22
The effect of the plummeting ruble
44
De Blasio at Year One
www.TheRealDeal.com
54
Ridgewood ramps up
88
Market hangover in 2015, or party on?
N EW YORK R EAL E STATE N EWS
136
Robert Durst in HBO’s lens
Vol. 13 No. 1 January 2015 $3.00
Most likely to litigate A first-ever look at the top Manhattan landlords in Housing Court p40
The new condo sales slowdown
Sizing up Spinola’s successor
The biggest deals of 2014
Fears of a high-end glut become a surprising chorus among big-name developers p46
Can John Banks’ influence rival REBNY’s longest-serving president? p38
Tallying the priciest transactions in residential, retail and building sales p56 ILLUSTRATION BY CHRIS MANFRE
Your Meeting Room Lobby Abington House
Your Deal Maker Jewel Box Lounge 1 MiMA Tower
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LET US HELP YOU FIND A NEW HOME FOR YOUR CLIENTS 24-hour attended lobby Inspired amenities
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Credit card payment*
5-star service • Easy transfers throughout portfolio •
Personal assistant service
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Online leasing
Complimentary amenity package, LQFOXGLQJ ð WQHVV FHQWHU SURYLGHG ZLWK \RXU FOLHQWâV QHZ OHDVH**
646 • 9LSH[LK9LU[HSZ JVT
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Los Angeles
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ASHKENAZY
ACQUISITION
Premier Manhattan
285 Lafayette Street
SoHo LOCATION Frontage on Lafayette, Jersey and Mulberry Streets in the heart of SoHo. SIZE ±6,900 SF Available *Divisions Considered
AVAILABLE FRONTAGE ±43’-4” on Lafayette St. ±49’-4” on Mulberry St.
SUBWAY PROXIMITY within 2 blocks within 2 blocks within 3 blocks
INFORMATION • Frontage on both Lafayette & Mulberry Streets • Brick walls, arched brick doorways, tin ceilings, OFX XPPE nPPST t /FJHICPSJOH SFUBJM JODMVEFT 3&* &RVJOPY ;BSB 6OJRMP 'PSFWFS #MPPNJOHEBMFT )PMMJTUFS ) .
249 Church Street
TriBeCa SIZE FRONTAGE Ground: ±1,561 SF Over 85’ of frontage Cellar: ±1,556 SF Sub Cellar: ±1,463 SF Total: ±4,580 SF INFORMATION • Excellent access to transportation in a central, highly accessible location • Directly opposite 56 Leonard, the largest residential development in TriBeCa and adjacent to brand new James Perse store • Over 15’-9” ceiling heights with two additional below grade levels
LOCATION Northeast Corner of Church & Leonard Streets
1424 Lexington Avenue
Upper East Side LOCATION SIZE Northwest corner of Available A: ±895 SF Lexington Avenue & 93rd St. Available B: ±480 SF Total: ±1,375 SF *can be combined
FRONTAGE Over 75’ of frontage on Lexington Avenue & 40’along 93rd St. SUBWAY PROXIMITY within 3 blocks within 7 blocks
INFORMATION • Located in the Upper East Side’s Carnegie Hill neighborhood •Current tenants include Ottomanelli Brothers Restaurant, Vela Pizzeria & Pet Central
1991 Broadway
-JODPMO 4RVBSF 6QQFS 8FTU 4JEF FRONTAGE LOCATION SIZE Over 55’ of prime glass On Broadway between 67th Ground: ±4,600 SF frontage on Broadway Mezzanine: ±1,965 SF & 68th Streets Lower Level: ±2,074 SF SUBWAY PROXIMITY Total: ±8,639 SF within 5 blocks INFORMATION • Directly adjacent to the Apple store at Lincoln Center • Directly across from the World Famous Lowes Theater and only 3 blocks from Lincoln Center for the Performing Arts
145 Greene Street
SoHo LOCATION Corner of Greene Street & Houston Street
SIZE Ground: Lower Level: Total:
±1,936 SF ±811 SF ±2,747 SF
FRONTAGE Over 124’ of frontage along Houston Street
INFORMATION • Extraordinary frontage in SoHo • Neighboring retail includes: Chanel, Louis Vuitton, Club Monaco, Ralph Lauren, Burberry, Dior • At the cross-roads of SoHo, NYU, Greenwich Village, and NoHo
For Leasing Information Please Contact:
A.J. Levine • alevine@aacrealty.com • 646.214.0245 Daniel Iwanicki • diwanicki@aacrealty.com • 646.214.0251
Retail Opportunities
ASHKENAZY
ACQUISITION
4250 Broadway @ 181st Street
Washington Heights LOCATION Spans the entire city block between Wadsworth Avenue & Broadway on the South side of W. 181st St. SUBWAY PROXIMITY within 1 block within 4 blocks SIZE ±25,865 SF
FRONTAGE ±150’ on 181st St. ±102’ on both Broadway & Wadsworth Ave.
*divisions considered
INFORMATION • Neighboring retail includes: Capital One,Duane Reade, McDonald’s, Foot Locker, Citi Bank, The Vitamin Shoppe • Located 1 block North of the GW Bridge Bus Terminal which serves over 4 Million passengers annually and is undergoing a $183.2 million renovation with an array of mSTU DMBTT SFUBJM BOE XJMM RVBESVQMF JO TJ[F UP 4'
1400 Fifth Avenue
Upper Manhattan LOCATION Southwest Corner of 5th Avenue & 116th St. FRONTAGE ±45’ on Fifth Avenue; ±119’ on 116th St.
SIZE Available ‘A’: ±3,295 SF* Available ‘B’: ±2,444 SF* Total: ±5,739 SF *can be combined
SUBWAY PROXIMITY within 1 block within 3 blocks within 4 blocks
INFORMATION • 13’ average ceiling heights t "U UIF CBTF PG )BSMFN T mSTU TVTUBJOBCMZ DPOTUSVDUFE DPOEPNJOJVN CVJMEJOH
Philip House (1311-1337 Lexington Avenue)
Upper East Side LOCATION Located on Lexington Avenue between 88th & 89th Streets
SIZE Up to ±4,000 SF
SUBWAY PROXIMITY within 2 blocks
INFORMATION • Situated at the base of Philip House, a classic 12-story prewar condominium conversion containing 71 luxury residences • Located in the heart of Carnegie Hill, home to some of the world’s wealthiest residents
156 Delancey Street
Lower East Side LOCATION Corner of Delancey & Clinton Streets, at the foot of the Williamsburg Bridge FRONTAGE Over 100’ of frontage along Delancey Street
SIZE Ground: ±2,725 SF Up To: ±5,250 SF* *with proposed 2nd level
SUBWAY PROXIMITY within 1 block
INFORMATION • Be seen by over 111,189 vehicles and over 200k people traveling the bridge each day • Directly across from the newly approved Essex Crossing Development, a 1.9M SF mixed use project including 1,000 new housing units
241 Church Street (66 Leonard Street)
TriBeCa LOCATION Southeast Corner of Church Street & Leonard Street
SIZE Ground: Cellar: Sub-Cellar: Total:
±7,080 SF ±8,155 SF ±13,236 SF ±28,471 SF
FRONTAGE ±125’ on Church Street ±40’ on Leonard Street
INFORMATION • Located at the base of the premier residential building in TriBeCa and directly across the street from 56 Leonard, the largest residential development in TriBeCa (145 units over 60 stories) • Central, highly accessible location situated between Wall Street and the Financial District to the South and the West Village and SoHo to the North
Join our Leasing Team:
careers@aacrealty.com
4 43 G R E E N W I C H S TR E E T
4 43GREENWICH.CO M
A TRIBEC A L ANDMARK. REIMAGINED.
212.87 7.4 4 33
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Architec ture & Interiors
Developer M E T RO LO F T D E V E LO P E R S , L LC
Sponsor: SGN 443 GREENWICH STREET OWNER LLC, c/o Metro Loft Management LLC,5 Hanover Square, 3rd Floor, New York, New York 10004. THE COMPLETE OFFERING TERMS ARE IN AN OFFERING PLAN AVAILABLE FROM SPONSOR. FILE NO. CD140063.
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ONESOTHEBYSREALTY.COM
Contents J A N U A R Y 2 0 1 5
22
Global gloom buoys NYC deals
26
By the Numbers
28
At the desk of Karim Rashid
32
28
How shifting exchange rates — including the plummeting ruble — are affecting dealmaking in the city.
The Brooklyn Navy Yard races to grow to meet tenant demand.
The designer’s space is filled with his handwork, from lamps to bookends.
Designer Karim Rashid
In their words ... The month’s funniest and most insightful real estate comments.
38 Spinola’s successor A look at incoming REBNY president John Banks shows that he has a lot in common with the outgoing president.
Con Ed’s John Banks takes the reins mid-year.
40 Most likely to litigate The Real Deal tallies the city’s top landlords in housing court.
46
48
44
Appraising the mayor
46
Fearing a slowdown
One year in, a clearer picture of de Blasio’s relationship with real estate issues emerges.
Concern from top developers about the high-end slice of the residential market has become a chorus.
Bracing for rising interest rates After hitting historic lows, a look at where loan prices are expected to land in 2015.
50 Altared sites As churches go dark, the enticing properties prompt speculation in real estate circles. Our Lady of Peace R.C. Church is slated be merged.
10 January2012 2015 www.TheRealDeal.com www.TheRealDeal.com 8 October
www.TheRealDeal.com March 2012 00
Contents continued 52
symphonist of steel 52 The Starchitect Santiago Calatrava discusses his WTC transit hub.
rising 54 Ridgewood TRD takes a “Neighborhood Dive” into the gentrifying area on the border of Queens and Brooklyn.
Santiago Calatrava
56 2014 in review Check out stories on NYC’s biggest residential sales, priciest commercial deals, broker headcount and more. The former French Ambassador’s residence went for $71 million, the priciest closed co-op sale in NYC history.
74
Where to buy to get away from a New York winter
80
What they’re reading now
A look at the most popular second (or third) home destinations for city dwellers.
20
Real estate pros share their picks for books this month, from tough leadership to notorious architects.
Residential Market Report Checking in with brokers to take the pulse of the apartment market.
84
30
Day in the Life
Commercial Market Report
Developer Eran Polack on toning down his colorful project in Harlem, and boxing for fun.
Tracking rents and vacancy figures in Manhattan’s three office districts.
94 National Market Report Reports from around the country on significant developments and trends.
96 The Deal Sheet A roundup of office and retail leases, building buys and financing. Eran Polack’s HAP has four projects under construction in NYC.
88
Development Updates
Weighing what 2015 will bring After a banner year, real estate pros share their outlook for what’s ahead.
An update of the construction and sales status of projects around the city.
116
138
Residential Deals An insiders’ look at how home sales really happen.
Peebles: Potential Candidate?
130
The developer talks politics, race and the differences of building in NYC. Don Peebles
10 12 January October2015 2012 www.TheRealDeal.com www.TheRealDeal.com
114
Calendar of Events Check out this month’s activities.
136 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
Whether you need to buy or sell a building having a real estate broker that knows the local players is key - the buyers and the sellers. You need an intensely dedicated broker who is still on the job long after the lights have gone out elsewhere.
You need Rosewood Realty Group
PUBLISHER Amir Korangy EDITOR-IN-CHIEF Stuart W. Elliott MANAGING EDITOR Jill Noonan DEPUTY MANAGING EDITOR Eileen AJ Connelly EDITORIAL DEVELOPMENT DIRECTOR Heather Grossmann MANAGING WEB EDITOR Hiten Samtani SENIOR WEB EDITOR John Goff ART DIRECTORS Ronald Gross, Keziah Makoundou SENIOR REPORTER Adam Pincus
212.359.9900
www.rosewoodrealtygroup.com
Rosewood Ranked #1 Investment Sales Firm In Outer Boroughs for 2013.
REPORTERS Rich Bockmann, E.B. Solomont CONTRIBUTORS C. J. Hughes, David Jones, Jennifer White Karp ASSOCIATE WEB EDITOR Mark Maurer WEB PRODUCERS/WEB REPORTERS Tess Hofmann, Katherine Kallergis, Claire Moses SOCIAL MEDIA COORDINATOR Kerry Barger PRODUCTION COORDINATOR Victoria Tuturice RESEARCH ASSISTANT Kyna Doles EDITORIAL ASSISTANT Brendan O’Connor INTERN Juan Zielaskowski
*As published in The Real Deal.
PHOTOGRAPHER Marc Scrivo
We are pleased to announce that for the year ending December 31st 2014, Rosewood has completed total sales of
$1,988,604,000 which include:
Manhattan: Aggregate sales of
$786,728,000
69 Buildings / 1,901Residential Units / 119 Commercial Units Brooklyn: Aggregate sales of
$383,165,000
67 Buildings / 2,293 Residential Units / 29 Commercial Units
DIRECTOR OF MARKETING OPERATIONS Yoav Barilan NATIONAL SALES DIRECTOR Ross Fox SOUTH FLORIDA ADVERTISING DIRECTOR Chris Cuomo ADVERTISING SALES Eran Evron, Nick Mascaro, Robert Stearns, Nicki Chadi, Sigalit Levi, Marcus Guest, Barry Holland, Frankie Grima DIGITAL TRAFFIC MANAGER Junaid Zahid WEBMASTERS Nima Negahban, Andrew LoCascio ASSOCIATE WEB DEVELOPER Amir Ghaheri FINANCE DIRECTOR Kenneth Cyrus OFFICE MANAGER Virginia Durso CIRCULATION Paul Destanko
Bronx: Aggregate sales of
$336,706,000
63 Buildings / 2,943 Residential Units / 69 Commercial Units Queens: Aggregate sales of
$482,005,000
76 Buildings / 2,743 Residential Units / 13 Commercial Units
© Copyright 2014 Rosewood Realty Group. All rights reserved.
14 January 2015 www.TheRealDeal.com
DISTRIBUTION Mitchell Newman, Patricia Hofmann, Forero Express ATTORNEY Barry J. Friedberg Trachtenberg Rodes & Friedberg LLP ACCOUNTANTS William T. McCallum, CPA, P.C., Christine Wang The Real Deal is a registered trademark of Korangy Publishing Inc. Copyright © 2015. 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.
V I S I T G A M E C H A N G E N Y C C O M F O R M O R E I N F O R M AT I O N
The support and services of a traditional 50/50 firm while still paying commissions from 70% to 100%. The maximum the company can earn is $22,500, 70% on the first $75K GCI, after which 100% is yours. Are you being charged technology, marketing, franchise, E+O, and administrative fees? We donâ&#x20AC;&#x2122;t. Contact David Schlamm to discuss your next move. davids@ccrny.com
Schlamm Dunk
ETHICAL, EXPERIENCED, ENTREPRENEURIAL.
David Schlamm, President & Founder
EDITOR’S NOTE Real estate’s new era his month marks the end of the first year of a new era in New York City real estate, mirroring a new period for the whole city. It’s the first anniversary of the administration of Mayor de Blasio, who sparked fear in the industry during his campaign when he said “towering, glitzy buildings marketed to the global elite is not the type of development New Yorkers are looking for.” Turns out, he hasn’t been as harsh as that, and in our analysis of his first year on page 44, developer Francis Greenburger even opines, “He’s the right person for the right time. It’s about finding the right balance for issues” like middle-class wages and the criminal justice system. “That’s essential for having a stable environment, and if you don’t have a stable environment, real estate doesn’t do well.” Still, there’s uncertainty surrounding some initiatives, like de Blasio’s push for affordable housing. Investors buying development sites, for instance, are not sure how much they can actually build after meeting the plan’s requirements. But one thing is for certain: A rollback of the post-9/11 era is happening, with parts of the Bloomberg legacy, like poor doors and stop-and-frisk, falling into disfavor. And in this new period, what seemed trendy before, like Brooklyn, for example, is increasingly the new normal. Brooklyn as a rival to Manhattan? No surprise. A $10 million townhouse sale in Park Slope? Get used to it. On the digital front, in the future, no one will start a “tech” company — all companies will be de facto digital companies, just like all businesses are online. And as behemoths like Google and Facebook continue to gobble up Manhattan office space, their unique corporate cultures will eventually be the defacto corporate culture. Which brings me to our most read stories of the past year. The start of 2015 is a good time to look at our most popular pieces. You can see them at therealdeal.com/archives. At the top was a profile of developer Jared Kushner, who epitomizes this new era, and has “Brooklyn” and “tech” on lock. (He also happens to own a publication called the New York Observer.) Our story chronicles the young CEO’s rise to the top of his family’s company and his appetite for megadeals, including being a part of the $375 million buy
T
In this new period, what seemed trendy before, like Brooklyn and all things tech, is increasingly the new normal. of the old Watchtower complex in Dumbo, which is receiving a massive redo as a 21st century office space catering to startups. Many of our other top stories, unsurprisingly, focused on development, including our examinations of the most active developers, the newest players in the game, the astronomical prices for new condos and the riskiest deals. Other stories that did well were rankings of brokers and brokerages, a look at the industry’s rising stars, and a survey of the next big ideas in New York real estate. A story on the Syrian Jewish investors dominating city retail — including players like Jeff Sutton and Joe Sitt — also generated a lot of interest. There is also a lot to feast on in this issue. Our main cover story takes a look at landlords who are the most active in going after tenants in Housing Court (see page 40). It’s the first-ever ranking of its kind, which involved combing through more than 6,000 Manhattan housing court cases. Another cover story examines the surprisingly growing chorus of big-name developers pointing to the glut in the high-end new condo market. See page 46. We also look at the biggest deals of 2014 (page 56), and profile the next president of REBNY, as its longest-serving president, Steve Spinola, departs (page 38). Here are the most viewed magazine stories of 2014: 1. Jared Kushner, the accidental CEO (February) 2. NYC’s most active developers (April ) 3. The Syrian retail touch (January) 4. New players get in the NYC development game (October) 5. Ranking new condos by per-square-foot prices (February) 6. Manhattan’s riskiest development deals (July) 7. NYC’s 2014 top agents ranking (July) 8. Annual brokerage ranking: Big firms thrive despite inventory crunch (May) 9. Real estate’s rising stars (March) 10. Real estate’s next big ideas (July) Enjoy the issue and the New Year.
Stuart Elliott 16 January 2015 www.TheRealDeal.com
$ $1,075,000 BROOKLYN, NY
$ 815 000 $1 $1,815,000 HAMILTON, NJ
$1,075,000 $1 075 000 BROOKLYN, NY
$1,012,500 BROOKLYN, NY
$3,500,000 JERSEY CITY, NJ
$1,012,500 BROOKLYN, NY
$7,595,000 BROOKLYN NY
$5,000,000 ELMHURST, NY
$7,595,000 BROOKLYN NY
$1,650,000 RIDGEWOOD. NY
$1,450,000 RIDGEWOOD, NY
$1,650,000 RIDGEWOOD. NY
$3,225,000 JERSEY CITY, NJ
$1,575,000 MERIDEN, CT
$3,225,000 JERSEY CITY, NJ
$ ,350,00 $1, $1 ,000 $1,350,000 ASHINGTON ASHINGTO NGTON NGTO N, D DC C WASHI
$2,400,000 $2,400 $2, $2 400,00 ,000 000 BRONX, NY
$1,350,000 $ ,350 $1, 350,00 , 0 ,00 WASHI ASHINGTON ASHINGTO NGTON NGTO N, D DC C
$1,080,000 BROOKLYN, NY
$2,400,000 BROOKLYN, NY
$1,080,000 BROOKLYN, NY
$ $14,332,000 TAMPA, FL
$18,750,000 BROOKLYN, NY
$14,332,000 TAMPA, FL
$6,000,000 NEW YORK, NY
$2,250,000 PHILADELPHIA, PA
$1,004,500 LAKEWOOD, NJ
$3,900,000 SANFORD, FL
$2,500,000 VOORHEES, NJ
$40,000,000 BALTIMORE, MD
$5,760,000 $5 760 000 HOLLIS, NY
$12,888,500 $12 888 500 SPRINGFIELD, IL
$1 $1,000,000 000 000 BRONX, NY
$2,200,000 BALTIMORE, MD
$7,912,500 LAUDERHILL, FL
$1,665,000 MIAMI, FL
$1,018,500 BROOKLYN, NY
$1,500,000 BROOKLYN, NY
$5,300,000 ELMHURST NY
$1,300,000 BROOK ROOKLYN LYN, NY
$1,125,000 BROOK ROOKLYN LYN, NY
$31,000,000 PHILA HILADELPHIA HILADELP DELPHIA DELP HIA, PA
$17,850,000 NEWARK, NJ
$1,193,085 WASHINGTON, DC
$19,500,000 LAKEWOOD, NJ
$2,750,000 BRONX, NY
$3,200,000 BROOKLYN, NY
$2,800,000 PHILADELPHIA, PA
$4,800,000 BRONX, NY
$2,000,000 BROOKLYN, NY
$1,450,000 BROOKLYN, NY
$3,675,000 JACKSON, NJ
$2,493,750 TOMS RIVER, NJ
$3,075,000 YONKERS, NY
$1,850,000 BROOKLYN, NY
$1,100,000 BRONX, NY
$2,500,000 MIAMI, FL
$ $1, $1 ,260,00 ,260 ,000 $1,260,000 BROOK ROOKLYN OO LYN, NY
$ $1, $1 ,800,00 ,800 ,000 $1,800,000 BROOK ROOKLYN OO LYN, NY
$3,,975 $3 $ ,975,00 ,000 $3,975,000 BRONX O , NY
$1,376,000 FAR ROCKAWAY, NY
$5,000,000 NEW YORK, NY
$4,150,000 JERSEY CITY, NJ
$10,000,000 NEW YORK, NY
$4,900,000 BROOKLYN, NY
$2,995,000 NOTTINGHAM, MD
ANY DEAL ANY SIZE
$1,087,500 BROOKLYN, NY
$40,237,500 BRONX, NY
$1,087,500 BROOKLYN, NY
$14,100,000 LEVITTOWN, PA
$5,350,000 REYNOLDSBURG, OH
$14,100,000 LEVITTOWN, PA
$1,450,000 BRONX, NY
$1,020,000 WATERBURY, CT
$1,450,000 BRONX, NY
$1,747,500 $1 747 50 500 0 BROOKLYN, NY
$1,275,000 $1 275,000 $1,275 $1 000 JERSEY CITY, NJ
$1,747,500 $ $1,747 $1 ,747,,500 50 00 BROOKLYN, NY
$4,200,000 BROOKLYN, NY
$1,200,000 WEST HEMPSTEAD, NY
$4,200,000 BROOKLYN, NY
$5,300,000 CINCINNATI, OH
$4,763,000 BRONX, NY
$5,300,000 CINCINNATI, OH
$1,420,000 BROOKLYN, NY
$2,350,000 BALTIMORE, MD
$1,420,000 BROOKLYN, NY
$1,357,000 PHILADELPHIA, PA
$1,181,250 BROOKLYN, NY
$1,357,000 PHILADELPHIA, PA
$3,300,000 $ ,300,00 $3, , 0 TULSA, OK
$2,212,000 PULAS ULASKI KI, VA
$3,300,000 TULSA S , OK
$14,250,000 $ BRONX, NY
$3,750,000 BRONX, NY
$14,250,000 BRONX, NY
$15,370,000 $ BROOKLYN, NY
$2,500,000 BROOKLYN, NY
$15,370,000 BROOKLYN, NY
ANYWHERE $4,875,000 BROOKLYN, NY
$1,725,000 BRONX, NY
$2,125,000 BROOKLYN, NY
$2,740,000 NEW YORK, NY
$2,125,000 BROOKLYN, NY
$2,750,000 NEW YORK, NY
$1,700,000 SPRING VALLEY, NY
$2,750,000 NEW YORK, NY
$6 862,500 $6,862 $6 500 $6,862,500 BROOKLYN, NY
$8 320,00 $8,320 $8, $8 ,000 000 $8,320,000 PHILADELPHIA, PA
$6,862,500 $ ,862 $6, $6 86 ,50 862 ,500 BROOKLYN, NY
$1,200,000 BROOKLYN, NY
$2,100,469 BALTIMORE, MD
$1,200,000 BROOKLYN, NY
$1,300,000 ORANGE, NJ
$7,950,000 ALLENTOWN, PA
$1,300,000 ORANGE, NJ
$4,500,000 BROOKLYN, NY
$1,150,000 NEW HAVEN, CT
$4,500,000 BROOKLYN, NY
$4,000,000 $4 BROOKLYN, NY
$1,950 $1 $1,950,000 950,000 000 BROOKLYN, NY
$4,000,000 $4,000 $4 000,000 000 BROOKLYN, NY
$1,500,000 RIDGEWOOD, NY
$1,425,000 DAYTON, OH
$1,500,000 RIDGEWOOD, NY
$1,000,000 BRROOKLYN OOKLYN, NY
$5,250,000 BRONX, NY
$1,000,000 BROOK ROOKLYN LYN, NY
$1,000,000 BROOKLYN, NY
$1,230,000 DENVER, CO
$1,000,000 BROOKLYN, NY
$9,300,000 BROOKLYN, NY
$1,400,000 BROOKLYN, NY
$9,300,000 BROOKLYN, NY
$1,110,000 WES EST E ST NEW YORK, NJ S
$11,627,642 COLUMBUS, OH
$1,110,000 WEST NEW YORK, NJ
$4 $4,211,000 4,211 1,00 00 00 WYTHE YTHEVILLE Y EVILL VILLLE, VA VA
$1,200,000 $ ,200,00 $1, $1 ,000 BROOK ROOKLYN LYN, NY
$ $4, $4 $4,211,000 4,211,00 ,000 WYTHE YTHEVILLE YTHEVILL VILLE VILL E, VA
$6 6,4 400,000 $6,400,000 UNI NION ION N CIT ITY TY, N NJJ
$1,000,000 BRONX, NY
$6,400,000 UNION CITY, NJ
$4 000 000 $4,000,000 $ BROOKLYN, NY
$1,360,000 BROOKLYN, NY
$1750,000 BROOKLYN, NY
$2,000,000 HACKETTSTOWN, NJ
$2,200,000 BROOKLYN, NY
Multi-Family $9,825,000 MOUNT LAUREL, NJ
