.TheRealDeal.com

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OCP - Preview ad in CROL

Goods and Services SMD_PROJECT-BASED SECTION 8 PROPERTIES REHABILITATION AND PROPERTY MANAGEMENT Request for Proposals - PIN# 59689. - Due 8-12-2013 AT 2:00 PM The New York City Housing Authority (“NYCHA” or the “Authority”) is seeking to identify qualified applicants for consideration as co-developer with NYCHA to assume both capital rehabilitation and property management responsibilities for a portfolio of six Project-based Section 8 properties, in the boroughs of Manhattan, Bronx, and Brooklyn in the City of New York. NYCHA’s goals are to partner with an experienced third-party to rehabilitate and manage the Properties and maintain long term affordability at each location. The Authority expects to finance the rehabilitation using tax-exempt bonds issued by the New York City Housing Development Corporation’s (“HDC”) and as-of-right Low Income Housing Tax Credits (“LIHTC”) issued by the New York City Department of Housing Preservation and Development (“HPD”). To accomplish its goals, the transaction contemplates creating a NYCHA-controlled entity to retain a joint interest in the Properties in partnership with the chosen Applicant and tax credit investor. Further, the New Owner as defined below, will enter into fee development agreement with a joint venture of selected Applicant and a NYCHA created entity covering the rehabilitation of the Buildings (the “Development Agreement”). The New Owner will also enter into a property management agreement with the Developer to manage the Buildings (the “Management Contract”). This Request for Proposals (“RFP”) has been issued to facilitate NYCHA’s selection of the Developer from among the Applicants. The Developer must have the existing capacity for, and prior experience in: (i) completing transactions with LIHTC eligible financing; (ii) completing major rehabilitation work within a predetermined schedule and budget and with tenants in place; (iii) managing multi-unit residential buildings; and (iv) complying with applicable Section 8 and LIHTC rental management regulations. NYCHA therefore invites the Applicants to submit a written proposal in accordance with the instructions set forth in this RFP. A Proposers` Conference will be held at 11:00 a.m. on Friday, July 12, 2013, in the Board Room located at 250 Broadway, 12th Floor, New York, New York. Attendance is strongly encouraged. Proposers must submit any questions in writing for the Proposers’ Conference to the Solicitation Coordinator, via e-mail @ Maria.Manfredi@nycha.nyc.gov by 2:00 PM on Wednesday, July 10, 2010. All questions and answers will be shared with all the Proposers receiving this RFP. Proposers will be permitted to ask additional questions at the Proposers’ Conference. In order to be considered, each proposer must demonstrate experience in performing the same or similar Scope of Services as those outlined in the referenced Scope of Work and document their ability to meet the minimum qualifications set forth in this RFP. Proposers should refer to Section VI. Submission Requirements for details on the submission procedures and requirements. Each proposer is required to submit one (1) signed bound original and seven (7) bound copies of its proposal package. In addition Proposers shall attach one (1) complete and exact copy of the Proposal to NYCHA`s Advanced Procurement system, iSupplier. Each Applicant will also be required to submit all the documents presented as part of the Proposal in electronic format. NYCHA will only accept these documents in a DVD in the following formats: 1. PDF 2. WORD 3. EXCEL 4. CSV Proposers are guided to ensure proposal includes all items required and are submitted to the address below, Attn: Maria Manfredi, Solicitation Coordinator-RFP# 59689. Interested firms may obtain a copy on the NYCHA`s website: http://www.nyc.gov/nychabusiness Click on “Doing Business With NYCHA”. Vendors are instructed to access the “Selling Goods and Services to NYCHA” link; then click on “Getting Started” to access and create a log-in. Upon access, click on “Sourcing Supplier”, then click on “Sourcing Homepage” and conduct a search for applicable RFP number. Vendors electing to obtain a non-electronic bid (paper document) will be subject to a $25 non-refundable fee; payable to NYCHA by USPS-Money Order/Certified Check only for each RFQ/RFP document requested. Remit payment to NYCHA Finance Dept @ 90 Church Street/6th Floor; obtain receipt and present it to 6th Floor/Supply Management Procurement Group. A bid package will be generated at time of request. Due Date 8/12/2013 Published 6/21/2013

Solicitation Request for Proposals

Agency NYCHA / General Services-Advanced Procurement Group

Contact Maria Manfredi Phone: (212) 306-4666 Fax: (212) 306-5108 Maria.Manfredi@nycha.nyc.gov

http://extranet.dcas.nycnet/nycprocurement/dmss/asp/RequestPreview.asp?reqID=20130617031[6/17/2013 2:57:44 PM]

yosi ad.indd 1

Address 90 Church Street, 6th Floor, New York, NY 10007

6/27/13 5:09 PM

Buys continued Address

Size

Buyer/ Representative

643-645 Ninth Ave and 947 Ninth Ave

28,974 buildable sf development site

SPI 643-647 Ninth LLC / n/a

Francesco Manica / E. Barletta, Arlet Realty; C. Flint, Newmark Grubb Knight Frank

The adjacent buildings sold for $25.5 million, or $880 per buildable square foot.

87 Chambers St

Development site

Applied Development Company / n/a

CB Developers / n/a

The vacant lot sold for $23.2 million.

360-362 Broadway

5-story mixed-use bldg

n/a / n/a

n/a / R. Knakal, N. Petkoff, Massey Knakal

The property sold for $23 million.

92 Morningside Ave

7-story apt. bldg, 48 units total

Renaissance Realty Group / n/a

Baruch Singer / n/a

The property sold for $18 million. The buyer plans to rehabilitate the building, which was damaged in a 2002 fire and has sat vacant since.

102 West 79th St

6-story apt. bldg

n/a / George Niblock, FriedmanRoth Realty

n/a / Joseph Arnold Smith, Friedman-Roth Realty

The elevator building sold for $16.65 million.

333-345 Greene Ave (Brooklyn)

57-unit apt. bldg

Bonjour Capital / n/a

Banco Popular / n/a

The stalled development site sold for $16 million.

205 and 207 Eighth Ave

2 apt. bldgs, 23 units total

205 Eighth Ave. LLC / Gabriel Saffioti, Eastern Consolidated

Francmen 205 LLC / D. Gutoff, P. Nigido, Eastern Consolidated

The properties sold for $15.9 million.

98-100 Avenue A

16,200 sf retail bldg

Partners VII/98 Avenue A Owner LLC / Daniel Barcelowsky, Misrahi Realty

Suh, Yon, Pak Associates / Douglas Elliman

The vacant building sold for $15.5 million.

7317 18th Ave (Brooklyn)

25,000 sf retail bldg

Salvation Army / W. O’Brien, M.C. O’Brien; J. Plotkin, Colliers International

n/a / Jeffrey Shalom, Massey Knakal

The property sold for $12.75 million.

345 Lefferts Ave and 130 Martense St (Brooklyn)

2 apt. bldgs, 109 units total

n/a / Aaron Jungreis, Rosewood Realty

130 Martense Street LLC; 345 Lefferts LLC / Aaron Jungreis, Rosewood Realty

The properties sold for $12 million. The price represents a gross rent multiple of 10.

117-119 West 21st St

Development site

Alfa Development; Park-It Management / Brian Ezratty, Eastern Consolidated

The Arc Building LP / A. Miller, D. Schechtman, P. Nigido, Eastern Consolidated

The property sold for $12 million.

1-15 Bennett Ave

6-story apt. bldg, 56 units total

n/a / Rafael Toledano, Weissman Realty

n/a / Aaron Jungreis, Rosewood Realty

The elevator building sold for $11.3 million.

626 Flatbush Ave (Brooklyn)

23-story apt. bldg, 254 units total

Hudson Companies / J. Berman, S. Shkury, M. Tortorici, V. Sozio, Ariel Property Advisors

n/a / J. Berman, S. Shkury, M. Tortorici, V. Sozio, Ariel Property Advisors

The rental building sold for $11 million. The buyer will set aside 20 percent of the units for affordable housing, according to a news release from the broker.

21 and 31 East 21st St (Brooklyn)

Two 6-story apt. bldgs, 91 units total

Wishbone Properties LLC / Aaron Jungreis, Rosewood Realty

21 East 21st LLC / Aaron Jungreis, Rosewood Realty

The properties sold for $10.72 million. The price represents a gross rent multiple of 11.

North 9th St and Wythe Ave (Brooklyn)

Industrial bldg

n/a / n/a

Sydell Group Ltd. / n/a

The property sold for $10 million.

315 East 10th St

5-story, 10,000 sf apt. bldg, 12 units total

n/a / Aaron Jungreis, Rosewood Realty

315 East 10th Street Owners LLC / Aaron Jungreis, Rosewood Realty

The elevator building sold for $9.6 million. The price represents a gross rent multiple of 15.

One Penn Plaza Suite 4000 New York, NY 10119 info@SW24.com

Fusion Centre 70 Moonachie Avenue Moonachie, NJ 07074 www.SW24.com

R E S O U R C E PA R T N E R

CALL NOW TO SPEAK WITH SW24 SECURITY

877-575-SW24

Seller / Representative

Notes

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86 July 2013 www.TheRealDeal.com

074-090 july deal sheet se FINAL.indd 7

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JASON SILVERSTEIN

DAVID SHORENSTEIN

SILVERSHORE HAS PURCHASED 18 PROPERTIES IN NYC OVER THE PAST 12 MONTHS

PLEASE CONTACT US TO PRESENT ANY OPPORTUNITIES $1,000,000 - $50,000,000 Multi-Family, Retail, Oﬃce, Mixed-Use Oﬃce: 212.239.7196

Fax: 212.401.4748

acquisitions@silvershorenyc.com

www.silvershorenyc.com

To contact our attorney: Seymour Hurwitz, Esq. Phone: 212-398-1940 Syhurwitz@aol.com

Buys continued Address

Size

Buyer/ Representative

Seller / Representative

Notes

14-26 Broadway Terrace

Five 4-story apt. bldgs, 80 units total

BTH Holdings / Ryan Perkoski, Rosewood Realty

BGB Associates LLC / Jake Blatter, Rosewood Realty

The contiguous properties sold for $9 million.

31-45 Downing St (Queens)

1-story, 31,600 sf warehouse

Asahi Realty LLC / T. Kontis, D. Zhou-Chan, Harvest International

n/a / T. Kontis, D. Zhou-Chan, Harvest International

The warehouse sold for $8.85 million. The property has a 30,000-square-foot parking lot.

1373 and 1381 Sterling Pl (Brooklyn)

2 apt. bldgs, 73 units total

n/a / Aaron Jungreis, Rosewood Realty

1373 Sterling LLC; 1381 Sterling LLC / Aaron Jungreis, Rosewood Realty

The properties sold for $6.8 million. The price represents a gross rent multiple of 8.7.

126 and 139 East 53rd St (Brooklyn)

Two 4-story apt. bldgs, 71 units total

n/a / Aaron Jungreis, Rosewood Realty

139 Realty NY LLC; 126 Realty NY LLC / Aaron Jungreis, Rosewood Realty

The properties sold for $6.65 million.

211 West 58th St

16-unit apt. bldg

Benchmark Real Estate Group / n/a

n/a / Jonathan Hageman, Massey Knakal

The property sold for $6.5 million. The price represents a capitalization rate of 6 percent.

2483 Jerome Ave (The Bronx)

6-story apt. bldg, 57 units total

n/a / Aaron Jungreis, Rosewood Realty

6 West 190 LLC / Aaron Jungreis, Rosewood Realty

The walk-up building sold for $6.4 million. The price represents a gross rent multiple of 5.

40 Broad St

17,786 sf office condo

COMM5 Setai LLC / Maya Consulting

40 Broad LLC / D. Lebenstein, S. Bellwood, E. Kent, Cassidy Turley

The fifth-floor commercial condo sold for $6.23 million.

106 Greenwich St

5-story apt. bldg, 16 units total

BHT Corp. / Kevin Esh, HPNY

Gindi Family Century 21 / R. Knakal, N. Petkoff, Massey Knakal

The property sold for $5.7 million.

2263 Morris Ave and 2342 Ryer Ave (The Bronx)

Two 5-story apt. bldgs, 64 units total

n/a / Aaron Jungreis, Rosewood Realty

2263 Morris Partners LLC; 2342 Ryer Partners LLC / Aaron Jungreis, Rosewood Realty

The walk-ups sold for $4.6 million.

2070-2074 Arthur Ave (The Bronx)

Two 5-story apt. bldgs, 54 units total

Kpp Arthur Avenue LLC / Ronnie Shaban, Besen & Associates

R&D 2070 Arthur LLC / Amit Doshi, Besen & Associates

The contiguous multi-family buildings sold for $4.23 million.

47 East 30th St

20,000 sf development rights

SLS Hotels; Moin Development / n/a

n/a / Tamir Daniel, Daniel T Enterprises

The property sold for $4.01 million. The building is adjacent to the site of the upcoming SLS Five Stars Hotel at 444 Park Avenue South, and is planned to become an addition to the hotel project.

314 East 106th St

6-story, 15,330 sf apt. bldg, 28 units total

n/a / Aaron Jungreis, Rosewood Realty

110-112 LLC; Pompano Holdings LLC / Aaron Jungreis, Rosewood Realty

The property sold for $4 million.

297 North 7th St (Brooklyn)

Industrial bldg

297 North 7 LLC / David Davidson, Besen & Associates

Michem Properties Inc. / David Davidson, Besen & Associates

The property sold for $3.35 million. The building, which will be delivered vacant, has 22,800 buildable square feet.

3124 32nd St (Queens)

17-unit apt. bldg

n/a / M. Fotis, L. Apostolidis, Z. Golub, R. Aaron, Marcus & Millichap

n/a / M. Fotis, L. Apostolidis, Z. Golub, Marcus & Millichap

The property sold for $3.2 million.

35-48 Steinway St (Queens)

4-story apt. bldg, 20 units total

n/a / M. Tortorici, S. Shkury, V. Sozio, J. Berman, R. Modell, Ariel Property Advisors

The property sold for $3 million, or $234 per square foot.

512 Broome St

Retail bldg

Hidrock Realty / M. Rothstein, E. Mathios, Marcus & Millichap

RHS Ventures / M. Rothstein, E. Mathios, Marcus & Millichap

The property sold for $2.8 million as part of a 1031 Exchange.

245 West 135th St

9,410 sf mixed-use bldg

n/a / P. Von Der Ahe, S. Edelstein, J. Koicim, S. Glasser, Marcus & Millichap

The property sold for $2.7 million.

204 West 21st St

2,984 sf multifamily townhouse, 8 units total

Herve Senequier / n/a

Hunt Commercial Realty Partners / n/a

The property sold for $2.7 million.

359 Manhattan Ave (Brooklyn)

7-unit apt. bldg

n/a / M. Salvatico, S. Riney, J. Saros, Marcus & Millichap

The property sold for $2.2 million, or $440 per square foot.

390-392 South 2nd St (Brooklyn)

Development site

n/a / n/a

n/a / M. Lively, B. Maddigan, Massey Knakal

The development site sold for $2.05 million, or $148 per buildable square foot. The property, which currently consists of two commercial buildings on adjoining lots, is located in an R6 zone with an FAR of 2.2 for a total of 13,860 buildable square feet.

305-311 Clarkson Ave (Brooklyn)

11,880 sf mixed-use bldg

n/a / E. Rodriguez, D. Bestreich, S. Riney, Marcus & Millichap

n/a / E. Rodriguez, D. Bestreich, Marcus & Millichap

The property sold for $2.05 million.

6914 Sixth Ave (Brooklyn)

4-story apt. bldg, 16 units total

n/a / Aaron Jungreis, Rosewood Realty

6914 Sixth Associates LLC / David Scheer, Rosewood Realty

The walk-up sold for $1.9 million.

553 East 187th St (The Bronx)

26-unit apt. bldg

n/a / Yanni Simantov, GFI Realty

The property sold for $1.85 million. The price represents a gross rent multiple of 6.5.

378 Lewis Ave (Brooklyn)

8-unit apt. bldg

n/a / D. Bestreich, L. Sproviero, Marcus & Millichap

The property sold for $1.8 million.

100 Veltman Ave (Staten Island)

13,162 sf apt. bldg, 15 units total

n/a / n/a

n/a / Lee Wasserman, Bergen Basin Realty

The multi-family property sold for $1.79 million.

27 Broadway Terrace

4-story, 9,728 sf apt. bldg, 17 units total

n/a / Aaron Jungreis, Rosewood Realty

IhDuck Kim / Aaron Jungreis, Rosewood Realty

The property sold for $1.72 million.

5902 Fifth Ave (Brooklyn)

7,320 sf mixed-use bldg

n/a / Dolly Amigon, Marcus & Millichap

n/a / E. Lundberg, J. Brennan, Marcus & Millichap

The property sold for $1.71 million.

64-24 Queens Blvd (Queens)

20,000 buildable sf development site

n/a / n/a

n/a / S. Weiner, C. Wong, Greiner-Maltz

The development site sold for $1.62 million. There is a 4,000-square-foot retail building on the property.

546 Court St (Brooklyn)

3-story office bldg

n/a / S. Burk, A. Sigourney, CPEX Real Estate

The property sold for $1.58 million.

2265 First Ave

4-story apt. bldg, 6 units total

2265 First Avenue LLC / David Scheer, Rosewood Realty

n/a / David Scheer, Rosewood Realty

The walk-up building sold for $1.5 million.

16-13 Stephen St (Queens)

8,800 sf retail bldg

Jack Pierson Studio / Howard Darsi, Kalmon Dolgin Affiliates

Stephen Street Realty LLC / Jean Cook, Kalmon Dolgin Affiliates

The property sold for $1.3 million.

784 Washington Ave (Brooklyn)

3-story apt. bldg

n/a / A. Sigourney, S. Burk, CPEX Real Estate

The property sold for $1.2 million.

886 Franklin Ave (Brooklyn)

4-unit apt. bldg

n/a / Marcel Fridman, Barcel Group

The property sold for $1.03 million.

4505 Eighth Ave (Brooklyn)

2,354 sf mixed-use bldg

n/a / M. Lu, E. Lundberg, Marcus & Millichap

The property sold for $1.01 million.

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Financing Address

Size

Borrower / Representative

Lender / Representative

Notes

30 Park Place

82-story apt. bldg

Silverstein Properties; CalSTRS / n/a

The Children’s Investment Fund Management (UK) LLP / n/a

A $660 million construction loan was provided for the project, which will include a Four Seasons hotel and private residences. Construction will begin on the 82-story tower in fall 2013. The grand opening is slated for 2016.

70 Pine St

66-story office bldg

Rose Associates / n/a

JPMorgan Chase; M&T Bank; Bank of New York / n/a

A $300 million construction loan was provided for the conversion of the property into luxury apartments, the New York Post reported. The project is expected to be complete by 2016.

1375 Broadway

513,401 sf office bldg

Savanna / Jon Estreich, Estreich & Co.

Mesa West Capital / n/a

A $145 million loan was provided to refinance the property.

345 Park Ave South

12-story office bldg

RFR Holding LLC / n/a

Citibank / n/a

A $100 million, 10-year CMBS loan was provided to refinance the property.

5 Columbus Circle

20-story office bldg

1790 Broadway Associates LLC / n/a

First Republic Bank / n/a

A $55 million mortgage loan was provided for the property, also known as 1790 Broadway. Carl Schwartz and Matthew Scoville of Hunton & Williams LLP served as legal counsel on behalf of the borrower.

133-38 Sanford Ave (Queens)

21-story mixed-use bldg

n/a / A. Melwani, ARM Real Estate Group; F. Leung, Okada & Co.

Madison Realty Capital / n/a

A $50 million first mortgage bridge loan was provided for the development, which has 99 residential condo units and a 24,000-square-foot commercial condo. The financing will help the borrower retire existing debt and provide funds for construction.

808 Broadway

24,000 sf retail condo

SPI Holdings LLC / Steven Klein, HFF

RBS / n/a

A $12.5 million loan was provided to refinance the property.

9201 Shore Rd (Brooklyn)

253-unit apt. bldg

9201 Shore Tenant Corp. / n/a

NCB / n/a

A $10 million first mortgage was arranged for the building.

51 Fifth Ave

87-unit apt. bldg

51 Fifth Avenue Owners Corp. / n/a

NCB / n/a

A $5.3 million first mortgage and a $750,000 line of credit were arranged for the building.

84-51 Beverly Rd (Queens)

128-unit apt. bldg

The Beverly House Inc. / n/a

NCB / n/a

A $4.5 million first mortgage and a $1 million line of credit were arranged for the building.

16 East 96th St

36-unit apt. bldg

16 East 96th Apartment Corp. / n/a

NCB / n/a

A $5 million first mortgage was arranged for the building.

300 Central Park West

207-unit apt. bldg

300 CPW Apartments Corp. / n/a

NCB / n/a

A $5 million second mortgage was arranged for the building.

63-11 Queens Blvd (Queens)

157-unit apt. bldg

Coronet Owners Inc. / n/a

NCB / n/a

A $3.8 million first mortgage and a $500,000 line of credit were arranged for the building.

230 West 105th St

70-unit apt. bldg

230 W. 105 Realty Corp. / n/a

NCB / n/a

A $3.2 million first mortgage and a $500,000 line of credit were arranged for the building.

41-51 West Fordham Rd (The Bronx)

8,600 sf retail bldg

n/a / Mike O’Neill, HoulihanParnes Realtors

n/a / n/a

A $3.21 million first mortgage was provided for the Rite Aid–occupied building. The seven-year, non-recourse loan has a fixed rate of 4 percent and was done on a 30-year amortization schedule.