$4,125000 JACKSONVILLE, FL
$3300,000 LAKEWOO,D NJ
$3,325,000 PHILADELPHIA, PA
$1,890,000 RIDGEWOOD, NY
$2,50 $2, $2 $2,500,000 50 00,00 ,000 000 HILADELPHIA HILADEL DELLP LPHIA HIA, PA P PHILA
$1 650,00 $1,650 $1, $1 ,000 000 $1,650,000 BRONX, NY
$2,310,000 $2,31 10,000 BROOK ROOKLYN LYN, NY
$9,400,000 BROOKLYN, NY
$1,275,000 BROOKLYN, NY
$4,300,000 BROOKLYN, NY
$2,037,000 PHILADELPHIA, PA
$1,775,000 BALTIMORE, MD
$2,200,000 BALTIMORE, MD
$2,820,000 BORDENTOWN, NJ
$2,700,000 KEW GARDENS, NY
$2,100,000 BROOKLYN, NY
$1,875,000 JERSEY CITY, NJ
$2,418,750 $2 418 750 BRONX, NY
$3 300 000 $3,300,000 BROOKLYN, NY $13,600,000
$11,400,000 $11 400 000 NORFOLK, VA
BROOKLYN, NY
$1,200,000 BROOKLYN, NY
$1,650,000 BROOKLYN, NY
$2,500,000 WEST HAVEN, CT
$2,100,000 BROOKLYN, NY
$21,000,000 BROOKLYN, NY
$1,400,000 WEST HAVEN, CT
$1,700,000 STUART, FL
$13,357,000 CUTLER BAY, FL
$3,375,000 BRONX, NY
$1,300,000 BROOKLYN, NY
$1,750,000 $1,750 $1, $1 750,00 ,000 000 HILADELPHIA HILADELP DELPHIA DELP HIA, PA PHILA
$1 $1,400 $1, $1,400,000 400,00 ,000 000 LAKEW AKEWOOD OOD, N NJJ
$2 $2,300 $2, $2,300,000 300,00 ,000 000 ARTFORD ARTF FORD, NY NEW HART
$6,600,000 NEW YORK, NY
$1,125,000 BROOKLYN, NY
$1,000,000 ELIZABETH, NJ
$4,000,000 BROOKLYN, NY
$6,880,000 BRONX, NY
$1,950,000 BROOKLYN, NY
$4,000,000 BROOKLYN, NY
$2,720,000 BRONX, NY
$6,000,000 BRONX, NY
$2,850,000 BROOKLYN, NY
$8,720,000 BRONX, NY
$1,927,349 BROOKLYN, NY
$1,180,000 BROOKLYN, NY
$21,500,000 HILLCREST HEIGHTS, MD
$3,000,000 BROOKLYN, NY
$1,400,000 BROOKLYN, NY
$1,950,000 LAKEWOOD, NJ
$1,500,000 BROOKLYN, NY
$2,250,000 NYACK, NY
$3,120,000 LAKEWOOD, NJ
$2,350,000 WEST NEW YORK
$26,000,000 BROOKLYN, NY
$1,450,000 ROCKAWAY, NJ
$1,950,000 BRONX, NY
$9,675,000 HATBORO, PA
$1,100,000 BROOKLYN, NY
$1,300,000 BROOKLYN, NY
$2,977,500 $2 977 500 LONG ISLAN SLAND D CITY, NY
$1,312,500 $1 312 500 PHILA HILADELPHIA HILADELP DELPHIA HIA, PA
$25,000,000 $25 000 000 BROOK ROOKLYN LYN, NY
$1,860,000 $ ,860 $1, $1 860,00 ,000 BROOKLYN, NY
$ $12 $12,450,000 ,450,0 ,45 0,000 NEWARK, NJ
$1 $ $1, $1,500,000 ,500 500,00 ,000 NEW YORK, NY
$1,875,000 $ $1,875 $1 1 875,000 000 PIKESVILLE, MD
$1,000,000 BRONX, NY
$3,000,000 BROOKLYN, NY
$9,000,000 NEW YORK, NY $3,850,000 BROOKLYN, NY $1,400,000 BROOKLYN, NY
Orlando, FL
$1,160,000 BROOKLYN, NY
$10,875,000 BRONX, NY
$4,600,000 ASHINGTON ASHINGTO NGTON NGTO N, D DC C WASHI
$1,000,000 BRONX, NY
$12,800,050 $ ,80 $12 ,800,0 0,050 W LONG BRANCH $7,900,000 CHESTER, PA
We’ll overnight it $3,400,000 BRONX, NY
$1,330,000 BROOK ROOKLYN LYN, NY
$13,500,000 BROOKLYN, NY $5,500,000 FAR ROCKAWAY, NY $1,300,000 BROOKLYN, NY $8 250 000 $8,250,000 TAMPA, FL $4,125,000 BRONX, NY
$3,600,000 BRONX, NY
$1 $1,050,000 050 000 BRONX, NY
$1,000,000 BROOKLYN, NY
Health Care $1,650,000 BROOKLYN, NY $3,788,000 BRONX, NY
$2,307,000 BRONX, NY
$1,450,000 BROOKLYN, NY $41,200,000 QUEENS, NY
$2,900,000 BROOKLYN, NY $2,500,000 BEDFORD, TX
$2,100,000 BROOK ROOKLYN LYN, NY $32,500,000 FAR ROCKAWAY, NY $12,975,000 BROOKLYN, NY $1,080,000 BROOKLYN, NY $7,423,000 ORLANDO, FL
$2,625,000 WEST NEW YORK, NJ $ $1,100 $1, $1 1 100,00 ,000 000 $1,100,000 BROOKLYN, NY $3,000,000 BRONX, NY $1,350,000 BROOKLYN, NY $1,500,000 BROOKLYN, NY $2 800,000 $2,800,000 $2,800 000 WAYNE, NJ
$12,600,000 FORT MYERS, FL
$1,500,000 BAYONNE, NJ
$1,500,000 BROOKLYN, NY
$1,750,000 BROOKLYN, NY
$2,500,000 $1,710,000 BROOKLYN, NY
$1,700,000 BELLEVILLE, NJ
$32,000,000 WILLI ILLIMANTIC ILLIMANT MANTIIC, CT MANT CT $2,400,000 BROOKLYN, NY $4,500,000 BRONX, NY $2,835,000 PEMBERTON, NJ
$1,627,500 HESTER ER, PA CHEST
$ $2, $2 ,000,00 ,000 ,000 $2,000,000 BROOK ROOKLYN OO LYN, NY
$1,000,000 NEW BRITAIN, CT
$3,300,000 NEW YORK, NY
$1,500,000 QUEENS, NY
$2,000,000 PLAINFIELD, NJ $1,600,000 HOWELL, NJ
$1,762,000 FAR ROCKAWAY, NY $4,500,000 BROOKLYN, NY
Tulsa, OK
Miami, FL
$2,540,000 JERSEY CITY, NJ
$3,125,000 NEW YORK, NY $18,000,000 $ $18 ,000,0 ,00 0,000 BALTIMORE, MD
$1,675,000 $1 675 000 HOWELL, NJ
$1,000,000 PEMBERTON TOWNSHIP, NJ
$2,300,000 NEW YORK, NY
$7,600,000 $7 600 000 INDIANAPOLIS, IN
$1,500,000 BALTIMORE, MD
“Call me at 10:30$4,200,000 tonight” $7,395,555 BRONX, NY
$14,310,000 CINCINNATI, OH
$9,100,000 NEW YORK, NY
$10,575,000 $ $10 ,575,0 ,57 5,000 NEW YORK ORK, NY
$8,858,000 MONTGOMERY, AL $1,652,000 CONCORD, PA
Wytheville, VA
$1,700,000 BROOKLYN, NY
$4,000,000 BROOKLYN, NY $1,200,000 BROOKLYN, NY
HOWELL, NJ
$1,560,900 HYATTSVILLE, MD $4,887,000 BRAINTREE, MA
$1,025,000 $1,025 $1, 025,00 025 ,000 ,00 0 CKSON HEIGH EIGHTS, EIGHTS JAACKSON $22,500,000 MERIDIAN, MS
$1,000,000 SPRING VALLEY, NY
$12,975,00
$1,500,000 NEW YORK, NY
$40,237,500 $1,000,000 BROOKLYN, NY
$47,200,000 BALTIMORE, MD
$1,040,000 $ $1 040 000 PHILADELPHIA, PA
Bridge Loan
$3,200,000 NEW YORK, NY
$1,050,000 BRONX, NY
$21 750 000 $21,750,000 DOVER, DE
$1,700,000 PHILADELPHIA, PA
$1,500,000 $1 500 000 BROOKLYN, NY
$ $1, $1 1,555 555 5,00 000 00 $1,555,000 BROOKLYN, NY
$1,400,000 FARMINGDALE, NJ
“Call me on my cell” $5,250,000 BRONX, NY
$3,500,000 LITTLE NECK, NY
New York, NY
$15,440,000 BRONX, NY
$3,750,000 $3 750 000 BRONX, NY
BRONX ,NY
$3,200,000 KINGWOOD, NJ
$7,440,000 $24,173,000 $8,700,000 FAR ROCKAWAY, NY
$1,700,000 BROOKLYN, NY
Brooklyn , NY
$1,200,000 BOOTHWYN, PA
$3,000,000 MAMARONECK, NY
$1,100,000 BROOKLYN, NY
$1,000,000 BROOKLYN, NY
Parking Garage
Hotels
$47,000,000
$1,785,000 BROOKLYN, NY
ANY TIME
$1,725,000 BRONX, NY
PHILADELPHIA, PA
$2,786,000 MEDIA, PA
$2,450,000 QUEENS, NY
$2,500,000 PHILADELPHIA, PA
$32,
$3,750,000 NEW YORK, NY $3,750,000 BRONX, NY $16,000,000 TRENTON, NJ $1,230,000 PIKESVILLE, MD $5,501,250 LAVALE, MD $2,000,000 BROOKLYN, NY
Baltimore, MD $3,990,000 ATLANTA, GA
$1,015,000 $1 015 000 CARROLLTON, GA $1,792,500 GAINESVILLE, GA $24,173,000 FLUSHING, NY
$6,300,000 PASSAIC, NJ
$3,000,000 $ $3, $3 ,000 000,00 ,000 BRISTOL, PA $1,850,000 BROOKLYN, NY $1 $1,500,000 500 000 NEW YORK, NY
Over the wee
$1,015,000 CRUM LYNNE, PA
$3,335,000 MOUNT OLIVE, NC
$6,500,000 $1,260,000 “Should we over dinner?” L , NJ meet $2,350,000 B , NY
$1,450,000 $1,450 $1, $1 450,00 ,000 000 BAYON AYONNE NE, N NJJ $2,500,000 NEW YORK, NY $1,240,000 BROOKLYN, NY $7,000,000 BROOKLYN, NY $1,890,000 GREENVILLE, MS
AKEWOOD
$3,100,000 LAKEW AKEWOOD OOD, N NJJ $1,200,000 BROOKLYN, NY $1,200,000 BRONX, NY $2,887,500 BROOKLYN, NY $8,120,000 $8 120 000 JACKSON HEIGHTS, NY $1,500,000 BROOKLYN, NY
BRONX, NY
$16,500,000 $16,50 ,500 500,0 0,000 000 OUISVILLE OUISVILL VILLE VILL E, KY LOUIS $5,450,000 BROOKLYN, NY $7,927,500 EGG HARBOR, NJ $2,000,000 BROOKLYN, NY $1,475,000 BROOKLYN, NY
ROOKLYN
$2,058,000 BALTI ALTIMORE MORE, MD $1,600,000 BROOKLYN NY $4,850,000 MUSKOGEE, OK $3,700,000 BROOKLYN, MD
$1 600 000 $1,600,000 STATEN ISLAND, NY
$2,500,000 ROCKAWAY PARK, NY
THERE’S A REASON EASTERN UN
$2,887,500 $2 2,8 887,500 WES EST E ST NE S EW W YO ORK RK, NJ $2 $2,700,000 2,7 700,000 EST E ST NE S EW W YO ORK RK, NJ WES
Eastern Union Funding 866.862.4800 www.easternuf.com $3,900,000 BROOKLYN, NY $4,500,000 BROOKLYN, NY
$2,887,500 WEST NEW YORK
$2,700,000 WEST NEW YORK,
$2,287,500 BROOKLYN, NY
$2,120,000 BRAINTREE, MA
$4,960,000 $4 4,9 960,000 BRA RAINTREE AINT TRE EE, M MA A
$1,300,000 BROOK ROOKLYN LYN, NY
$4,960,000 BRAIN RAINTREE TREE, MA
$1 $ 13,50 00,0 0 000 $13,500,000 PHHIL HILADELPHIA LADELPHIA, PA
$ $1,900 $1 1 900,000 000 $1,900,000 BROOKLYN, NY
$13 ,500 ,50 500,0 0 000 0,000 $13,500,000 PHILA HILADELPHIA HILADELP DELPHIA HIA, PA
$9,850,000 NEW YORK, NY
$1,332,500 BROOKLYN, NY
$9,850,000 NEW YORK, NY
$1,815,000 HAMILTON, NJ
$2,512,500 MIDDLETOWN, OH
$2,120,000 $2 2,1 120,000 BRA RAINTREE AINT TREE, M MA A
$1,575,000 BROOKLYN, NY
$2,966,000 KANSAS CITY, KS
$2,325,000 NEW YORK, NY
$15,200,000 BRONX, NY
$1,500,000 BRONX, NY
$3,990,000 LIGHTHOUSE POINT, FL
$1,750,000 RIDGEWOOD, NY
$1,275,000 BROOKLYN, NY
$1,5000,000 BROOKLYN, NY
$1,000,000 BRONX, NY
$2,850,000 CHESTERTOWN, MD
$1,250,000 BROOKLYN, NY
$ $3, $3 $3,283,262 ,283,26 ,262 WASHI ASHINGTON ASHINGTO NGTON NGTO N, D DC C
$7,785,000 $ $7, $7 ,785,00 ,000 NAPLE APLES S, FL FL
$ $5, $5 $5,000,000 ,000,00 ,000 WILLI ILLIAMSPORT ILLIAMSP AMSPORT AMSP ORT, MD
$1,100,000 BROOKLYN, NY
$7,500,000 NEW YORK, NY
$1,211,000 WASHINGTON, DC
$3,000,000 SILVER SPRING, MD
$3,600,000 WOODBURY, NJ
$1,900,000 NEW YORK, NY
$4 970 000 $4,970,000
$3 200 000 $3,200,000
$2 400 000 $2,400,000
$1,025,000 BROOKLYN, NY
$1,700 $ $1,700,000 1 700,000 000 NEW YORK, NY $1,300,000 NEW YORK, NY $1,000,000 BROOKLYN, NY $26,500,000 BROOKLYN, NY $2,750,000 $ $2,750 $2 2 750,000 000 BROOK ROOKLYN LYN, NY
$4,000,000 NEW YORK, NY
$1500000 LONG BRAN RANCH RANC CH N NJJ $4032000 DALLAS TX $3,240,000 DALLAS, TX
$2,575,000 WINSTON SALEM, NC $ $2, $2 $2,233,000 ,233,00 ,000 HIT ITCHCOCK ITC CHCOCK, TX $1,000,000
$7,800,000 B , NY 1HZ <RUN 2IÀFH B , NY 3839 FlatlandsN$10,250,000 Ave $2,670,000 Y , NY CSuite H 211 , MD $26,900,000 $17,250,000 NYB 11234 , NY Brooklyn, N Y , NY 718-567-8400 $1,020,000 ROOKLYN
ROOKLYN
EW
APITOL
ORK
EIGHTS
ROOKLYN
EW
ORK
$3,760,000 JERSEY CITY, NJ $1,450,000 $1,450 $1, $1 450,00 ,000 000 BROOK ROOKLYN OO LYN, NY
$3,000,000 $3,000 $3 000,000 000 BROOKLYN, NY $7,500,000 BALTIMORE, MD $3,200,000 BROOKLYN, NY
WASHINGTON, DC $1,000,000 BROOK ROOKLYN LYN, NY
$ $6,650 $6 6 650,000 000 $6,650,000 SOUTH BRUNSWICK, N NJJ $47,000,000 WILLINGBORO, NJ $1,975,000 BROOKLYN, NY
$5,500,000 BROOKLYN, NY
$6,500,000 BROOKLYN, NY $5,500,000 BROOKLYN, NY $1,960,000 ABERDEEN, MS
$1,400,000 CLARKSDAL,E MS $1,995,000 $1 995 000 STARK TARKVILLE TARKVILL VILLE E, MS $2 $ $2, $2,500,000 ,500 500,00 ,000 BROOKLYN, NY
$1,500,000 BROOKLYN, NY
$ $6,000 $6,000,000 6 000,000 000 NEW YORK, NY
$4,412,000 FORT SMITH, AR $2,995,000 LITTLE ROCK, AR $2,232,000 SPRINGDALE, AR $3,936,000 $ $3,936 $3 3 936,000 000 NORTH LITTL ITTLE E RO OCK CK, AR
$3,750,000 IRONWOOD, MI
$1,025,000 BROOKLYN, NY $2,500,000 BROOKLYN, NY $16,000,000 HOWELL, NJ
$6,840,000 FAR ROCKAWAY, NY $1,400,000 $1 400 000 BROOK ROOKLYN LYN, NY $2 $ $2, $2,700,000 ,700 700,00 ,000 BROOKLYN, NY
$3,752,000 1HZ -HUVH\ 2IÀFH E D , AR $4,900,000 , NY 481 Oak$3,525000 Glen RoadB $13,000,000 B NJ ,07731 NY $3,250,000 Howell, P PA B , NY $4560,000 732-301-3900 B $3,000,000 , NY $1,600,000 $1,400,000 PHILADELPHIA, PA
L
ORADO
ROOKLYN
ROOKLYN
HILADELPHIA
BRONX NY
$4,500,000 PHILADELPHIA, PA $1,100,000 $ ,100,00 $1, $1 ,000 BROOK ROOKLYN LYN ,NY NY $10,500,000 BROOKLYN, NY $1,599,245 BROOKLYN, NY $5 737 500 $5,737,500
ROOKLYN
ROOKLYN
$2,900,000 BROOKLYN, NY $1,600,000 $1,600 $1, $1 600,00 ,000 000 BROOK ROOKLYN OO LYN, NY $6,000 $6 $6,000,000 000,000 000 BRONX, NY $1,968,750 BRONX, NY $1,650,000 PHILADELPHIA, PA
BROOKLYN, NY
$2,600,000 FAR ROCKAWAY, NY $ $1, $1 $1,150,000 ,150,00 ,000 BROOK ROOKLYN LYN, NY $1,170,000 TRENTON, NJ $4,237,500 BRONX, NY $1 600 000 $1,600,000
$3,600,000 FAR ROCKAWAY, NY $3000,000 $3000,000 $3000 000 PRINCETON, NJ $2340,000 BROOKLYN, NY $1,150,000 NEW YORK, NY $8,000,000 PHILADELPHIA, PA $4,300,000 $4 300,000 $4,300 $4 000 BRONX, NY
$13,950,000 0RQVH\ J C , NJ 3$4,550,000 College F , 203 NY Suite $9,800,000 Monsey, B , MD 845-322ERSEY
ITY
LUSHING
ALTIMOR E
$12,000,000 JAMAICA, NY
$9500,000 $9500 $95 00,000 00, 000 NE,W YORK ORK, NY $1,900 $1 $1,900,000 900,000 000 JAMAICA, NY $3,000,000 BROOKLYN, NY $1,300,000 BROOKLYN, NY
$1 787 500 $1,787,500 $ UNION CITY ,NJ $4,000,000 BRONX, NY $13,965,824 BALTIMORE, MD
$3,500,000 JERSEY CITY, NJ
BRONX, NY $5,000,000 WEST NEW YORK, NJ
Refinance
$3,420,000 $3, $3 ,420,00 ,000 000 OFFEY FFEY FF EY ST, WOODH OODHULL ULL ST CO $1, $1,062,750 BROOKLYN, NY $3,000,000 NEW YORK, NY
00
$2,440,000 BRONX, NY
$ $3,500 $3, $3 3 500 500,00 ,000 ,00 000 $3,500,000 BRONX, NY
000,000
$2,500,000 NEW YORK, NY
$1,000,000 $1 000,000 $1,000 $1 000 BROOKLYN, NY $3,000,000 BROOKLYN, NY $1,875,000 BROOKLYN, NY
$2,500,000 QUEENS, NY
$2,800,000 BROOK ROOKLYN LYN, NY
$6,500000 PHILADELPHIA, PA $1,225,000 BROOKLYN, NY $2,625,000 BROOKLYN, NY
Woodbury, NJ $3,100,000 BROOKLYN, NY
$4000,000 QUEENS, NY
Waterbury, CT $1,800,000 BROOKLYN, NY $1,750,000 BROOK ROOKLYN LYN NY $1,050,000 DARBY, PA $2,635,500 DUNMORE, PA
$2,400,000 BRONX, NY
$1,500,000 BROOKLYN, NY
Industrial $1,300,000 BROOKLYN, NY
$2,400,000 BROO ROOKLYN OKLYN, NY
$1,004,500 LAKEWOOD, NJ $40,000,000 BALTIMORE, MD
$ $3,200,000 BROOKLYN, NY
$2,400,000 PHILADELPHIA, PA
$4,000,000 BROOKLYN, NY
$1,360,000 BROOKLYN, NY
$1,125,000 BROOK ROOKLYN KLY YN, NY
$1 ,85 $17 ,850 850,0 0 000 0,000 $17,850,000 NEWARK, NJ
$1,193,085 WASHINGTON, DC
$2,750,000 BRONX, NY
$3,200,000 BROOKLYN, NY
$4,800,000 BRONX, NY
$1,000,000 BRONX, NY
$1750,000 BROOKLYN, NY
$2,000,000 HACKETTSTOWN, NJ
$2,200,000 BROOKLYN, NY
$9,825,000 MOUNT LAUREL, NJ
$1,665,000 MIAMI, FL
$4,125000 JACKSONVILLE, FL
$3300,000 LAKEWOO,D NJ
$5,300,000 ELMHURST NY
$31,000,000 $ $31 1,00 ,000 000,0 0 000 0,000 PHILADELPHIA, PA
$1,890,000 $ ,890 $1, $1 890,00 ,000 RIDGE IDGEWOOD WOOD, NY
$3,325,000 $ $3,3 $3, $3 ,3 325 25,00 ,000 PHILA HILADELPHIA HILADEL DELP DEL PHIA, P PA A
$2,500,000 PHILADELPHIA, PA
$1,650,000 BRONX, NY
$19,500,000 LAKEWOOD, NJ
$2,310,000 BROOKLYN, NY
$9,400,000 BROOKLYN, NY
$2,800,000 PHILADELPHIA, PA
$1,275,000 BROOKLYN, NY
$4,300,000 BROOKLYN, NY
$3,000,000 MAMARONECK, NY
$1,100,000 BROOKLYN, NY
$8,700,000 FAR ROCKAWAY, NY
$1,700,000 BROOKLYN, NY
$10 87 875 5 000 000 $10,875,000 BRONX, NY
$4,600,000 $ 4 600 000 WASHINGTON, DC
$1,875,000 PIKESVILLE, MD
$1,000,000 BRONX, NY
$3,000,000 BROOKLYN, NY
$9,000,000 NEW YORK, NY
$1,000,000 BRONX, NY
$3,850,000 BROOKLYN, NY
$1,736,000 BALTIMORE, MD $2,400,000 $ $2, $2 ,400,00 ,400 ,000 BROOKLYN, NY $1,000,000 BRONX, NY $3,100,000 $3 100 000 BROOKLYN, NY
$5,350,000 REYNOLDSBURG, OH $1,020,000 WATERBURY, CT $1,275,000 JERSEY CITY, NJ
$2,000,000 BROOKLYN, NY
$3,675,000 JACKSON, NJ
$1,850,000 BROOKLYN, NY
$2,493,750 TOMS RIVER, NJ
$21,750,000
$1,200,000 $1,,200 $1 $ ,200,00 ,000 S HE EMPSTEAD MPS MP STEAD, NY STEAD WEST $4,763,000 BRONX, NY $2,350,000 BALTIMORE, MD
$1,260,000 BROOK ROOKLYN LYN, NY
$1,376,000 FAR ROCKAWAY, NY $10,000,000 NEW YORK, NY
$1,100,000 BRONX, NY
$1,181,250 BROOKLYN, NY $2,212,000 PULASKI, VA
$1,775,000 BALTIMORE, MD
$1, $1 $ $1,800,000 ,800,00 ,800 ,000 BROOK ROOKLYN OO LYN, NY $5,000,000 NEW YORK, NY $4,900,000 BROOKLYN, NY
Bayonne, NJ $3,750,000 BRONX, NY
$2,500,000 $2 500 000 BROOKLYN, NY $4,875,000 BROOKLYN, NY Y $2,740,000 NEW YORK, NY
$1,200,000 BOOTHWYN, PA
$2,418,750 $2,,418 $2 $ ,418,75 ,750 BRONX, NY $1,160,000 BROOKLYN, NY $1,650,000 $1 650 000 BROOKLYN, NY
$2,500,000 IAMI IAM MI, F FLL MIA
$3,975,000 BRONX, NY $4,150,000 JERSEY CITY, NJ $2,995,000 NOTTINGHAM, MD
Aberdeen,$2,037,000 MS
Yonkers, NY
$2,700,000 KEW GARDENS, NY
$3,075,000 YONKERS, NY
$31,000,000
Washington, DC $1,785,000 BROOKLYN, NY
$1,450,000 BROOKLYN, NY
ekend
$2,250,000 GRANDVIEW, MO $1890,000 BROOKLYN, NY
$1,200,000 $ $1,200 $1, $1 1 200,00 ,000 000 BROOKLYN, NY $2,700,000 BROOKLYN, NY $2,400,000 GLENDALE, NY $1,100,000 BROOKLYN, NY $2,100 $2 $2,100,000 100,000 000 SOUTHAVEN, MS
$5,737,500 BRONX ,NY
$1,000,000 BROOKLYN, NY $3,200,000 $ KINGWOOD, NJ
$3,500,000 LITTLE NECK, NY
Hard Money Loan H $1,050,000 BRONX, NY
$1,000,000 BROOKLYN, NY
$1,650,000 BROOKLYN, NY
$3,200,000 NEW YORK, NY
$3,788,000 BRONX, NY
$1,555,000 BROOKLYN, NY
$1,400,000 FARMINGDALE, NJ
$1,050,000 BRONX, NY
$2,200,000 BALTIMORE, MD $2,100,000 BROOKLYN, NY $3,300,000 $3 300 000 BROOKLYN, NY $13,600,000 BROOKLYN, NY
$2,500,000 WEST HAVEN, CT
PHILADELPHIA, PA
$1,875,000 $ $1, $1 ,875,00 ,875 ,000 JERSEY CITY, NJ $11,400,000 NORFOLK, VA $1,200,000 $1 200 000 BROOKLYN, NY
$2,900,000 BROOKLYN, NY
$1,125,000 BROOKLYN, NY
$1,000,000 SOLOMONS, MD $2600,000 UNION CITY, N NJJ
$2,000,000 EAST ORANGE, NJ $1,237,500 FOREST HILLS, NY $1673,000 SP,RINGFIELD, OH $1 550 000 $1,550,000 BROOKLYN, NY $1,600,000 CORONA, NY
$1,700,000 SPRING VALLEY, NY $8,320,000 PHILADELPHIA, PA $2,100,469 $2,100 $2, $2 100,46 ,469 469 BALTI ALTIMORE ALTIM MORE, M MD D $7,950,000 ALLENTOWN, PA A $1,150,000 NEW HAVEN, CT T $1,950,000 BROOKLYN, NY $1,425,000 DAYTON, OH
$21,000,000 BROOKLYN, NY
$13,357,000 CUTLER BAY, FL
$1,750,000 PHILA HILADELPHIA HILADEL DELP DEL PHIA, P PA A $6,600,000 NEW YORK, NY $4,000,000 BROOKLYN, NY $4,000,000 BROOKLYN, NY $2,850,000 $2 850 000 BROOKLYN, NY $1,180,000 BROOKLYN, NY
$1,400,000 Lauderhill, FL BROOKLYN, NY
$2, ,500,00 , 0 $2,500,000 BED EDFORD EDF FORD, TX
$15,440,000 $ ,44 $15 , 0,0 , 00 O , NY BRONX
$2,100,000 BROOKLYN, NY
$12,800,050 W LONG BRANCH, NJ
$32,500,000 FAR ROCKAWAY, NY
$7,900,000 CHESTER, PA
“I’ll be landing at 6 am”
$1,400,000 WEST HAVEN, CT $3,375,000 BRONX, NY
$1,400,000 $1,400 $1, $1 400,00 ,000 000 LAKEW AKEWOOD OOD, N NJJ $1,125,000 BROOKLYN, NY $6,880,000 BRONX, NY $2,720,000 BRONX, NY $8,720,000 BRONX, NY
$2,100,000 BROOKLYN, NY $1,700,000 STUART, FL
$1,300,000 BROOK ROOKLYN LYN, NY
$2,300,000 NEW HARTFORD, NY $1,000,000 ELIZABETH, NJ $1,950,000 BROOKLYN, NY $6,000,000 $6 000 000 BRONX, NY $1,927,349 BROOKLYN, NY
$12,975,000 BROOKLYN, NY
$3,750,000 BRONX, NY
$1,710,000 BROOKLYN, NY
$41,200,000 QUEENS, NY
$16,500,000
$1,000,000 BROOK ROOKLYN LYN, NY
$ $47 ,200,0 ,20 0,000 $47,200,000 BALTIMORE, MD $2,000,000 BROOKLYN, NY $3,300,000 $3 300 000 NEW YORK, NY
HOWELL, NJ
$1,627,500 CHESTER, PA $1,000,000 NEW BRITAIN, CT $1,500,000 QUEENS, NY
$1,762,000 FAR ROCKAWAY, NY
Springdale, AR
$ ,12 $3, $3 125 5,00 ,000 $3,125,000 NEW YORK, NY
$2,540,000 $ JERSEY CITY, NJ
$2,300,000 NEW YORK, NY $1,500,000 BALTIMORE, MD
$18,000,000 BALTIMORE, MD $1,000,000 $1 PEMBERTON TOWNSHIP, NJ
$3,400,000 BRONX, NY
$7,423,000 ORLANDO, FL
$5,250,000 BRONX, NY
$2,625,000 $ $2,625 $2 2 625,000 000 WEST NEW YORK, NJ
$1,330,000 $ $1,330 $1 1,330,,000 000 BROOKLYN, NY
$1,100,000 BROOKLYN, NY
$13,500,000 BROOKLYN, NY
$3,000,000 BRONX, NY
$5,500,000 FAR ROCKAWAY, NY
$1,350,000 BROOKLYN, NY
$1,300,000 BROOKLYN, NY
$1,500,000 $1,500,000 BROOKLYN, NY
$8,250,000 TAMPA, FL
$2,800,000 WAYNE, NJ
$4,125,000 BRONX, NY
$4,000,000 NEW YORK, NY
$1,025,000 BROOKLYN, NY
$1500000 LONG BRANCH NJ
$1,700,000 NEW YORK, NY
$4,032,000 DALLAS, TX
$1,300,000 NEW YORK, NY
$7,395,555 BRONX, NY
$14,310,000 $ ,31 $14 ,310,0 0,000 CINCI INCINNATI INCINNAT C NNAT NNATII, OH $1,450,000 BAYONNE, NJ $2,500,000 NEW YORK, NY $1,240,000 BROOKLYN, NY $7,000 $7, 000,000 000 $7,000,000 BROOKLYN, NY
$4,000,000 00 0 BROOKLYN, N
$12,600,000 FORT MYERS, FL
00 0 $1,200,000 BROOKLYN, N
$1,500,000 BROOKLYN, NY
00 0 $1,560,900 HYATTSVILLE, M
$1,500,000 $1,,500 $1 $ ,500,00 ,000 BAYON AYONNE NE, N NJJ
$4,887,000 $4, $4 $ ,887,0 ,887 ,0 000 0 BRAIN RAINTREE TREE, M
$1,700,000 BELLEVILLE, NJ
$1,025,000 $1,025,0 000 0 0 JACKSON HEIG EIGHTS GHTS S
$32,000,000 WILLIMANTIC, CT
$22,500,000 $22,500, ,00 00 MERIDIAN, M
$2,400,000 BROOKLYN, NY
00 0 $1,000,000 SPRING VALLEYY,
$4,500,000 BRONX, NY
$2,500,000 00 0 PHILADELPHIA, P
$2,835,000 PEMBERTON, NJ
$3,750,000 00 0 NEW YORKK, N
$1,500,000 $1 500 000 NEW YORK, NY
$3,750,000 $3,750,0 $3 750 0 000 0 BRONX, NY Y
$9,100,000 NEW YORK, NY
$16,000,000 $16,000,,00 00 TRENTON, N NJ
$10,575,000 NEW YORK, NY
00 0 $1,230,000 PIKESVILLE, M
$8,858,000 MONTGOMERY, AL
50 0 $5,501,250 D LAVALE, MD
$1,652,000 CONCORD, PA
$2,000,000 00 0 BROOKLYN, N
$2,786,000 $2,786 $2, 786,00 786 ,000 ,00 0 PA A MEDIA, P
$6,300,000 $6,300 $6, 300,0 000 0 0 PASSA ASSAIC IC, NJ J
$2,450,000 QUEENS, NY
$3,000,000 $3,000,0 000 0 0 BRISTOL, PA A
$3,990,000 ATLANTA, GA
$1,850,000 $1,850,0 000 0 0 BROOKLYN, N
Queens, NY
Got my cell number?
$7,600,000 INDIANAPOLIS, IN
“Text me later”
$1,080,000 BROOKLYN, NY
$1,700,000 PHILADELPHIA, PA
Montgomery, AL
$4,500,000 BROOKLYN, NY
$1,700,000 ROOKLYN LYN, NY BROOK
$1,675,000 HOWELL, NJ
$1,040,000 $1,040,0 000 0 0 PHILADELPH HILADELPHIA HIA,
$18,750,000
Atlanta, GA
$2,000,000 PLAINFIELD, NJ
$1,413,750 IRVINGTON, NJ
$26,900,000
$1,750,000 BROOKLYN, NY
$1,450,000 BROOKLYN, NY
Springfield, OH $1,600,000
Hartford, CT $2,820,000 BORDENTOWN, NJ
$21,750,000 DOVER, DE
$1,600,000 $1,600,0 000 0 0 SWAINSBOR WAINSBORO O, G
Senior Living
$1,500,000 $1,500 $1, $1 00,,000 000 BROOKLYN, NY
$2,307,000 BRONX, NY
$1,650,000 PHILADELPHIA, PA
Mixed-Use
$3,600,000 BRONX, NY
Acquisition
Bedford, TX
Before the end of the day... “...Saturday night?” “I’ll have it ready by tomorrow morning” $5,300,000 BRONX, NY
BROOKLYN, NY
$1,975,000 $ , , BROOKLYN, NY
$15,370,000 $5,000,000 $40,000,000 $1,332,000 $28,000,000
$28,000,000 BROOKLYN, NY
$10,575,000
$3,000,000 YONKERS, NY
$7,912,500 LAUDERHILL, FL
$1,018,500 BROOKLYN, NY
$40,237,500 BRONX, NY
$17,850,000
$3,000,000 NEW YORK, NY
$1,575,000 MERIDEN, CT
BROOKLYN, NY
Construction Cash Caassh Out Retail
$2,200,000 BALTIMORE, MD
$18,750,000 BROOKLYN, NY
$9,500000 BRONX, NY $1,450,000 BROOKLYN, NY
$12,888,500 $12 888 500 SPRINGFIELD, IL
Flex Space
$2,812,500 BALTIMORE, MD
$1,462,500 BALTIMORE, MD
$1,825,000 BROOKLYN, NY
$2,500,000 VOORHEES, NJ
$5,760,000 HOLLIS, NY
$1,450,000 $1 450 000 RIDGEWOOD, NY
Equity Placement Eq $8,600,000 LAKEWOOD, NJ
$3,900,000 SANFORD, FL
$5,000,000 ELMHURST, NY
$15,000,000 SECAUCUS, NJ
$2,250,000 PHILADELPHIA, PA
NEW YORK, NY
$4,200,000 HOWELL, NJ
$1,015,000 CARROLLTON, GA
00 0 $1,500,000 NEW YORK, N
$1,792,500 GAINESVILLE, GA
$3,335,000 00 0 MOUNT OLIVEE,
I will swing$24,173,000 by later today$1,260,000 00 0
$6,500,000 LAKEW AKEWOOD OOD, N NJJ $3,100,000 LAKEWOOD, NJ $1,200,000 BROOKLYN, NY $1,200,000 BRONX, NY $2 887 500 $ $2,887,500 BROOK ROOKLYN LYN, NY
FLUSHING, NY
BROOKLYN, N
$1,015,000 $ $1,01 $1 1,015,,000 000 CRUM LYNNE, PA
$2,058,000 $ $2,0 $2 2,058 8,,0 000 0 0 BALTIMORE, M
$2,350,000 BRONX, NY
$1,600,0 $1,600,000 000 0 0 BROOKLYN NN NY
$16,500,000 LOUISVILLE, KY
$4,850,0 000 0 0 $4,850,000 MUSKOGEEE, O
$5,450,000 BROOKLYN, NY
$3,700,0 000 0 0 $3,700,000 BROOKLYN, M
$7,927,500 EGG HARBOR, NJ
$1,600,000 $1,600 0,0 000 0 0 STATEN ISLA SLAND AN ND,
$2,000,000 BROOKLYN, NY
$2,500,000 $2,500 0,0 000 0 0 ROCKAWAY PAARKK,
$1,475,000 $1, ,475,00 , 0 BROOKLYN, NY
$3,600,000 $3, ,600 0,0 000 0 FAR ROCKAW OCKAWAY WAY, W
$3,750,000 IRONWOOD, MI
$3000,000 $3000,0 000 0 0 PRINCETON N, N
$1,025,000 BROOKLYN, NY
$2340,0 2340,000 000 0 0 BROOKLYN N, N
NION CLOSED $3 BILLION IN 2014.
Y
$1,300,000 BROOKLYN, NY
$1,550,000 NEW YORK, NY
$3,180,000 BROOKLYN, NY $1,015,000 BRONX, NY $1,575,000 UNION CITY, NJ $1,650,000 $ ,650 $1, $1 650,00 ,000 NORTH BERGE ERGEN N, N NJJ $3,150,000
N B , NY 2IÀFH $2,400,000 e Road N Y , NY 3 $4,200,000 Y , NY NYN10952 7000$2,711,500 ORTH
EW
EW
ERGEN
ORK
ORK
JERSEY CITY, NJ $2,034,500 BROOK ROOKLYN LYN, NY $ $1,088 $1 $1,088,750 1 088,750 750 BROOKLYN, NY $2,000,000 BROOKLYN, NY $1,425,000 BROOKLYN, NY
$1,250,000 HARTFORD, CT $6,240,000 $6,240 $ 6 240,000 000 EDISON, NJ
$18,350,000 BROOKLYN, NY $1,500,000 BROOKLYN, NY $1,000,000 BROOKLYN, NY $ $4,200 $4 4 200,000 000 $4,200,000 BROOK ROOKLYN LYN, NY
$5,250,000 BRONX, NY
$1,230,000 DENVER, CO
$1,400,000 BROOKLYN, NY $11,627,642 COLUMBUS, OH H $1,200,000 BROOKLYN, NY Y $1,000,000 $1 000 000 BRONX, NY $3 $ $3, $3,900,000 ,900 900,00 ,000 BROOKLYN, NY
$1,400,000 BROOKLYN, NY $2,250,000 $2 250,000 $2,250 000 NYACK, NY
$26,000,000 BROOKLYN, NY $9,675,000 HATBORO, PA $2,977,500 LONG ISLAND CITY, NY $1 860,000 $1,860 $1 000 $1,860,000 BROOK ROOKLYN LYN, NY
$1,575,000 0DU\ODQG 2IÀFH $4,500,000 B , NY B , NY 7910 Woodmont Ave $5,800,000 $15,200,000 $1,300,000 W T ,N NJ 870 $2,287,500 B , NY BROOKLYN , NY Suite B , NY $1,450,000 $1 450Bethesda, 000 $1,750,000 MD 20814 $21,500,000 N B , CT C $1,300,000 R , NY BALTIMORE, M MD D B , NY 202-617-3133 $2,150,000 PATERSON, NJ
ROOKLYN
ROOKLYN
A ALL
OWNSHIP OWNSH OWN HIP HI P
RONX
ROOKLYN
EW W
RITAIN AN AIN
$3,500,000 $1,787,500 BELLEVILLE, N NJJ
UNION CITY ,NJ $8 $8,875 $8, $8,875,000 875,00 ,000 000 BROOK ROOKLYN LYN, NY $4,000,000 $4, $4 $ ,OO ,000 000 ,000Y ,00
BRONX, NY
$13,965,824 BALTIMORE, MD $8,600,000 LAKEWOOD, NJ
IDGEWOOD
ROOKLYN
$1,900,000 BROOKLYN, NY $ $1, $1 $1,332,500 ,332,50 ,332 ,500 BROOK ROOKLYN LYN, NY $2,512,500 MIDDLETOWN, OH H $7,000,000 WHITING, NJ $6,000,000 $6 000 000
$1,000,000 BRONX, NY
$3,283,262 $3,283 $3, $3 283,26 ,262 262 WASHI ASHINGTON S NGTO NGTON G ON, DC $1,100,000 $1,100 $1 100,000 000 BROOKLYN, NY $3,000,000 SILVER SPRING, MD $4,970,000 PHILADELPHIA, PA
$21,500,000 HILLCREST HEIGHTS, MD $1,950,000 LAKEWOOD, NJ $3,120,000 LAKEWOOD, NJ $1,450,000 ROCKAWAY, NJ 0 $1,100,000 BROOKLYN, NY N $1,312,500 $1,312 $1,312,50 0 PHIL HILADELPHIA H HI HILA DELP PHIA, PA $ $12,450,000 12,4 , 50,00 ,45 00 NEW EWARK WAR RK, NJ N $ $2,966,000 2,9 966 6,000 KAANSAS NSA AS CITY, KS $1,5 500 0,000 $1,500,000 BRO RONX ONX X, NY Y $ 1,2 275 5,000 $1,275,000 BRROOKLYN OOKLLYN, NY NY $2,850,000 $ 2,8 850 0,000 CHHESTERTOWN EST TERTO OWN, MD $7,785,000 $7 $7, 7,,785 5,000 NAPLE APLES ES, FL L $7,500,000 $7,500,000 NEW YORK, NY N $3,600,000 $3,600,000 WOODBURY, NJ $3,200,000 $3 200 000
$3,000,000 BROOKLYN, NY
$1,500,000 $1 500,000 $1,500 000 BROOKLYN, NY
$2,350,000 WEST NEW YORK, NJ $1,950,000 BRONX, NY $1,300,000 BROOKLYN, NY $25,000,000 BROOKLYN, NY $1,500,000 NEW YORK, NY $2,325,000 $ 32 $2, 25,0 000 00 NEW YORK RK, N NY Y $3,990,000 $3, $3 $ ,99 ,990 990 0,000 0 LIG IIGHTHOUSE G GHT H HO OUS OUS U E POIN OINT NT, F FLL $1,5000,000 $ $1,500 $1 1 00,00 0 000 00 BROOKLYN, NY $1,250,000 BROOKLYN, NY $5,000,000 WILLIAMSPORT, MD $1,211,000 WASHINGTON, DC $1,900,000 NEW YORK, NY
$3,240,000 DALLAS, TX $2,575,000 WINSTON SALEM, NC $2,233,000 HITCHCOCK, TX $1, 1,,00 00 ,000 000 00 00 $1,000,000 BROOK ROOKLYN R OOKLY LYN YN N, NY $10,250,000 $10 $1 10,25 , 0,0 000 0 NEW YORK O , NY NY $ $2 $26 ,90 900,0 0,0 ,0 000 00 $26,900,000 BROOKL ROOKLYN ROOK OOKLY LY , NY LYN $1,020,000 WASHINGTON, DC $1,000,000 BROOKLYN, NY $6,650,000 SOUTH BRUNSWICK, NJ $47,000,000 WILLINGBORO, NJ
$1,000,000 BROOKLYN, NY $26,500,000 BROOKLYN, NY $2,750,000 BROOK ROOKLYN R LYN, NY $7, $ $7,800,000 7, 7,80 80 ,000 800 00 BRRO ROOKLYN OOKLYN YN N, N NY Y $2,670,000 $ 2,670 70 0,00 ,000 CAAPITOL PITOL HEIGHT EIGHTS EIGH IGH GHTS TS, M MD D $17,250,000 $17 $1 $ 17,25 ,2 0,0 000 0 NEW EW YO ORK RK R K, NY NY $3,760,000 $3,76 60,0 60 60, ,000 JERSEYY CIT IITY TY, NJ J $1,450 450 450,000 50 0 $1,450,000 BROO ROOKLYN OOK OK KLY LLYN YN, NY NY $3 000,00 $3, 000 00 $3,000,000 BROOKLYN RO , NY Y $7,500,000 BALTIMORE, MD
$1,890,000 GREENVILLE, MS $5,500,000 BROOKLYN, NY
$6 500 000 $6,500,000 BROOKLYN, NY $5,500,000 BROOKLYN, NY $1,960,000 ABERDEEN, MS $1,400,000 CLARKSDAL,E MS $1,995,000 STARKVILLE, MS $2, $ $2 $2,500,000 500,00 500 , 0 ,00 BROOKLYN ROO ROOK O LY YN, NY Y $1, $1 1,40 1, 400,00 40 00 $1,400,000 PHHI HILADELPHIA ILADELPHIA A, P PA A $13 $13,000,000 3,000,0 000 0 HILADELPHIA LADEL DELPH HIA HI IIA AP PA A PHIL $3,000,000 $3, $ $3 000,0 ,0 000 00 BRRONX ONX NY Y $4, $4 $ 4 500 0,0 000 00 $4,500,000 PHI HILADELPHIA H ILADELLPHI HIA IA, PA A $1,100,000 $1 $1, 100,00 ,000 000 BROOK ROOKLYN OO LYN ,NY NY $10 10,500,0 10 000 $10,500,000 BROOKLYN, NY $ 599 245 $1 $1,599,245
$8,120,000 JACKSON HEIGHTS, NY $1,500,000 BROOKLYN, NY $1 $1,500 500,000 000 $1,500,000 BROOKLYN, NY $6,000,000 NEW YORK, NY $4,412,000 FORT SMITH, AR $2,995,000 LITTLE ROCK, AR $2,232,000 SPRING PRINGDALE RI DALE, AR R
$3,936,000 $ 3 3,,936,000 NORTH O LITT ITTLE TT TLE ROCK K, AR R $3,752 52 2,,00 00 00 $3,752,000 EL DORADO, AR R $3,525000 BROOKLYN, NY $4560 $4560 $45 60,000 0 000 0 00 $4560,000 BROOK ROOKLYN ROO O LYN, NY OO NY $2,9 $2 $2, $2,900,000 900,0 000 000 00 BRO ROOKLYN OOKLYN N, N NY Y $1,600,000 $1, ,60 600 00,0 00 ,00 ,0 000 BROOK ROOKLYN OOK OKLYN LYN, NY $6,000 $6,000,000 00,00 00 ,00 00 BRONX, NY $1,968,750 BRONX, NY
$2,500,000 BROOK ROOKLYN R RO LYN, NY $16,000,000 $1 16,,0 000,000 HOW OWELL WE W ELL, NJ $6 $6 6,,8 84 40,000 $6,840,000 FARR RO OCKAWAY OC CKAWAY, NY $ $1,400,000 1,400,000 BROOKLYN, NY $2,700,000 $ $2 $2, 700,000 BROOK ROOKLYN OOK OK KLYN LYN, NY NY $ $4 $4, 900,000 $4,900,000 BRO ROOKLYN OOK OO OKLYN, NY $3,250,000 $3 3,250,000 BRO ROOKLYN OOKLYN, NY $ 1,600,000 $1,600,000 BROOK ROOKLYN R O LYN, NY $2,600,000 FAR ROCKAWAY, NY $1,150,000 BROOKLYN, NY
$1,150,0 $1,150,000 000 0 0 NEW YORKK, N
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$4,300,000 $4,300,0 000 0 0 BRONX, N NY Y
$13,950,,00 $ 00 $13,950,000 JEERSEY CITYY, N
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$9,800,000 $9,800,0 000 0 0 BAALTIMOR,E M
$12,000,,00 $ 00 $12,000,000 JAMAICA, NY Y
$9500,000 $9500,0 000 0 0 NE,W YORKK, N
$1,900,0 000 0 0 $1,900,000 JAMAICA, NY Y
$3,000,0 000 0 0 $3,000,000 BROOKLYN N, N
RESIDENTIAL MARKET
Contingencies come back Non-starters a year ago, more buyers negotiate for deals dependent on mortgage financing
ONLINE INNOVƵ ION F
BY E.B. SOLOMONT
Sign-up online and receive a monthly newsletter for FREE đ he most up-to-dateČ accurate housing data in the industry đ Data pulled from local records đ First e-newsletter developed for New York City đ e can forecast future prices in your neighborhood đ Read our computer-generated analysis Visit raveis.com and click on Local Housing Data to subscribe to our FREE monthly newsletter or call 888.699.8876 for the most up-to-date property analysis.
or the latest sign that Manhattan’s residential market is returning to normal after last year’s frenzied pace, look no further than sales contracts, where 30-day mortgage contingencies are experiencing a revival. Mortgage contingencies, which allow buyers to walk away from a deal if they’re unable to secure financing, were considered deal breakers last year, when cash was king, inventory was tight and the market was squarely in the sellers’ corner. The return of contingencies signals a shift in favor, according to brokers and mortgage lenders. Noah Rosenblatt, founder of real estate analytics firm Urban Digs, said that over the past month or two, “Most of our clients are getting deals done with a contingency in place.” That’s a marked change from the spring and summer, when a contingency was a “non-starter.” Sellers are no longer expecting that they’ll have multiple offers and sell their
according to real estate appraisal firm Miller Samuel. (Fourth-quarter data wasn’t available by press time.) Some 6,000 new units are set to hit the market in 2015, up from around 2,500 units that came online in 2014, according to data from Corcoran Sunshine Marketing Group. According to Jeff Schleider, CEO of Miron Properties, sellers have been more willing to negotiate in recent months. “We are seeing good volume in contracts,” he said. “Similarly, buyers are able to have a bit more sway in the transactions, which has led to a lot of contracts in this last quarter.” A seller’s agent, Mary Lou Currier of Bond New York, said she has allowed contingencies in recent months. But in those situations, she advises her clients to insist another protection be included in the contract. For example, she might suggest a provision that states the buyer will go through with the purchase, even if the appraisal is low, as long as the appraised price is within a certain range
Sellers are no longer expecting that they’ll have multiple offers and sell their apartment in a week with no contingency attached. NOAH ROSENBLATT, URBAN DIGS
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apartment in a week with no contingency attached, he said. “They know that’s not really the market anymore … they don’t want to lose a good deal, because the bid has a contingency.” Julia Boland, a broker at William Raveis NYC, said contingencies are still rare in new development, though they are “the first lever developers pull when they don’t want to play with prices.” But Rolan Shnayder, director of new development lending at H.O.M.E. Mortgage Bank, said he thinks buyers would be hardpressed to find a developer who would refuse a mortgage contingency, if the buyer is paying full price. (He qualified the statement by noting that super-luxury buildings would never accept a contingency.) “It’s a function of supply and demand,” he said. “If there’s no supply and a lot of demand, the seller can do whatever they want. Why would they go for a mortgage contingency when they don’t have to, if there’s another buyer right behind you?” The influx of new development product set to come online in 2015 is playing a role in the shift. Already, overall inventory in Manhattan rose 27.6 percent during the third quarter of 2014 to 5,828 listings,
of the contract price. “It’s your time, your buyer’s time, your seller’s time,” she said. “That becomes a factor.” Currier said she has to manage the expectations of her sellers in a slightly less favorable market. “It’s not this big rush” like last spring, she said. “It’s not like 10 people are putting in offers and almost all of them are cash and not contingent.” Karla Saladino, managing partner of Mirador Real Estate, said buyers and sellers feel “they have time to wait things out.” “We are seeing lots of traffic coming through our properties,” she said, “but many have no urgency.” Rosenblatt noted that the median number of days a property is on the market is also increasing — another sign that the market is shifting. As of Dec. 28, the median number of days on market for Manhattan properties was 65, up 27.5 percent from the prior month and up 38 percent from mid-May, when days on market plummeted to 47. “Is it a buyer’s market? No,” said Rosenblatt. But, he added, “There’s been a normalization in the market, in the sense that the leverage … that used to be strongly in favor of sell side is now in favor of buy side.” TRD
L ETâ&#x20AC;&#x2122;S B UILD Y OUR B USINESS T OGETHER Brokers are saying that we are different Ă&#x153; :H DUH D SULYDWHO\ KHOG IDPLO\ UHDO HVWDWH FRPSDQ\ WKDW YLHZV RXU EURNHUV DV RXU FXVWRPHUV Ă&#x153; :H FRDFK DQG PHQWRU RXU EURNHUV WR EXLOG WKHLU EUDQGV DQG WHDPV Ă&#x153; 1HWZRUN ZLWK RXU RIILFHV DQG DJHQWV Ă&#x153; 2YHU UHIHUUDOV DUH VHQW WR RXU EURNHUV DQQXDOO\ Ă&#x153; :H KDYH DZDUG ZLQQLQJ WHFKQRORJ\ DQG LQQRYDWLYH WRROV )RU D FRQÂżGHQWLDO PHHWLQJ FDOO .DWK\ %UDGGRFN RU 3DXO 3XUFHOO 126 East 56th Street, Suite 1510
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Global gloom props up dollar ...and NYC real estate
maxed out micro-units
Too early to call impact of plummeting ruble BY JANNA HERRON he strength of the greenback against other currencies is not weighing down foreign interest in New York real estate. Instead, international investors are even more likely to now view brickand-mortar assets in the Big Apple as a protected place to store capital. Last year, the U.S. dollar gained modestly on the Chinese yuan and the British pound and logged low double-digit increases against the euro and Japanese yen, making real estate here less affordable. But foreign investment in New York City commercial real estate totaled $13.24 billion as of mid-December, up from $8.57 billion in 2013, according to Real Capital Analytics. And of course, record-breaking residential purchases by foreign buyers in the past year highlighted the desirability of New York homes for overseas investors too. However, the dramatic slide of the Russian ruble in the waning days of 2014, along
T
to put money, given whatâ&#x20AC;&#x2122;s going on in Europe,â&#x20AC;? said Jonathan Aghravi, senior director of Eastern Consolidatedâ&#x20AC;&#x2122;s capital advisory division.
Woe is the World
Photos: Dooley Images
Across the pond, Europeâ&#x20AC;&#x2122;s health looks uncertain. A private-sector survey of purchasing managers in the 18-nation currency bloc last month found that the Eurozone economy is still growing, although modestly. But the largest economies of the bloc showed troubling signs. German companiesâ&#x20AC;&#x2122; reported growth was the smallest since June 2013 and France logged the eighth straight month of declining activity. Other areas of the globe look similarly risky. Japanâ&#x20AC;&#x2122;s economy shrank by 1.6 percent in the third quarter, prompting its central bank to ramp up stimulus and its prime minister to delay a planned increase in the countryâ&#x20AC;&#x2122;s consumption tax. In China, manufacturing activity slowed in Novem-
â&#x20AC;&#x153;When the prices of commodities and currency are heading downward, holding real estate in the U.S. is better than holding the gold standard of yesteryear.â&#x20AC;? ED MERMELSTEIN, RHEEM BELL & MERMELSTEIN
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with desperate measures by the countryâ&#x20AC;&#x2122;s government to halt it, may eventually reveal a tipping point when a currencyâ&#x20AC;&#x2122;s decline is too much and could keep investors from buying real estate abroad. â&#x20AC;&#x153;Economic turmoil causes people to lose money,â&#x20AC;? said Nancy Packes, owner of Nancy Packes Signature Marketing Services, a sales brokerage for new developments. She also noted, however, that many Russian investors would not keep all their liquid assets in their home currency. â&#x20AC;&#x153;So the question becomes, will the losses investors incur domestically severely impact their spending or investment pattern abroad?â&#x20AC;?
Safe haven The strength of the dollar reďŹ&#x201A;ects a split in the worldâ&#x20AC;&#x2122;s fortunes, with the steadily growing U.S. on one side and practically everyone else on the other. Stateside, the third-quarter gross domestic product growth was an impressive 5 percent, the fastest rate in a decade, up from the previous prediction of 3.9 percent.. The jobs picture here also remains positive, with employers adding 312,000 jobs in November, while average hourly earnings increased by the largest amount since June 2013. â&#x20AC;&#x153;If the dollar is getting stronger, then that means the U.S. economy is getting stronger, making New York a better place
ber, while inďŹ&#x201A;ation there hit a ďŹ ve-year low. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re in a strong position compared with the rest of the world,â&#x20AC;? said Ed Mermelstein, a founding partner of real estate law ďŹ rm Rheem Bell & Mermelstein, who has seen a recent uptick in investor interest in New York real estate from European and Asian individuals and institutional investors. â&#x20AC;&#x153;When the prices of commodities and currency are heading downward, holding real estate in the U.S. is better than holding the gold standard of yesteryear.â&#x20AC;?
Cheap by comparison Another key attribute of U.S. real estate, both commercial and residential, is that itâ&#x20AC;&#x2122;s cheap, at least relatively speaking. And that makes it continually attractive to international investors. The United States was the top spot for foreign real estate investment in 2014 by a wide margin, outranking No. 2 Germany by 50 percentage points, according to the Association of Foreign Investors in Real Estate, an organization of real estate investment executives. New York City came in No. 2 in 2013 for foreign investment (after London). The new survey comes out this month. â&#x20AC;&#x153;When we look at the Manhattan market, we look at it from a 10,000-foot view,â&#x20AC;? said Omer Ozden, executive director of acquisitions and ďŹ nance for Xinyuan, which Continued on page 122
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BY
THE
NUMBERS
The city invested $140 million in renovating the Brooklyn Navy Yard’s Building 77, including adding windows to the first 11 floors of the former warehouse.
3.5 million 250,000 Total leasable space, in square feet, Square footage of the soon-to-becurrently online at the Navy Yard. About 20 of the Yard’s 300 acres remain undeveloped.
7,000 Number of people currently
In the Navy (Yard)
employed by the Navy Yard’s 330 tenants, one-tenth of the peak employment during World War II. The number of jobs is expected to increase to 14,000 in the next five years. At its low point in the 1970s, it employed about 700 people.
With W ith a w waiting aiting list list of of 100 100 tenants, tenants, Brooklyn iindustrial ndustrial p ark rraces aces tto og row Brooklyn park grow
$140 million Total city investment into the renovation of the 1-million-squarefoot Building 77. The building represents one-quarter of the Navy Yard’s total building stock.
n the past few years, the Brooklyn Navy Yard has quietly become one of the busiest places in an increasingly busy borough. It is now home to tenants ranging from traditional manufacturers like Sweet’N Low to the Kings County (whiskey) Distillery, and from film producer Steiner Studios, to the Brooklyn Grange rooftop farm. “Having that diversity of manufacturing, design, [and] artists is important to us as a real estate holding, but also because that’s why people live in New York,” said David Ehrenberg, president and CEO of the Brooklyn Navy Yard Development Corporation. But Ehrenberg is interested in more than simply appealing to the artisanal class. “The most important thing for our mission is jobs,” he said. “At the core, we are an industrial park.” The goal is for businesses in the city-owned Navy Yard to provide quality jobs for New Yorkers with a range of education levels. “What we try to do as a mission-driven, not-for-profit is to create, for manufacturing and industrial companies, a stable place to do business,” he said, one that is “not as exposed to real-estate pressures.” The problem with this Utopian vision? “We can’t keep up with demand of our existing tenants as they grow, much less accommodate new tenants,” Ehrenberg said. Right now, the goal is to bring as much space online as possible, as quickly as possible. “There’s a ‘By the Numbers’ for you,” he said. “Zero: square feet available to rent at the Navy Yard.” The Navy Yard’s Green Manufacturing Center houses 12 companies. By Brendan O’Connor
I
NEW LISTING
240,000
Square footage of Building 77 to be leased to Jack Basch, CEO of Shiel Medical Laboratory, the Navy Yard’s top job creator with more than 630 workers. There are more than 100 companies on the waiting list trying to expand or ink a lease there.
$40 Asking price, per square foot, for Building 77’s penthouse floor. Lower floor rent is expected in the $20 per--foot range, but city and state incentives could trim that to $18.
80,000 Square footage in the Green Manufacturing Center dedicated to the New Lab, a high-tech design and prototyping center created by real-estate developer Macro Sea. New Lab includes 12 companies, including one (of the two in the Navy Yard) working on technology to be used in outer space.
3 Number of requests for proposals issued by the Brooklyn Navy Yard Development Corp. to redevelop the once-grand Navy Yard’s Admiral Row, which deteriorated into a mess of moldering townhouses. The project will cost an estimated $120 million.
The The e cr c crumbling rumb umb um mblin blin liin ng h homes om ome me m es o on nA Admiral’s dm dmi d miira rall’ss Row ral Ro Ro ow w wi w will ill ll be be dem e oli em oli olishe ol l she sh hed. d. demolished.
44 Number of leases renewed at the
$4 Rent per square foot — about a third
Navy Yard since the beginning of last year. About 70 percent of the Yard’s tenant base has been there for more than a decade.
the going rate — paid by Capsys, a modular apartment manufacturer in danger of losing its lease. Capsys has operated at the Yard for 18 years and has 70 unionized employees.
13 million Pounds of recycled glass used by
600 Number of people the Navy Yard’s Employment Center has helped find jobs since opening in 2011. Seventy percent are Brooklyn residents.
BY THE NUMBERS
Yard tenant countertop manufacturer IceStone, since its start in 2003. NYC recycles about 490,000 pounds of glass each day. Sources: BNYDC; Crain’s; Gotham Gazette; Pratt Center for Community Development; Wall Street Journal and TRD reporting.
1 East End Avenue, Apt 10B/11B | $6,995,000
NIKKI FIELD Senior Global Real Estate Advisor, Associate Broker | 212.606.7669 | nikki.field@sothebyshomes.com | www.nikkifield.com GILLIAN R. FRIEDMAN Licensed Salesperson | 212.606.7637 | gillian.friedman@sothebyshomes.com East Side Manhattan Brokerage | 38 East 61st Street, New York, NY 10065 Sotheby’s International Realty and the Sotheby’s International Realty logo are registered (or unregistered) service marks used with permission. Operated by Sotheby’s International Realty, Inc.
26 January 2015 www.TheRealDeal.com
completed Green Manufacturing Center, the site of a former machine shop building. The $55 million center has drawn $18 million in grants.
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: F O SK E
D E H T T
A
KARIM RASHID arim Rashid is not like other designers. While his colleagues and peers often dress in all black, Rashid prefers all white — reminding him of a blank canvas — or in pink, which he says is “our only controversial color” that exudes “positive energy.” Similarly, Rashid’s sunlight-infused office on West 54th Street is unlike that of other architects. He sits on the second floor mezzanine of one of the city’s most eccentric and colorful workspaces — when he’s in town, at least. Rashid travels often; he works in 44 countries, and is currently designing 11 projects around the world. In New York, he is best known for his work with HAP (see related story, page 84) in Harlem. He said he runs between three and six miles a day as “a way to deal with stress.” And while he loves watching movies, especially science fiction, he abides by one rule while picking out which films to watch: “Don’t watch movies older than you are.” Rashid recently took The Real Deal on a tour.
K
BY CLAIRE MOSES
COFFEE MUG Rashid drinks a lot of coffee, and almost always from this cup, which he designed for Danish brand BoConcept. The cup is adorned with a sketch of the Manhattan skyline.
WALLET While most objects in Rashid’s life get replaced by a new version (he has a strict “addition by subtraction” policy), he has used the same wallet, which he designed for Acme, for the last 10 years. The wallet has a white background, which goes well with the vast majority of Rashid’s outfits.
PORTRAIT He drew this outline of his wife Ivana’s face for the icing on the
BLUE SHOES
birthday cake celebrating her 33rd
These shoes, a gift from an Italian designer, are made of wood and
birthday. “I like to draw,” Rashid
metallic leather. “Aren’t they bizarre?” Rashid asked. They’re on
said. For her 34th birthday, Rashid
display in the office but he has never worn them.
designed a new pattern.
MEMPHIS This piece, which used to be in Rashid’s living room at home, was made in 1981 by his mentor, designer Ettore Sottsass,
KNOWLEDGE IN THE BRAIN
PENCILS
Rashid designed this
About 120 colored Faber-Castell pencils sit on Rashid’s desk,
bookend, one half of
which he uses every day to draw. Rashid has around 480
a set, for a Danish
additional pencils at his apartment. “I’m fortunate to spend most
company in 2011. “I
of my day drawing,” he said.
just think it’s a nice
part of a collection called
sculpture,” Rashid said.
“Memphis.” It moved into his office
“I like having something
after his daughter, Kiva, was born and
figurative on my desk.”
it was judged not baby-proof.
LAMP As a 19-year-old student in the 1980s, Rashid designed this lamp for a school project. About three years ago, he found the 32-year-old sketch and sent it over to Artemide. The lighting company went for it
PEN AND BUSINESS CARD HOLDER
and the lamp went into production. It wasn’t until the design was accepted that Rashid shared the story of the lamp’s origin.
The colorful pen and business card holder are new and about to be brought to market by Acme. If successful, the line may be expanded.
28 January 2015 www.TheRealDeal.com
POST-IT HOLDER This Post-it holder — two of which are on Rashid’s desk — was designed for 3M. “I like things to remind me of worry stones,” Rashid said. PHOTOGRAPH OF KARIM RASHID FOR THE REAL DEAL BY MAX DWORKIN
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Out with the old in Midtown South Long-time tenants looking elsewhere as availability tightens BY ADAM PINCUS n office neighborhood does not change its character suddenly. Even as technology firms in recent years snapped up many of the new spaces in Midtown South and rents escalated in the area’s core, a cohort of older tenants
A
were protected by distant lease expirations. But as the bull market extends and leases continue to roll, changes to the nature of the neighborhood are deepening. Last month, The Real Deal reported that The Nation, the nearly 150-year-old left-leaning magazine, will likely have to move
from its offices at 33 Irving Place once its lease expires in fall 2016, because of the enormous leap in asking rents in the neighborhood. Prices rose more than 5 percent in the last quarter of 2014 alone. “The prices in this neighborhood are getting pretty prohibitive,” Teresa Stack, president of the
magazine, told TRD. The company, which has been at Irving Place since 1998, expects to relocate, possibly to Lower Manhattan, where rents are more affordable. The Nation may have company. “There is an interesting story line for next year,” Peter Hennessy, president of the tri-state region for Cassidy Turley, said in an interview in the final weeks of 2014. “In the Midtown South area, there are a whole lot of tenants that are being priced out that have been there for years.” Paul Wolf, co-president of Denham Wolf Real Estate Services, noted, “The businesses that are not huge money makers have to leave,”
Manhattan office stats AVAILABILITY AVG. ASKING RATE RENT
4Q ’14 3Q ’14
Manhattan 10.0% $66.52 10.2% $65.97
Midtown 4Q ’14 10.7% $74.78 3Q ’14 10.6% $75.74 Midtown South 4Q ’14 7.9% $61.50 3Q ’14 8.5% $58.19
4Q ’14 3Q ’14
Downtown 11.7% $52.23 12.2% $51.70
Source: Preliminary data from Colliers International
because in most cases they can’t pay the new, much higher rents. Overall asking rents in Manhattan rose in the fourth quarter of 2014 by 55 cents per square foot to $66.52 per square foot, preliminary figures from the commercial firm Colliers International showed. That was up 10 percent compared with the last quarter of 2013 when they were $60.46 per foot. The availability rate, which measures space that is vacant or will be available over the next year, declined by 0.2 points last quarter to 10 percent. That was down from 11.7 percent at the end of 2013, according to the Colliers data.
Midtown Another general trend that is expected to gain steam this year is the expansion of co-working spaces, brokers said. WeWork, recently valued at $5 billion, has grabbed the most headlines, but there are many others, including Regus and Jay Suites, and they continue to be voracious competitors for office space. Wolf, who is representing about 36,000 square feet of sublease space on the 12th and 14th floors of 360 Madison Avenue, a 360,000-square-foot building at the corner of 45th Street, said he received offers from four co-working firms to lease the space. “Co-working [tenants] get excited about it,” he said. Wolf said asking rents ranged from the $60s to the $70s per foot, depending on the details worked out to build out the space. Hennessy said he expected 2015 would be a good year for Midtown East, which has struggled somewhat in the last year. “The pricing pressure continues in Midtown South and continues in Lower Manhattan, and that Continued on page 126
30 January 2015 www.TheRealDeal.com
In their words...
The funniest and most insightful comments on real estate
“I would have to literally sell like a bag of cocaine with every coffee to be able to pay the rent.” Landmarc restaurant owner Marc Murphy, speaking at a REBNY panel discussion, on how landlords have to reconsider high retail rents if they want to include affordable dining options at their properties.
The Olshans acted “in a manner evocative of villains in old films.” Early Olshan Properties investor Sybil Goldrich, alleging in a lawsuit that the firm tried to lowball payments to her and others who backed the firm when it was founded.
“He’s a desperate man who needs money to live a lifestyle he cannot afford.” Real estate attorney Adam Leitman Bailey, referring to Jack Sitt, a former principal at Sitt Asset Managmeent, who sued the company and his brother Ralph, claiming he was deprived of millions in distributions and commissions.
“They’re rats! What do you think?” Vanity Fair editor Graydon Carter, on whether the rodents infesting Condé Nast’s new offices at One World Trade Center are as disgusting as they sound.
“The place is a total disaster, and I feel this is only the beginning.” Donald Trump, chiming in on the One WTC rat debacle.
“I’m a real estate guy, I’m a business guy in a city that’s driven by money, and so, suspect.” Edison Properties former CEO and animal rights supporter Steve Nislick, on why people question his advocacy for the Central Park carriage horse ban.
32 January 2015 www.TheRealDeal.com
“If you don’t get it right, nobody’s building anything.” Deputy Mayor Alicia Glen, on why there is zero room for error with developers when implementing mandatory inclusionary zoning.
“We happen to need buildings, just like Uber happens to need cars, just like Airbnb happens to need apartments.” WeWork co-founder Adam Neumann, on how real estate is simply a platform to reach his goal of creating a massive entrepreneurial community in his shared workspace buildings.
“If I showed you their cash-flow statement, you would not compare it to a real estate company.”
“I’m not spending my time running around 43rd Street wanting to shoot my brother.”
Henry Ellenbogen of investment firm T. Rowe Price, on WeWork’s new $5 billion valuation.
Robert Durst, after he was acquitted of trespassing at the residence of his brother Douglas.
Sources: New York Daily News, Twitter, Wall Street Journal, Capital New York, New York Times and The Real Deal reporting.