155-165 West 20th St

121-unit apt. bldg

Chelsea-Warren Corp. / n/a

NCB / n/a

A $3 million first mortgage was arranged for the building.

325 East 201st St (The Bronx)

72-unit apt. bldg

Bainbridge House Inc. / n/a

NCB / n/a

A $2 million first mortgage and a $500,000 line of credit were arranged for the building.

West 25th St and Eighth Ave

3,401 sf multi-family townhouse

n/a / n/a

Emerald Creek Capital / Mike Cleaver, Emerald Creek Capital

A $2.35 million first mortgage bridge loan was secured for the purchase of the property.

130 West 17th St

14-unit apt. bldg

17th Street Artists Corp. / n/a

NCB / n/a

A $1.6 million first mortgage and a $500,000 line of credit were arranged for the building.

55 Greene St and 469 Broome St

10-unit apt. bldg

Gunther Building 1873 Corp. / n/a

NCB / n/a

A $2 million first mortgage was arranged for the building.

76 Remsen St (Brooklyn)

24-unit apt. bldg

76 Remsen Street Inc. / n/a

NCB / n/a

A $1.3 million first mortgage and a $250,000 line of credit were arranged for the building.

45 Park Terrace West

49-unit condo

45 Terrace Owners Corp. / n/a

NCB / n/a

A $1.3 million first mortgage and a $250,000 line of credit were arranged for the building.

36-56 Bay St Landing (Staten Island)

17-unit apt. bldg

Bay Street Landing Owners Corp. / n/a

NCB / n/a

A $1.5 million first mortgage was arranged for the building.

60 West 68th St

70-unit apt. bldg

60-68 Apartments Corp. / n/a

NCB / n/a

A $1.2 million first mortgage and a $300,000 line of credit were arranged for the building.

407 Central Park West

27-unit apt. bldg

407 Central Park West Owners / n/a

NCB / n/a

A $1.1 million first mortgage and a $300,000 line of credit were arranged for the building.

Forest Ave and Livermore Ave (Staten Island)

2,408 sf retail bldg

n/a / n/a

Emerald Creek Capital / Jeff Seidler, Emerald Creek Capital

A $1.37 million first mortgage bridge loan was secured for the refinancing of a KFC franchise.

39 Remsen St (Brooklyn)

15-unit apt. bldg

Remsen Owners Corp. / n/a

NCB / n/a

A $1.1 million first mortgage and a $200,000 line of credit were arranged for the building.

900 Fifth Ave

51-unit apt. bldg

900 Fifth Avenue Corp. / n/a

NCB / n/a

A $1 million third mortgage was arranged for the building.

134-136 West 82nd St

20-unit apt. bldg

134-136 West 82nd Street Owners Inc. / n/a

NCB / n/a

A $750,000 first mortgage and a $250,000 line of credit were arranged for the building.

Other Deals Barnett buys stake in 14-building Ring portfolio Extell Development’s Gary Barnett acquired a partnership stake in a 14-building portfolio owned by brothers Michael and Frank Ring, Crain’s reported last month. The interest belonged to investor Joseph Tabak, and the deal could allow Barnett to force a sale of the portfolio — with himself in a favorable position to acquire it. The estimated value of the portfolio, which is mostly vacant, exceeds $500 million. It includes buildings in the Upper West Side and Midtown South. Barnett already has a stake in the Rings’ 251 Park Avenue South, as previously reported. (The deal was announced after the deadline for the Deal Sheet.)

Bistricer, Rieder sell UWS building in midst of condo conversion

Urban Outfitters takes three floors at 1333 Broadway

David Bistricer’s Clipper Equity and the family-owned Rieder Holdings are switching tactics at a nearly 200-unit Upper West Side rental building, which they were in the midst of converting to condominiums. The partnership sold 752 West End Avenue for $120 million, according to records filed last month. The buyer appears to be the Miami-based developer Crescent Heights, according to property records. The sale was brokered by Doug Harmon, Adam Spies and Jean Celestin of Eastdil Secured, according to people familiar with the transaction. (The deal was announced after the deadline for the Deal Sheet.)

Continuing its expansion across the city, hipster clothing retailer Urban Outfitters has signed a deal for three floors at the Malkin Properties–owned 1333 Broadway, the New York Post reported. The company was in advanced talks in March to take a 61,000-square-foot space at the 12-story building, as previously reported. Instead it settled for 56,730 feet for 15 years at a starting blended asking rent of $6.5 million per year. Farther south, Urban Outfitters signed a 21,000-square-foot lease in March at 180 Broadway. (The deal was announced after the deadline for the Deal Sheet.) TRD

80 July 2013 2009 www.TheRealDeal.com www.TheRealDeal.com 90

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Bruce D. Katz, Esq. Senior Partner

Larry Trinkwald, Esq.

Steven Matz, Esq. Senior Partner

Michael Zadjelovich, Esq.

Jonathan Helfer, Esq. Junior Partner

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One-bedroom, one-and-a-half-bath, 988-square-foot condominium unit in a prewar elevator building, the Abbey; apartment unit has high ceilings, marble baths, hardwood floors and laundry; building has a 24-hour doorman and live-in super; common charges $901 per month; taxes $9,118 per year; two weeks on the market. (Brokers: Kath Jacobs, Halstead Property; Doug Rand, Bond New York) “The buyer works with my fiancé; I bumped into her and her parents at an open house I was assisting a colleague with. We looked at about 10 apartments on a Sunday. This unit was unlike anything you’ll ever see in New York — it’s an apartment in an old church. It has so many cool details: stained glass windows, exposed brick, and arched columns. The layout and size of the apartment were exactly what she was looking for, but she’d lived in the West Village for a long time and was hesitant about moving to the East Side. [So] I took her on an extensive bike tour of Gramercy. We rode around all the parks by the East River and found some great restaurants. We [offered] full asking price, all cash, and got accepted right away, on the condition that her parents would come and sign contracts within a week. During that week [the sellers] had several other offers, so we had to come up with $35,000 to get the deal done. My client was not happy to have to come up after having an accepted offer. I had to convince her that this is the norm in this market, and if she really wanted the place to put that frustration aside.” Doug Rand, Bond New York

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$855,000 301 East 45th Street, Apt. 21E

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For sponsorship opportunities, please call 212-254-7400 or email: golf@therealdeal.com 92 July 2013 www.TheRealDeal.com

Two-bedroom, one-bath, 800-square-foot condo unit in an elevator doorman building, the Delegate; apartment has open

kitchen; building has bicycle room, laundry, roof deck, common storage; common charges $749 per month; taxes $744 per month; asking price $849,000; 11 weeks on the market. (Brokers: Edward Longley and Casey Balsam, the Hollingsworth Group; Stephen Weber, the Heller Organization) “Our client, the seller, was introduced to us by a friend. [The buyer] liked that there were two equalsized large bedrooms, because he was buying the apartment for his daughter and a roommate to live in. But within two weeks of accepting his offer, we received three other very strong offers. The buyer’s broker was aggressive and came in slightly above the asking price because he wanted to secure it for his client. We got the highest price for any apartment in this building.” Casey Balsam, the Hollingsworth Group

Yorkville $1.97 million 350 East 82nd Street, Apt. 11A

Three-bedroom, three-bath, 1,646-squarefoot condo unit in an elevator building, Wellington Tower; apartment has eat-in kitchen, parquet floors, crown and baseboard moldings, and laundry; building has 24-hour doorman, concierge, indoor swimming pool, fitness center, children’s playroom and garage; common charges $1,556 per month; taxes $2,104 per month; asking price $2.1 million; five weeks on the market. (Brokers: Laurie Dietz, the Corcoran Group; Sarah Rose Katz, Citi Habitats) “My buyers own a rental building on the Upper East Side where they’ve lived for the past 30 years. I met them when I rented one of their open listings to a client. This purchase was very much a ‘life gift’ from my clients to themselves — they worked very hard their entire lives, saved up a ton of money and finally decided it was time for them to treat themselves to something nice. They wanted something with more light, on only one floor and in a luxury building. The new apartment had to be within 10 blocks of [their other] property, and this one is around the corner. It’s on the 11th floor and receives floods of natural sunlight. The deal was very quick since my buyers were all cash and looking to close as soon as possible.” Sarah Rose Katz, Citi Habitats

By Evan Bleier

Keith Copley, Licensed Salesperson | Chris Au, Licensed Salesperson

78 WEST 12TH STREET TOWNHOUSE Web ID: RD0136649 | $10,695,000

73 WOOSTER STREET, 3A Web ID: RD0136698 | $10,900,000

505 GREENWICH STREET | Under Contract Web ID: RD0136671 | $6,495,000

109 GREENE STREET, PHC Web ID: RD0136547 | $5,295,000

We deliver results Keith Copley and Chris Au are consistently setting record prices for sales and rentals in Downtown’s best buildings. Their success handling prominent properties has built a reputation as expert Brokers/Agents in SoHo and the Village.

22 WEST 11TH STREET, TH Just Sold | $10,500,000

109 GREENE STREET, 2C Just Sold | $3,465,000

459 WEST BROADWAY, 5TH FL Just Sold | $5,500,000

459 WEST BROADWAY, 4N Just Sold | $5,375,000

159 MERCER STREET, 2E Just Sold | $2,395,000

158 MERCER STREET, PHB Rented | $30,000

42 WOOSTER STREET, 2S Rented | $30,000

158 MERCER STREET, 10B Rented | $39,000

Keith Copley, Licensed Salesperson | 212.431.2469 | keith.copley@sothebyshomes.com Chris Au, Licensed Salesperson | 212.431.2445 | chris.au@sothebyshomes.com downtown MANHATTAN BROKERAGE I sothebyshomes.com/nyc | 379 West Broadway, New York, NY 10012 | 212.431.2440 Operated by Sotheby’s International Realty, Inc.

Commercial market June 26. Commercial brokerage Savitt Partners represented the tenant. Representing the landlord were James Caseley, an executive managing director at ABS Partners Real Estate, and his colleague, Douglas Regal, a managing director at the company. “We are seeing absorption along Sixth Avenue from 34th to 42nd [streets], Caseley said, adding that asking rents are creeping up, although the environment remains in the tenant’s favor.

from page 22

Midtown South The area’s hot market kept asking rents on their steady march upward last quarter, although a significant amount of space opened up — driving up the availability rate and spurring some landlords to price their product to move. The largest block of space coming on the market last month was at 61 Ninth Avenue, CoStar Group showed. Newmark Grubb Knight Frank’s Justin DiMare listed 110,128 square feet on floors 4 through 12, for a

new development project on the site of Prince Lumber, at the corner of 15th Street. The 12-story Kohn Pederson Fox–designed tower is expected to be ready for occupancy in the first quarter of 2016. Also hitting the market were floors 11 and 12 at the 350,000-square-foot Masonic Hall at 71 West 23rd Street, at the corner of Sixth Avenue; each floor has 13,000 square feet. The space is occupied by management support services firm Aecom but will be available at the end of this year. The asking rent is $58 per square foot. Rents in the build-

ing have increased about $20 per foot over the past two years — the same as the market overall, according to the Masonic Hall’s representative, Herb Goldberg, commercial manager for brokerage City Connections Realty. Midtown South’s average asking rent was $51.52 per foot, compared with $43.76 in 2012’s second quarter. The availability rate also increased in that same period, from 8.8 percent to 9.2 percent, the Colliers data showed. “We tried to price [the Masonic Hall] fairly; we did not shoot for the stars,” Goldberg

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said, suggesting that other comparable buildings are asking $62 per foot to $65 per foot. His ask is “below market,” Goldberg noted. “We are interested in a certain type of tenant, and want to get it rented sooner rather than later,” he said.