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Finally, looser lending New Freddie, Fannie policy changes support smaller down payments, more gifting BY KENNETH HARNEY hen it comes to buying a home, many feel that they are in the “no way I could possibly qualify” category. Obstacles include not enough cash in the bank for a down payment or closing costs; credit scores that are good but not great, or so much deferred student loan debt that a potential homeowner assumes that any lender would slam the door. Large numbers of Americans feel that way in part because they read and hear that qualifying standards for mortgages are the strictest they’ve been in decades. A study based on a statistical sample of potential homebuyers conducted last year by the mortgage company loanDepot found that nearly 60 percent of people who say they want to buy a home aren’t pursuing it because they think there’s just no point — they are
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ident, was explicit about the desired end result. The policy revisions “should encourage [lenders] to serve a broader range of qualified borrowers,” he said. His counterpart at Fannie Mae, Andrew Bon Salle, said he expected lenders to make “mortgages available to more borrowers.” Another big change in the wings: Fannie and Freddie plan to resume lending to buyers who can make down payments as low as 3 percent, down from their current minimum of 5 percent down. The Federal Housing Administration requires 3.5 percent down payment, but its insurance premiums often make its loans more expensive than Fannie’s and Freddie’s. So cutting the minimum back to just 3 percent could prove helpful for many cashshort borrowers, even if the two companies impose
A study conducted last year found that nearly 60 percent of people who say they want to buy a home aren’t pursuing it, because they are convinced their applications would be rejected. convinced their applications would be rejected. Threequarters of them, however, concede that they haven’t done a thing to check out current lender requirements. Here’s some good news for these folks: Changes are underway in the mortgage market that could give them a better shot at qualifying. Start with recent policy shifts at giant mortgage investors Fannie Mae and Freddie Mac, the two dominant funding sources for new loans. Late in November, both companies announced procedural changes that should encourage lenders to be less fearful that the mortgages they approve will be subject to costly “buy back” demands if borrowers go delinquent. In a buy back, an investor such as Fannie Mae requires the lender which originated the mortgage to repurchase it, because of alleged defects in underwriting that ultimately led to the borrower’s nonpayments. To avoid buy backs, lenders in recent years not only have ratcheted up their underwriting requirements, but also have added extra fees (so-called “overlays”) that are designed to compensate them for losses on loans to borrowers who have below-average credit scores, small down payments and minimal assets in reserve. Though the technical details of the recent changes would glaze most consumers’ eyeballs, their intended net effect is important. They tell lenders: “OK guys, you can loosen up a little on mortgage applicants, give some breaks on credit scores and other criteria that you wouldn’t have previously.” David Lowman, a Freddie Mac executive vice pres-
34 January 2015 www.TheRealDeal.com
other requirements such as pre-purchase financial counseling. Lenders and private mortgage insurers strongly support Fannie’s and Freddie’s recent moves to open the lid on the credit box a little wider. They want to make more mortgages, especially to qualified firsttimers, but don’t want to be penalized for doing so. Major insurers such as MGIC are telling real estate agents, banks and personal-financial advisers that they should get the word out to consumers who are sitting on the sidelines. For example, a borrower needs to know that gifts can cover 100 percent of her down payment. Also, the minimum credit score standards may no longer be as high as potential borrowers have feared. The average FICO score for all types of closed loans during October was 726, not the widely assumed 750-760, according to the software firm Ellie Mae. At FHA, the average for successful purchasers was just 683 during the same month. Vance Edwards, marketing program manager for MGIC, says “there are many [people] who can now afford to buy a home and qualify for a mortgage but simply don’t realize it.” The message here: Getting a mortgage can still be tough — borrowers still have to be able to make their payments — but there is an easing process underway that potential homebuyers shouldn’t ignore. Kenneth Harney is a syndicated columnist.
4<C2?;:2;A /?623@ Landmarks nixes plan to drop long list of sites The Landmarks Preservation Commission dropped its recent plan to remove 94 structures and two historic districts from the agency’s oversight. Of the more than 100 “calendared” buildings, 26 have been listed since the commission was formed in 1965, the New York Times reported, and 80 have been on the list for more than two decades. (Calendaring is the first step in the public review process, and a de facto landmark designation, given that any work permits for a calendared building must be approved by the commission.) The Brooklyn’s Green-Wood Cemetery removals, a goal of the development community for years, the Times said, were intended to clear the backlog. Structures on the list included Staten Island’s Snug Harbor Historic District, Brooklyn’s Green-Wood Cemetery, and five Broadway theaters in Manhattan, as well as Bergdorf Goodman and President Chester A. Arthur’s house. The commission also recently rejected the proposed design for the conversion of a century-old church at 361 Central Park West to condos. The proposal would have removed stained-glass windows from the building.
NYC to consider increased mansion tax City Hall is considering an increase to the socalled “mansion tax,” which taxes housing sales over $1 million an additional 1 percent, and which generated $259 million in revenue for New York State in 2013. The revenue generated by the increase would go toward funding Mayor Bill de Blasio’s $41 billion affordable-housing plan. The Wall Street Journal reported that critics of the proposal worry if the high-end luxury market slows down, tax revenue will slow with it: the mansion tax generated $176 million in 2010. Some of the city’s most prolific developers 15 CPW, home to many $1M-plus sales support the plan as an alternative to other proposals, such as a pied-à-terre tax. As of mid-November, the Journal found that there had been 5,285 deals over $1 million in 2014.
$1 sale of $110M development package OK’d The sale of a 25,204-square-foot plot of land on West 53rd Street between 10th and 11th Avenue to the Clinton Housing Development Corp. for $1 was approved by the Mayor’s Office of Contract Services. The land and development rights are together valued at $110.6 million, according to an independent appraisal commissioned by the Department of Housing Preservation and Development. Clinton Housing proposes to build a 103-unit affordable development at 530-548 West 53rd Street, and to sell a portion of the unused land to Taconic Investment Partners and Ritterman Capital for some $3.1 million. Taconic and Ritterman plan a 405-unit development, including 81 affordable units. The details of the financing plan are still being worked out.
City: Developer must compromise on park The City Planning Commission said a developer must meet with residents to craft a proposal for adding retail space at Rivergate Apartments at 401-429 East 34th Street. The commission rejected a proposal from Rivergate’s owner, UDR, to build a 4,000-square-foot, one-story retail space The Rivergate Apartments over a playground and basketball court adjacent to the apartments, DNAinfo reported. UDR built the park in 1985 to get permission to build a larger building. It was closed for more than two years, until the Parks Department forced UDR to reopen it in April. Community Board 6 will host a public meeting on the design process on Jan. 7. Compiled by Brendan O’Connor
Behind every successful Building Owner is a host of incredibly talented Brokers and steadfast Tenants. Jack Resnick & Sons thanks the following Firms and the Brokers who represented them, as well as our existing Tenants that renewed their commitment to New York City in 2014. Allied World Insurance Company 199 WATER STREET represented by: Paul Ippolito & Joseph Zona of Newmark Grubb Knight Frank
BGC Partners 199 WATER STREET represented by: Hal Stein & Michael Ippolito of Newmark Grubb Knight Frank
The Center for Reproductive Rights 199 WATER STREET represented by: Dan Horowitz & Gary Kerper of Savills Studley
Intent Media 315 HUDSON STREET represented by: Sacha Zarba of CBRE Group, Inc. & Steve Marvin of Olmstead Properties, Inc.
The Howard Hughes Corporation 199 WATER STREET represented by: Gerry Miovski of CBRE Group, Inc.
Signature Bank 485 MADISON AVENUE represented by: Michael Cohen & Howard Kaplowitz of Colliers International
Bevmax Office Centers 485 MADISON AVENUE represented by: Michael Cohen & Phillip Amarante of Colliers International
Maison Kayser 8 WEST 40TH STREET
Newsmax Media 8 WEST 40TH STREET represented by: Doug Dolgoff of Cushman & Wakefield
Netsuite 8 WEST 40TH STREET represented by: Jonathan Schindler, Kevin Waldman, Aron Schreier & Matthew Etlinger of Cassidy Turley Real Estate Services, Inc.
The Western Union Company 199 WATER STREET represented by: Michael Gottlieb & Martin Cottingham of Avison Young
Joseph Ratner & Co. 8 WEST 40TH STREET
Janover LLC 485 MADISON AVENUE represented by: Harry Krausman, Steve Braun & Daniel Thompson of Cassidy Turley Real Estate Services, Inc.
Kenneth M. Schweitzer, D.D.S & Daniel Schweitzer, D.D.S. 133 EAST 58TH STREET represented by: Marc S. Miller of MHP Commercial Brokerage Services
J.F. Lehman & Company 110 EAST 59TH STREET represented by: Brian Goldman of Newmark Grubb Knight Frank
IMAX Corporation 110 EAST 59TH STREET represented by: Robert Yaffa & Wayne Van Aken of Cassidy Turley Real Estate Services , Inc.
Middlegate Securities 8 WEST 40TH STREET
Altman Foundation 8 WEST 40TH STREET represented by: Noel Flagg of Newmark Grubb Knight Frank
Olympus Capital Management 485 MADISON AVENUE represented by: Gary Greenspan of Cushman & Wakefield
TED Conferences 315 HUDSON STREET represented by: Kim Skarvelis of Cast Iron Real Estate
Transform Fitness 133 EAST 58TH STREET
Frederick Mindel, D.C. 133 EAST 58TH STREET
Beech Hill Securities 880 THIRD AVENUE represented by: Lisa Kiell of JLL Central Park Fine Arts & Gifts 205 WEST 57TH STREET Kristos Togias, D.M.D. 133 EAST 58TH STREET
Domino’s Pizza 170 WEST 23RD STREET
Allergy & Asthma Care of NY 133 EAST 58TH STREET
L.A. Gourmet 110 EAST 59TH STREET
Save Venice 133 EAST 58TH STREET represented by: Nicholas T. Judson & Stuart S. Ellman of Judson Realty LLC
Aesthetic 2000 Laser Hair Removal 133 EAST 58TH STREET represented by: Jennifer Scolnick of Vicus Partners, LLC
Pace University 161 WILLIAM STREET represented by: David A. Falk & Kyle Ciminelli of Newmark Grubb Knight Frank
Create Fresh 205 WEST 57TH STREET
Two Angels NYC 205 WEST 57TH STREET
Park Avenue Podiatry 133 EAST 58TH STREET
Thirteenth Floor Group 880 THIRD AVENUE represented by: Robin Fischer & Taylor Scheinman of Newmark Grubb Knight Frank
Appleberry Parts 205 WEST 57TH STREET represented by: Emilian Derguti of Commercial Spaces Group, LLC
Jack Resnick & Sons Owners & Builders Since 1928 110 East 59th Street New York, NY 10022 212-421-1300 www.resnicknyc.com
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ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, REFERENCE SHOULD BE MADE TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. THIS OFFERING IS MADE ONLY BY THE PROSPECTUS FOR THE CONDOMINIUM AND NO STATEMENT SHOULD BE RELIED UPON IF NOT MADE IN THE PROSPECTUS. THIS IS NOT AN OFFER TO SELL, OR SOLICITATION OF OFFERS TO BUY, THE CONDOMINIUM UNITS IN STATES WHERE SUCH OFFER OR SOLICITATION CANNOT BE MADE. PRICES, PLANS AND SPECIFICATIONS ARE SUBJECT TO CHANGE WITHOUT NOTICE.
PR O F I L E
High praise for Spinola’s successor A look at incoming REBNY president John Banks shows that he has a lot in common with the outgoing president, and wields similar influence BY RICH BOCKMANN he real estate industry faces some big unknowns as 2015 gets underway. Thorny issues like terrorism risk insurance and 421a tax abatements will come up against a new political landscape in Washington, D.C., and new dynamics in Albany. And as this plays out, there will be a new face representing the industry in New York City for the first time in 30 years. John Banks, a longtime lobbyist for Consolidated Edison, was tapped last month to take over as president of the Real Estate Board of New York. Outgoing President Steven Spinola will be stepping aside by midyear after three decades at the helm of the powerful industry group. In Banks, a veteran of politics and government affairs, the industry is getting an adroit advocate who is well-connected in the halls of power, and battle-tested when it comes to getting deals done, those familiar with his body of work told The Real Deal. “I think he’s really a very, very wise
T
choice. He really understands government and he understands policy and politics. He understands the private sector,” said Suri
John Banks
through the government bureaucratic structure. He comes from a lot of different backgrounds and brings a lot of different skill sets.” Banks, who was the vice president of governmental affairs at Con Ed for 13 years, will become REBNY’s president-elect in early March. Spinola will stay on during a transition period. A comparison of their resumes shows the two have a lot in common.
Most notable are the “three men in a room” — Gov. Andrew Cuomo, Senate Majority Leader Dean Skelos and Assembly Majority Leader Sheldon Silver — who are largely responsible for shaping government agendas. Banks and Spinola even worked on issues where the worlds of real estate, energy and economic development overlap, such as rebuilding Lower Manhattan after the 9/11 attacks.
Large footprints
“It gives them a serious institutional player and someone who really understands the legislature. Banks gives you his word, and he keeps it, in a world where very few people can be trusted.” HANK SHEINKOPF, POLITICAL STRATEGIST Kasirer, president of Kasirer Consulting and one of the top lobbyists in New York City. “He knows how to move things along
Both figures loom large in Albany, where they have key relationships with some of the state’s most important lawmakers.
The Real Deal reviewed reports lobbyists are required to file with the state ethics panel to glean some sense of how active the two organizations are in Albany. From 2012 through the first half of 2014, REBNY spent a little more than $1 million lobbying state officials. During the same time, Con Ed spent about $680,000. The two also lobby in Washington, D.C., but in the nation’s capitol the edge goes to Con Ed. REBNY has spent about $500,000 lobbying in Washington since 2010, outsourc-
The Pashby Buckworth Team 445 Park Avenue New York, NY 10022
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38 January 2015 www.TheRealDeal.com
www.TheRealDeal.com January 2014 35
PR O F I L E ing all the work to a District-based firm. Con Ed, on the other hand, spent $3.6 million during that time. And not only does the company do most of its own lobbying there, but Banks himself has worked on legislative issues in D.C. Both men got their starts in Mayor Ed Koch’s administration. In the 1980s, under Koch, Spinola started out as the head of the predecessor to today’s city Economic Development Corp. Banks began his career as an investigator in the mayor’s Office of Operations. He went on to serve as chief of staff to then-City Council Speaker Peter Vallone Sr., where he was largely responsible for the day-to-day activities of the Council from 2000 to 2002. “He was an excellent solver of problems,” Vallone Sr. said. “Whether it was a major fire in the city somewhere, or a murder, or the stock market going down 600 points in one day…. There were a lot of major problems back then, and Steven Spinola John always had a cool head. He was a very smart advisor on that end.”
Wizard of scheduling Many people who know Banks said not only is he well-liked and well-respected, but he is also a very savvy political strategist. That cunning was on display back in 2001, when Vallone’s chief of staff was able to outmaneuver then-Mayor Rudy Giuliani on a campaign-finance reform bill, a story reported by the New York Post and confirmed by those who were there at the time. Peter Vallone Sr. In March of that
absent; the strategist cancelled the vote at the eleventh hour. It appeared that Giuliani had won. But Banks knew that in just a few days, the Council would be voting on a separate override measure, this one providing more funding for municipal-employee pensions. That issue was big with the unions, and Banks knew they would be out in full force making sure the lawmakers Suri Sur Sur Su uri Kasirer Kasi asirer as re er showed up.
“John always had a cool head.” PETER VALLONE SR., JOHN BANKS’ FORMER BOSS year, Giuliani vetoed a bill the Council had passed protecting the city’s four-toone matching program for campaign contributions. In the following weeks the mayor sought to pick apart support for the bill, to prevent the Council from overriding his veto. The task of lining up votes in favor of the law fell to Banks, and he appeared to have favorable numbers. But on the day in mid-April when the override vote was scheduled, a number of lawmakers were
When the Council reconvened, it passed both override measures. The end result was seen as a major victory for Vallone, but the strategy was all Banks. Aside from his tactical prowess, Banks is also regarded as an honest and trustworthy operative, which is no small compliment, political insiders assured TRD. Albany lawmakers pointed to the blackout of 2006 as an example of how Banks was able to put a human face to Con Ed during trying times.
“He made it look more user-friendly, rather than being looked at as a big conglomerate,” said state Assemblyman Keith Wright, a Democrat who represents Harlem and chairs the body’s Committee on Housing. In addition to his roles in the public and private sectors, Banks also serves on the boards of the Metropolitan Transportation Authority (an appointee of former Mayor Michael Bloomberg) and the New York Public Library. He was reportedly in the running to replace Dan Doctoroff when the Bloombergadministration deputy mayor stepped down in 2007, and he served as a member of Mayor Bill de Blasio’s transition team. Political strategist Hank Sheinkopf said he thinks Banks is a strong choice to serve as the bridge between politics and real estate. “It gives them a serious institutionHank Sheinkopf al player and someone who really understands the legislature. Banks gives you his word, and he keeps it, in a world where very few people can be trusted,” he said. “It’s a master stroke by REBNY.” TRD
The Robby Browne Team 445 Park Avenue New York, NY 10022
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www.TheRealDeal.com January 2015 39
LITIGIOUS LANDLORDS
MOST LIKELY TO LITIGATE TRD’s first-ever look at the Manhattan landlords with the highest rate of tenants in Housing Court
BY ADAM PINCUS he suspicion, anger and lack of trust over money can make the atmosphere at 111 Centre Street in Lower Manhattan seem a lot like divorce court. But the sparse halls and windowless hearing rooms of Housing Court are filled with the emotional energy of squabbling landlords and tenants. Landlords turn to the courts to oust troublesome tenants, nonpaying tenants, and, in some cases, low-paying tenants. In the vast majority of Manhattan buildings, landlords bring one or two cases at any one time against renters, typically representing just a fraction of a percent of the units. But an analysis by The Real Deal of data from the New York State Unified Court System found that for a handful of buildings, there are much higher rates of Housing Court action: buildings where as many as a third of the residents are facing
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40 January 2015 www.TheRealDeal.com
legal proceedings from their landlords. Most cases are either for nonpayment, which are filed in an attempt to recover money from a tenant; or holdovers, cases which are filed to remove tenants who the landlord claims are improperly occupying an apartment. This month, for the first time ever, to
highest percent of Housing Court cases, and separately, the landlords who were most active in Housing Court. A little background: The number of Housing Court cases filed in Manhattan fell about 24 percent over the past six years, to 59,173 in 2013, the most recent figures from the New York State Unified Court
Evictions in Manhattan rose to more than 4,500, a 13 percent jump from a year earlier. find what rates represent a norm, as well as who are the most active landlords in Housing Court and why, TRD combed through more than 6,000 Manhattan Housing Court cases on the docket as of mid-November. (See methodology, inset.) We identified 12 privately owned and financed Manhattan properties with the
System show. But the number of evictions rose to 4,525, in 2013, an increase of 13 percent from the year earlier, the city’s Department of Investigation reported. Taken together, the two statistics show that a Housing Court case filing is increasingly likely to lead to an eviction. The ratio of evictions to cases filed rose to
7.6 percent, or nearly one out of every 13 cases in 2013, from 5 percent, or one out of every 20 cases, in 2007.
Full court press The most active buildings in TRD’s survey, as a percentage of their units, were concentrated in Upper Manhattan. However, the single most-active building as a percentage was an anomaly within this survey, both for its location, and because it is not owned by a typical landlord. The Daughters of Mary of the Immaculate Conception, an order of nuns based in New Britain, Connecticut, own and operate St. Joseph’s Immigrant Home, a 75-unit building in Hell’s Kitchen at 425 West 44th Street, between Ninth and 10th avenues. The building, with common bathrooms and kitchens, has provided low-cost housing to immigrant women for decades.
ILLUSTRATION FOR THE REAL DEAL BY CHRIS MANFRE
LITIGIOUS LANDLORDS In an effort to stabilize the finances of the building, which a source said runs a deficit of about $100,000 per year, the nuns imposed an increase in the rent by $150 per room per month. That was up from a range of $375 to $475 per month. While some tenants left, and some paid the higher rate, a group of women balked at the increases and initiated a rent strike. By mid-November, the order had filed 25 holdover cases, representing one-third of the building’s units, against the tenants in an effort to impose the higher rent. That figure rose to 27 cases last month. Since the single-room occupancy building is owned by a nonprofit religious group using it for a charity purpose, the tenants are not protected by the same laws that apply to most SRO buildings, said Joe Restuccia, co-chair of Community Board 4’s housing, health and human services committee. The SRO-focused MFY Legal Services, along with the nonprofit Housing Conservation Coordinators and the Goddard Riverside SRO Law Project, are representing the 27 tenants. An attorney for Goddard said the order wants all of those tenants out by January 2016. “Even with the rent increases, which more than half of the residents are paying, it will take years for my client to erase this deficit,” Andrew Wagner, an attorney representing the nuns. said in an email. Next on the list was the low-profile landlord Cyrus Management, led by members of the Hakakian family. Cyrus owns three six-story buildings at 533, 537 and 541 West 158th Street in Washington Heights, which have a total of 70 units. The landlord had 21 open cases in housing court, or 30 percent of the apartments in the buildings, as of mid-November. The company did not respond to a request for comment. Housing advocate Evan Hess of the nonprofit Northern Manhattan Improvement Corp., was not familiar with the specifics of the buildings, but observed that 30 percent seemed unusually high. “It is not common for so many cases in a building,” he said.
MANHATTAN BUILDINGS WITH THE HIGHEST RATE OF HOUSING COURT CASES
Rank
Landlord
Neighborhood
Cases/ % Units in Total Units Court
Hell’s Kitchen
25/75 33.3%
Washington Heights
21/70 30%
1
Daughters of Mary of the Immaculate Conception, 425 West 44th Street
2
Cyrus Management, 533-541 West 158th Street
3
Castellan Real Estate Partners, Liberty Place Property Mgmt, 148 West 141st Street
Central Harlem
6/29 20.7%
4
Castellan Real Estate Partners, Liberty Place Property Mgmt, 524 East 119th Street
East Harlem
6/32 18.8%
E&M Associates, 2254 Fifth Avenue
Central Harlem
3/16 18.8%
6
Castellan Real Estate Partners, Liberty Place Property Mgmt, 111 West 141st Street
Central Harlem
11/59 18.6%
7
Castellan Real Estate Partners, Liberty Place Property Mgmt, 1661 Park Avenue
East Harlem
5/34 14.7%
8
Castellan Real Estate Partners, Liberty Place Property Mgmt, 145 West 141st Street
Central Harlem
6/48 12.5%
Marble Hill
10/84 11.9%
(tie)
4 (tie)
9
MP Management, 1 Jacobus Place
10
Kushner Companies, 170-174 East Second Street
East Village
5/43 11.6%
11
Icon Realty, 56 West 11th Street
West Village
4/36 11.1%
12
Castellan Real Estate Partners, Liberty Place Property Mgmt, 316 East 117th Street
East Harlem
8/75 10.7%
Economics in play The next-most-active building in Housing Court, 148 West 141st Street, is one of six properties on the list owned by the investment firm Castellan Real Estate Partners and managed by Liberty Place Property Management. A real estate investment fund created by Massey Knakal Realty Services and RiverOak Investment is a partner is several of the Castellan buildings. At 148 West 141st Street, the owners had six open cases from among 29 apartments. However, five of those were brought against Pathways to Housing, a bankrupt nonprofit originally established to help the homeless. In Castellan’s other
Source note: The Real Deal analysis of active Manhattan Housing Court cases gathered from the NYS Unified Court System website on Nov. 10. TRD analyzed only privately owned and financed buildings with three or more open cases.
METHODOLOGY The Real Deal combed through more than 6,000 Manhattan housing court cases on the docket as of mid-November. The review found the ownership entities that had three or more open Housing Court cases.
We first identified the owner, and removed hundreds of city-owned buildings or buildings financed by the city or state. What remained were just under 300 entities, and we searched through those to find the most active filers.
We identified 12 privately owned and financed Manhattan properties with the highest percent of housing court cases. Separately, we identified the landlords with non-contiguous multibuilding portfolios who were most active in housing court.
www.TheRealDeal.com January 2015 41
LITIGIOUS LANDLORDS
Rank
Landlord
Percent of subject units in Housing Court
Housing Court cases in subject properties
Total unit count in subject buildings
1
Castellan Real Estate Partners, Liberty Place Property Management 148 West 141st Street and nine other properties
10.5%
65
601
2
MP Management 1 Jacobus Place and three other properties
8.7%
29
332
3
Savanna, L&M Development Partners Savoy Park complex at 620 Lenox Avenue
4.8%
87
1,602
4
E&M Associates 2254 Fifth Avenue and five other properties
3.6%
36
1,014
attorney at the real estate-focused law firm Kossoff PLLC, who was representing Icon, said the tenants in the holdover cases were leasing their units to others. “Each holdover proceeding was commenced based upon the fact that the tenants were not primarily residing in their apartments and were subletting the apartments without the owner’s consent,” he said in a statement to TRD. The nonpayment, he said, was a typical case and the tenant has left, but still owes back rent. Neither Kushner nor Icon had any other properties with three or more Housing Court cases within their wider portfolios, the TRD analysis found.
5
Urban American Management 3333 Broadway and two dozen other properties
2.1%
85
3,962
Most active
6
Olnick Organization 470 Lenox Avenue and five other properties
1.9%
33
1,716
7
Stellar Management 310 Greenwich Street and seven other properties
1.4%
33
2,297
8
CWCapital Asset Management Stuyvesant Town, Peter Cooper Village, Riverton
0.4%
49
12,300
TOP LANDLORD PORTFOLIOS IN MANHATTAN HOUSING COURT
Source note: The Real Deal analysis of active Manhattan Housing Court cases from the NYS Unified Court System on Nov. 10. These landlords had 20 or more open cases in their noncontiguous and nonattached multibuilding portfolios. TRD counted privately owned and financed buildings with three or more open cases.
five buildings among the top 12, there were 30 Housing Court cases, including eight additional Pathways cases. The majority of cases involved nonpayment. Last year, Gov. Andrew Cuomo announced a settlement after the state’s Tenant Protection Unit investigated allegations that Castellan and Liberty Place had harassed immigrant tenants. Liberty Place COO Rick Serrapica, speaking on behalf of Castellan, said the company was operating its business carefully, following all the state’s guidelines, “and in fact we usually go further than required.” Serrapica discussed the firms’ policy on housing court cases at length with TRD. “As to the number of cases open at any given time, the usual reason is economics: bad economy, loss of a job, tough to find a new job, and so on,” he said. Serrapica said the firm, which tracks nonpayment cases as a percent of total units within its overall portfolio, brings an action when the tenant is two months in arrears and also after reaching out to the tenant to determine why he or she has not been paying. Overall, the ratio of units with cases in Housing Court has been falling over the past 18 months, he said, citing internal figures. Serrapica said he couldn’t say why his firm’s percentages were so much higher than others’, because he didn’t know how others were run. “Sometimes,” he said, “you’ll find that a company has a very low case load, simply because no one is reviewing arrears.” Massey Knakal declined to comment. The fourth-most-active building on the list was 2254 Fifth Avenue, owned by Irving Langer’s E&M Associates. The sixstory walk-up in Central Harlem, between 42 January 2015 www.TheRealDeal.com
137th and 138th streets, has 16 units. The company has three open cases in the building, all for nonpayment. Langer did not respond to a request for comment. In the ninth position was Moshe Piller’s
are holdovers. And two buildings, ranking 10th and 11th on the list, are in gentrifying areas of the city and had several holdover cases. In the larger building, owned by
Among the dozen buildings TRD highlighted, the vast majority of the cases filed were nonpayment cases. MP Management, which had 10 open cases in the 84-unit elevator building at 1 Jacobus Place in Marble Hill, or about 12 percent. Piller did not respond to a request for comment.
Changing tactics Holdover cases are typically used to remove tenants that are non-primary or are allegedly not covered by rent regulation. Those types of cases were popular in the boom years of 2005 through 2007, when landlords were trying to move out large numbers of tenants from complexes such as Stuyvesant Town, or from several portfolios in Queens, with the hopes of bringing in new tenants paying higher rents. Generally, however, landlords in Manhattan have stepped back from aggressively filing holdover cases. Among the dozen buildings TRD highlighted, the vast majority of the cases filed were nonpayment cases. But there were a few exceptions. In addition to 425 West 44th Street (where all the cases were holdover cases), 11 of the 21 cases at 533-541 West 158th Street
Kushner Companies, there were a total of five holdover cases brought against residents in four of the apartments at 170-174 East Second Street in the East Village. The two adjacent buildings between Avenues A and B have a total of 43 residential units. In four of the cases (there are two cases brought against one tenant), the landlord claims the tenants are not rent-regulated, and so don’t have the right to renew their leases. The tenants maintain they are rent-regulated and have a right to remain, and the cases remain in court. The fifth case was brought against a tenant living in a “Collyers’ Mansion” condition, meaning the apartment was so cluttered as to be potentially dangerous. That tenant, following a clean-up of the apartment, has settled the case and will remain, a spokesperson for the landlord said. In a case in the West Village, the landlord Icon Realty Management owns 56 West 11th Street, a 36-unit building between Fifth and Sixth avenues, where in November it had three holdover cases and one nonpayment case. Anthony Rodriguez, a supervising
The analysis of the 6,000 cases found that within the privately owned and financed companies, there was a large range in the percentage of units in housing court. Some firms, such as Castellan, had a large number of units in court. That obviously puts pressure on revenue, because the tenant typically is not paying rent. Insiders said a 10 percent rate of units in court at a given time could be reasonable, taking into consideration the economic times, rising rental rates and the financial stability of tenants in different neighborhoods. “It does not shock me that a landlord would have 10 percent in court with a lowincome population,” Edward Josephson, director of litigation at South Brooklyn Legal Services, said. Nonetheless, very few landlords had rates that high. For example, Savanna and L&M Development Partners, which in 2012 purchased the Savoy, a 1,804-unit complex of buildings in Harlem, for $82 million, had a rate of 4.8 percent there. That midrange number was in part because of a hold on nonpayment cases by the prior owner, Vantage Properties, which was being scrutinized by the state. “The number of open court cases at the Savoy reflects our ongoing work to rehabilitate a distressed property and ensure compliance with rent-stabilization laws,” said a spokesperson for C&C Management, which is the management arm of L&M Development Partners. And while Langer had a rate of nearly 19 percent in the previously cited building on Fifth Avenue, among a wider group of buildings with a total of 1,014 units, he had a rate of just 3.6 percent. Also in Harlem, the Olnick Organization owns a 1,716-unit series of buildings known as Lenox Terrace, which combined had a rate of just 1.9 percent. And CWCapital Asset Management, which controls Stuyvesant Town, Peter Cooper Village and Riverton, which were all once heated battlegrounds in Housing Court, had a combined rate of approximately 0.4 percent, the survey found. TRD
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REAL ESTATE
AND
POLITICS
De Blasio: Year One After 12 months, a clearer picture emerges of mayor’s relationship with real estate issues BY RICH BOCKMANN t’s no wonder that when the dust settled on the Democratic mayoral primary some 15 months ago, the real estate industry eyed candidate Bill de Blasio with some measure of trepidation. After all, under mayors Rudy Giuliani and Michael Bloomberg, the industry flourished. For two decades, it could count on at least one sure thing: consistent support from a pro-real estate City Hall. And if there’s one thing any business values, it is consistency. So when de Blasio called for a “reset” on the relationship between local government and the industry during his campaign, real estate figures naturally wondered what the new order would look like. A year into the new administration, industry figures may not know exactly what they’re getting from de Blasio, but they are starting to get a clearer picture. “I really think he’s working hard, trying hard,” Donald Trump told several hundred like-minded individuals who gathered at the Jacob K. Javits Center last month for the International Council of Shopping Centers’ trade show. “Obviously he has a very different philosophy than most people in this room.” Trump, never shy about sharing his opinion, offered conciliatory praise for the mayor, tempered with caution. The boisterous developer said de Blasio and his team, “have been very good, as far as I’m concerned” with regard to advancing Trump Golf Links at Ferry Point, the $236 million golf course in the Bronx that has been stalled for more than a dozen years. On the other hand, Trump said he was concerned with talk of “tax the rich.” He said he couldn’t believe anyone would let that happen. “Mike did a great job; Rudy did a great job. I really think that time will tell,” what kind of job de Blasio will do, he said. “I like to give people the benefit of the doubt.”
Mayor Bill de Blasio
I
people who were capable and competent — obviously they’d represent his philosophy — or would they be ideological and less practical?”
“I see clients look at development sites and there’s some uncertainty as to how much you can build if you provide affordable housing
“We’ve seen a huge shift in priorities compared to the last administration,” said Jolie Milstein, president and CEO of the New York State Association for Affordable Housing, an industry group representing both non- and for-profit developers of affordable housing. “This mayor’s approach is much more sensitive to the dynamics within neighborhoods,” she added, saying the mayor’s housing plan and the improvements at HPD have encouraged many of those who were on the sidelines to get involved. Neveloff said he will be looking to the mayor to see how he weighs in on the renewal of the state’s 421a tax abatement program in June, and his stance on affordable housing deals that are nearing their expirations. It all comes down, he said, to doing a deal both sides can be happy with. “I was originally concerned, but I’m feeling better and better,” he said. “I’m feeling more confident that there’s a balancing of different interests, and I think that’s important.”
A historic move
The administration ruffled more than a few feathers in early December when news broke that the Landmarks Preservation Commission might remove more than 100 sites from consideration for landmarking. “I was very disappointed, even though [the proposal] has been tabled,” said Stuart Siegel, the former FRANCIS GREENBURGER, TIME EQUITIES Sotheby’s CEO who last spring jumped to the European high-end brokerage By and large, Greenburger said, he’s had onsite or offsite. The industry needs that Engel & Völkers to open its first NYC office. positive feelings about the de Blasio appointees predictability,” attorney Jay “I don’t think [de Blasio] has embraced the he’s met. He added that considering where Neveloff of Kramer Levin value of historic districting and how it can be national discourse is on topics such as middle- said, who added that supportive of affordable housing.” class wages and the criminal justice system, he’s “hopeful that it’s Indeed, unused air rights over a people come around to realize the mayor is coming.” historic district are central to discussion on to something with his progressive ideas. Others pointed surrounding one of the biggest land“He’s the right person for the right time. to moves such as use debates right now: developer It’s about finding the right balance for those de Blasio’s naming Tax jitters Howard Hughes’ plan to build a issues,” he said. “That’s essential for having a Carl Weisbrod as Trump’s concern about higher taxes is not tower near the South Street Seaport. unique. In November, a Quinnipiac University stable environment, and if you don’t have a chairman of the Another proposal Siegel said he poll found that 54 percent of city voters stable environment, real estate doesn’t do well.” City Planning is watching closely is the plan to Of course, another major element of de Commission surveyed believed de Blasio would raise taxes. rezone a few blocks near Grand Blasio’s agenda is affordable housing: the and reshapThis perception is likely due to the Central Terminal, where SL Green mayor’s unsuccessful push in the early days mayor pledged to build 80,000 units and ing the dewants to build its One Vanderbilt Jolie Milstein of his administration, for a tax hike to pay for preserve another 120,000 over 10 years. partment of tower. He said he hopes it amounts universal pre-kindergarten, as well as his to more than a “pebble in a pond” public mulling on a proposal for a tax on and that City Hall considers broader second homes worth $5 million and up. Midtown East rezoning. De Blasio arrived at City Hall with “I think he got a challenge with the what he considered a progressive industry and it will be interesting to see mandate, which caused concern that JOLIE MILSTEIN, NEW YORK STATE ASSOCIATION FOR AFFORDABLE HOUSING how he stewards it,” Siegel said. “In this he might shake things up too much. industry, in a bull market everybody’s “I had a level of concern about what his The plan has widespread support from the Housing Preservation and Development as a hero, and I think what he’s basically trying administration would look like,” Time Equities real estate industry, though there are many signs of real commitment to streamlining the to do is create an environment where a lot of CEO Francis Greenburger said. “Would it be questions about how it will be implemented. city’s land-use policies. people benefit from that market.” TRD
“He’s the right person for the right time. That’s essential for having a stable environment, and if you don’t have [that], real estate doesn’t do well.”
“We’ve seen a huge shift in priorities compared to the last administration.”
44 January 2015 www.TheRealDeal.com
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RESIDENTIAL DEVELOPMENT
A NEW PACE FOR NEW CONDO SALES Brokers say lack of urgency among buyers and influx of new product is slowing market
BY E.B. SOLOMONT s 2014 wound down, a curious trend emerged among real estate heavyweights. Even amid a new development sales boom, one top developer after another voiced concern about the ultra-high
A
segment of the market. Combined with expectations for an influx of new condos that will come online in 2015, the developers’ anxiety made waves among marketers and brokers. “I see all these people still building buildings for that market,” said Andrew Gerringer, managing director for new business development at the Marketing Directors. But, “You see the guys building — Kevin Maloney, [Gary] Barnett — they’re saying it’s a slowdown.” Of course, few would argue that 2014 was a flop in terms of high-end new development. The number of sales at 46 December 2014 www.TheRealDeal.com
new development properties priced at $10 million and up rose 39 percent last year, according to Corcoran Sunshine Marketing Group. Meanwhile, prices continued to climb: The average price for apartments in new developments in Manhattan was $3.8 million, up 3 percent,
Sunshine, the total number of new development sales at all price points in Manhattan in 2014 was 1,785, a 25 percent drop from 2013. Meanwhile, new residences spent a median of 80 days on the market in 2014, according to data from real estate website
“‘I have to buy, I have to buy,’ is now, ‘Let’s look at all options and see what’s out there.’” EDDIE SHAPIRO, NEST SEEKERS INTERNATIONAL while the average price per square foot rose 2 percent to $2,314. Still, it’s less clear how some of the newest projects are faring, since many deals have yet to close. Overall, the pace of new development sales is slowing. According to Corcoran
StreetEasy, a 21 percent increase from 66 days in 2013. And industry veterans said no one is sure how deep the ultra-luxury market is. “It’s somewhat of a market blind spot, because of the contracts held back until projects actually close,” said Jonathan
Miller, president of real estate appraisal firm Miller Samuel. He noted, however, that inventory is up. “The influence of that is that the pace is slowing,” he said. “Part of this equation [is] consumers waiting to see what’s coming on. The sense of urgency has been removed.”
Lagging luxury For better or worse, Extell Development’s One57 has become a bellwether for ultraluxury condo development — which explains the outsized interest in the sales slowdown at Barnett’s 94-unit tower. While closings at One57 dominated the list of priciest sales of the year (see related story, page 56) only one unit at the building sold during 2014’s third quarter, leaving 24 apartments on the market. In May, Unit 58A — the building’s first flip — sold at a discount of $2 million off the asking price of $36 million.
ILLUSTRATION FOR THE REAL DEAL BY PHILIP CHUDY
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‘Affordable’ luxury
“People are priced out domestically. Not everyone is a hedge fund manager. I think we’re at the top of what should be produced” on 57th Street. Bruce Beal, president of Related Properties, Oct. 22
According to Corcoran Sunshine, the 25 percent drop in new development sales was driven by a lack of entry-level and midmarket luxury product, defined as product priced below $2,300 per square foot.
“We’re not there yet, [but] I think we’re seeing the beginnings of a slowdown.… If this keeps up for another year, if we start seeing more and more buildings come into the market that we don’t know about … we will get an oversupply.” Gary Barnett, CEO of Extell Development, Oct. 30
“It’s somewhat of a market blind spot, because of the contracts held back until projects actually close.”
“If real estate was a publicly traded company and I could short its stock, I would very happily short 57th Street. The market there has stopped.” Ofer Yardeni, CEO of Stonehenge Partners, Nov. 6
JONATHAN MILLER, MILLER SAMUEL
“When you get into apartments above $25 million, the air gets very thin very quickly. At any one time, there are maybe a half-dozen people in the city looking for a $50-million-plus apartment, and there’s now probably 60-70 of those apartments on the market.” Kevin Maloney, co-founder of Property Markets Group, Dec. 18
“When Gary started One57, he started this whole super-luxury category.… That price range and that category didn’t exist,” said Roy Kim, the former Extell design executive who is now head of new development at Urban Compass, which is currently working on 12 projects worth $2 billion, including 287 Park Avenue and 125 Elizabeth Street. While there are a number of buyers who can afford those prices, Kim said, it’s not the kind of inventory that sells every day. He noted there were fewer ultra-luxury projects announced in recent months. Fears of an inventory glut at the top of the market have fueled speculation about the pace of sales at Zeckendorf Development’s 50 UN Plaza, Harry Macklowe’s 432 Park and the Baccarat Hotels and Residences, where the condos may have had a harder time selling than the hotel rooms, which reportedly are close to being sold to investors for $2 million each. “It all comes down to simple supply and demand,” said Nest Seekers’ Ryan Serhant, one of the stars of Bravo TV’s “Million Dollar Listing New York,” who said competition has increased on the upper end of the market. “At one point, it seemed like there was just 150 Charles, 56 Leonard and One57,” Serhant said. “Now, there’s a new one almost every week.”
Sticker shock As a rule, new development prices eclipse the resale market. The median asking price for new development units was 128 percent higher than the median asking price for the overall market in 2014, according to StreetEasy. In addition, the median 80 days that new development units spent on the market was well above the 56 days for the overall market.
At developer Michael D’Alessio’s 230 East 63rd Street, Nest Seekers took over marketing in mid-2014 and sold four out of six units within 30 days, according to Serhant. Prices included a 1,734-squarefoot two-bedroom that sold for $3.25 million.
“There are two key facts that set units in new development buildings apart from the rest of the market: they are far more expensive and will take longer to sell,” said Alan Lightfeldt, StreetEasy’s director of research. Stuart Siegel, head of the brokerage Engel & Völkers NYC, said the top 1 percent of the market is resilient; whether the rest of the luxury market can keep up is another matter. “I just don’t see how resilient that market’s going to be” to price increases, he said. Siegel said that he’s seen several buyers walk away from apartments that were priced too high, confident that there’s enough product on the market to
“Affordable luxury is really what’s determining the day in terms of absorption and in terms of sellouts,” agreed Shlomi Reuveni, managing director of Town New Development. He echoed other market observers in pointing out that it’s the high cost of land and building that’s driven the prices of new condos. That, in turn, has raised the bar for the quality of new development. For example, One Morningside Park, a 22-story condo building at West 110th Street built by Artimus Construction, is 85 percent sold, said Reuveni, and the average asking price is $1,769 per square foot and rising. “I believe for development today, if you build it well, you will sell. The high price points will sell, as well,” he said. For Nest Seekers’ Shapiro, affordable luxury means product between $1 million and $5 million; buyers with $10 million to $15 million to spend have ample choices. “The market is dying for [relative] bread-and-butter,” said Shapiro. “For two or three years, we’ve just been seeing the mega projects.”
“It’s the East Side, condos close to Second Avenue. There’s nothing else new in that location that people are jumping on top of,” Serhant said. “Everything on the Upper East Side is either very expensive or very old. So there was strong demand for it.”
New neighborhoods Despite buyer hesitation in parts of the luxury market, condos located Downtown are selling briskly. Statistics from real estate website CityRealty show 36 percent of new development sales were Downtown in 2014, followed by the Upper East Side, with 29 percent. But after new development inventory was snapped up in 2013, the number of sales Downtown dropped 45 percent in 2014 to 673, according to Corcoran Sunshine. Meanwhile, the number of sales in Midtown jumped 152 percent to 313 sales as new buildings were introduced. At 100 Norfolk, a 38-unit cantilevered building on the Lower East Side, sales Continued on page 126
Roy Kim
Jonathan Miller
find something else within their budget. For example, a client who was “very, very excited” about a $5 million new development unit walked away from the condo after a bidding war ensued. “The ultimate price was above the ask, by about 10 percent to 12 percent,” Siegel said. “They dropped out.” “Winning the trophy isn’t what it’s all about,” he said. Eddie Shapiro, president of Nest Seekers International, said the energy in the market has shifted. What used to be a “frenzy” of, “‘I have to buy, I have to buy,’ is now, ‘Let’s look at all options and see what’s out there.’”
Stuart Siegel 30 Park Place
Baccarat Hotel Residences
www.TheRealDeal.com January 2015 47
Bracing for rising interest rates in all corners of real estate From residential to commercial to construction, a look at where loan prices stand BY JANNA HERRON ost observers last year predicted that interest rates would rise in 2014 as the Federal Reserve removed its stimulus, but the exact opposite happened. Rates are lower now than they were at the beginning of last year, offering borrowers even cheaper capital. But 2015 may be the year when rates do gradually march upward from near historic lows. Many expect the central bank will incrementally increase the federal funds rate, a benchmark rate for business and consumer loans. Last month, the Fed indicated it could start tinkering with rates as early as May, though most pundits are eyeing the latter half of the year. A slow rise will help those investing in real estate to appropriately adjust to the changing landscape. Here is a look at how things may play out across different real estate sectors.
ADJUSTABLE-RATE MORTGAGES
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RESIDENTIAL LOANS While itâ&#x20AC;&#x2122;s true that nearly half of all residential purchases in the NYC market are made without a mortgage, that still leaves a good chunk of buyers who need a bankâ&#x20AC;&#x2122;s help to close a sale. Yet rather than suppress demand, â&#x20AC;&#x153;rising rates may coax buyers off the sidelines,â&#x20AC;? said Juliet Clapp, managing director of Town Fifth Avenue.
5/1 ARM: 2.98% 1-YEAR ARM: 2.40% (Source: Freddie Mac) djustable-rate conforming mortgages â&#x20AC;&#x201D; those up to $625,000 â&#x20AC;&#x201D; may offer the lowest rate of all purchase mortgages, but they are still more sensitive to changes in the fed funds rate than longer-term ďŹ xed mortgages, said Brian Rehling, chief ďŹ xed income strategist at Wells Fargo Advisors.
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Thatâ&#x20AC;&#x2122;s because ARMs are tied to the yield on either the 1-year Treasury note or LIBOR, the London Interbank Offer Rate, both of which correlate closely with the fed funds rate.
30-YEAR FIXED MORTGAGE
30-YEAR FIXED: 3.93% (Source: Freddie Mac) he most commonly used mortgage, the 30-year ďŹ xedrate, tends to track the yield on the 10-year Treasury note, which follows the federal funds rate, but isnâ&#x20AC;&#x2122;t as highly correlated as shorter-term treasuries. Additionally, if investors take money out of the 10-year Treasury (typically considered a safe-haven investment), the yield will rise, pushing mortgage rates up as well. This scenario may unfold if the world economy stabilizes and investors feel comfortable with riskier assets. Still, â&#x20AC;&#x153;if the 30-year ďŹ xed went from 4 percent to 5 percent or even 6 percent, thatâ&#x20AC;&#x2122;s still historically low,â&#x20AC;? said Melissa Cohn, president of GuardHill Financial.
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30-YEAR FIXED JUMBO: 4.12% 5/1 ARM JUMBO: 3.49% (Source: Bankrate)
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xpect jumbo rates to also rise, but not as much as the 30-year ďŹ xed, said Cohn. Thatâ&#x20AC;&#x2122;s because jumbo loans â&#x20AC;&#x201D; those for $625,000 and more â&#x20AC;&#x201D; exist in a different secondary market than conforming loans, which are primarily bought by Fannie Mae and Freddie Mac. Jumbo loans are sold to REITs and hedge funds. Lately, large lenders have also been keeping these loans in their portfolios or selling them to national or regional banks. This competition has helped to keep rates low. Cohn also noted that jumbo ARMs, which are more rate-sensitive, will continue to draw homebuyers with higher purchase prices. â&#x20AC;&#x153;After $1 million, homeowners lose the tax deductibility on mortgage interest,â&#x20AC;? said Cohn. â&#x20AC;&#x153;So, those buyers want the lowest rate possible.â&#x20AC;?
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Soon-to-be-dark churches stand on enticing ground Real estate speculation surrounds massive consolidation of Roman Catholic parishes BY C. J. HUGHES or many Catholics, the sweeping decision made by church officials to merge about 40 parishes in New York City came as a tough blow. Come summer, when the restructurings plans are finalized, families that have worshipped in one place for generations will now have to head elsewhere on Sunday mornings. But putting the emotional impact aside, the move could put a variety of religious buildings in coveted neighborhoods in play, potentially creating huge upside for the realestate industry, analysts said. “A lot of these are prime sites,” said Steve Schleider, president of Metropolitan Valuation Services, which has appraised church sites in the city. “The church could easily monetize these assets, either through ground leases or outright sales.” To be sure, not every church is expected to be sold; While some will close, many will be kept and used for special occasions like church anniversary celebrations, according to archdiocese officials. But some parishes that struggle to keep the lights on, or have put off expensive repairs, say, will probably unload superfluous properties like convents and rectories, officials note. The parishes would keep the proceeds from those sales, though some owe the archdiocese millions of dollars for support through the years. At the same time, a handful of parishes are fighting the order to merge, even as parishioners admit that their properties — many of which are in densely settled areas that have few buildable lots — are extremely valuable. “Yes, it’s true, developers would probably
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50 January 2015 www.TheRealDeal.com
Our Lady of Peace on East 62nd Street (photos below) is slated to merge with St. John the Evangelist nearby. The facade of the neighborhood church is landmarked, but that likely won’t deter developers, if it goes up for sale.
“We have deliberately not made any plans to sell any of these properties. It is human nature to speculate. But that is not a road that we have begun to travel yet.” JOSEPH ZWILLING, ARCHDIOCESE OF NEW YORK love to grab this site,” said Janice Dooner Lynch, a real estate lawyer and longtime parishioner at Our Lady of Peace on East 62nd Street, near Second Avenue, in Midtown East, which is slated to merge with St. John the Evangelist on East 55th Street. The church building for the former, a red-brick 1866 neo-Gothic structure where
Lynch’s grandparents were married in 1922, is located in the Treadwell Farm historic district. Adjacent to it is a well-kept fourstory rectory that resembles a row house, on a block lined with many elegant versions of them. And while the two buildings’ facades are landmarked (as is the case with a few other
churches on the list), that might not be a deal breaker for developers. In fact, in 1983, the landmarked Church of the Holy Communion, an Episcopal complex on the Avenue of the Americas in Chelsea, morphed into the dance club called the Limelight, thus becoming one of the first major ecclesiastical properties to get a makeover in the city. “I thought that was the craziest thing, that a church could turn into a disco,” Lynch said. “But nothing shocks me anymore.” After a checkered two decades including drug raids and a grisly murder involving a “Club Kid” and a dealer known to frequent the Limelight, the club was shut down by police. Several attempts at reopening, including under another name, failed, and it closed for good in 2007. In 2010, it became home to the Limelight Marketplace, a collection of shops, and this past fall, part of it was converted to a David Barton Gym. That high-profile case aside, most repurposed churches in the city, Catholic or otherwise, have become apartments. But Our Lady of Peace is not handing the keys to condo developers just yet. Its parish has officially appealed to Cardinal Timothy Dolan, who heads the Archdiocese of New York, the ecclesiastical authority that ordered the consolidation. The opponents submitted a 2,000-name petition opposing the planned merger, Lynch said. The Archdiocese of New York covers Manhattan, Staten Island and the Bronx, as well as seven upstate counties. There are about 750,000 parishioners in the three boroughs, church officials said. But only about a third of that number regularly attend mass, according to officials, and the numbers have declined
RELIGIOUS REAL ESTATE
St. Joseph’s in Chinatown (photos above) is slated to merge with the Church of the Transfiguration a few blocks away. The parish already has another church, St. James, that was combined in an earlier reorganization.
sharply over the years, which has produced a surplus of space, though some parishes dispute that math. Church officials have also blamed a shortage of priests for the mergers and closures. At St. Lucy’s, on East 104th Street in East Harlem, for example, the congregation of 700 represents a recent uptick, according to the pastor, Monsignor Oscar Aquino. Still, a school that was once housed in the church structure, a cream-colored stucco-sided mid-block building near First Avenue, encountered dwindling enrollment and merged about a decade ago with one run by St. Francis de Sales, on East 96th Street, Aquino said. Ultimately, even the combined school shuttered. St. Lucy’s, which is to join St. Ann’s parish on East 110th Street, has in recent years rented out its former classrooms to a tutorial service that works with students who need extra help. But that business pays only $4,200 a month, not nearly enough for the upkeep of the entire 1915 building, said Aquino, who added that the parish also has an outstanding debt to the archdiocese of $200,000 for a boiler replaced several years ago. The church, which includes a red-brick four-story Italianate rectory, is located in a gradually gentrifying area, as luxury
developers push northward from the Upper East Side. But if a decision is made to sell any of the buildings, Aquino hopes his congregation benefits: “You have to respect the will of the people. The church belongs to them.” Kal Chany, a three-decade parishioner at St. Elizabeth of Hungary on East 83rd Street on the Upper East Side, which is scheduled to merge with St. Monica on East 79th Street, understands real estate pressure. He has watched as projects have
on North Sixth Street in Williamsburg, Brooklyn, which closed in 2005. Redeveloped by Heritage Equity Partners, its block-through campus now contains high-end apartments; 10 are in the one-time rectory and 39 in the remodeled church itself. And 55 units are now being added to a former Catholic school. Of course, location is perhaps the most significant determiner of value. To wit: A property like the Church of the Nativity on Second Avenue in the trendy East Village, which is supposed to merge with the nearby Church of the Most Holy Redeemer on East Third Street, for instance, would likely fetch far more than the Church of St. Roch in the working class Port Richmond section of Staten Island, which is to join the Church of St. Adalbert. In general, a 50-by-100-foot property that is generously zoned with a floor-toarea-ratio of 10 and with a church that could be razed — a possible scenario for some sites on the Upper East Side — could
“We have a lot of property,” he added, mentioning St. James church, a landmarked Greek Revival edifice at 32 James Street that merged with St. Joseph several years ago after a fire. The parish’s portfolio also includes a three-story rectory behind St. James at 21 Oliver Street. “If you are a Donald Trump, maybe you could buy the whole thing,” Gonsalves said. For its part, the archdiocese, which spends a total of about $40 million a year supporting some of its churches, says the potential windfall from selling properties was not a top concern when figuring out which parishes to merge. The idea instead, said Joseph Zwilling, a spokesman, was to make each parish more self-sufficient. Zwilling said the process played out democratically, with input from parishes, and not rashly, as Cardinal Dolan began undertaking the process soon after being appointed in 2009. But some parishes say they were never consulted. Catholic Church properties that have changed hands in recent years include
gobbled up nearby buildings in step with the construction of the new Second Avenue subway line. But his parish, which caters to the deaf community, recently completed a $250,000 renovation and actually has cash still in reserve, a sign Chany said means it should stand on its own. Besides, “some of the people who will be moving to this neighborhood once the subway is completed will be Catholics who need a place to go to church,” he added. How much these church sites may be worth depends on several factors, including landmark status, zoning — most churches are not built to the maximum of what can go on a parcel, brokers say — and any deed restrictions about how the site can be reused. For example, bars were banned at site of the former St. Vincent de Paul Church
St. Lucy’s R.C. Church, on East 104th Street in East Harlem (photos above), is slated to merge with St. Ann’s parish on East 110th, despite a recent gain in the size of the congregation.
St. Elizabeth of Hungary on East 83rd St. (photos above) is slated to merge with St. Monica four blocks south.
be worth $40 million, assuming a land price of $800 a square foot, Schleider said. Of course, several factors could cut into that amount — for example, if a not-forprofit group renting space on the property had to be bought out of its lease, Schleider explained, adding that every site is unique. But the most prime addresses could still command “multiples of tens of millions of dollars,” he added. Not every church is protesting its reorganization. One example is St. Joseph’s, a six-story yellow-brick church and rectory at the corner of Monroe and Catherine streets in Chinatown that is set to merge with the Church of the Transfiguration, on Mott Street in Chinatown. The building, topped with a pair of verdigris domes, can fit more than 1,000 people, but rarely has more than a few hundred at a time, said the Rev. Lino Gonsalves, its pastor. The last Sunday masses will be held in July. He added that about eight administrators are expected to
St. Ann’s on East 12th Street, near Fourth Avenue, which made room for a New York University dorm, though its facade was preserved; and Mary Help of Christians, a few blocks away on East 12th Street, which was razed to make way for an apartment building developed by Steiner NYC. On the other hand, St. Vincent de Paul on West 23rd Street in Chelsea, which was tapped for closure under a previous downsizing effort, has sued to stop that from happening. The suit is still active. Still, for the most recent batch of churches, “we have deliberately not made any plans to sell any of these properties,” Zwilling said. “It is human nature to speculate. But that is not a road that we have begun to travel yet.” Some brokers agree. “I’m sure they will take their time,” said Bob Knakal, the chairman of Massey Knakal Realty Services, a commercial firm that has sold buildings on behalf of the archdiocese before. “They are very deliberate and very
lose their jobs.
disciplined.” TRD www.TheRealDeal.com January 2015 51
The symphonist of steel A conversation with WTC transit hub starchitect Santiago Calatrava more pervasive than one might think: You see it in the many water towers on the roofs of buildings throughout the city. All of that was an inspiration for me when I was designing the Greek Orthodox church of Saint Nicholas near Ground Zero. In a way, the church is the opposite of the transit hub. If that is about openness, Saint Nicholas, with its dome surrounded by masonry walls, is about enclosure and confinement.
You have previously described your work as between structural engineering and architecture. Do you consider yourself more of an architect, or an engineer?
Santiago Calatrava, the architect who designed the World Trade Center transit hub, at his Park Avenue home and studio.
BY JAMES GARDNER or one of the busiest architects in the world, the 63-year-old Santiago Calatrava projects an aura of enviable leisure. The Real Deal visited him recently in his sumptuous home/office, formed from two contiguous townhouses on Park Avenue in the 60s (he has a larger office Downtown, as well as one in Zurich and another in Doha, Qatar). His uptown space doubles as his studio, not only for architecture, but also for the painting and sculpture to which he devotes about three hours of each day. His elaborately wrought earthenware pots, as well as paintings of plants and abstract wooden sculptures, fill a second-floor gallery that looks roomier and more refined than many a museum around the city. In the ensuing discussion about his architecture, Calatrava proved so generous with his time that you might never suspect that he is in the midst of completing one of the biggest and most expensive projects in the history of the United States — the $3.7 billion transit hub at Ground Zero — or that he has just embarked on another large project nearby, building a replacement for the Greek Orthodox church of Saint Nicholas that was also destroyed in the attacks on Sept. 11, 2001, or that he has completed over 100 other notable projects on four continents. And though he uses English (as well as French, German and Catalan), very effectively, our conversation took place in Spanish, the language in which his expansive conversation feels completely liberated. Calatrava is such a diplomatic and generous soul that it is hard to draw from him a critical word about New York City or its architecture. The most he would say in this regard concerned 432 Park Avenue, which he sees every time he leaves his house and begins walking south. How did he like the building? After worrying that the strict modularity of the windows might prove tedious, he smiled and said, “I am still getting used to it.” Read on for some more insights from this renowned architect and futurist:
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52 January 2015 www.TheRealDeal.com
TRD’s Gardner: How do you find the experience of working in New York? Calatrava: There are more restrictions on building in this city than elsewhere, and the building code is more
A cross [between the two], but an architect first and foremost. Architecture derives from the idea, from art, whereas engineering derives from ‘pragma,’ from experience. Engineering is like virtuosity on a musical instrument, the part that is pure skill. I love the materiality of architecture, the manipulation of material, and I think that comes from my being rooted in engineering.
Are you happy with the way the transit hub was constructed? I’ve read reports to the contrary. I think it turned out well, especially the part that was made of steel. That steel section is unique in the world. It is completely new. At the same time, it invokes some very
As construction of the World Trade Center transit hub has progressed, its price has soared to $3.7 billion.
rigid, but it also permits greater liberty. You see this in the diversity of the buildings. The building code favors a kind of cubic construction: most of the buildings in New York are boxes. At the same time, there is the tradition of Gothic architecture that you see, not only in the cathedrals around the city, but also in the extraordinary towers of Midtown and Lower Manhattan, with their antennae, [which are] like spires. Still, the cubic element dominates, as you see in the Seagram Building — a great building — as well as Lever House and Citicorp, not to mention a building right down the street from me, by Rosario Candela, an excellent architect. But as regards diversity, we shouldn’t forget the great works of infrastructure that define the city, like the Brooklyn Bridge and the George Washington Bridge.
iconic New York structures, like the suspension bridges across the Hudson and the East River. It can be seen within the tradition of strong civic architecture in New York and also in the American tradition of going to the limit, of testing boundaries.
How do you see the transit hub interacting with the rest of the World Trade Center site? It interacts at both the formal and the functional level. I see it as the spinal column of the site, and as the center of movement into and out of the site. I also believe that it is the component that unites, that will bring together, the Freedom Tower and Towers 2, 3, and 4. [Conversation pauses as Tiberio, Calatrava’s golden retriever, shuffles into the room, seeking to be petted.]
Is there a place for your kind of architecture in such a context? Besides the cubic tradition, there is another in New York that favors the anomalous. The foremost example, of course, is the Guggenheim. But there are also churches like Saint Bartholomew’s on Park Avenue. And I think you could argue that this curving element is far
How many projects are you working on now?
Calatrava calls his unbuilt design for 80 South Street “a dream” whose time has not yet come.
Not many. I don’t have a big organization. And all of my projects depend directly on me. [In fact, he employs about 90 people at his various offices: although that is not a small number, it pales in Continued on page 122
PHOTOGRAPH OF SANTIAGO CALATRAVA FOR THE REAL DEAL BY BRIANA E. HEARD
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NEIGHBORHOOD DIVE
RIDGEWOOD RISING Bushwick spillover helps boost rents in (gasp!) Queens
BY KERRY MURTHA nce upon a time, the neighborhood of Ridgewood, Queens, was part of the borough of Brooklyn. Residents, however, were happy to put that history behind them. They yearned for their own identity, wanting to distance themselves from overthe-border areas like Bushwick, which was (not so long ago)
O
TOP DEVELOPMENTS The most notable project is the residential conversion of the Ridgewood Theater, a 1916 movie house that drew its final curtain in 2008. Owner Bushburg Properties is adding two floors to the three-story building and creating 50 rental apartments. The theater’s exterior, landmarked in 2010, will remain. Nataliya Donskoy is the architect.
Ridgewood Theater
Signs of change
852 Cypress Avenue
The 19 units at the 2009 conversion of a local newspaper office, The Times Building at 852 Cypress Avenue, one of the area’s first condo developments, fetched up to $500 per square foot. A second condo, High View Estates, at 1980 Starr Street, is being marketed by Coldwell Banker Phillips; it offers 32 units. Fresh Pond Road, one of Ridgewood’s main arteries, will also get a new five-story
neighborhood, once home to waves of immigrants — Germans up until the mid 20th-century, Latinos and Poles more recently — is now a refuge for displaced hipsters. New coffeehouses, bars and restaurants are starting to follow, but Ridgewood’s rich history (including three historic districts and more than 1,000 landmarked buildings) still sets it apart from its gentrified counterparts.
condo development. When completed later this year, the 20,000-square-foot building at 63-34 Fresh Pond Road will include 28 units and a small amount of office space. New rental apartment construction is underway at a former factory on the corner of 779 Wyckoff Avenue and Madison Street. Three floors were added, for a total of five; they will house 28 rental apartments. The property is owned by 1612 Madison QX, and Gerald J. Caliendo is the architect. 779 Wyckoff Avenue
Local Lore:
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new art galleries have opened.
a less-desirable location. But now, the lines that separate these two neighborhoods have begun to blur. Cheaper rents available in rows of handsome Romanesque townhouses are luring the younger professionals and artists being priced out of Bushwick and other trendy Brooklyn neighborhoods. Indeed, Ridgewood is mainly for renters, who take up 75 percent of the housing stock, Census figures show. The
New bars and eateries include Onderdonk and Sons, open last year at 566 Onderdonk Avenue.
Rudy’s, an 80-year-old German bakery at 905 Seneca Avenue, offers gluten-free and vegan baked goods in addition to staples like German Black Forest Cake.
Brokers say renovations coming to the original row houses will make railroad apartments more open and well lit.
The 1709 Onderdonk House is the oldest Dutch Colonial stone house in New York City. Located on its grounds is the Arbitration Rock, which was historically a marker for the disputed boundary between Brooklyn and Queens.
sold for $1.4 million.
17-17 Himrod Street: three-story, six-unit residential building, sold for $1.225 million.
1720 Palmetto Street: three-story, six-unit residential building, sold for $1.2 million.
Perhaps one of the most telling signs Ridgewood is catering to its new demographic: a planned mixed-use building at 176 Woodward Avenue, where 3,000 square feet in an 88-unit residential building will be set aside for artists and community groups to rent for $10 per year. (Developer Slate Property Group struck a deal with local Councilman Antonio Reynoso in exchange for his support of a zoning variance on the property.) Building amenities will include a rooftop dog run; Aufgang Architects is the designer.
Price Trends A Commercial Broker’s Take “Recent zoning changes stand to strengthen the commercial market as more manufacturing sites convert to mixed-use buildings with ground-floor retail space,” said Marco Ascazubi, associate broker at Hillel Realty in Ridgewood.
17.3% Jump in average rental price for one-bedroom apartment, to $1,642 from $1,400 a year ago.
52.5% Jump in average rental price for two-bedroom apartment, to $1,982 from $1,300 a year ago.
$1,960 Peak price for one-bedroom rentals last summer.
$500,000
Most expensive recent sales:
66-20 60th Place:
176 Woodward Avenue
A Residential Broker’s Take “It’s a concern that some seniors and others who have lived here for years are starting to get priced out of their own neighborhood,” said Annemarie Michitsch, a Ridgewood native and associate broker at Macaluso Realty.
Median price for a one-bedroom condo, up 25% from $400,000 a year ago.
$900,000 Median price for a six-family property, up 6% from $850,000 last year.
Notable former Ridgewood residents: Retail Scene Commercial rents have risen to as much as $78 per square foot, from an average $40 per square foot. There are few vacancies along the 12-block commercial strip on Myrtle Avenue. The largest retail space available, being marketed by Century 21 Mizrahi Realty, is a 17,000 square foot storefront for $55 per square foot at 56-40 Myrtle Avenue. 54 January 2015 www.TheRealDeal.com
Actor James Cagney (right) and musician Tommy Ramone.