Downtown The Downtown market saw a sharp increase in its availability rate, driven in part by more space hitting the market. One of the larger blocks listed was at the Equitable Building, at 120 Broadway, for floors occupied by the law firm Lester Schwab Katz & Dwyer. CoStar shows 68,000 square feet as available, the 38th floor and part of the 39th floor, although a move-in date was not specified. The law firm did not respond to a request for comment. The law firm inked a renewal deal in 2007 with an estimated rent of $42.50 per foot, data from CoStar shows. Over the past year, the average asking rent per foot rose from $45.44 to $45.71, and the availability rate fell to 15.9 percent from 16.7 percent, Colliers data showed. The higher rents in Midtown and Midtown South are driving new kinds of tenants to Lower Manhattan — far different from the area’s many nonprofits and law and financial services firms. For example, 44 Wall Street has seen interest from businesses tied to home and fashion, said ABS managing director Keith Lipstein, who represents the landlord. Lipstein had a fashion eyewear company and an interior design company that makes high-end paints tour the 350,000-square-foot building, although neither inked a deal. “That is relatively new,” he said. TRD

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Trump

from page 48

Upon seeing these buildings, passersby could be forgiven for thinking that Trump owns a huge swath of New York City. But most of the apartments in the properties are no longer owned by Trump: The majority are co-ops and condos that have long since sold out. Trump does still own 23 apartments at Trump Park Avenue, which he rents for rates as high as $100,000 per month, and 19 units at Trump Parc. And he also maintains ownership of most of the commercial and retail spaces in the buildings bearing his name. At Trump International, for example, Trump manages the hotel and condo portions of the building and owns the commercial elements of the property, including a garage facility and retail space, which currently houses the restaurant Jean Georges. Trump also retains rights to the rooftops of most of his buildings and leases the spaces to cell network providers such as Verizon for a fee. The Trump Organization does have some debt on these properties, including a $22.2 million loan on the developer’s interest in Trump Park Avenue and an $8.3 million loan related to the commercial and retained residential portions of Trump Plaza. Another major contributor to Trump’s wealth are his sprawling personal homes, each worth millions. Most significant of these is his personal apartment at Trump Tower. Occupying the 66th to 68th floors of the building, the triplex penthouse is decorated in diamond, 24-carat gold and marble, and features an interior fountain and a massive Italianate-style painting on the ceilings. Asked by The Real Deal what the apartment might be worth, Trump said only that if he were to put the property up for sale, it would most certainly be the priciest apartment on the market in New York City. Douglas Elliman Chairman Howard Lorber estimated that the unit could sell for upwards of $100 million if it came on the market today, thanks to its location on Fifth Avenue and its likely appeal to foreign investors. Trump’s other homes include a Beverly Hills mansion on Rodeo Drive. Lee Ziff, a Beverly Hills broker with Keller Williams, told TRD that the house is likely worth $8.5 to $10 million, though he said he has not seen the inside. But the mogul also owns residential properties as investments rather than vacation spots. For example, he owns two private houses in Palm Beach, Fla., adjacent to his Mar-a-Lago country club. The houses, which are 4,643 square feet and 1,950 square feet, according to real estate website Zillow.com, are worth around $6.5 million and $3 million, estimated Jonathan Harris, an agent at Valore Group Real Estate in Palm Beach. And a slick business maneuver recently allowed him to nab a major residential asset for a major discount: the 2,000-acre Kluge estate in Charlottesville, Va. Formerly owned by media billionaire John Kluge and his wife, Patricia, the property features a 23,000-squarefoot mansion but is also a functioning commercial winery and vineyard. Facing default following her husband’s death, Patricia Kluge put the estate on the market for $100 million about four years ago. Her lender, Bank of America, seized the property before she could unload it. Trump bought the property out of foreclosure in 2011, paying only $7.9 million for the vineyard, winery and its equipment, and the land surrounding the house; those assets alone were valued by the bank at $60 million. The 45-room mansion, meanwhile, was on the market for $16 million. In a bid to get it for far less, Trump let the property’s grounds become overgrown so they’d be unappealing to buyers. Eventually, he convinced the bank to sell him the house — for just $6.5 million. Ultimately, Trump paid a total $14.4 million for the entire property,

now known as Trump Vineyard Estates and managed by Eric Trump.

Resorts, country clubs and golf courses Trump’s estimated value:

$1.57 billion

n recent years, Trump has invested heavily in “lifestyle properties” such as golf courses, resorts and country clubs. He owns at least 13 golf courses across the globe, including the 1,200-acre Trump International Golf Links in Scotland. Putting a dollar figure on the value of these assets is tricky, however, because many of them come with development rights or the potential for other uses. The Trump Organization values its combined interests in these club facilities and related lifestyle properties at roughly $1.57 billion, according to WeiserMazars. Among the most valuable of these assets is the Doral Resort & Spa in South Florida, which Trump bought out of bankruptcy for $150 million last year in another fire sale acquisition. The 800-acre property includes five golf courses, 700 hotel rooms, meeting and conference space, a 50,000-square-foot spa and an extensive retail component. Based on current prices in the Miami area, where land has been trading at close to $20 per square foot, real estate experts said the current value of the land alone at Doral could exceed $1 billion. Trump has a $125 million loan on the property, according to WeiserMazars. Another significant holding is the oceanfront Trump National Golf Club in Los Angeles at Palos Verdes, where Trump has development rights to build 75 homes adjacent to the course. Trump told The Real Deal that he’d already sold five of the lots for up to $5 million apiece but was not actively looking to sell more. At Trump National Golf Club Westchester in Briarcliff Manor, Trump has rights to develop 87 luxury condos. Sixteen of those have already sold for $1.5 million to $2.45 million, according to the Trump Organization, which said it has no immediate plans to build the remaining properties. While golf courses seem to be one of Trump’s primary interests right now, he also has interests in other kinds of lifestyle properties. For example, in Florida he owns the Mar-a-Lago country club, a 17-acre property with a 20,000-square-foot ballroom, which has played host to celebrities such as Michael Jackson, Celine Dion and Oprah. Commercial real estate brokers said it was difficult to determine a value for such an idiosyncratic asset, for which there are few comparables. Taking a stab, Harris said the property could ask as much as $250 million if it came on the market today. Some of the properties in this category haven’t always been positive additions to Trump’s balance sheet. In Nevada, Trump owns a 50 percent interest in Trump International Hotel Las Vegas, which he developed alongside real estate and casino mogul Phil Ruffin. Originally designed as a condominium, the property now operates primarily as a hotel; when it opened in 2008, the units sold rapidly but buyers couldn’t close once the crisis hit. Trump and Ruffin ended up high and dry with 900 units they couldn’t sell, Ruffin told The Real Deal. “It was negative for a while,” Ruffin said in a phone interview last month. “Without the [Trump] brand, we probably would have let it go.” Trump and Ruffin are close to closing a deal for 300 of the building’s units with a division of Hilton, which will use them as timeshare properties, Ruffin said. Hilton will pay around $100 million, he said. Ruffin said the deal would eradicate most of the partnership’s debt on the building, and that he and Trump will then be left with between 500 and 600 units, which will continue to be operated as a hotel.

And in Atlantic City, a portfolio of properties along the boardwalk that bear the Trump name are the source of the widespread misconception that Trump at one point went personally bankrupt. Trump bought the portfolio, now known as Trump Taj Mahal Hotel & Casino, in 1987. The property’s ownership entity, Trump Entertainment Resorts, filed for bankruptcy four times between 1991 and 2009. After the first bankruptcy, the company went public and Trump began reducing his stake in it, from 36.6 percent in 1991 to just 5 percent today, the Trump Organization said. He is also no longer chairman of the company’s board.

Entertainment and other assets

Trump’s estimated value:

$317.6 million

rump also owns a wide variety of other enterprises outside the realm of real estate. For example, the real estate magnate owns the Miss Universe, Miss USA and Miss Teen USA pageants, which the Trump Organization said are collectively worth a total of $15 million. In addition, he owns a talent and modeling agency, Trump Model Management, and 50 percent of the value of the rights to “The Apprentice,” which he shares with producer Mark Burnett and on which he’s been focusing much of his time and attention of late. He also owns several airplanes, including a Boeing 757 and a Cessna Citation X. But regardless of how many planes or buildings he has, Trump has made one thing clear over the years, which accounts for a significant portion of his wealth: he knows how to stay in the spotlight. TRD

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Construction financing

from page 16

Gehry–designed 8 Spruce Street and 864-unit Mercedes House, hit the market as rentals instead. Other condo projects stalled or changed owners. But with the economy now on the mend, the inventory of available New York City condo units has shrunk while buyer demand has grown. The available inventory of Manhattan condos for sale was down 35.4 percent annually in the first quarter of 2013, one of its biggest drops ever, according to Miller Samuel Real Estate Appraisers. As a result of these factors, the condo market has rebounded: The average sales price for a Manhattan condo spiked 13.8 percent to $1.2 million in the first quarter of 2013, according to Miller Samuel. Now, in an encouraging sign for lenders, new product “gets absorbed rather rapidly, because there’s no inventory in the city,” Gerringer said. And construction loans, including those for condos, have traditionally provided higher rates of return for lenders than non-construction loans. Additionally, lenders distribute money as a condo project moves along, often month by month, further reducing their risk. Another reason for the looser lending spigot is the price of developable land. Many condo projects that failed during the recession were those that had been purchased for very high prices during the boom, making it harder for developers to lower sales prices once the market cratered. Others found they couldn’t get financing to start construction, with banks looking askance at the high prices they’d paid for the land. “The projects that went under,” LePatner said, “were projects where the land had been purchased at excessively high rates compared to what happened after that, when the market dropped out.” Land prices dropped by double-digit percentages during the recession, allowing investors to swoop in and buy devel-

opment sites for discounts of up to 30 percent, LePatner said. Since then, land prices have increased dramatically. Data from the brokerage Massey Knakal shows Manhattan land prices increasing 25 to 30 percent in the first three months of 2013 from the prior quarter. The rising price of dirt, coupled with a stronger condo market, make it much more likely that developers will pay back their loans rather than default. If they do default, sources explained, banks are content to take back land if they know they can sell it for a high price. For developers, the high cost of land is now making it more difficult to do rental projects. Development costs in Manhattan are now around $300 to $400 per square foot, while the average price per square foot for a Manhattan condo was just over $1,300 at the end of 2012, one of the highest averages since Miller Samuel started keeping records in 1989 (and only slightly below the peaks reached in 2008). By contrast, a new-construction apartment tower would likely rent for no more than $75 per square foot. “The reality today is the cost of land is now pushing, in the boroughs and in Manhattan, to the point where it’s very hard to pencil out doing a rental,” Gerringer said. “You’re either going to be forced to do a condo building, or the sellers are going to be sitting on their land because buyers can’t afford to pay the price.”