Demographic changes over the years: Population: Up 2.7% from 2010 and 1.5% from 2000 Median Income:$50,204, up 3% from 2010 and 36% from 2000 White Collar: 14,017, 67% of workforce Blue Collar: 6,830, 33% of workforce
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Co-op deals shatter records A look at the priciest 25 NYC home sales of 2014, all of which topped $30M BY E.B. SOLOMONT ast year’s residential market got most of its buzz from developers racing to build luxury condos, but it was eye-popping co-op sales that shattered records in 2014. The priciest purchase is still pending: The $80 million deal reached in October for New York Jets owner Woody Johnson’s sprawling duplex on the 11th and 12th floors of 834 Fifth Avenue by Ukraine-born billionaire buyer Leonard Blavatnik had not closed at press time. That record will overtake a pair of record setters that did close: the $71.2 million duplex at 740 Park Avenue, along with the $70 million penthouse sale at 960 Fifth Avenue that topped the year. Together, these trades raised the bar for New York City’s co-op market, even as the year’s top deals were dominated by astronomical condo sales, many of them at Extell Development’s One57. While none touched the $88 million record condo price set in 2012, all of 2014’s top 25 closed sales of last year topped $30 million, a dramatic turn from 2013, when only nine of the most expensive sales exceeded that price. The explosion of deals in the $30 millionand-up range can be chalked up to a strong economy, investor appetite for New York City real estate, and a luxury market where prices are rising along with the quality of new developments. It’s a matter of giving the buyers what they want, brokers said. “There were more compelling product that came to the market,” said Donna Olshan, president of Olshan Realty. For the co-op market, she said, sales were driven by one-of-a-kind properties hitting the market. “In the condo market, it’s what’s being built,” she said. Indeed, Brown Harris Stevens’ Paula Del Nunzio said the year’s top sales were also defined by “unique circumstances.” (Del Nunzio was the listing agent for the No. 6 property on The Real Deal’s list, a $51 million townhouse at 115 East 70th Street.) Case in point: the No. 1 closed sale of the year was a purchase by hedge-funder Israel Englander, who paid $71.28 million for the 740 Park duplex previously owned by the French government. The apartment was listed for $48 million by Serena Boardman of Sotheby’s International Realty, but competing bids drove the price higher. And higher. Englander, Del Nunzio pointed out, al-
ready owned a co-op at 740 Park. “That’s why he kept going up and up,” she said.
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Prices at the top
The priciest closed sale of the year was hedge-funder Israel Englander’s (top inset) purchase of the former French Ambassador’s residence at 740 Park Avenue for $71.2 million, the most ever paid for a NYC co-op. (Bottom inset) Broker Serena Boardman of Sotheby’s handled the listing.
With its penthouse listed at $118.5 million, the Ritz-Carlton in Battery Park City had the city’s priciest property on the market last month.
There’s no doubt prices at the top of the market are rising. The top 25 sales in 2014 exceeded $1 billion, compared with $599.7 million in 2013 and $836.5 million in 2012. Wendy Maitland, director of sales at Town Residential, said there’s a greater number of “really big numbers,” but all are “very special properties.” “These aren’t people who are buying just anything. You can’t slap up any property and expect to get these price points,” she said. However, the market for trophy apartments as a whole is pricier than ever, too. There were $3.8 billion worth of sales among properties priced $10 million and up, according to real estate website CityRealty, compared with $1.8 billion in 2013. Closings at super-luxury new developments were key drivers of the increase. “We’ve had so many closings this year at [Extell Development’s] One57 and [Related’s] One Madison, and a handful at [JDS Development and Property Markets Group’s] Walker Tower,” said Gabby Warshawer, CityRealty’s director of research, adding, “There is more appetite for the highest-end” properties. Among the top 15 sales of the past decade, seven closed in 2014. “Volume in that market, overall, still comes down to new construction,” according to Olshan. “[For new condos], it’s not necessarily going to be a Park or Fifth Avenue apartment, or Central Park West. It could be anywhere.” No. 7 on TRD’s list was the penthouse at Walker Tower, at 212 West 18th Street, which sold for $50.9 million, breaking the record for the most expensive downtown condo sale. The prior record, from 2012, was a $42 million sale at the Zeckendorfs’ 18 Gramercy Park. Downtown had the largest share of 2014’s overall sales in Manhattan, according to CityRealty, with 34 percent or 1,401 sales, for a total of $3.9 billion. Notably, two of those deals were for standalone mansions. At 27 Christopher Street, No. 10 on TRD’s list, the New York Foundling charity sold its 19,000-square-foot building for $45 million; the buyer, an LLC, intends to use the former nonprofit facility as a residence. At 802 Greenwich, No. 12 on TRD’s list, oil heiress Hyatt Bass sold a 12,000-squarefoot red brick property for $42.5 million. Another big move came at Related and HFZ’s One Madison, where Rupert Murdoch made a $66.5 million investment www.TheRealDeal.com January 2014 35
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NYC’s most expensive residential sales of 2014 ADDRESS
LISTING AGENT
SELLER
BUYER
SALEPRICE
1
740 Park Avenue, #1213B
Serena Boardman, Sotheby’s
Republic of France
Israel Englander
$71.28 million
2
960 Fifth Avenue, #PhB
Mary Rutherfurd and Leslie Coleman, Brown Harris Stevens
Edgar M. Bronfman
Nassef Sawiris
$70 million
3
157 West 57th Street, #82
Extell Marketing Group
Extell
Silas Chou
4
157 West 57th Street, #81
Extell Marketing Group
Extell
Rebecca Moores
5
157 West 57th Street, #80
Extell Marketing Group
Extell
Lapusny Inc.
6
113-115 East 70th Street
Paula Del Nunzio, Brown Harris Stevens
Reed Krakoff
70th Street Acquisition LLC
7
212 West 18th Street, #Ph1
Vickey Barron, Douglas Elliman
JDS & Property Markets Group
Neil Moffitt
$50.91 million
8
19 East 70th Street
Louis Buckworth and Maria and Joanna Pashby, Corcoran Group
Christian Candy
Debra and Leon Black
$50.25 million
9
15 Central Park West, #1819B
Kyle Blackmon, Brown Harris Stevens
Tucker NYC LLC
15cpw Phb (NYC) LLC
$48 million
10
12-27 Christopher Street
Dolly Lenz, Dolly Lenz Real Estate
New York Foundling
VILLAGEFH LLC
$45 million
11
23 East 22nd Street, #Ph
Related Residential Sales
Related Companies/HFZ Capital
Rupert Murdoch
$43.01 million
12
802 Greenwich Street
Off-market deal
Hyatt Bass
RHFT Investment Trust
13
50 Central Park West, #12BC
John Burger, Brown Harris Stevens
Jon Stryker
Kzolp Realty Trust
$42 million
14
212 West 18th Street, #Ph2
Vickey Barron, Douglas Elliman
JDS & Property Markets Group
BBC Chelsea LLC
$40.73 million
15
1136 Fifth Avenue, #Ph/14C
Anne Young and Amanda Young, Brown Harris Stevens
Nancie and Stephen Cooper
Abigail and Anton Levy
$35 million
16
157 West 57th Street, #58A*
Noble Black, Corcoran
SSO Enterprises LLC
Phyllis and Harvey Sandler
$34 million
16
834 Fifth Avenue, #14PHB
N/A
Wendi and Rupert Murdoch
Wendi Murdoch
$34 million
18
768 Fifth Avenue, #901+
Off-market deal
Simon Fuller
ASB Properties USA
19
157 West 57th Street, #63A
Extell Marketing Group
Extell
One57 63a LLC
20
768 Fifth Avenue, #807
Julia Cahill and Adelaida DelGado Palm, Corcoran
Plaza One Acquisition LLC
Babacan Plaza Ltd.
21
838 Fifth Avenue, #8+
Alexa Lambert, Stribling & Associates
Fifth Avenue Properties LLC C/O CDL Family Office Services
Fifth Avenue Apartment LLC
$31.86 million
22
157 West 57th Street, #62A
Elizabeth Sample and Brenda Powers, Sotheby’s
Extell
Escape from New York LLC
$31.67 million
23
212 West 18th Street, #Ph3/4
Vickey Barron, Douglas Elliman
JDS & Property Markets Group
Smj 210 West 18 LLC
$31.31 million
24
116 East 70th Street
Patty LaRocca, Douglas Elliman
116 East 70 LLC
Susan Weber Soros
$31 million
25
1107 5th Avenue, #Ph
Armin Allen, Brown Harris Stevens
Estate of Monique Uzielli
Mark Kingdon & Anla Cheng Kingdon
$30.9 million
$56.1 million $55 million $52.95 million $51 million
$42.5 million
$33.2 million $32.57 million $32 million
Source: StreetEasy and TRD research. Only includes closed deals. Two properties tied for #16 on the list. * Flipped in October 2014; first sold in May 2014 for $30 million
by combining two units: a $43 million penthouse (No. 11 on TRD’s list) and a 57thfloor unit for $14.9 million. (Separately, tied for No. 16 on TRD’s list was the $34 million sale of Murdoch’s apartment at 834 Fifth Avenue, to ex-wife Wendi Murdoch.) Midtown, meanwhile, captured 22 percent of overall sales, with 1,094 sales worth $2.5 billion.
Sales at One57 dominated the priciest deals list in 2014, with six in the top 25.
The One57 effect In 2014, the top sales were dominated by Extell’s One57, the ultra-luxury glass tower at 157 West 57th. One57 had 38 closings worth $758.7 million in gross sales, according to CityRealty. Six of those deals made TRD’s list of the top 25 sales of 2014. The priciest sale at One57 came in at No. 3 on the list: an 82nd-floor condo that went for $56.1 million. Billionaire fashion mogul Silas Chou, a former co-chairman of Michael Kors Inc., inked a contract for the 6,240-square-foot condo in 2012. 56 January 2015 www.TheRealDeal.com
www.TheRealDeal.com January 2015 57
YEAR No. 4 on the list was the sale of Unit 81, for $55 million, in November. The buyer was Rebecca Moores, ex-wife of former Padres owner John Moores. “Whenever a major condo starts to close, they dominate the upper end of the market at that time,” said Del Nunzio. “There was nothing like [One57] until someone went 1,000 feet into the air.” Still, three years after launching sales, One57’s sales are slowing, as other ultraluxury towers rise near it. (They include JDS’ 111 West 57th Street, Zeckendorf Development’s 520 Park, Vornado Realty Trust’s 220 Central Park South and Macklowe Properties’ 432 Park, none of which have started to close yet. After putting 10 apartments into contract during each quarter of 2012, Extell reportedly put one condo into contract per quarter during the first half of 2014, according to Bloomberg News, based on filings on the Tel Aviv Stock Exchange where Extell sells debt. As of Sept. 30, a quarter of the building’s 94 units remained for sale. And just 40 of the units have closed, according to CityRealty. Noble Black, an agent at Corcoran Group who sold Unit 58A in May for $30 million, said until recently, construction blocked the views from portions of the building, deterring some buyers. “Once the building is fully up and running, they won’t have any trouble selling out,” he said. In fact, the sales slowdown notwithstanding, One57 saw its first flip in 2014, thanks to Black’s buyer — who sold the apartment several months later. Both deals were among the top of 2014. SSO Enterprises, a Chicago-based LLC, paid $30.55 million in May for Unit 58A and re-listed it within months for $40 million. The 4,483-square-foot condo sold in October for $34 million (tied for No. 16 on TRD’s list), or roughly $7,580 per square foot. “It’s a building of superlatives,” Black said. “You’ve got the best placement on the park, dead set middle. You’ve got a fantastic hotel downstairs.”
Closing time Notably, however, the astronomical closings at One57 are for condos that were put into contract in 2012. And the ranking of top sales does not include top contracts pending, such as the $90 million deal at One57 by a partnership led by hedge funder Bill Ackman. Ackman reportedly has no plans to live in the 13,544-square-foot condo, but is trying to flip it, even though the sale for what would be a record price for a New York City residence hasn’t yet closed. Because of the lag time between contract signing and closing — Ackman’s deal was inked in 2013 — 2015 is expected to see more super-high prices, said Olshan, who publishes a report that tracks contracts at $4 million and up. “A huge portion of our 58 January 2015 www.TheRealDeal.com
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REVIEW market won’t be reported for another year or two,” she said. Among other examples of pending premium sales are a penthouse at Extell’s Carlton House, which was asking $65 million, and entered contract with an undisclosed buyer in July. And a 6,738-square-foot penthouse at Walker Tower found a buyer at $40.5 million. (Vickey Barron of Douglas Elliman had the listing.) In all, Olshan Realty tracked 260 properties that went into contract at $10 million or more as of Dec. 16, compared with 249 in 2013. Of the 260 properties, 98 were sold off of floor plans. Olshan said that the delay in the super-luxury market is longer than ever. “These building are being built with special amenities and finishes, and that level of finish and required attention to detail is on a higher scale,” she said. “You cannot go and throw up a building in a year and get $3,000 a square foot.”
Deals that didn’t
Egyptian billionaire (inset) Nassef Sawiris closed the second priciest deal of the year with his $70 million purchase of the late Edgar Bronfman’s penthouse at 960 Fifth Avenue.
A late December closing for $40.73 million at the Walker Tower at 212 West 18th Street made it the second-most active building in the top 25 sales, with three deals. Elliman’s Vickey Barron (inset) handled all three listings. (Right) The 12,394-square-foot triplex penthouse at Zeckendorf’s 520 Park Avenue is priced at $130 million, a potential sale which would shatter records.
Despite its successes, 2014 had some notable bust-ups. Over the summer, the nation of Qatar walked away from an agreement to buy an Upper East Side townhouse for $90 million. Qatar entered into a contract to buy the 20,500-square-foot townhouse at 19 East 64 Street from the Wildenstein family, but the deal fell apart by midAugust. Douglas Elliman’s Oren and Tal Alexander represented Qatar and Corcoran’s Carrie Chiang represented the Wildensteins. Last month, embattled hedge-fund billionaire Steve Cohen slashed the price of his penthouse at One Beacon Court to $82 million from $115 million. Cohen also replaced Corcoran’s Deborah Grubman and David Dubin with Boardman of Sotheby’s to market the 9,000-square-foot pad, which he bought for $24 million in 2005. It was originally listed in April 2013. It was far from the only luxury listing that lingered throughout the year. The top listing — as of Dec. 16 — was the $118.5 million penthouse of the Ritz-Carlton in Battery Park City, on the market since June 21. It was followed by the penthouse at the Pierre Hotel at 795 Fifth Avenue, where the asking price of $125 million was lowered to $95 million. That’s also been for sale since April 2013. Steven Klar’s triplex penthouse at CitySpire, priced at $100 million, also remained on the market for 575 days as of Dec. 16, according to StreetEasy. Last year, the developer replaced Elliman’s Raphael De Niro as the listing agent, and he’s now trying to sell it himself via his Klar Realty. At least two listings could push the price ceiling in New York City even higher. Zeckendorf Development priced the 12,394-square-foot penthouse at 520 Park Avenue at $130 million. Slightly less expensive is the penthouse atop the 58-story Woolworth Building, with an $110 million price tag. TRD www.TheRealDeal.com January 2014 35
Hudson Yards
We advised Sherwood Equities in the $200 million sale of almost half a block to Tishman Speyer.
We are pleased to have represented our client, Sherwood Equities, in one of The Real Deal’s “Top Development Deals of 2014.”
ONE OF THE HOTTEST DEALS IN THE NEIGHBORHOOD Andrew Drogen Gina Mavica Dennis Russo Gina Mavica Dennis Russo Partner Partner Chair of NY Real Estate Partner 212.589.4672 Chair of NY Real Estate 212.589.4292 212.589.4648 212.589.4672 212.589.4648 adrogen@bakerlaw.com gmavica@bakerlaw.com drusso@bakerlaw.com gmavica@bakerlaw.com drusso@bakerlaw.com 4545 Rockefeller Plaza, New York, NYNY| bakerlaw.com Rockefeller Plaza, New York, | bakerlaw.com
©2014 © 2015
YEAR
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New buyers, one broker, rule in 2014 building sales
Eastdil Secured the only seller’s broker to handle the priciest deals
Manhattan’s top commercial deals of 2014 RANK
ADDRESS
SIZE/TYPE
PRICE / SIZE OF STAKE
1
1095 Sixth Avenue (3 Bryant Park)
1.2 miliion sf (office)
$2.25B
Ivanhoe Cambridge and Callahan Capital Partners
Blackstone Group
Douglas Harmon, Adam Spies (Eastdil Secured)
2
Waldorf Astoria
1.7 million sf (hotel)
$1.95B
Anbang Insurance Group
Hilton Worldwide Holdings
Douglas Harmon, Adam Spies (Eastdil Secured)
3
730 Fifth Avenue (Crown Building)
400,000 sf (office)
$1.75B
Jeff Sutton and General Growth Properties
Winter and Spitzer families Douglas Harmon, Adam Spies (Eastdil Secured)
4
5 Times Square
1.1 million sf (office)
$1.47B
David Werner Real Estate
AVR Realty
Douglas Harmon, Adam Spies (Eastdil Secured)
5
10 Columbus Circle (Time Warner Center office condo)
1.1 million sf (office)
$1.3B
Related Companies, GIC (Government of Singapore) and ADIA
Time Warner
Douglas Harmon, Adam Spies (Eastdil Secured)
6
150 East 42nd Street (Socony Mobil building)
1.6 million sf (office)
$900M
David Werner Real Estate, Mark Karasick and Harry Skydell
Hiro Real Estate and Goldman Sachs
Douglas Harmon, Adam Spies (Eastdil Secured)
7
1 World Trade Center retail condo
365,000 sf (retail)
$800M
Westfield Group
Port Authority of New York & New Jersey
No broker
388-390 Greenwich Street (Citigroup headquarters)
2.6 million sf (office)
$800M
SL Green
Ivanhoe Cambridge
Douglas Harmon, Adam Spies (Eastdil Secured)
65 East 55th Street (Park Avenue Tower)
615,850 sf (office)
$750M
Blackstone Group
Shorenstein Properties
Douglas Harmon, Adam Spies (Eastdil Secured)
$725M
Norges Bank Investment Management
Boston Properties
Douglas Harmon, Adam Spies (Eastdil Secured)
(tie)
7 (tie)
9 10
1.6 million sf (office) 601 Lexington Avenue (Citigroup Center, aka 153 West 53rd Street)
BUYER
SELLER
SELLER’S BROKER
Source note: Building sales were researched in public property records and through industry sources. At 601 Lexington Avenue, the buyer purchased a 45 percent stake. At 388-390 Greenwich Street, the buyer purchased a 49.4 percent stake. And at One World Trade Center, the buyer took a 50 percent stake of the retail component. All other purchases were for full (or nearly) full ownership. This list includes two deals -- 1095 Sixth and the Waldorf Astoria — that were pending at the time of deadline. Credit: Real Capital Analytics and news and brokerage reports.
BY MARK MAURER ow interest rates, brisk sales, a more active commercial mortgage-backed securities market and white-hot land prices helped drive a surging investment sales market in 2014 — and one of the biggest beneficiaries of all this activity was the city’s top investment sales brokerage. New players in the form of foreign institutional investors from Asia and elsewhere made their marks as they bought high- and low-profile buildings. In particular, the momentum of Chinese capital investment paralleled the robust market. There was also plenty of homegrown money thrown into the mix by prolific, crackerjack negotiators, such as the under-the-radar, Brooklyn-based investor David Werner. Werner snapped up Ernst & Young’s headquarters at 5 Times Square and the Socony Mobil building last year. New buyers weren’t the only ones making a splash. Eastdil Secured, a division of banking giant Wells Fargo, had their superstar brokers Douglas Harmon and Adam Spies close nine of the top 10 deals of the year, including Werner’s top two purchases. That
L
60 January 2015 www.TheRealDeal.com
was up from Eastdil repping six of the largest 10 deals last year, pushing CBRE Group and Jones Lang LaSalle off the list. Eastdil is the city’s most active investment sales brokerage in terms of dollar volume. A representative said the firm recorded $20.5 billion in sales of 45 New York City buildings in 2014. And that figure doesn’t include the priciest sale of the year, 1095 Sixth Avenue, which hadn’t closed at press time. The 2014 sales volume is almost double the $10.6 billion Eastdil recorded in 2013, according to The Real Deal’s last investment analysis in March. The year’s heady activity is made clear with a look at the latest market statistics. TRD compiled Manhattan’s 10 priciest building trades for 2014, as recorded by Real Capital Analytics and news and brokerage reports.
Cream of the crop The aggregate value of the 10 priciest Manhattan investment sales deals for 2014 was $11.6 billion, TRD’s analysis found. Five of them exceeded (or are on track to exceed) the $1 billion mark. The majority are located in Midtown.
Eastdil Secured’s Douglas Harmon
Eastdil Secured’s Adam Spies
“The investment sales market is functioning at a joyful level,” said Woody Heller, executive managing director at commercial brokerage Savills Studley. “We’re seeing some of the never-sellers sell and some of the never-available buildings being purchased — at certain moments in the cycle when prices rise to these levels,” Heller added. The priciest full-building sale of the year was Blackstone Group’s $2.25 billion sale of the 1.2 million-square-foot Midtown office tower 1095 Sixth Avenue, also known as 3 Bryant Park, to Canadian property investor Ivanhoe Cambridge and Chicago-based Callahan Capital Partners. Upon closing (no date was set at press time), the sale would be the priciest for a U.S. office building since the GM Building changed hands for $2.8 billion in 2008. In 2014, the $1.35 billion sale of 650 Madison Avenue was No. 1. Like many Canadian investors on the New York circuit, Ivanhoe Cambridge, the real estate subsidiary of pension fund manager Caisse de dépôt et placement du Québec, has been around the block. Ivanhoe also Continued on page 62
www.TheRealDeal.com January 2014 35
YEAR made the list for selling a 49.4 percent stake in Citigroup’s headquarters at 388-390 Greenwich Street in Tribeca to SL Green for nearly $800 million. SL Green separately refinanced the building with a seven-year, $1.45 billion mortgage. “Most of the institutional investors buying trophy properties are pension funds looking for cash flow to make dividends for their shareholders,” said James Murphy, executive managing director at commercial firm Colliers International. The year’s second priciest deal was Blackstone-owned Hilton Worldwide Holdings’ agreement to sell the iconic 1,413-room Waldorf Astoria hotel to Beijing-based Anbang Insurance Group. It was slated to close Dec. 31, making it the priciest deal ever for a single hotel, though at press time, the deal could potentially still be blocked by the U.S. government, which was weighing the potential security risks of a Chinese company acquiring a hotel that is often the site of diplomatic and business negotiations, not to mention the one where the president stays while in New York. Anbang, a new entrant to the New York City market, was on the hunt for a trophy purchase, Heller said. The Waldorf deal came four months after the Chinese government moved to allow insurers there to invest 15 percent of their capital outside China. The top deals list did not include portfolio sales or development sites. Among the notable deals in those categories were Brookfield
As the year wound down, Jeff Sutton and General Growth Properties struck a deal to buy the Crown Building for $1.75 billion.
Stephen Schwarzman-led Blackstone Group made the largest sale of the year.
also known as 76 11th Avenue, for north of $800 million, brokered by CBRE Group. Teams from Eastdil and CBRE Group declined to comment for this story.
Minority stakes Citigroup Center and Citigroup headquarters deals were among several high-profile
The priciest building deal of 2014 was Blackstone Group’s $2.25 billion sale of the 1.2 million-squarefoot Midtown office tower 1095 Sixth Avenue, to Canadian property investor Ivanhoe Cambridge and Chicago-based Callahan Capital Partners.
The office condo at the Time Warner Center at 10 Columbus Circle was bought by Related Companies, the Government of Singapore and ADIA for $1.3 billion.
Steve Ross’s Related Cos. led a group that made 2014’s fifth biggest buy.
Property Partners’ $1 billion purchase of the 3,962-unit Putnam portfolio in Upper Manhattan, brokered by Savills Studley; and HFZ Capital Group chief Ziel Feldman’s purchase of the land at 501 West 17th Street, 62 January 2015 www.TheRealDeal.com
IN
REVIEW ment, an arm of the central bank of Norway, for about $725 million. The deal brings the building’s gross value to roughly $2.2 billion, according to sources close to the deal. Norges emerged as a player over the past few years, having invested in Boston Properties’ 7 Times Square and TIAA-CREF’s 470 Park Avenue South. The sovereign fund
Blackstone-owned Hilton Worldwide Holdings’ deal to sell the Waldorf Astoria hotel to Beijing-based Anbang Insurance Group for $1.95 billion was the second most expensive of the year.
Investor David Werner bought Ernst & Young’s headquarters at 5 Times Square and the Socony Mobil building for a combined $2.37 billion.
Jeff Sutton and General Growth bought the Crown Building in late December.
2014 Manhattan investment sales of equity stakes, rather than outright buildings. Boston Properties sold a 45 percent interest in Citigroup Center at 601 Lexington Avenue to Norges Bank Investment Manage-
Wu Xiaohui’s Anbang nabbed the ultimate trophy hotel: the Waldorf Astoria.
got into the property investment game in 2010, after receiving a mandate to invest up to 5 percent of its real estate assets outside Norway. In another minority-stake deal, the Ca-
nadian Pension Plan Investment Board grabbed a 45 percent interest in Vornado Realty Trust’s 941,000-square-foot office building 1 Park Avenue in Midtown South for $560 million. And UBS took a 49 percent stake for roughly $500 million in the Americas Tower, the 975,000-square foot tower between West 45th and 46th Streets owned by Silverstein Properties and CalSTRS pension fund, sources said. Foreign buyers often buy a minority stake to avoid dealing with the Foreign Investment in Real Property Tax Act, which requires withholding from a foreigner’s rental income and gains or losses from disposing of a U.S. property, Murphy said. “A minority stake can be a very good way to enter the marketplace,” Murphy said. In the last month of the year, Murphy said he saw multiple offerings of minority interests on B-class office properties in both Downtown and Midtown. In both cases, the owners were looking to sell off property a few years after buying and adding value through upgrades. Investors are also testing the market to recapitalize, to reduce capital costs. Murphy said it is premature to identify that as a trend, but he is interested to see if it continues.
Investor behavior David Schechtman, executive managing director at commercial brokerage Eastern Consolidated, said his foreign client base of Koreans, Chinese and Eastern Europeans is especially focused now on making decisions and closing in on real estate. “A lot of them came here in 2008 and 2009 and there were no deals to be had,” Schechtman said. “They’ve had four or five years to get prepared and find local counsel. Now they are buying in earnest. They’re actually striking.” Some investors are stepping outside of their comfort zones and either switching asset classes on office building buys, or adding a different building type to their portfolios, said Robert Knakal, chair of investment sales brokerage Massey Knakal Realty Services. Midtown East-based investment firm Trevi Retail, for example, made a rare move to acquire four Upper East Side all-residential buildings for nearly $100 million in September. Soaring prices are leading investors to consider different types of properties. Firms specializing in office properties are increasingly “frustrated with the yield in the asset class that they’re most familiar with,” Knakal said. “Buying a 2.5 percent capitalization-rate apartment building doesn’t make sense to buyers who were buying at a 5 percent cap rate a few years ago,” said J.D. Parker, first vice president at commercial brokerage Marcus & Millichap. Others who have struggled with finding a building to buy are instead considering development sites, which can pose a greater risk, Parker said. The soaring price of land, however, is not necessarily a deterrent for some developers. Continued on page 124
www.TheRealDeal.com January 2014 61
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1 0 3 NEW AGENTS
BY THE NUMBERS
2 1 HUMAN LANGUAGES SPOKEN
4 4 9 0 0
S 6 3 5 4 6 8 9
SQUARE FEET OF NEW OFFICE SPACE
AVERAGE EXCLUSIVE SALE LIST PRICE
1 1 7 4 8 3 1
2
NEW LINES OF CODE
CITIES, NEW YORK & WASHINGTON DC
2 5 1
# 6
2 . 1
LUNCHES SHARED
RANKING AMONG NYC BROKERAGES BY LISTING VOLUME (WITHIN 6 MONTHS OF SALES LAUNCH)
CURRENT EXCLUSIVES PER AGENT
S 2 . 5 B
S 6 6 3 7 6 2 0 0 0
NEW DEVELOPMENT PIPELINE
IN CURRENT EXCLUSIVE LISTINGS
3 6
S 2 0 0 0 0
5 8 7 7
PROGRAMMING LANGUAGES SPOKEN
SPONSORSHIP TO BUILD A HOME WITH HABITAT FOR HUMANITY
CLIENT LEADS GIVEN TO AGENTS
S 3 5 5 5
THANKS
HIGHEST PRICE PER SQUARE FOOT SOLD
to our amazing agents, clients, customers, partners, investors, and employees who made 2014 so memorable.
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Brooklyn broker growth outpaces Manhattan in ’14 Rise reflects hot outer-borough market; citywide total up 5.5% BY ADAM PINCUS here the business goes, the brokers flow. The number of brokers and agents in Brooklyn’s surging property market grew at a faster rate over the past year than in Manhattan, new data on real estate licenses from the New York State Department of State show. The number of brokers and salespersons in Brooklyn rose by 7.1 percent in 2014, or 664 people, to 10,004, the figures reveal. In Manhattan, the number rose by 5.7 percent, or 1,632 people, to 30,229. The Department of State, which issues and regulates real estate licenses, provided the figures to The Real Deal. The data includes the number of brokers and salespersons for both residential and commercial real estate in each borough for December 2014 and December 2013. Queens saw slightly slower growth. The number of brokers and salespersons rose by 5.4 percent to 11,030, an increase of 563 people. In Staten Island, the growth was 2.2 percent, up 53 to 2,438.
W
2014 growth in licensed agents and brokers COUNTY
LICENSED BROKERS & SALESPERSONS
Brooklyn Manhattan Queens Staten Island Bronx Total NYC
YEAR-OVER-YEAR CHANGE
10,004 30,229 11,030 2,438 2,486 56,187
7.1% 5.7% 5.4% 2.2% 1.6% 5.5%
Source: New York State Department of State; figures from December 2013 and 2014
The Bronx saw the most sluggish growth, up just 1.6 percent or 40 people, to 2,486 brokers and salespersons. In the city overall, the number of professionals grew by 5.5 percent, or 2,952 to 56,187. The growth in Brooklyn was due in part to its rising global cachet, one veteran professional said. “Brooklyn is an internationally cool and hip place to be and
real estate is the cool thing to be involved in,” John Reinhardt, CEO of the Brooklyn-based residential brokerage Fillmore Real Estate. The new agents would be absorbed, he predicted, because older agents will retire. “The agent population happens to be older than the consumer,” Reinhardt said. Commercial firm Eastern Consolidated said it hired a large contingent of newly-
minted agents. Overall, the company ramped up with 40 new hires; half of those are new to the business, said Daun Paris, president of Eastern. “Twenty of the new agents have their license for the first time,” she said. “The new recruits come to Eastern from a wide range of backgrounds including Wall Street, professional athletes, owners of their own business and college graduates.” Other firms hired new agents, but not at the same breakneck pace. The retailfocused RKF brought in three newlylicensed professionals in the firm’s New York office. However, that did not represent an uptick over prior years. “This is no different than our ‘typical’ year, which usually runs with three to four new canvassers, and is part of our company philosophy of growing organically and training our own brokers,” said Elyse Bandel, executive vice president at RKF. Several firms, such as Urban Compass and Murray Hill Properties, hired a significant number of new brokers and agents over the past year, but representatives for those firms said they did not hire first-time agents. “Agent count always expands and contracts in sync with the cycles of the market,” Timothy King, principal with the Brooklyn-based brokerage CPEX Real Estate, said. “Many newbies will seek alternate employment if the market hits a downdraft or they find the competition too tough.” TRD
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JUDITH DURHAM SMITH To Our Firm
Judith Durham Smith Licensed Associate Real Estate Broker 445 Park Avenue, New York, NY 10022 jdurham@bhsusa.com 212-906-9311
c: 917-860-5486
All information is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale or withdrawal without notice. All rights to content, photographs and graphics reserved to Broker. Equal Housing Opportunity Broker.
66 January 2015 www.TheRealDeal.com
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Tech, luxury, home improvement ink top retail leases of the year Midtown deals dominate priciest shopping spaces of 2014; Cushman most active firm on list
10 most expensive Manhattan retail leases of 2014 RANK
TENANT
LANDLORD
EST. RENT
ADDRESS
SIZE (SQ FT)
TENANT BROKER
LANDLORD BROKER
1
Microsoft
Kingsville Investments
$17 million
677 Fifth Avenue
20,600
CBRE’s Richard Hodos
Cushman & Wakefield’s Andrew Kahn, Jesse Hutcher, Jonathan Scibilia
2
Topshop
Vornado Realty Trust
$15 million
608 Fifth Avenue
45,000
Direct
Vornado’s Sherri White
3
Restoration Hardware
Aurora Capital Associates, William Gottlieb Real Estate
$9 million
9-19 Ninth Avenue
70,000
Open Realty Advisors’ Mark Masinter
Aurora’s Jared Epstein
4
Bottega Veneta
Wildenstein family’s 740 Madison SPE
$8 million
740 Madison Avenue
24,000
Cushman & Wakefield’s James Downey, Eric Le Goff
Cushman & Wakefield’s John S. Gray, Frank Liantonio; David Wildenstein representing the family
5
NBA
Moinian Group
$7.5 million
545 Fifth Avenue
24,000
Newmark Grubb Knight Frank’s Jeffrey Roseman and Moshe Sukenik
Winick Realty Group’s Jeff Winick
6
Sketchers USA
SL Green Realty
$7 million
1515 Broadway
3,519
Cushman & Wakefield’s Gene Spiegelman and Alisa Amsterdam
Newmark Grubb Knight Frank’s Jeffrey Roseman, Marc Leber
7
Qela
Thor Equities
$6 million
680 Madison Avenue
6,230
CBRE’s Richard Hodos
Thor Equities
8
Samsung
Thor Equities, Taconic Investment Partners
$5.6 million
837 Washington Street
17,500
Unclear
Thor Equities’ Alexandra Frangos
9
Whole Foods
Equity Office
$5.3 million
1095 Sixth Avenue
32,000
SCG Retail’s Chase Welles
SRS Real Estate Partners’ Patrick Smith
10
Zara
L&L Holding, Beacon Capital
$5.2 million
222 Broadway
30,000
Direct
Cushman & Wakefield’s Bradley Mendelson, Alan Schmerzler, Steven Soutendijk
Source: The Real Deal reached out to more than a dozen industry sources to determine the estimated rents. We also reached out to the landlords and tenants or their representatives. None commented on the record.
BY ADAM PINCUS ne of the 800-pound gorillas of the tech world isn’t just online these days. A retail lease by Microsoft, which took several floors at 677 Fifth Avenue, was the most expensive store deal signed in 2014, a survey by The Real Deal found. The computer hardware and software firm is paying an estimated $17 million at 677 Fifth, a seven-story building located between 53rd and 54th streets, and owned by Kingsville Investments, several sources said. “The Microsoft store at Fifth Avenue will be much more than a standard retail store, and in addition to retail, there will be experiential space for Microsoft as a company to further engage with our customers and partners in new ways,” a spokesperson for the Redmond, Washington firm said in a statement to TRD. The company declined to comment on the rent figure. The rent survey, which ranked deals by estimated annual rent, included new leases only and did not count department store deals. TRD reached out to the landlords and tenants as well as their leasing representatives. (In no instance did anyone provide a figure for attribution. Financial information is tightly guarded and comparable leases — known in the
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68 January 2015 www.TheRealDeal.com
trade as “comps” — are shared among brokers sparingly. Since no one spoke on the record, these figures should be considered estimates. Also, while the survey relied on industry sources, there were often insiders supplying conflicting information. Some estimated, for example, that the rent Microsoft is paying is $16 million, while others pegged it closer to $17.5 million, so our analysis settled on $17 million.) Brokers from Cushman & Wakefield were the most active, representing at least one side of a transaction on four of the 10 priciest deals. Agents from CBRE and Newmark Grubb Knight Frank worked on two deals each, while other firms working on one deal each included Open Realty Advisors and Winick Realty Group. Second place in our ranking was the clothing store Topshop, taking 45,000 square feet at Vornado Realty Trust’s 608 Fifth Avenue, at the corner of 49th Street, paying an estimated rent of $15 million. The thirdmost-expensive lease was inked by home furnishing giant Restoration Hardware, which made a deal at 9-19 Ninth Avenue in the Meatpacking District, for $9 million each year. That building is owned by a joint venture of Aurora Capital Associates and William Gottlieb Real Estate.
Luxury goods maker Bottega Veneta is paying about $8 million per year for 24,000 square feet at the Wildenstein family’s 740 Madison Avenue, putting it in fourth place. That deal was followed by the NBA, taking a 24,000-square-foot lease at Moinian Group’s 545 Fifth Avenue for $7.5 million, and shoe retailer Skechers USA, which made a 3,519-square-foot deal at SL Green Realty’s 1515 Broadway in Times Square for $7 million per year.
several sources said the deal was driven by the office component. Thor CEO Joseph Sitt said he was bound by confidentiality agreements so could not comment on the lease deals. Grocer Whole Foods inked the ninth-most-expensive deal, for 32,000 square feet at the base of Equity Office’s 1.2 million square foot tower at 1095 Sixth Avenue, facing Bryant Park between 41st and 42nd streets. Whole Foods is paying an estimated $5.3 million per year.
Brokers from Cushman & Wakefield were the most active, representing at least one side of a transaction on four of the deals. Qela, a high-end jewelry and leather goods store based in Qatar, inked a lease for 6,230 square feet in Thor Equities’ 680 Madison Avenue between 61st and 62nd streets, paying an estimated rent of $6 million a year. That was followed by another tech firm, Samsung, taking about 17,500 square feet of retail space as part of a larger 56,000 square-foot deal to lease the entire building at 837 Washington Street in the Meatpacking District, owned by Thor Equities and Taconic Investment Partners. The annual payment for the retail space is estimated at $5.6 million, although
Rounding out the top 10 is clothing retailer Zara, taking 30,000 square feet at 222 Broadway in Lower Manhattan, paying an estimated $5.2 million per year. Joint venture partners L&L Holding and Beacon Capital Partners own that property. Despite the concentration of the most valuable retail along Upper Fifth Avenue and Times Square, the top 10 most expensive leases were signed in a wide variety of retail shopping districts. They ranged from Zara’s lease in Lower Manhattan to Whole Foods’ deal at Bryant Park. TRD www.TheRealDeal.com January 2014 35
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E m i l y unter Charlotte Strauss unt nter er C harllott tte uwa Otagho Liana R o w e andon Penn Sarah M a l l i s ark Taliercio Zachary Emery Jasmine Morales Mark Policarpio Brandon Sweet Yelena Kuyenova Kate Deer Paul Bennett III Blake Smith Nicole Sobol Janice Bloch Brett
2015
Damico Vladimir Luzader Terryy Lautin Aeen Avini Adam Taylor Tayy lor Robin Ly Lyon yon Gardiner Susan Sing Singer ger Bill Kowalczuk Lucas Nathan Flori Flo lori ri Delvalle D el elva valle David Davi Da vid d Salvatore Salv Sa lvat ato ore Poulsen Bryon Davide Callegati Kate Shari Falcone Briams Beltran Poulsen l Bryo y n Zapf Z apf pf Peter Peter t Wei Weii Rory R oryy Nichols Nich hols l D avid ide C all lleggati t i Tushar Tushar h Mike Mik ike Vora Vora Pamela Pamela l Leeds L e eds d Katte Johnson Johnson h Sharii Forrest Forrestt Michael Mich haell F alcone l B riams i B elt ltra ran n Je Jeff ff Dod D od Larr La rryy Yu Tom Tom Brady Bra rady dy Elaine E la lain inee Schweninger Schw Sc hwen enin inge gerr Lee Le e Schweninger Schw Sc hwen enin inge gerr Joe Jo e Di Condina C on ondi dina na Matthew Mat atth thew ew Bachrad B ac achr hrad ad Chris C hr hris is Kastner Kas astn tner er D an T udor ud or C harl ha rles es B adal ad alam amen enti ti Tomel Tom omel el L ucas uc as D avid av id C an Larry Dan Tudor Charles Badalamenti Lucas David Can Wendy dy JJodel od dell A nthony h y SSerino erino i A g stiina M go uro JJason ason R ig gs g SSusan usan G rell lla Jimmy Ji y Brett Brett Angela Ange g l a Luttrell Luttrell l l Alex Al Cheung C heungg Sylvia Sy lvii a Ang Angg Lina L ina M. Viviano Keren Tishman Tis ishm hman an Aile Ail ilee Wendy Anthony Agostina Muro Riggs Grella Grossmann Agrelius Lisa Balbuena Mark Chin Karadus Danny Huynh Mader Gina Grossm Gros sman ann n Joh JJohnathan ohn hnat ath t han han Agre A g reli lius li us L is a Balb isa B a lb lbue uena na M arkk Ch ar Chi in JJason in ason as on K arad adus dus D anny an ny H uy nh h Dale D al ale le Reich R eich Rei ich Tricia Tr ici Tri icia i a Donovan D on onov ovan an M ader ad der Arlene Arl rlen lenee Somm SSommer ommer er G ina Sabi ina SSabio abi bio o Wassim Wass Wa ssim im Serh S er erh h Z esh Ze shaa haan n Qadi Q adi dirr Kell K ell llyy Robi R obi bins nson on L aure au renc ncee Levy L e vy-L L am amb b ert R bert enee en ee B eckker ec ker Lanc L ancee Mi Mil letiich le h X iomara ioma ra SSmall mall ma ll Jerrie Jer ri rie ie Butler Butl Bu tler ler K ell el l lee le e Buhler Buhl Bu hler hl er Jiyoung Jiy iyou oung ng Lee L ee Paddington Pad addi ddi ding ngto ton n Matz Matz Yury Yur uryy Holoh Holo Ho loh h Zeshaan Qadir Kelly Robinson Laurence Levy-Lambert Renee Becker Lance Miletich Xiomara Kellee Dann Da nnyy Da Davi viss Denise Deni De nise se T homo ho mopo p ul po ulos os H anna an nah h Re Rein inha hard rd K elly el lyy Zisook Z is isoo ookk Scher Sche Sc herr Susan Susa Su san n Stern Ster St ern n Juliet Juli Ju liet et Clapp C lapp l app Michelle Mic iche hell llee Bourgeois Bour Bo urge g oi ge oiss Paul Paul Macapagal Mac acap ap p aggal Elkin E lk lkin in J Serna S er erna na Rachel R ac ache hell Kelly Kell Ke llyy Sand Sand Danny Davis Thomopoulos Hannah Reinhard Kelly Sala Sa land la nder nd er John Joh ohn n Carapella Cara Ca rape ra pell pe llaa Ed Freiberg ll Fre reib iber ib ergg De er Debr braa St br Stot otts ot ts JJon on C ella el la Aminata Ami mina nata na ta Sy Sy Danny Dann Da nnyy Roshco nn Rosh Ro shco sh co L aure au ren re n Ch Chao ao E va Eng Eng Erin Eri rin n Michelle Mich Mi chel ch elle el le Stabb Sta tabb bb Jimmy Jim immy Johnson immy Joh ohns hns nson on Evan Eva van n Dennie D enniie Denn ie Prisc Pri risc isc Salander Debra Stotts Cella Lauren Eva Moreno More no L arry ar ryy G oldb ol ldb dbllatt l att E lyse R ly oth ot t he henb nber b ergg Il Ilsa sa V asqu as q ez N qu oraa Sh or Shar arpe p B pe eyy rentt R icha ich hard dT homass Kare homa K aren n St Ston onee Jonathan Jonath Jona than th an C ohen oh hen A lex He lex H e yd ydt Emma Emma L estter es ter Ji Jill lliian ll i an Fa F aul ull l ls ls Matth Mattth h Moreno Larry Goldblatt Elyse Rothenberg Vasquez Nora Sharpe Beyrent Richard Thomas Karen Stone Cohen Alex Heydt Lester Jillian Faulls Stee St eerr Ginger ee Ging Gi ngger Brokaw Bro rokka kaw Deborah kaw D ebo Deb De b ora bora rah h Sabec Sabe Sab Sa b e c Dana bec D ana Antin Da Ant nti t in in Asaf Asa saff Bar-Lev B ar-L Bar Ba r-Le L e v Terry Lev Terr Terr Te rryy Naini Nain Nai Na ini Julie ini Ju li Ju liee Dauer D aue Daue Da uerr Gage Gage Ga g R and an d Ji JJill ll C amac am ac K riist sti t in ina Pa ina P Pace ace cess Ma M Mad ady dy F aber ab b er L y n Po yo P ort rter ter A rii L eFau eF Fau Steer Rand Camac Kristina Paces Mady Faber Lyon Porter Ari LeFau Katie Thiele Nikki Adamo Dean Dunbar Jeffrey Wachtenheim Margaret Nichols Wilbur Gonzalez Songhee DeBarbieri Steve Bruman Jodi Rothman Theresa DeSanti Kov David Schneider Ayanna Barton Judi Lederer Sofia Falleroni Domonique Anderson Michele Franco Perez Denise Leonetti Elana Avram Kathryn Turner Alisia Alexand Judy Levine Martin Newman Zach Boren Jennifer Regen Priscilla Lopez Brian Dickinson Therese Bateman Louis Rosado Aaron Ross Mary Murphy Owens Lind Stokes Cord J. Stahl Anna Zarro Donna Strugatz Nick Sanni Beverley Rouse Kristen Larkin Nick Box Jared Barnett Monique Silberman Mitchell Cashwell Mariko Miy Kimberly Santoriello Lauren Heinz Kenneth Levene Peter Schwartz Kathy McFarland Leah Ozeri Shari Cohen Ginger Shukrun Evan Rosenfeld Michael Sandak Jam Rappaport Susan Green Christina Rivera Roberto Cabrera Noelle Bailly Stephen Ferrara CaseyBickley Mattie Weiser Michael Bejzak Evgeny Pyatibratov Theresa W William House Andrew Klima Spencer Rhoda Esteban Gomez Josh Carney Dan Marrello Jessica Swersey Eric Sidman John Ameralis Scott Weinberg Brian Payla Crystal Garcia Jake Kolb Darrell Ross Allison Jones Lori Press Claudia Saez-Fromm Chanean Bianco Samuel Larson Gabrielle Marcus Anthony Robustelli Yana Milano Lucie Holt Anabel Minier Andres Perea-Garzon Georgios Avramopoulos Marie Etienne Edward Fabila Raymond Keller Sacha Mobarak Diana Chung Abigail Palan Michael Weiner Roula Arif Mark Fromm Joshua Sellers Sylvester Cetina Brandon Trentham Lauren Kelly Jean Charles Steven Minichiello Sherri Balassone Beth Le Elinor Gordon Nancy Shapiro Lauren Kronenfeld Dionne Cole Sarah Leingang Denny Heller Doug Simone Jonathan Soleimani Mitchell Simmons Afan Kaiser Heat Cooper Rachele Testa Schaefers Alise Shoemaker Stephanie Rosenhaus James Harrison Matthew Fernandez Mark Blackwell James Bond III Aaron Mazor Jacqueline Pesta Monica Lecusay Kristin Luciano Allison Newman Lora Dettinger Lena Katsimbrakis Scotty Elyanow Adrienne Wender Salvatore Falcone Nicole Manners Jessica Herzb Debra Hoffman Farrah Assadpour Bernard Marshall Dana Power Eric Fain Mariela Stochetti Simran Aggarwal Elaine Hu Sophia Nagornaya Soren Bech Joe Mess Frank Taliercio Ted Karagannis Beverly Cole Tunya Sorobay Dino Malvone Steven Gold Greg Garwood Damien Parker Caroline Locatelli Glenn Connolly Bill Bo Ronni Roth Christian Schaefers Chris Whelan Celine Coudert Joseph Shaffer Andrea Frey Amy Dadi Shelly Wu Sue Gordon Ryan Edgette Adam Lynch Lauren Conn Rob Hogan Heather Pasternak Ibrehem Rahman Lisa Keenan Jessica Rains Ilona Polyak Jenna Bresso Naomi Thomas Anabel Caswell Karen Prager Les Moore Anasta Konecky Michelle Roa Marisa Almeida - Lecki Yuliya Sysevich Shari Matluck Valerie Jean Garduno Arthur Vinuelas Kelly Elivo Samuel Lautin Connie Sanchez Meli Leifer Nicole Decker Lauren Richman Robert Beacham Hilary Loftus Sam Shuster DiPlacido Mary Iannacone Andrew Feiwel Dane Gray Sean Wayland Paul Leon Ellen Kapit John Sheehan Tanner Mcauley Sasha Bruno Julie Christoffersen Susie Cornicello Christian Haag Amy Stonewater Kathleen Finelli Douglas Rand Rub Jaramillo Ana Stein Thomas Lampshire Kimberly Schiralli Nathaniel Gurien Janis Aurichio Jocelyn Cloder Loren Lee Evie Scocos Aliya Qizilbash Elizabeth Bishop G Williams Alexandra Florio Anna Levenshus Lisa Heiberger Melanie Swanson Payam Farshadfar David Favale Mughen Nakamura Marietta Atienza Jordan Cherson Ec Shen Nadia Prashad Mary Anne Fusco Robert Allyn Franรงois Bertin Yangyang Guo Dianne Sirni Hilah Williams David Gomez Pearlberg Katherine Gotshall Mary An Dinan Lee Rachel Klein Deondra Gonsalves Joseph Cogan Valerie Greenberg Leda Gorgone Janet Shin Laurie Gilmore Marguerite Birnbaum Julie Gordon Keith W Kelly Harrison Stefano Ukmar Adam Lampell Brit Holten Mary Nealie Melanie Metzler Brenda Colon Mark Zimmerman Thomas Harmon Katherine Gale Anthony T Eugene Lee Anouk Nora Tori Barnao Roberto Rodriguez David Jung German Murillo Esida Melani Jeimy De la Cruz Richard Pratt Robert Eychner Philip Reynolds Ale Bryant Jonathan First Irina Tesis Ramzi Azzam Enrique Constante Emma Maitland Christina Nguyen Bradley Oberlin Andrew Heiberger Shlomi Reuveni Jesse Bertom John Chubet Robert Treanor Jordan Kramer Ashley Rodriguez Sean Abernethy Wendy Maitland Marc Sterling William Barton Claudia Rodriguez Karin Rathje-Posthu Lisa Kennedy Sarah Freiberg Linda Elmani Aleksandar Andreski Lisa Meyer Mitchell Cohen Dorian Cattani Kristin Ehrgott Raija Ajo Edyta Piechota Chad Murray En Pelinku Konstantine Karonis Ande Sedwick Leah Rubin Stephannie Brito Robin Coggins Brennan Zahler Joseph Sitt Tamara Kaplan Samantha Tannehill Graham Al Corinne Ivari Tom Baron James Corcoran Jasmin Aydagul Brooke Davida Emily Hunter Charlotte Strauss Ebuwa Otagho Liana Rowe Brandon Penn Sarah Mallis M Taliercio Zachary Emery Jasmine Morales Mark Policarpio Brandon Sweet Yelena Kuyenova Kate Deer Paul Bennett III Blake Smith Nicole Sobol Janice Bloch Br Tartarkin Tatiana Brodsky Armilene Burinescu Susan Katz Dan Burz Manisha Chawhan Lauren Pearce Cheyne Stepanski Rachel Rainaldi Scott Dweck Joe Reid Shar Chang Ryan Fitzpatrick Camoy Briscoe Lori Levin Albert Bishai Chris Guzzello Claudia Barritt Scott Stryker Daniel Lu Julia Miller Summer Beinhorn Jonathan Hab Amanda Hollis Tracy Levine Ashley Ware Marcia Giordano Larry Lozier Elaine Mayers Joseph Snyder Talia Shor Carol Nemeroff Ezra Taylor Jason Homa Saman Dong Leora Hasas Kemdi Anosike Serri Knight Nilu Amin Dan Janow Marisa Mace Garret Lepaw Stan Broekhoven Melanie Kohler Will Sharon Raphael Chejade-Blo Raoul Boisset Deborah Weinberg Jarrod Randolph Sean McGinley Chris Dominiak Natalie Malikyan Hannah Han Mitchell Glixon Courtney Knopf Gonzalo Sabogal Jenni Gabay Jennifer Long Stella Sberro-Cohan Jonathan Butwin Andre Guerrero Joseph Foster Ned Hudson Naffi Liang Gina Gee Lindsee Silverstein Shaheda Adalsha Ali Guerra Kristin Herrera Aysegul Demir Thomas Stein Yvette Polanco Jordyn Honigfeld Carlos Oliveira Kelly Heinz Armen Stevens Cristina Cote Victoria Terri-C Vivek Batra Alexandra Newman Joseph Delorenzo Andris Luna Shannon Greco Michelle Luhan Marius Stoia Frank Ennis Assaf Samuel Michael Carlo Jaclyn Fran Ohad Fisherman Geoffrey Garcia Elizabeth Lawton Mark Kim Carole Hu Lauren Dub Raul Velasco Jarrett Sharp Rimma Doubinskaia Karen Ali Edison Li Alexand Merrell David Berman Whitney Skillen Marc Lewis Mike Werde Jared Cohen Zenon Lewyckyj Joshua Hatfield Ian Chesnoff Eric Prigot Jessica Mata Brandon Gibs Michele Bednarsh Clifton Gaisford Danielle Pecile Antonello Favaro Chris Reyes Itzy Garay Melissa Van Damm Hal Gavzie Brett Solomon Lance Nguyen Katherine Voge Lisa Shapir Ty Havlioglu Sean Hughes Jill Damico Vladimir Luzader Terry Lautin Aeen Avini Adam Taylor Robin Lyon Gardiner Susan Singer Bill Kowalczuk Lu Nathan Flori Delvalle David Salvatore Bo Poulsen Bryon Zapf Peter Wei Rory Nichols Davide Callegati Tushar Mike Vora Pamela Leeds Kate Johnson Shari Forr Michael Falcone Briams Beltran Jeff Doder Larry Yu Tom Brady Elaine Schweninger Lee Schweninger Joe Di Condina Matthew Bachrad Chris Kastner Dan Tudor Char Badalamenti Tomel Lucas David Cantor Wendy Jodel Anthony Serino Agostina Muro Jason Riggs Susan Grella Jimmy Brett Angela Luttrell Alex Cheung Sylvia A Lina M. Viviano Keren Tishman Aileen Grossmann Johnathan Agrelius Lisa Balbuena Mark Chin Jason Karadus Danny Huynh Dale Reich Tricia Donovan Mader Arle Sommer Gina Sabio Wassim Serhan Zeshaan Qadir Kelly Robinson Laurence Levy-Lambert Renee Becker Lance Miletich Xiomara Small Jerrie Butler Kellee Buh Jiyoung Lee Paddington Matz Yury Holohan Danny Davis Denise Thomopoulos Hannah Reinhard Kelly Zisook Scher Susan Stern Juliet Clapp Michelle Bourgeois P Macapagal Elkin J Serna Rachel Kelly Sandra Salander John Carapella Ed Freiberg Debra Stotts Jon Cella Aminata Sy Danny Roshco Lauren Chao Eva Eng E Michelle Stabb Jimmy Johnson Evan Dennie Priscilla Moreno Larry Goldblatt Elyse Rothenberg Ilsa Vasquez Nora Sharpe Beyrent Richard Thomas Karen Stone Jonath Cohen Alex Heydt Emma Lester Jillian Faulls Matthew Steer Ginger Brokaw Deborah Sabec Dana Antin Asaf Bar-Lev Terry Naini Julie Dauer Gage Rand Jill Cam Kristina Paces Mady Faber Lyon Porter Ari LeFauve Katie Thiele Nikki Adamo Dean Dunbar Jeffrey Wachtenheim Margaret Nichols Wilbur Gonzalez Songhee DeBarbi Steve Bruman Jodi Rothman Theresa DeSanti Kovary David Schneider Ayanna Barton Judi Lederer Sofia Falleroni Domonique Anderson Michele Franco Perez Den Leonetti Elana Avram Kathryn Turner Alisia Alexander Judy Levine Martin Newman Zach Boren Jennifer Regen Priscilla Lopez Brian Dickinson Therese Batem Louis Rosado Aaron Ross Mary Murphy Owens Lindsey Stokes Cord J. Stahl Anna Zarro Donna Strugatz Nick Sanni Beverley Rouse Kristen Larkin Nick Box Ja Barnett Monique Silberman Mitchell Cashwell Mariko Miyake Kimberly Santoriello Lauren Heinz Kenneth Levene Peter Schwartz Kathy McFarland Leah Ozeri Sh Cohen Ginger Shukrun Evan Rosenfeld Michael Sandak Jamie Rappaport Susan Green Christina Rivera Roberto Cabrera Noelle Bailly Stephen Ferrara CaseyBick Mattie Weiser Michael Bejzak Evgeny Pyatibratov Theresa Wu William House Andrew Klima Spencer Rhoda Esteban Gomez Josh Carney Dan Marrello Jessica Swer Eric Sidman John Ameralis Scott Weinberg Brian Paylago Crystal Garcia Jake Kolb Darrell Ross Allison Jones Lori Press Claudia Saez-Fromm Chanean Bian Samuel Larson Gabrielle Marcus Anthony Robustelli Yana Milanova Lucie Holt Anabel Minier Andres Perea-Garzon Georgios Avramopoulos Marie Etienne Edward Fab Raymond Keller Sacha Mobarak Diana Chung Abigail Palanca Michael Weiner Roula Arif Mark Fromm Joshua Sellers Sylvester Cetina Brandon Trentham Lauren Ke Jean Charles Steven Minichiello Sherri Balassone Beth Levy Elinor Gordon Nancy Shapiro Lauren Kronenfeld Dionne Cole Sarah Leingang Denny Heller Doug Simo Jonathan Soleimani Mitchell Simmons Afan Kaiser Heather Cooper Rachele Testa Schaefers Alise Shoemaker Stephanie Rosenhaus James Harrison Matthew Fernandez M Blackwell James Bond III Aaron Mazor Jacqueline Pestana Monica Lecusay Kristin Luciano Allison Newman Lora Dettinger Lena Katsimbrakis Scotty Elyanow Adrien Wender Salvatore Falcone Nicole Manners Jessica Herzberg Debra Hoffman Farrah Assadpour Bernard Marshall Dana Power Eric Fain Mariela Stochetti Simr Aggarwal Elaine Hu Sophia Nagornaya Soren Bech Joe Tunya Sorobay Dino Malvone Steven Gold Greg Garwo oe Messina Frank Taliercio Ted Karagannis Beverly Cole Co ni Ro otth h Chr h isstian SSchaefers chaefe ch f rs Chriss Whelan Celine Coudert Joseph Shaffer Andrea Frey Amy Dadi She Damien Parker Caroline Locatelli Glenn Connolly Bill Bone Ronn Ronni Roth Christian n Connors Conno no ors rs Rob R ob ob Hogan Hog ogaan n Heather He ath ther eerr Pasternakk Ibrehem Ib brrehe eh hem Rahman Ra Wu Sue Gordon Ryan Edgette Adam Lynch Lauren Lisa Keenan Jessica Rains Ilona Polyak Jenna Bre ooree A naasstt as asi a Kon on o ne cky ky M icch heel le R Ro o a Ma M ari r isa sa A lmeid - Lecki Yuliya Sysevich Shari Matluck Valerie Jean Gardu Naomi Thomas Anabel Caswell Karen Prager Les Moore Anastasia Konecky Michelle Roa Marisa Almeida nchezz Melissa Meellisssa s a Leifer L ei eife fer Nicole Niicco N ollee Decker D eecckkeer Lauren en Richman en R icchm h an Robert Beacham Hilary Loftus Sam Shuster DiPlacido M Arthur Vinuelas Kelly Elivo Samuel Lautin Connie Sanchez e on nar a d E El l le len Ka len K ap piit Jo JJohn oh hn n SSheehan hee eh h ehan an T anne an ner Mc M c au au le Iannacone Andrew Feiwel Dane Gray Sean Wayland Paul Le Leonard Ellen Kapit Tanner Mcauley Sasha Bruno Julie Christoffersen Susie Cornicello Christ b en Ja be JJaramillo arraam mii lllo An A na SSt teeiin in T Th ho om mass Lamps psh ps hiire Kim Haag Amy Stonewater Kathleen Finelli Douglas Rand Rube Ruben Ana Stein Thomas Lampshire Kimberly Schiralli Nathaniel Gurien Janis Aurichio Jocelyn Clo p G iaa W i l llii am il ams Alexandra A leexxan Al and drra Florio Flo Fl orr io io Anna An nn na Levenshus Lee ve L ve n nsshus Lisa L Heiberger Melanie Swanson Payam Farshadfar David Fav Loren Lee Evie Scocos Aliya Qizilbash Elizabeth Bishop Gia Williams cho Shen She heen Nadia Naaadi N diia d i a Prashad Prrash P aassha had M Ma aryy A nn n ne Fu F uscco Ro Robe ob beert ert rt A lly Mughen Nakamura Marietta Atienza Jordan Cherson Echo Mary Anne Fusco Robert Allyn Franรงois Bertin Yangyang Guo Dianne Sirni Hilah Willia inan L e e Rachel ee R ac ache hel K Kl leeiin D De e on on d drra G Go ons ns aallvvees Joseph JJo ose sep ph h Cogan C oga David Gomez Pearlberg Katherine Gotshall Mary Anne Dinan Lee Klein Deondra Gonsalves Valerie Greenberg Leda Gorgone Janet Shin Laurie Gilm Harriso on Stefano Stef St efaan no Ukmar Ukk m U maar Adam Ad A d aam dam m Lampell L am mp peellll Brit Brriit Holten Holten Mary Nealie Melanie Metzler Brenda Colon Mark Zimmerm Ho Marguerite Birnbaum Julie Gordon Keith Woo Kelly Harrison Thomas Harmon Katherine Gale Anthony Tam Eugene Nora David Jung German Murillo Esida Melani Jeimy De la C ne Leee Anouk An A nouk ou k N ou No orraa Tori To orr i Barnao Baarrn B nao ao Roberto R ob ob eerr tto o Rodriguez R od o drriigu guez e ryant Jonathan Jona Jo nath t haan n First Fiirrsstt Irina Iri r ina na Tesis Teessiiss Ramzi R am amzzii Azzam Azz zzaam m Enrique Enriqu Constante Emma Maitland Christina Nguyen Bradley Ober Richard Pratt Robert Eychner Philip Reynolds Alexa Bryant Andrew Heiberger Reuveni Bertomen Chubet Robert Treanor Kramer Ashley Maitland Willi A And An ndr drew H drew eib ei ibe b ergger SShlomi berg hlom hl omii Re om R Reuv euv uven enii Je en JJesse ess ssee Be B ert rtom tom omen en JJohn oh hn Ch hub ub eett Ro R Rob ob beert rt T re aan re rea nor or JJordan orrd o ord daan K Kr raam mer er A sh h ley le y Rodriguez le R o dr Rod Ro dr igue dri uezz Sean S e an Abernethy Se Abe b ernet bern eth t hy hy Wendy Wen end dy M dy aiitl tlan l an and d Ma Marc SSterling Marc terl te rli lin ing Wi ing Will llii ll B Bart Ba art rton on Claudia C la l aud udi dia i a Rodriguez R od dri rigu igu g ez Karin Kar ariin in Rathje-Posthuma R at ath hj e-Po hj Post Post sth huma Lisa huma hu L is is a K enn ned e dy dy Sarah Sarraa h Freiberg Sa Freeiib Fr beerrgg Linda L in ind daa Elmani E llm man ani Aleksandar Allek A eks andar nd d ar Andreski And ndre dresk ski k i Li L isa M Lisa Meyer eyyer M Mitchell itch it hel ell l l Co C Coh Cohen ohe hen Do hen D Dorian ori rian i an C Cattani att at tta t anii K Kris ris ri is Barton Kennedy Ehrgott Raija Edyta Piechota Chad Murray Enver Pelinku Karonis Ehrg Eh rgot rg ottt Ra ot Raij ijaa Aj ij Ajo o Ed Edyt ytaa Pi yt Piec echo ec hota ho ta C had ha d Mu Murr rray rr ay E nveer nv e P ellin in kku u Konstantine Ko on nsstttan anti an t ine tin ne K aron ar oniiss Ande An nd de Sedwick Sed Se dw w ick ick Leah Lee ah a h Rubin Ru ubin ub in Stephannie Ste teph phan ph anni an niee Brito ni Brit Br ito it o Robin Robi Ro bin bi n Coggins Cogg Co ggin gg inss Brennan in Bren Br enna en nan Zahler nan Zahl Za hler hl ler Jose Jos osee Sitt Tamara Tam amar araa Kaplan Kapl Ka p an Samantha pl Sam aman anth thaa Tannehill Tann Ta nneh ehil illl Gr Grah aham am Allen A ll llen en Corinne Co orr inne innee Ivari in Ivvaari r i Tom To om m Baron B ar aron on n James Jam ames es Corcoran Co orrco cora ran Jasmin JJaassm min n Aydagul Ayyd aggul B rook ro okee Davida Davi Da vida da Emily Emi mily lyy H unte un terr Char Ch harllott lottee Stra SStrauss t raus usss Eb E bu u Sitt Graham Brooke Hunter Charlotte Ebu Otagho Liana Rowe Brandon Morales Mark Policarpio O t agh Otag ho L ho i ana R iana owee Bran ow B rand don Penn don Penn SSarah arah 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ottt Dw ot Dwec eckk Jo ec Joee Re Reid id SSharon haaro ron n Ch C han ng Ry R yan n FFitzpatrick ittzp zpa p aatt rick rriickk C amoyy B am riisc s coe o e LLori or i L or Levi Le viin Al Albe bert be rt B isha is haii Ch ha Chri riss Gu ri Guzz zzel zz ello el lo C laud la udia ud ia B arri ar ritt tt SScott cott co tt SStry tryy tr Daniel Lu Julia Miller Summer Hollis Ashley Marcia Mayers Dani Da niel ni el L u Ju Juli liaa Mi li Mill ller ll er Sum umme merr Beinhorn me Bein Be inho in horn ho rn Jonathan Jon onat atha at han ha n Haber H be Habe Ha berr Amanda Am man anda daa H d ollli o l liss Tracy Trac Tr acy c y Levine L e viine Le n Ash h le le y Ware W re Wa re M arrci ciaa Giordano Gior Gi orda or dano da no Larry L ar arry ry Lozier L oz ozie ierr Elaine ie Elai El aine ai ne M ayer ay erss Jo er JJoseph seph ph SSnyder nyde ny derr Ta T Shor Carol Nemeroff Taylor Dong Leora Hasas Kemdi Anosike Knight Nilu Shor C aroll N emer em erof off f f Ezra Ezra T ayllor ay lor Jaso JJason ason n Homa Homa SSamantha amaan am a th tha ha Do D ong ng L eora eo raa H asas as as K e di em di A no osi sik i ke ke SSerri er rii K nigh ht Ni Nil lu Amin lu Ami min in Dan D an Janow Janow Jano w Marisa Mari Ma risa isa Mace Mac a e Garret Garr Ga rret et Lepaw L ep epaw aw w S Broekh khoven M elani l ie K ohl h ler Wi ll Sharon Sharon Raphael R aphael h l Chejade-Bloom Ch hejj ade-B d Bl Bloom Bloo oo om R aoull Boisset B oiissett D Deborah eb b orah hW Weinbe eiinbe b rgg be JJarrod arr d R and dollph h SSean ean McGinley McGi Ginley l C hr hris is Dominiak D om omin inia iakk Natalie Nata Na t li liee Maliky M li Ma liky k ky Broekhoven Melanie Kohler Will Raoul Weinberg Randolph Chris Hannah Han Mitchell Glixon Courtney Knopf Gonzalo Sberro-Cohan Jonathan Butwin Andre Guerrero Joseph Foster o Sabogal Jennifer Gabay Jennifer Long Stella SberroFosteer N Car Hudson Naffi Liang Gina Gee Lindsee Silverstein Shaheda Adalsha Alicia Guerra Kristin Herrera Aysegul Demir Thomas Stein Yvette Polanco Jordyn Honigfeld Ca Oliveira Kelly Heinz Armen Stevens Cristina Cote Victoria Terri-Cote Vivek Batra Alexandra Newman Joseph Delorenzo Andris Luna Shannon Greco Michelle Luh
YEAR
IN
REVIEW
Real estate’s juiciest lawsuits of 2014 A look at the industry’s biggest (and oddest) legal spats BY CLAIRE MOSES he old industry mantra “location, location, location” should come affixed with a corollary: “lawsuit, lawsuit, lawsuit.” From the battle for control of Town Residential, to investor Jack Sitt going toe-to-toe with his brethren, to a disturbing case of a landlord accused of spying on a young female resident, the real estate industry saw plenty of litigious behavior last year. The Real Deal was there to cover it, and rounded up some of 2014’s most high-profile cases.