Skin in the game Still, today’s environment is far from the easy-lending days of the mid-2000s. While the terms of condo-construction loans remain largely unchanged from before the recession — interest rates, for instance, still range from 3 to 5 percent — even experienced builders are now expected to put more equity into their projects than in the past. During the boom, condo developers generally had to put up 25 to 30 percent of a building’s projected cost in

equity or personal guarantees to get a construction loan. Now, developers are generally expected to put in 30 to 40 percent. “The biggest difference [today] is how high they will take you,” Horn said of lenders. “So, if your aggregate costs were $100 million in the past, certain lenders would have taken you up to $72, $73, $74 million — and now maybe they’ll only go between $55 and $70.” One thing working in developers’ favor is cheap borrowing costs, though interest rates are starting to creep up. “I think anybody who has the ability to lock down longterm rates, if they have a stabilized property, they’re doing it now, for the most part, across the system,” said Peter D’Arcy, regional president for M&T Bank in New York City. While more deals and higher prices have elicited some warnings of a bubble, sources noted that demand still far outstrips the available supply. Much of the new condo development recently has been ultra-luxury, such as Extell Development’s One57 — financed by a syndicate of lenders led by Bank of America — where units have sold for eight figures. And at new condo 56 Leonard Street, which was financed by M&T and Bank of America, units have sold for north of $4 million and up. Other projects are smaller-scale, like Alchemy’s 55-unit 35XV. With a few exceptions, gone are the pre-bust days of big projects like the 580-unit Sheffield conversion or the redevelopment of 20 Pine Street, which produced 408 condos. These smaller projects perpetuate the low inventory that helps spur the construction financing in the first place. “When projects come on, it’s not 300 units; it’s 50 units or 100 units,” Horn of Alchemy said. “So even though you might have 15 projects coming on, it’s only adding maybe 700 units to the marketplace.” Or as LePatner put it: “There is a really great sense of confidence that there’s not going to be any overbuilding.” TRD

Elliman from page 52 the same way, regardless of whether Lorber is involved. “We don’t treat it like we’re a shoo-in,” said Horacio LeDon, Elliman’s head of new development marketing in Florida. “If anything, we try to do a better job because we want to make sure we represent him well.” But critics of this approach said Lorber has essentially bought his way into the ultra-luxe development marketing business. Others said there’s an inherent conflict of interest when a brokerage head invests in a project the company is marketing, since the executive would then be tempted to give preferential treatment to that project. Defending his model, Lorber said it wouldn’t make sense to spend the large amount of money necessary to invest in a project for the comparatively little he would net in commissions. “It would be pretty stupid to put $10 million in a project and the company makes $1 million,” he said. As for the griping, Elliman execs have no time for it. “[The investment] is only unfair if you’re on the wrong side of that deal,” LeDon said. “All’s fair in love and war.”

Hiring spree

When looking to recruit for key positions at Douglas Elliman Development Marketing, De França mined the ranks of fellow Related alumni. Former Related colleagues like LeDon and senior marketing managers Sara Kallus and Stephanie Klein-Reppert have all joined the firm since De França took the reins. Other notable new hires include Clifford Finn, Citi Habitats’ former head of new development marketing, and Reid Price, previously the managing director 96 July 2013 www.TheRealDeal.com

of Town’s new development and sales division. Vickey Barron, a top broker and managing director at CORE, defected to Elliman in May, bringing with her the exclusive on the remaining units at JDS Development’s high-profile Walker Tower condominium at 212 West 18th Street. Reid, Barron and Finn all approached Elliman about joining the firm, De França said, and not the other way around. Since Elliman was gearing up to launch a stream of new projects, it seemed wise to expand its ranks. “We’re being a bit preemptive because we don’t want to be caught flat-footed in the event that something amazing pops up tomorrow and we can’t staff it properly,” LeDon said. “Right now, we’re poised to take all the big business that’s out there to be taken.” With the arrival of Finn, Elliman is also looking towards rentals, an arena that it previously took little interest in. Finn noted that despite the condo boom, there are still plenty of rental units slated to come to market over the next few years. Elliman has signed exclusives to market some 5,000 rental units over the next four-anda-half years, he said. “And there’s more,” he said. “I’m only talking about what we’ve physically signed.” While De França has a ways to go before she reaches her goal, industry insiders said Elliman appears to be on the right track. “I don’t think anything prevents them from getting to the size of Corcoran Sunshine,” said competitor Stephen Kliegerman, head Terra Development Marketing. “Corcoran Sunshine just happened to be the first kids on the block.” TRD

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Residential market

from page 14

who compiled the report, said that low mortgage rates played a role in the high volume of transactions, as did the “collapse” in inventory. “We saw some sense that rising interest rates were imminent, so there was a timing issue,” Miller said. He said while the urgency buyers are now experiencing

has happened too recently to show up in Elliman’s data, he expects it to be evident in the next few quarters. Shultz said with rising rates, some buyers may back off or wait longer to move, since “higher rates mean higher mortgage payments.” But for now, real estate brokers and mortgage brokers said

buyers are rushing to close sales before rates rise even further. “Both parties are unsure of how the rate increase will impact values and purchasing power in the future,” said Jason Auerbach, divisional manager at First Choice Loan Services. “Many people are moving to buy and sell homes before the market runs away from them.” TRD

mortgage “could be an ideal product” as part of a retirement planning process designed to leave you with lower debts at a predetermined point, said Frank Nothaft, chief economist for Freddie Mac. Ditto for a 15-year loan. Bottom line: If you’re looking ahead, want to lock

in what may be once-in-a-lifetime low rates and like the idea of getting rid of all home-loan debt for your retirement years, check out the mortgage shortening trend. A 10-year just might be a fit.

Naturally, executives are likely to choose seasoned agents they know will do a good job. “Why wouldn’t I give it to someone who I know is going to make the deal, rather than a new person?” said Paul Purcell, a co-founder of Rutenberg Realty and the former president of Douglas Elliman. “I’m going to give [listings] to the person who can sell ice to the Eskimos. It’s not that they’re my favorites, it’s that they make me look great.” Neil Binder, principal of Coldwell Banker the Bellmarc Group, said when a listing comes through him, he hands it off to the relevant office manager, sometimes with a recommendation of which agent should handle it. But on rare occasions, he’ll give it directly to the broker of his choice. “It might be personality,” he said, noting that he tries to pick agents who will be “particularly empathetic to that kind of [client].” But it’s an open secret in the industry that firm heads do sometimes hand out choice listings for reasons other than who is best for the job. Sometimes it’s a reward for loyalty, or as a way to keep top producers from leaving the company. After all, brokers are independent contractors rather than salaried employees, and there’s little to keep them from moving from one firm to another, noted Purcell. Purcell said he’s seen executives give sought-after listings to certain brokers because they’re afraid of losing their stars to the competition. “You want to keep those heavy hitters happy,” he said. “The model is kind of crazy. We don’t pay them any [salary], and they can pick up and leave at any moment.” For agents, these decisions carry more weight than the fate of one listing. The publicity generated by a celebrity-owned or very expensive listing — even before it’s sold — has something of a snowball effect, leading to more listings and clients in the future. “Success breeds success,” said Kleier, noting that her firm’s exposure on the HGTV show “Selling New York” has prompted customers to cold-call the firm and ask to work with her and her daughters. So it’s not surprising that when firm heads single-out the same agents over and over, it can breed resentment among other brokers, who feel they’ve been overlooked. The industry is full of rumors about brokers becoming break-out stars by virtue of a family connection, friendship or even romantic relationship with a top company executive. “There are certain people that, for whatever reason, are able to cozy up to the powers that be and use their charm,” one luxury broker, who asked to remain anonymous, told TRD. “You do meet a person once in a while, and you think there’s no way they have the technical ability to get the

business they’ve gotten, unless it’s somehow being directed to them.” In some cases, of course, that may be true; the dynamics of flirting, favoritism and brown-nosing are present in real estate just as they are in any industry. A 2011 study conducted by Georgetown University’s McDonough School of Business found that some 84 percent of senior business executives had seen favoritism (defined as giving preferential treatment based on factors such as friendship or connections rather than qualifications and performance) at play in employee promotions, while 23 percent admitted to practicing favoritism themselves. And no matter what firm heads do to be fair, when it comes to handing out listings, “I don’t think sour grapes can be avoided,” one manager said. Certain brokers are “going to feel as though there’s an arbitrary or unfair aspect to almost any approach that you take.”

Harney from page 30 30-year loan is just $715. On the 15-year: $1,054. But on the 10-year, it’s nearly double what you’d pay on the 30-year — $1,406. Though over the term of the loan you pay substantially less in interest, on a monthly basis the 10-year requires the most out of pocket. If you can handle the higher payments, a 10-year

Kenneth Harney is a syndicated columnist.

Favorites from page 32 a broker who works out of Elliman’s Tribeca office, which uses the method. But firm heads and managers said there are downsides to that model. While it’s the fairest system for the brokers, sources said, it’s not necessarily the best way to get deals done. “If a customer comes in, and they want a four-bedroom apartment on the Upper West Side, and they happen — through the luck of the draw — to get affiliated with a broker who for the most part does townhouse sales in Brooklyn, where does that put everybody?” said one office manager, who asked to remain anonymous. “Ultimately, it runs the risk of putting the customer in the hands of a broker at another firm.” That’s one reason Town Residential doesn’t use the uptime model, which Town CEO Andrew Heiberger called “a really old, ‘Glengarry, Glen Ross’–type system,” in reference to the tyrannical management style depicted in the 1984 play, and later, movie. Instead, he said, new clients who walk into a Town office are referred to an office manager, who then determines the best broker to handle the listing.

Broker battles While the uptime system raises the issue of which brokers get chosen to handle the busiest times for walk-in traffic, things get more complicated when it comes to very pricey or high-profile listings, which are rarely walk-ins. Many top real estate executives are active on the New York social scene, and tend to get leads while hobnobbing with the rich and famous. Other times, celebrities or billionaires (or their handlers) contact firm heads directly when they want to sell their homes, as a means of ensuring privacy and top-notch service. Sometimes executives pass these leads on to managers to distribute as they see fit. But when the client is high-profile enough to garner publicity for the company, the boss often hand-picks an agent to work with them, explained Michele Kleier, president of Kleier Residential. When an unassigned listing comes in to her firm, Kleier said she generally decides who to give it to based on an agent’s area of specialty. For example, if a buyer comes in looking for an apartment Downtown, she said, she’ll match them up with a broker who works in the area. Making these calls, she emphasized, is not illegal or unethical. “If you own the company,” she said, “and you want to give somebody business because you like them for whatever reason — whether it’s a [personality] reason, which often it is — or because they’ve performed well for you in the past, that’s your prerogative.”

98 July 2013 www.TheRealDeal.com

Being fair One way to navigate these tricky dynamics, Purcell said, is for firm heads to give high-profile clients several different brokers to choose from. He recalls being asked by Edward Milstein, the brother of Elliman’s then-owner Howard Milstein, which broker should list his apartment. Purcell gave him the names of several brokers and suggested interviewing each of them before making a decision. And, sources noted, many mid-level agents assume gifting listings is more common than it actually is. After all, most high-net-worth individuals don’t need to cold-call a brokerage; most either know several brokers from their social circles, or have been actively pursued by agents looking to sell their existing properties. “The phone does not ring all day long with people wanting to sell their homes,” Purcell said. “That simply does not happen.” TRD

CORRECTIONS A N D C L A R I F I C AT I O N S A June magazine story, “Tech firms face office leasing challenges,” misidentified Christopher Havens as the broker who represented the firm MiMedia in a lease at 32 Court Street. In fact, Havens represented 32 Court Street.

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Manhattan vs. world

from page 41

Other superpricey London listings include a 50,000-square-foot mansion at 18 Carlton House Terrace, which is reportedly owned by a member of a Saudi Arabian royal family. The home, located near Buckingham Palace, is asking £250 million, or $7,675 per square foot. And last year, a 45-room mansion in Hyde Park reportedly hit the market for £300 million, or some $483 million. That 60,000-square-foot home belonged to the late Crown Prince Sultan bin Abdul-Aziz of Saudi Arabia. London prices are so high due to a combination of factors, including its strict regulations for new building, England’s reputation for political stability and the city’s location between Asia and North America, which makes it attractive to wealthy Middle Eastern and Asian buyers looking for stable investments, according to Lulu Egerton of London-based brokerage Strutt and Parker, the U.K. affiliate of Christie’s International Real Estate. “A lot of the Mideast and Far East regions, which have got huge bursts of wealth, they’re looking for wealth preservation and they’ve happened upon England,” she said. “If you’re going to have a trophy asset — if you’re very rich — to add to your portfolio, owning a piece of London real estate is like gold,” she added. Geneva, where $1 million buys just 344 square feet of property, is also one of the most expensive cities in the world, according to Knight Frank. Located high in the Alps and renowned for its ski resorts, the exclusive vacation spot measures only six square miles. In 2011, a home just outside of Geneva was listed for $12.2 billion, setting a new world record for most expensive residential real estate listing. Dubbed the “Gold House,” the home was supposedly decorated with some 440,000 pounds of solid gold and platinum. Owned by British designer Steven Hughes, it is no longer available for sale after many alleged that the listing was a fake. In Paris, the sought-after French capital, $1 million fetches 409 square feet of space, according to Knight Frank. The 12-bedroom Palais Montmorency mansion on Avenue

Foch hit the market in 2010 with an affiliate of Christie’s for a reported $140 million — at the time, the second-most expensive listing in the world. The 28,000-square-foot home, which still appears to be on the market, was built in 1912 and boasts a ceiling painted by French artist Henri Rousseau. In Russia, real estate prices have skyrocketed since the real estate market was privatized in 1991, after the collapse of the Soviet Union. In Moscow today, there is not nearly enough luxury development to satisfy the country’s many billionaires. Many of the city’s high-end homes are concentrated in the coveted Golden Mile neighborhood, which has a number of new upscale residential developments alongside historic mansions. This combination of strong demand and limited supply has driven prices up — $1 million buys only 463 square feet of real estate in Moscow, according to Knight Frank — as well as sending rich Russians in search of real estate in cities like New York.

last year, when a 6,683-square-foot apartment at the Frank Gehry–designed Opus Hong Kong condominium sold for $58.7 million. Single-family homes are also very expensive in Hong Kong: An 8,597-square-foot, six-bedroom mansion at 5 Henderson Road is currently listed with Michelle Chung and Louis Wong of Christie’s International Real Estate for $90.2 million. Another very expensive market is Singapore, where $1 million buys 409 square feet of space (the same amount as in Paris), according to Knight Frank. In April, an 85,000-square-foot mansion owned by real estate developer Cheng Wai Keung reportedly hit the market for S$300 million, or $242 million in U.S. dollars. The home, with a swimming pool and tennis court, is located in Singapore’s shopping district, next door to the Russian and Japanese embassies.

Aeries in Asia

As more and more Manhattan listing prices hit the $90 million mark, New York real estate prices may be catching up to other major world cities. New developments now coming on the market here, such as 432 Park and One57, are “testing the market by asking $6,000, $7,000, $8,000 a square foot” for penthouses and upper-level units, said Richard Steinberg, a broker at Manhattan-based Warburg Realty. “[New York] developers are trying very hard to achieve the prices that London and Hong Kong are getting,” he said. And when it comes to price per square foot, some super-high-end New York City properties are already selling at prices that rival or exceed those of pricey homes around the world. For example, Rybolovlev paid some $13,048 per square foot for his penthouse at 15 Central Park West. “I hear the rumors of the Russians having it with London and moving onto New York,” Egerton said. “Maybe in the next five to 10 years we’ll find that they’ll prefer New York to London.” TRD

Asia is home to a number of fast-growing economies, which in turn has made several of its major cities very expensive places to live. Real estate prices in both Hong Kong and Singapore have doubled since 2005, Barnes said. And according to Knight Frank’s report, the number of billionaires in Asia is expected to grow by 119 percent by 2022. In Hong Kong, space for housing development is constrained by a very small geographic area and a large amount of parkland. As a result, new development there is very expensive. For example, Hong Kong’s 39 Conduit Road is one of Asia’s most expensive condominiums, according to Knight Frank. The building has been making headlines since 2009, when a deal was made for a five-bedroom apartment there for $57 million, or $9,169 per square foot (a transaction that ultimately fell through). Asking prices for homes in the building now average £4,982, or $7,625, per square foot, according to Knight Frank. The priciest sale on record in Hong Kong took place late

Catching up?

$90 million club from page 42 room, a private dining area and a library. These two duplex penthouses are each in contract for more than $90 million (although Extell declined to give the exact pricing). The 13,554-square-foot “Winter Garden” penthouse is on the 75th and 76th floors, while the 10,923-square-foot unit is on the 89th and 90th floors. Expert opinions: The “worldwide renown that Extell was able to create [around One57] was very effective in making it a brag-worthy acquisition,” Nest Seeker’s Jabbour said. Sources have said One57’s one-of-a-kind Central park views — due to its height — contribute to the building’s cachet. “When you’re in the building and you see the views, you get a sense of ownership of the city,” Sotheby’s Ponte said. “That’s what people are buying. And they’re also buying an asset to protect their wealth.”

provide twice-daily maid service, dining at the in-house restaurant, Cipriani’s, and membership to Doubles, a private club in the building. This 15-room apartment has a terrace overlooking Central Park. Expert opinions: “If it’s been on the market [since September], it’s not going to sell for its ask,” Elliman’s Dobens said. “The seller is either fishing or not realistic or both.” But Ponte, who has several listings at the Sherry Netherland, said properties of this stature tend to sit on the market longer. And, he noted: “if you’re asking $125 million two buildings away [at the Pierre], $95 million starts to become a deal.”

432 Park Avenue penthouses Asking price: $95 million

Developers CIM Group and Harry Macklowe confirmed that several of 432 Park’s 10 penthouses are in contract. Square footage: Undisclosed Features: Slated to become the city’s tallest residential building when completed in 2015, the 1,396-foot tower has reportedly 10 full-floor penthouses priced at $95 million each. Buyers can purchase maids’ quarters on lower floors, as well as personal wine cellars. Other amenities include a private restaurant, a 75-foot swimming pool and valet parking. Status:

Sherry Netherland 781 Fifth Avenue, 18th floor Asking price: $95 million Status: Listed September 2012 with Lisa Simonsen of Douglas Elliman and Kathy Sloane of Brown Harris Stevens Square footage: 9,000 Current owner: Liberty Travel co-founder Gilbert Haroche Features: Co-op units at the Sherry Netherland hotel

100 July 2013 www.TheRealDeal.com

Even with the building’s star status and unrivaled amenities, Warburg’s Steinberg said the $95 million ask is a little high. Then again, “I compare [luxury real estate] to a piece of contemporary art,” he said. “The purchase of an apartment for $95 million is as much about saying you can afford to buy it as it is the value of the property.” Expert opinions:

The Woolworth mansion 4 East 80th Street Asking price: $90 million Status: No longer available; listed with Paula Del Nun-

zio of Brown Harris Stevens in September 2012; taken off the market in March 2013. Square footage: 19,950 Current owner : The estate of fitness entrepreneur Lucille Roberts Features: The townhouse is 35 feet wide and has a limestone façade. Complete in 1916, it has 14-foot ceilings and a dining room that can seat more than 50 people. Expert opinions: Warburg’s Steinberg said the house will ultimately sell for around $50 million because it has not undergone major renovations to modernize the home. “It’s very formal,” he said. “Someone will want to rework some of the spaces to make it more family friendly.” In fact, Steinberg said he was asked to market the property, but turned it down because he thought $90 million was too aggressive an asking price. TRD

www.TheRealDeal.com January 2012 00

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Outsource Consultants, Inc. The leading provider of Building Code and Zoning Consultation is proud to announce the promotion of Mr. Miguel Lizardo to Vice President. Mr. Lizardo is well respected in the industry by the firm’s clients and the agencies with which he regularly interacts. Miguel has been with Outsource Consultants, Inc. over 10 years and has extensive hands-on experience as a seasoned project manager and Department leader. “His knowledge and experience of this evolving industry will prove invaluable to our organization. This promotion is a key part of Outsource Consultants’ strategic growth plan and enhances our already strong service offering and reputation,” said Diego Caballero, Partner of Outsource Consultants. As Vice President, Mr. Lizardo will be responsible for the operations of the firm’s Sign-Off Division and will join our executive leaders in the development of our internal operations and leadership.

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WATERSIDE DEVELOPMENT FOR SALE IN PRIME BROOKLYN EMMONS AVENUE LOCATION. Land for condos or hotel/restaurant development and 230’ pier with riparian rights. Good use for gambling boat. Plans are available for 240 seat restaurant/hotel mixed use development with 38 hotel rooms and/or 12 luxury condos. Ask for pricing on the pier and riparian rights. Entrance from Bragg Street and Brigham Street. The dividing line is the top of the stone rip rap that runs East-West through the property. The South parcel is water and houses the 3400 s.f. Timber Pier. The North parcel is the land above the top of the rip rap. Buyer will get a marketable title. 2991 Bragg Street Block 8815; Lots 550, 575 & 580 The zoning is C2-2 in R5. The total square footage of the property is 21,710 s.f. The commercial FAR is 16,061.84 s.f. (we already used some of the FAR elsewhere on the zoning block) The residential FAR is 16,061.84 x 1.25 = 20,077.30 s.f.

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www.outsourceconsultants.com 102 July 2013 www.TheRealDeal.com

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116 May 2013 www.TheRealDeal.com

www.TheRealDeal.com July 2013 103

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Three Family House for Sale in Astoria Great investment property, close to transportation. This well maintained house has three apartments, each with their own outside entrance. Price: $1,650,000 First Floor Apartment: 800 square ft., 2 BR, kitchen, living room Second & Third Floor Apartments: 1,460 square feet each, 2 large BR, spacious living room, full dining room, kitchen with dinette area, new washer and dryer. Lot size is 25 x 100, zoned R5, taxes $6,243, 2 car garage, backyard, front terrace. House is currently under renovation and will be available for viewing on July 5th. Please call to schedule a viewing. Contact: Constantina Casvikes 718-267-7272 or 516-840-6450

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HOW CAN WE FUND YOU? 104 July 2013 www.TheRealDeal.com

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Run your ad in print issue and in digital edition Contact: Robert Stearns rs@therealdeal.com 212-991-5047 www.TheRealDeal.com July 2013 105

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The Building Owners & Managers Association of Greater New York presents a daylong seminar, “Ethics is Good Business: Short Course,” taught by Jerome Silecchia, senior vice president of engineering services, eastern operations, at ABM Engineering Services. BOMA, 11 Penn Plaza, 22nd fl oor. 9 a.m. to 4:30 p.m. Fee: $425. Information and registration: www.bomany.org.

C A L ENDA R 1

2 3 4 5 6

The Council of New York Cooperatives & Condominiums (CNYC) hosts a discussion, “Let’s Be Prepared for all Eventualities,” with guest speakers Mary Fischer, president of the Queens CYNYC cooperative, and Steven Greenberg, property manager and leasing specialist at Fulton Grace Realty. Fischer and Greenberg will talk about contingency planning for natural disasters, mechanical failures, sick or injured residents and acts of terror. Location to be announced. 7 p.m. Registration is required. Free for members, $50 for nonmembers paid in advance. Information and registration: www.cnyc.com.

7 8 9 10 11 12

Professional Women in Construction hosts a transportation forum, moderated by William Fife, principal at the Fife Group. Panelists will be James Weinstein, executive director of New Jersey Transit; David Tweedy, chief of the capital program for the Port Authority of New York and New Jersey; Diane Lombardi, director of external relations for the New York State Department of Transportation; and Nuria Fernandez, chief operating officer of the Metropolitan Transportation Authority. The Yale Club, 50 Vanderbilt Avenue. 8:30 to 10 a.m. Fee: $80 for members, $90 for nonmembers. Information and registration: www.pwcusa.org.

The American Institute of Architects hosts a lecture, “Listen and They Will Build: Incorporating the Results of Community Engagement into Cultural Building Projects,” with guest speaker Joy Bryant, head of cultural planning for Lord Cultural Resources. Bryant will talk about how the public’s ideas have infl uenced a host of fi ne arts centers and heritage exhibition spaces, including the National Civil Rights Museum in Memphis, Tenn., and the Museum of the African Diaspora in San Francisco. Center for Architecture, 536 LaGuardia Place. 6 to 8 p.m. Free for members, $10 for nonmembers. Information and registration: www. aiany.org.

The New York State Association for Affordable Housing hosts a cocktail reception, sponsored by fi nancial services company Raymond James. The Princeton Club, 15 West 43rd Street, 4th fl oor. Fee: $150 for members, $250 for nonmembers. Information and registration: www.nysafah.org.

13 14 15

16 17 18

The Young Men/Women’s Real Estate Association of New York presents its annual golf and tennis outing. Old Oaks Country Club, 3100 Purchase Street, Purchase, N.Y. Breakfast at 9:30 a.m., shotgun start at 11 a.m. Golfing fee: $350 for members, $385 for nonmembers. Tennis fee: $275 for members, $300 for nonmembers. Leisure fee: $250 for members and nonmembers. Information and registration: www.ymwrea.org.

22–27

The American Institute of Architects presents a six-day certifi cation course, “Effi ciency Sales Professional Boot Camp,” taught by Mark Jewell, president and co-founder of the Effi ciency Sales Professional Institute. Topics include sales training, efficiency training, financial analysis and personal productivity. Location to be determined. Visit www.eefg.com/new-york-city-july-2013 for venue updates. 8:30 a.m. to 5:00 p.m. Monday through Friday; 8:30 a.m. to 3 p.m. Saturday. Fee: $2,975. Information and registration: www.cfa.aiany.org.

20 21 22 23 24 25

The American Institute of Architects hosts “Cocktails & Conversation,” featuring a discussion between architect Rob Rogers and journalist Susan Szenasy of Metropolis magazine; drinks made by bartender and author Toby Cecchini. Center for Architecture, 536 LaGuardia Place. 6:30 to 8:30 p.m. Fee: $12.50 for members, $15 for nonmembers; one drink included.

CapRate Events sponsors a daylong summit on the New York apartment and multi-family housing market. Speakers include Woody Heller, executive managing director and group head, Capital Transactions Group, Studley; Michael Gardner, managing director, Cantor Commercial Real Estate; Daniel Benedict, president, Benedict Realty Group; Adam Fruitbine, managing director, Alliance Residential Co.; Michael Chavkin, managing director–multi-family fi nance, M&T Realty Capital Corp.; Jake Harrington, CEO, On-Site; and Paul Salib, founder, Castellan Real Estate Partners. McGraw-Hill Building, 1221 Sixth Avenue, 50th fl oor. 7:30 a.m. to 4 p.m. Fee: $245. Information and registration: cre-events.com/sas.

27 28 29 30

The New York Building Council presents its annual golf outing. Westchester Country Club, 99 Biltmore Avenue, Rye, N.Y. 9:30 a.m. to 7:30 p.m. Fee: $650. Information and registration: www.buildingcongress.com.

31 106 July 2013 www.TheRealDeal.com

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6/26/13 2:13 PM

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COMINGS & GOINGS Industry mourns reporter Jason Sheftell

n New York City real estate, it is rare for someone to be universally loved, or even liked. But Jason Sheftell, the late New York Daily News reporter and editor, was the exception to that rule, according to friends and colleagues. Sheftell, 46, was found dead in his West Village apartment last month by a friend. The cause of death was not known when The Real Deal went to press. Richard Mack, the North America CEO of Area Property Partners, spoke at Sheftell’s funeral on June 20 at Temple Beth El in Stamford, Conn. The men were good friends and had been roommates at the University of Pennsylvania. Other real estate heavyweights at the service included Douglas Elliman CEO Dottie Herman and New York Post columnist Lois Weiss. It was Sheftell’s “ability to relate, enjoy and appreciate everyone, at every level, and see the possibility and wonderment in everything that Jason Sheftell made him so unique,” Mack told the crowd of some 800 mourners. Sheftell, a Stamford native, had worked at the Daily News since 2007. “Everybody who was anybody in real estate knew him, and was always saying good things about him,” said Khashy Eyn, head of Platinum Properties. “When you were in a room with him, you felt like there was a party going on.” Herman, who had known Sheftell for 10 years, called his death “surreal,” and said everyone who met the enterprising writer liked him. “He would help anyone,” she added. By Guelda Voien

Ex-City Connections agent grows new firm

A Partners NY, a full-service brokerage that launched last year, moved to a bigger office in June. The firm opened in September with three agents, and has grown to five. Two more are slated to come on board this month. Located at 3 Columbus Circle, the new office has room for seven desks; RA Partners’ previous space, nearby at 1745 Broadway, held three desks. RA Partners President Christine Ra, a City Connections alum, said she plans to employ a dozen or so agents by year’s end. “We don’t want to be the average brokerage,” said Ra, who has a buyer-side focus. “We want to strive to offer clients a level of connectivity and a breadth of life experience that they know we’re people, we’re multi-dimensional. We’re not just about selling The RA team, from left: Arthur Vinuelas, LaQuet Pringle, Kelly Armendariz, Chrisproperties.” tine Ra, Sam Cahn and Stephan Watts. Ra, who had worked for the past four years as a licensed salesperson at City Connections, decided to start her own firm after feeling the pull of entrepreneurship. RA Partners started with residential rentals, added sales and eventually tacked on commercial listings. Ra is now working with a client on bidding for a space at the World Trade Center, for example. Her firm even has an international presence: RA Partners is authorized to bring New York City buyers to a collection of luxury properties in Grenada. By Zachary Kussin

Stratco to focus on ‘high-stress’ assets

tratco Property Group — Stratco is a combination of the words strategy and command — officially launched July 1. The company specializes in repositioning troubled real estate assets in the New York City area, with an eye toward what founder and principal Robert Sedaghatpour called managing “high-stress and high-risk situations, even including dealing with criminal activity in buildings. The company, which has been incubating its business model since November, has three employees and has been consulting on more than 20 properties, Sedaghatpour said. Its projects have included the removal — in concert with law enforcement — of a neighborhood street gang from a Manhattan residential building. Sedaghatpour, who would not disclose other identifying details about the property, said the gang had damaged the building’s roof and occupied a vacant retail space, preventing owners from leasing it. In another less dramatic instance, Stratco worked on behalf of a lender, taking over construction on a stalled condominium complex in Westchester County. Stratco analyzed what still needed to be completed, and negotiated with the homeowners association and the local Department of Buildings in regard to Robert Sedaghatpour litigation pending against the borrower. The project was completed, and the remaining units sold. In 2003, Sedaghatpour founded Maccabee Homes, a Great Neck, N.Y.-based home building company that’s still in business. He also worked for an investment firm that specialized in repositioning multi-family and retail assets. Stratco’s goal this year is to become the city’s go-to consulting firm for troubled multi-family properties, Sedaghatpour said. By Zachary Kussin

110 July 2013 www.TheRealDeal.com

BROKER EXCHANGE Residential Brown Harris Stevens Nicholas Palance was appointed sales manager of the brokerage’s Park Slope office. He has served as executive vice president and managing director of sales since joining the firm in 2007. Citi Habitats Alex Cho has joined the firm as a senior managing director. He had been managing director of the Chelsea and Gramercy offices of MNS. Seth Hirschhorn, a senior managing director who has worked at the brokerage for 12 years, has been promoted to oversee the relocation division. Douglas Elliman Michael Allen, who joined the firm in April from aptsandlofts. com, was appointed director of marketing in Brooklyn, as well as director of sales of the Williamsburg office.

Commercial ABS Partners Real Estate Alan Friedman has joined the firm as senior managing director in the brokerage division. He had been an office tenant representative at CBRE. Carlton Group Liron Ben Yaacov has joined as managing director of the firm’s office in Tel Aviv. He had served as vice president at Profimex, a global real estate investment firm. Holland & Knight Stuart Saft has been tapped to chair the New York real estate practice; he joined the firm 13 months ago. He was formerly at Dewey & LeBoeuf. Murray Hill Properties Roxana Girand, Jesse Rubens and Rick Doolittle have been named partners in the brokerage division. Girand is a 13-year veteran at the firm. Rubens and Doolittle both joined the firm in 2002. Situs Roger Johnson and Edward Robertson have been named directors, and Brian Murray and David Risdon have been appointed vice presidents of the firm’s Bank & Loan Advisory Group. Johnson had been managing director at Garrison Investment Group. Robertson was managing director at Clayton Holdings. Murray was vice president at Keefe, Bruyette & Woods. Risdon was the commercial services underwriting manager at Clayton Holdings. United Realty Will Heishman has joined as managing director for the firm’s America Fund. He had been president of his own firm, Infinity Mortgage. Compiled by Sanna Chu

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Sweetening the deal Touted for bringing good luck to a property, fig trees help draw buyers

ly the “tree of knowledge of good and evil,” which successfully tempted Adam and Eve, getting them expelled from the Garden of Eden; and it is mentioned — along

Assault and ‘battery’ Condo board claims exploding laptop caused major damage

ew York City condominiums are often plagued by boiler breakdowns and raging floods, but an exploding laptop? Well, that’s what a lawsuit is claiming caused a fire at the Link in Midtown West.

A ThinkPad, made by IBM, sparked the blaze in July 2010 when its lithium ion battery went kaboom, causing $590,000 in damage to the building, according to court documents filed in New York State Supreme Court.

Left: The Link; right: A Think Pad gone awry

Smellin’ really good New luxury development

aims to lure buyers with its very own fragrance

t’s not every condo that has a signature fragrance. (Sniff, sniff.) Ah, but the Printing House in the West Village does. When the old printing factory-turned-condo launched sales in early spring, it not only debuted four custom-designed model units; it introduced “Australian Coast,” a scent hand-picked by developers Myles Horn, Belvedere Capital Management and Angelo, Gordon & Co. The fragrance, sprayed through six shoe-box-sized machines strategically placed throughout the lobby and the model units, is what the developers hope will “add to the experience of a buyer entering the building,” said Matt Muller, a project manager for Horn. Muller thinks the 64-unit Printing House, at 421 Hudson Street, is the first residential new development in

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WE HE AR D

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he fig tree, a symbol of knowledge in the Bible, has taken on yet another role: real estate selling point. Figs are drawing in buyers who give weight to their folklore. And they can sweeten the deal for sellers, sources told The Real Deal. “The story goes that if there is a fig tree on your property, it’s good luck,” said Adelaide Polsinelli, an investment sales broker with Eastern Consolidated. Last month, Polsinelli closed on the nearly $6 million sale of multi-family buildings on East 36th Street; the Orthodox Jewish buyer was attracted by the fig trees on the lot. A fig tree “I like to believe that it was what enabled us to get a higher price,” she said. The fig tree is important to many Jewish buyers: It is the first tree mentioned in the Torah; it is mostly like-

with barley, wheat, wines, olive oil, honey and pomegranates — as one of the seven species that fed the Israelites during biblical times, one that brought prosperity. Italian Americans, too, revere the fig tree. “Italian families plant fig trees as a sign of good luck and prosperity,” said Robert Sambone, with Brooklyn-based residential brokerage Galeano Real Estate. The presence of the trees revered by his culture “symbolize that the land is fertile.” Corcoran Group broker Ariel Shwedel’s listing at 327 Clinton Street, in Cobble Hill, has fig trees in the yard, but so far they have not caught a buyer’s eye. “I knew fig trees had special significance in Judaism, but in this case they did not seem to have a tremendous effect,” he said. “Maybe if we’d had pomegranates, it would have been a different story.” By Guelda Voien

Matt Muller with the fragrance machine that sprays “Australian Coast” throughout the Printing House.

New York City to put on a refreshing air, so to speak. Lots of hotels, though, like to smell good — and that’s where www.TheRealDeal.com

The condo board is blaming IBM and a Lenovo subsidiary for designing the defective battery as well as failing to adequately warn consumers of the danger. A spokesman for Lenovo declined to comment. An IBM spokesman did not return calls. Aarthi Belani, an attorney and employee of Credit Suisse, owns the apartment where the blast supposedly took place but is not a party to the lawsuit. The Fire Department confirmed that it responded to a report of smoke on the 21st-floor apartment on the day in question and put out a fire in the kitchen. No injuries were reported. Lenovo and IBM issued a voluntary recall of 168,500 batteries in 2006 with the U.S. Consumer Product Safety Commission, citing a battery that overheated and damaged a notebook computer while a passenger was boarding an airplane. The recall was extended in 2007. It is not clear whether the battery that exploded at the 215-unit Link, at 310 West 52nd Street, was covered under that recall or sold later. The exploding laptop presents a somewhat unusual liability claim, said Andrew Weltchek, a Manhattan real estate attorney who is not involved with the case. Condo boards, though, have sued before over defective appliances that caused damage, he noted. “It seems like an awful lot of damage for a battery,” Weltchek told The Real Deal. “You would think it had to have done some structural damage to the building.” By David Jones

the development team got the idea. The scent, available only commercially, comes from a line marketed by a North Carolina company called ScentAir. The cost: about $2,200 a quarter, Muller said. Scent can be an effective tool to market a building’s aesthetic, explained Caroline Errickson, the New York account executive for ScentAir, which counts Starwood hotels, many Holiday Inns and Disney among its clients. “Part of the experience is when [buyers] first walk in the door, that smell is already triggering a happy feeling,” she said. The developers sampled dozens of ScentAir’s fragrances, “from more floral to citrusy stuff,” Muller said. “We did it on-site, in one of our units, to get the feeling.” The group’s final pick was chosen for what Muller described as its “breathy airiness.” “A lot of our design is open and airy, so we wanted to play on that,” he added. “It’s just something fresh, clean and crisp.” By Hayley Kaplan PHOTOGRAPH OF MULLER FOR THE REAL DEAL BY DEREK ZAHEDI

“FOR PEOPLE TO DO WELL, BUSINESS MUST DO WELL” New York needs a Mayor that is pro-business and understands the needs of small business as well as the needs of the Real Estate industry.

I am one of you - I feel the pains of small business and the Real Estate industry. Thank you for your support.

Candidate for Mayor

JOHN CATSIMATIDIS

www.CATS2013.com @ JohnCats2013

@ JCats2013

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THE CLOSING

WITH ZIEL FELDMAN Ziel Feldman is the founder of investment and development company HFZ Capital Group and the chairman of Polar Investments. A graduate of Queens College and Cardozo Law School, Feldman has bought, sold and developed over 10,000 residential units over the course of his career. Prior to launching HFZ in 2005, he was a principal at the national development firm Property Markets Group, which bought and rehabbed the 226-unit Belnord apartment building in 1994. HFZ recently launched sales at the Marquand, a new 40-unit condo project at 11 East 68th Street, where prices start at $15 million. The company will soon bring to market a new 123-unit condo project at 303 East 51st Street in Turtle Bay, on the site of a deadly 2008 crane collapse, and the high-profile One Madison Park condo, which HFZ and Related Companies took over from creditors last year. What’s your full name? Ziel Feldman. Date of birth? May 28, 1958. Where did you grow up? I grew up in Kew Gardens, Queens, where [thanks to the prevalence of cemeteries] there are more dead people than live people. It’s a nice suburban community, but kind of claustrophobic. What did your parents do? My dad was in the textile business, and my mom was a homemaker. My dad was born in Germany, and my mom was born in pre-Palestine. My dad came to the

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U.S. in 1939 and my mom came in 1952. They still live in Queens.

real estate company called Property Markets Group, which I co-founded with Kevin Maloney.

Do you have family members who lived through the Holocaust? My dad escaped Hitler — he was about 12 when he fled. But my father-in-law, who is Hungarian, was one of the youngest survivors of Auschwitz.

You worked a little with Extell Development’s Gary Barnett during that time. I was introduced to Gary through a family member. He lived in Belgium and was in the diamond business with his wife’s family. He wanted to bring investors to New York in the early 1990s. We bought a lot together, including the Belnord in 1994. We were partners for a number of years and then at a certain point he moved to New York and started doing his own stuff.

How did you meet your wife? I met her through the Jewish singles scene back in the 1980s, in Miami during Passover. [It turned out that] her father and my parents, as refugees, met in school. I believe her parents were actually at my circumcision. What drew you to each other? What drew her to me is obvious! [Laughs]. I found her inner beauty even more striking than her outer beauty. … She’s extremely personable and can make conversation with a hat rack. [We] have three kids. Where do you live? I now live in Manhattan at one of our buildings at 11 East 68th Street, which is currently under construction. But we still have a home in Englewood, N.J., which has been on the market for sale. We [also] have a home in Bridgehampton, where we spend a lot of time. Why are you selling your Englewood home, which is designed to look like a French Chateau? I built it in 2000. When my youngest daughter was about to go to college, we decided to move back to the city, where we lived for about 15 years when we were first married.

Why did you decide to leave PMG and launch HFZ? Kevin’s interests had moved to Florida and it was time for me to be on my own. You were a bidder in the race to buy 650 Madison Avenue last month. What’s the story behind that? The story’s not over yet. What’s been your biggest career mistake? I was involved in investing in a rock-and-roll amusement park in Myrtle Beach. Our timing was a little off. We finished it under budget and early, but it opened in the summer of 2008, which was the worst time to open up. Most people drive to Myrtle Beach, and gas prices were at a record high. It was very hard to attract people. It went bankrupt and was sold. Did you at least get to try out the rides yourself? Yes. They had a Led Zeppelin roller-coaster ride, set to “Whole Lotta Love.” We had a Moody Blues “Nights in White Satin” roller-coaster ride.

How much are you asking for it? Around $12 million. At one point, it was listed at $20 million.

Are you a rock ’n’ roll fan? I like Bruce Springsteen and Simon & Garfunkel. The Rolling Stones are wonderful.

How did you get into real estate? I graduated from law school in 1983 and got a job in a small [real estate] legal practice. When the market collapsed, I could have become a bankruptcy lawyer to help my clients who went bankrupt, but instead I formed a

Have you ever played an instrument? Years ago, I went to accordion lessons, which is kind of embarrassing. I guess my mother wasn’t cool. I played the accordion without the monkey. By Katherine Clarke

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