T
Bellmarc’s Binder in a bind Neil Binder, co-founder of Coldwell Banker Bellmarc Group, was sued by business partners Anthony DeGrotta and Larry Friedman in August. They claimed he embezzled hundreds of thousands of dollars, using the firm’s coffers as his “personal piggy bank.” DeGrotta and Friedman sued for $2 million in damages. In late November, the suit was settled and they left Bellmarc, leaving Binder in charge. DeGrotta and Friedman moved to Keller Williams. Coldwell Banker dropped Bellmarc’s affiliation in December.
Ralph Sitt vs. Jack Sitt A family squabble escalated into a lawsuit in November, when Jack Sitt, a former Sitt Asset Management principal, sued his brother Ralph, accusing him of depriving him of millions of dollars in income. As a member of the family and a former executive, Jack claimed he had the right to look into the company’s books and wanted an equal share of Sitt Asset’s profits. Adam Leitman Baily, who is representing Ralph, called the suit “frivolous,” saying that all the documents in question have in fact already been provided to Jack Sitt. “He’s gotten everything he asked for,” Bailey said at the time. As far as the commissions go, the attorney added, Jack “had abandoned the business during that time.”
Men about Town: Heiberger vs. Sitt Andrew Heiberger, the founder of Town Residential, filed suit against his equity partner Joseph Sitt (who is a distant relative of the Sitt brothers mentioned above) in January 2014. The suit followed the end of Heiberger’s role as the firm’s chief executive officer as a result of the expiration of his contract, earlier
From left, Anthony DeGrotta, Neil Binder and Larry Friedman. Right, Andrew Heiberger and Joe Sitt
Aksana Kuzmitskaya, right, claims her landlords installed spy cameras in her apartment at 7 West 82nd Street.
that week. In the suit, Heiberger asked for at least $60 million in damages. He also asked a judge to prevent his dismissal from Town’s board of managers. Heiberger and Sitt, who is best known as the CEO of Thor Equities, have since settled their differences and Heiberger returned to the firm as CEO in October. Jeff Appel, Town’s former chief oper-
ating officer and president, was let go upon Heiberger’s return.
Poaching pains: Town vs. Elliman Nicole Oge, Town Residential’s former director of marketing, was at the center of Continued on page 128
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72 January 2015 www.TheRealDeal.com
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IT SNOWS
Seven hotspots for New Yorkers’ winter getaways
BY JANNA HERRON f the frosty start to the season is any indication, predictions are on target for a colder- and snowierthan-normal New York winter. Gothamites unable to endure slogging through another slush puddle soon will be taking off for sunnier skies or jetting to the slopes to enjoy the flurries in style. So, in which cities and towns do New Yorkers buy coveted second (or third) homes? From Wyoming to the West Indies, The Real Deal unveils some of the most popular winter destinations for New Yorkers.
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Palm Beach, Florida he same luxuries that New Yorkers surround themselves with in Manhattan are found on the 14-mile long island of Palm Beach. Worth Avenue boasts Fifth Avenue retailers like Saks, Tiffany, Armani and Cartier along with spas, upscale resorts and hotels like The Breakers Hotel and the Four Seasons, and the four-star Café Boulud restaurant (also in New York) and the long-time celebrity casual hangout Ta-boo. The little island also has culture: the Kravis Center for the Performing Arts, the Flagler Museum, the Society of the Four Arts and the Norton Museum of Art.
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74 January 2015 www.TheRealDeal.com
But it’s the outdoor, leisure activities that provide the real refuge from the winter blues: golfing at country clubs like the exclusive Palm Beach Country Club, where former member Bernie Madoff did golf-course deals, sailing from yacht clubs like the Palm Beach Boat Club and a season of world-class polo from January through April, culminating in the U.S. Open Polo Championship. It’s all just a three-hour flight from New York into Palm Beach’s international airport. “The key [draw] is obviously the weather,” said Don Langdon, managing broker with Douglas Elliman Real Estate in Palm Beach. Temperatures average in the mid- to high-70s during the winter months. The ease of travel between New York and Palm Beach also boosts its popularity, he said. “The simplicity of going door to door, that is a big plus for us.” Langdon said the market has stabilized as the supply dwindled over the past three years. Palm Beach County median prices were down year-over-year in August and September, but the number of sales jumped 24 percent. The area offers properties in all different price ranges, from $200,000 up to $100 million, with many oceanfront and lakefront homes overlooking the Intracoastal Waterway. Among Elliman’s recent listings on the island were:
748 Hi Mount Road in Palm Beach for $17.99 million. The six-bedroom gated estate is located on the highest point of Palm Beach and features a wine cellar, gym, theater, Cabana, deep-water dock and full-house generator. Langdon said many buyers are renting out their properties as well, hoping to capitalize on the appreciation and usage. For example, Elliman is currently listing 500 Regent Park, a four-bedroom waterfront mansion on the Intracoastal on Palm Beach Island for $24,000 per month. “We get inquiries daily from New Yorkers looking for a second home,” said Langdon. “They are looking at every end of the broad spectrum that we represent.”
Palm Beach’s Worth Avenue shopping compares with Fifth Avenue. Continued on page 76
www.TheRealDeal.com January 2013 65
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WINTER GETAWAYS
Miami iami emerged in recent years as a top global destination, but at its core, it’s still a sanctuary for the Big Apple. New Yorkers were the top spenders on luxury real estate in the city last year and continue to be a force. “I think there is a domino effect, too,” said Oren Alexander, an Elliman broker who does business in New York, The Hamptons, and South Florida. “New Yorkers draw more New Yorkers here.” Argentine developer Alan Faena’s Faena House condos sold out before the building was completed (which is expected to be next summer), with 90 percent of the buyers coming from the Northeast, mostly from New York City, said Alexander, who represented the project. Don Peebles’ Bath Club Estates will likely attract more New Yorkers, Alexander said, with its
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large-unit design. Buyers also have the option to select one of four designers for layout and finishes, including Canadian-born Alexandra Champalimaud, who designed the interiors at New York icons like the Waldorf Astoria, the New York Palace and the Carlyle. “Miami as a city does a good job catering to New Yorkers,” Alexander said, noting the influx of New York restaurateurs and chefs, high-end retail and cultural offerings including the New World Symphony, Miami City Ballet and Pérez Art Museum. “It’s no longer just a party town.” Of course, the weather, low taxes and ease of getting to Miami — only two and a half hours by private plane — also draw New Yorkers. “People have told me that instead of commuting from Long Island 10 hours a week, they will work in the city for the week and fly back to Miami for the weekend for half the commute time,” Alexander said.
Charleston, South Carolina otted with historic homes with classic architectural styles, Charleston, South Carolina, offers a comprehensive arts scene, top-chef restaurants like Husk and The Ordinary, and high-end shopping and antiquing on King Street, an open-air, walkable market. Not far is Kiawah, a 10-mile island that features five worldclass golf courses, including The Ocean Course, which hosted the PGA Championship in 2012. “New York is one of our major feeder markets,” said Ruthie Ravenel, an agent with Sotheby’s International Real Estate in Charleston. “We get a lot of people looking for second and third homes, a mix of empty-nesters or weekenders who purchase something small.” The luxury market in Charleston has been outperforming the overall market recently. In October, pending sales for homes worth $300,000 or more rose 19 percent year-over-year, compared with a 9.4-per-
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Charleston, South Carolina appeals to New Yorkers looking for a place that has fewer crowds and more history than South Florida.
cent increase for the entire market, according to the Charleston Trident Association of Realtors. Days on
The Bahamas stone’s throw from Miami, the Bahamas offers an easy way to get out of the country without going too far. Many gravitate toward the country’s capital in Nassau in the Lyford Cay or Old Fort Bay area, while others yearn for an estate or even a private island. “Some are there because Swiss banks send them there or have expat status,” said Halstead agent Leslie Bettison. “But I have met New Yorkers with second homes who end up spending most of their time there and end up retiring there.” The area is becoming so popular that many residential developers are making bets on the islands. The latest example is The Albany, a luxury resort with beachfront
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Residential developers are making bets on the Bahamas as the islands, close enough for weekend visits, draw more New Yorkers.
Aspen, Colorado or exclusivity, privacy and world-class skiing, Aspen is the spot. “You don’t have large-scale hotels. It’s not easy to fly in commercially, so most people come in by private plane. It’s a high barrier to entry,” said Alexander, whose firm, Douglas Elliman, is opening an office in Aspen. “The high society of New York feels comfortable here. On President’s Day weekend, literally everyone is from New York City.” Alexander said real estate prices are comparable to New York: over $2,000 per square foot for “any good condo.” The town ranked No. 15 on Forbes’ 2014 “America’s Most Expensive Zip Codes” list, with a median home price of nearly $4.02 million. The swank Woody Creek suburb nearby came in No. 7, with a $4.95 million price tag.
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76 January 2015 www.TheRealDeal.com
As for amenities, Aspen’s skiing mountains — Aspen Mountain, Smuggler Mountain and Red Mountain — are dotted with high-end resorts, and the city’s downtown features global fashion designers such as Louis Vuitton, Prada, Fendi, Burberry and Kate Spade. There’s also fine dining like the Little Nell Living Room, known for its rare French wines, and Ajax Tavern, a common celebrity hangout. The $72 million Aspen Art Museum, designed by Pritzker Prize-winning architect Shigeru Ban, opened this year and many of the museum board members are native New Yorkers, said Alexander. Aspen is even popular in the warmer months, offering outdoor activities, several types of festivals, concerts and sporting events such as a marathon and cycling race. “The real draw to Aspen is that when people are looking for another home, they need a place for warm weather and one for cold weather,” Alexander said. “Aspen is both.”
New Yorkers made up 90 percent of the buyers at Faena House, a luxury condo building in Miami.
the market for the higher-end homes also fell by 22 percent, versus only 9.8 percent for all homes. Ravenel said many New Yorkers gravitate toward 1,000to 2,000-square-foot condos or pieds-à-terre in the historic downtown, such as the $1.16-million, top-floor condo in the Fort Sumter House. The two-bedroom unit offers views of the Ashley River, Cooper River and Old Charleston, while the building provides a pool, fitness center and around-the-clock security. Others look for something larger, such as a carriage house in the Ansonborough neighborhood, “the Greenwich Village of Charleston.” A three-bedroom historic home with a separate “Mother-in-Law suite” in that neighborhood at 38 Wentworth Street is listed for $1.1 million. “The dollar goes far there and the climate is great,” said Anne Prosser, a New York real estate agent with Halstead, who recently had a client buy in Charleston. “It’s not as touristy as Florida and one can fix up those great old houses.”
villas outside the capital, backed by star-studded investors Tiger Woods and his fellow golf champion Ernie Els. The resort, located on a marina that accommodates extralarge yachts, will also feature numerous restaurants, a gym fit for a pro athlete, a championship golf course designed by Els and an equestrian center. Last January, the investor group teamed up with investment firm New Valley, led by Douglas Elliman Chairman Howard Lorber, to develop the Honeycomb on the resort property to attract New Yorkers and other wealthy Americans. The proposed condo offers 34 residences ranging from 3,000 square feet to 8,000 square feet, each with their own private terrace and pool for $3 million to $12.5 million.
Aspen’s privacy and exclusivity draws New Yorkers year-round.
Continued on page 118
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Code-and-flue season
New construction guidelines (2,500 pages, anyone?) make developing smaller units in NYC into a headache BY RICH BOCKMANN such as TF Cornerstone’s 1,193hile the square foot is unit Hunter’s Point South buildthe measure on many ing in Long Island City, have been industry minds, real pouring over the voluminous new estate is often a game of inchconstruction and building codes that went into effect on Dec. 31. es: from plans for the length of a Comprised of 2,500 pages of kitchen counter to the builder’s clearance for a bathroom door. regulations, on top of 13 new resilYet as developers consider iency laws drafted in response to scaling back the sizes of new Superstorm Sandy, the new rules apartments in an effort to hit more set standards for developers and modest price points, they now builders to follow on construction have to contend with thousands methods, materials and everything of pages in the city’s new building in between. Take, for instance, the size of codes that make the task more Top, Eran Chen of challenging. bathrooms, which have grown “It’s a very interesting phenom- ODA Architecture; bottom, increasingly larger through a pair Kartik Desai of Tamarkin enon. In New York, the average & Co. of successive code revisions over apartment is getting smaller, but the past six years. Under the old bathrooms are growing in size,” said ODA regulations, the clearance required for a bathArchitecture founder and executive direc- room door to swing open used to be able to tor Eran Chen. “In some rental buildings overlap with the leeway given around a toilet where the apartments are really small, the or a sink. The new rules require a developer bathrooms and closets are as big, or bigger to choose between providing a 10-square foot than, the bedroom itself.” clearance between those spaces or swinging Firms like ODA, which designed projects the bathroom door outward, both of which
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have implications on the sizes of rooms. This may seem like a minor change. But it comes on top of rules requiring elevators to be larger to fit fully reclined stretchers, guidelines for more spacious stairwells and limits on window placement that force developers to stretch room sizes. Kitchens are growing too. Under the 2008 codes, mechanical exhaust vents were only
“It makes life more difficult in very tight floor plates to just fit everything when you have so much going vertically,” said Chen, who called it one of the more controversial issues he has come across in the new rules. “I think until the first building is approved, we will not know the right answer,” he said. The revised rules apply to applications for new buildings and certain renovations completed after Dec. 31, and Chen said he will be paying close attention to see how the Department of Buildings interprets the new regulations.
Rules, revisited The 2014 code is the first revision the city has put out since 2008, when, after years
“In New York, the average apartment is getting smaller, but bathrooms are growing in size. In some rental buildings where the apartments are really small, the bathrooms and closets are as big, or bigger than, the bedroom itself.” ERAN CHEN, ODA ARCHITECTURE required for kitchens that were more than 30 feet from a window. But now there is debate about the new code, which some mechanical engineers have interpreted to require that every kitchen be vented. This would require more and more space for the necessary ductwork as a building climbs taller.
of consideration following 9/11, lawmakers modernized building standards for the first time in 40 years. The idea, experts said, was to align New York City’s idiosyncratic and often befuddling rules (themselves mashups of various laws such as the Americans Continued on page 118
We Are Pleased To Welcome
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Sungwon Hwang Licensed Associate Real Estate Broker 445 Park Avenue, New York, NY 10022 shwang@bhsusa.com 212-906-9254
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All information is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale or withdrawal without notice. All rights to content, photographs and graphics reserved to Broker. Equal Housing Opportunity Broker.
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WH AT TH E Y ’ R E READING NOW
Real estate pros share their picks for books about tough leadership and NYC architects with a scandalous past Where do you look for insight and inspiration? To find out, The Real Deal asks leaders in the industry what they’re reading.
Diane Ramirez CEO, Halstead Property What are you reading right now or what did you finish most recently? Over the summer, I read “Leadership Isn’t for Cowards,” by Mike Staver. What spurred you to read that book? The book is very relevant for dayto-day management, which is absolutely crucial for anyone in business. Has anything you read in it stuck with you? Would you recommend it to others? The book was informative and full of sound, practical advice. It was engaging and interesting, and throughout reading it, I would make notes as to what would help me or one of my directors handle specific situations at work.
Gary Malin President, Citi Habitats What are you reading right now, or what did you finish most recently? I just finished reading “Good to Great,” by Jim Collins. It’s a management classic. The book explains what differentiates great companies from the rest of the pack, and outlines how average companies can morph into great ones. I first read it many years ago, back when I was on a “business books” kick, but I just picked it up again. What spurred you to read that book? I always tell our agents that this is the time of year to take stock of their careers, take note of their successes and failures, and make a concrete plan for the coming year. So I decided to do the same, and this book helps bring me back to the fundamental principles that guide our business. Our company continues to go through changes to elevate it to the next level. For us, standing still is never an option and we are never complacent in our approach. Has anything you read in it stuck with you? Would you recommend it to others? 80 January 2015 www.TheRealDeal.com
One of the key ideas in the book is that it’s important to focus on the “who,” then the “what.” You have the get all the right people on the bus before you decide where you want to go. In addition, your employees have to understand — and believe in — your company’s mission. If everyone on board believes in the same concept, you will get to your goal a lot faster. I think Citi Habitats’ greatest asset is its people, and this book reinforced the notion to me that with the right people, anything is possible. I would definitely recommend this book, as it has made a big impact on my management style. It’s helpful to leaders of companies that are in growth mode — or anyone who strives for greatness.
Tom Postilio Founding member, Core What are you reading right now? I’m currently enjoying “Stanford White’s New York,” by David Garrard Lowe. Unlike many of the books written about this Gilded Age luminary, Lowe’s account of White places more emphasis on the man and his immeasurable talent than on the scandalous details of his sensational murder on the rooftop of his iconic Madison Square Garden. What spurred you to read that book? My partner, Mickey Conlon, is a Stanford White scholar, and while I have always had a great admiration for White’s work here in the city, I thought it was time to dig a little deeper. Through an unusual series of coincidences, we have a long list of personal and professional connections to White and his work that stretches all the way from The Players on Gramercy Park, of which we’re members, out to the hamlet of Saint James on Long Island, where White’s country estate, Box Hill, still remains in the family. Mickey grew up in Saint James, and we’re now building a house down the street from Box Hill. It’s inevitable that Stanny’s hand will be evident in the design. Has anything you read in it stuck with you? White’s ability to dazzle the eye and sprit through design amazes me, as does the recklessness that allowed too many of his masterpieces to be destroyed in pursuit of mediocrity. Compiled by Brendan O’Connor www.TheRealDeal.com March 2010
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1976: CITY LAUNCHES MIDTOWN ENFORCEMENT PROJECT ith an eye to cleaning up Times Square, a section of Manhattan’s central business district which was plagued by massage parlors and prostitution, the city began the Midtown Enforcement Project 39 years ago this month. Then-mayor Abraham Beame tapped a former police inspector to lead a team of inspectors from the departments of Buildings, Health and Fire, as well as several attorneys. The new agency used regulations from those departments as leverage to remove illicit activities. Explaining the need for the group, Beame said, “Pornography shops, massage parlors, prostitution and other undesirable things… have an economically dampening effect on the legitimate business activities in the Midtown area,” according to reporting in the New York Times. Although it took about a decade, the city pushed most of the sex industry out of Times Square, which is today one of Manhattan’s most valuable retail zones. Yet the new agency had a rocky start. In one setback, in December 1976, the Manhattan District Attorney refused to press charges against the owners of Tina’s Leisure Spa at 301 The Pussycat theater in Times Square West 48th Street, because the task force had hired private investigators who in turn paid money for illegal sex acts. The DA called that tactic “offensive” to law enforcement standards. The practice of hiring private investigators to pay for sex was so controversial that the agency almost lost its funding over it. Still, the enforcement project continued. In the 1980s, it was renamed the Office of Midtown Enforcement, and in 2006, Mayor Michael Bloomberg expanded its geographic scope with the creation of a new unit to replace it, the Mayor’s Office of Special Enforcement.
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1950: FIRST NYC CONCRETE BUILDING DEMOLISHED he first building in the city constructed using the then-revolutionary process of reinforced concrete was demolished 65 years ago this month. Workers using a wrecking ball brought down the half-century old, five-story building located at 415 East 31st Street “quite easily.” The building was razed to make way for what was then called the New York University-Bellevue Medical Center. Today, reinforced concrete is a common building technique, but at the turn of the century, structures were supported either by load-bearing walls or by an interior skeleton, typically of An early example of steel or wood. Builder Guy Waite, an early proponent of the concept of reinforced concrete reinforced concrete, constructed the 31st Street building in 1900 to show the city’s Department of Buildings that the technique could work. Waite built approximately 60 reinforced concrete buildings on the East Coast before his death in 1943.
T Located on prestigious 57th Street in a full service white glove cooperative, this stunning and spacious mint-condition apartment truly has it all: 9 ½ ft. ceilings, beautiful hardwood oak floors, custom woodwork throughout, city views and abundant light and closet space. This gracious residence includes a large windowed living room and dining area, master suite with marble bath and terrace, and a second bedroom with an ensuite bath. The renovated kitchen features English sycamore cabinetry and top-of-the-line appliances. Pet friendly, washer dryer in the apartment. 2% flip tax paid by the purchaser. Offered at $1,995,000. Available for showing after January 16. Christine Miller Martin, Private Office Advisor Christine.MillerMartin@evusa.com
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Engel & Völkers NYC 430 Park Avenue · 11th Floor New York · NY 10022 · USA Phone +1-212-616-7600 nyc@evusa.com · nyc.evusa.com
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1919: HOTEL PENNSYLVANIA, WORLD’S LARGEST, OPENS he largest hotel in the world at the time, the Hotel Pennsylvania, opened its doors 96 years ago this month. The structure at 401 Seventh Avenue, between 32nd and 33rd streets, boasted 2,200 rooms, several hundred more than the nearest rival. The Pennsylvania Railroad company erected the 22-story building. It was across the street from the Beaux-Arts-style Pennsylvania Station, which the railroad completed in 1910. The renowned architecture firm McKim, Mead & White designed both buildings. It remained the largest hotel in the city until the 2,500room New Yorker Hotel opened its doors in late 1929 two blocks away at 481 Eighth Avenue. Following renovations over the years, the number The Hotel Pennsylvania of rooms at the Hotel Pennsylvania was reduced, and today the building has about 1,700. Vornado Realty Trust purchased the building, also known by the address 15 Penn Plaza, in 1997, and has on-and-off plans to raze it and construct a large office tower. Compiled by Adam Pincus
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Squabbling Senate fails to pass Terrorism Risk Insurance Act Lack of a backstop could lead to increased costs for NYC buildings, and in worst case, defaults BY RICH BOCKMANN AND CLAIRE MOSES ndustry experts sounded the alarm, but the Terrorism Risk Insurance Act nevertheless expired on Dec. 31, after the Senate failed to pass an extension in mid-December. The law, first signed in the wake of the 9/11 terrorist attacks, created a government-backed insurance facility for businesses that suffer losses after such an event. The real estate industry tried to drum up support for TRIA, despite the legislative jockeying taking place on Capitol Hill following the midterm elections. The Real Estate Board of New York was surprised: the trade group said it was confident Congress would renew the law. Failure to do so, industry experts warned, could have dire consequences for Manhattan’s most at-risk properties. But REBNY’s hopes were not met. On the evening of Dec. 16, retiring Sen. Tom Coburn held up the passage of the bill — which would have extended TRIA by six years — over a states’ rights issue unrelated to terrorism insurance. House Republicans also attached a rider to the TRIA bill seeking further changes to the Dodd-Frank financial reform law — a nonstarter with Senate Democrats, who opposed those revisions. If the House and Senate had reached an agreement on the measure, TRIA would have been folded into the $1.1 trillion federal funding bill that Congress passed last month, according to Politico. This is not the first time TRIA has come up for debate, as the legislation has been renewed twice since it became law after the 2001 terror attacks left insurers facing billions of dollars in claims from property owners. Most insurers raised premiums dramatically, or in some cases, dropped the coverage altogether. Experts said failure to keep the financial safety net in place could have serious implications in states where terrorism coverage is mandated as part of workers’ compensation. “The risk of terrorism doesn’t go away if the TRIA backstop disappears. There’s still an obligation to offer that coverage,” said Aaron Davis, the managing director of the national risk solutions arm of Aon, one of the world’s largest insurance brokers, and itself a victim of the 9/11 attacks, when 176 of its workers were killed. Without the federal government backstop, commercial properties in some of the most at-risk areas, such as Downtown and Midtown office districts, may have covenants placed on loans that mandate minimum coverage.
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“There’s a potential for severely increased costs on the terrorism front, which would have a negative impact on net operating income,” Davis said. In the worst-case scenario, he added, TRIA’s expiration could cause property owners to default on their loans, a senti-
Christine Miller Martin & Engel & Völkers NYC Christine Miller Martin was recognized as one of the top brokers at her previous firm, and she has earned REBNY’s esteemed New York Residential Specialist (NYRS) designation. Before joining the real estate industry, Christine was a trusts and estates attorney at a distinguished New York law firm, and that experience and expertise make her exceptionally qualified to represent estates. The daughter of a diplomat, Christine speaks both French and Spanish and specializes in working with international buyers. She is a perfect fit with Engel & Völkers’ global brand and culture and is a member of the Private Office group, Engel & Völkers’ most esteemed client service network. We’re pleased and privileged to welcome her.
Senator Chuck Schumer
Christine Miller Martin, Licensed Associate Real Estate Broker (Licensed as Christine M. Martin) Private Office Advisor Engel & Völkers NYC 430 Park Avenue • 11th floor • New York • NY • 10022 +1 646-752-2532 christine.millermartin@evusa.com nyc.evusa.com
Carolyn Maloney
ment reiterated by Democratic Rep. Carolyn Maloney, who represents Manhattan’s East Side. “Since banks often require ‘all risk’ policies in order to provide financing, the elimination of TRIA could place property owners in default on their loans,” said Maloney, who was the lead Democrat on a scuttled TRIA extension bill from 2013. “That would have a disastrous effect,” she added. “It could stall any new projects, and create substantial financial uncertainty for current policy holders.” Democratic Sen. Chuck Schumer, a staunch supporter of the bill, said in a statement that he hopes it will be brought to the floor in the new legislative session. “We hope that next year, the House Republican leadership will work with us in the same bipartisan way that the Senate did when we passed a TRIA bill 93-4,” Schumer said last month. “We hope the House will pass a bill quickly because billions of dollars of projects and hundreds of thousands of jobs are at risk.” TRD
Susanne Rhow & Engel & Völkers NYC Susanne Rhow has extensive international sales and client service experience. Before joining the real estate industry she held senior positions at top luxury brands based in Hong Kong, London and New York. Most notably, Susanne served as Vice President of the Trusts and Estates and the Private Client Groups at Sotheby’s auction house, giving her rare insight into working with estates and high net worth clients and families. Susanne is known for her professionalism, discretion and attention to detail making her ideally suited for Engel & Völkers. We’re delighted and fortunate to welcome her to our growing team.
Susanne Rhow, Licensed Real Estate Salesperson (Licensed as Susanne Karmin) Engel & Völkers NYC 430 Park Avenue • 11th Floor • New York • NY • 10022 +1 646-757-2533 susanne.rhow@evusa.com nyc.evusa.com
SUSANNE RHOW
©2014 Engel & Völkers. All rights reserved. Each brokerage independently owned and operated. Engel & Völkers and its independent License Partners are Equal Opportunity Employers and fully support the principles of the Fair Housing Act.
www.TheRealDeal.com January 2015 83
DAY IN THE LIFE OF:
Eran Polack
The Hap Investment CEO talks about his daughter’s takedown of his colorful projects, checking out potential development sites and boxing for fun
Eran Polack, 41, started HAP in Europe and Israel before expanding to New York City in 2010.
ran Polack is CEO and co-founder of HAP Investment Developers, best known for its collaborations with architect/designer Karim Rashid in northern Manhattan. (See related story page 28.) Polack, 41, launched HAP in the 1990s with investments in Kiev, Budapest, Hungary, and later Tel Aviv. The firm expanded in 2010 to New York City. Last year, Polack moved his family to New York from Israel. HAP specializes in midsized commercial and residential projects — four of which are now under construction in New York. In October, Polack agreed to tone down Rashid’s design of an eight-story rental building at 329 Pleasant Avenue, where planned pink and turquoise balconies were met with criticism. Meanwhile, HAP is also at work on a $400 million residential tower in Jersey City, slated to rise 42 stories.
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6 a.m. I wake up every day in a prewar rental building on the Upper West Side. I have four kids — Maya, 9; Gur Arie, 6; Maor, 6, and Eviatar, 2. I prepare their lunchboxes and get them ready for school. They like pasta and fresh vegetables.
ing in East and West Harlem, Washington Heights, Inwood and Jersey City — and increasingly in Lower Manhattan. Prices are very high, so it’s becoming harder and harder to make deals.
the site: the project manager, the driller, the electrician and others. I like to go through the details and ask how they feel about the project. I talk to neighbors and make sure nothing with the project is interfering with their life.
5:50 p.m. I try to hear a little bit of music — Coldplay and Cyndi Lauper recently — for five or 10 minutes.
10:30 a.m. I come into the office [at 347 Fifth Avenue in Midtown]. Within the first hour, I talk to the project managers about projects that are in the design or Department of Buildings phase.
Cyndi Lauper has been in his music rotation recently.
12:30 p.m. I don’t like to go out for business lunches, it distracts from my focus. I prefer to have something small and quick, like a salad or something from Chipotle. I do my best to be healthy.
1:30 p.m. I meet with brokers, construction companies, legal consultants and possible joint-venture partners in the office. I’m usually here for the rest of the day. We’re moving in a few months to a new 10,000-squarefoot office space at 54th Street and Fifth Avenue.
7 p.m. We all sit together for dinner and
Polack likes to dine with his wife at Marea.
2:30 p.m. Architects and designers like 7 a.m. I sit with the newspaper a little bit, and go through Facebook and LinkedIn, before getting ready myself. I usually eat yogurt with fruit, or homemade granola.
7:30 a.m. I walk a couple blocks with my kids to school and the nursery. Three of them go to the P.S. 87 William T. Sherman School and the youngest goes to a Montessori nursery. 8:15 a.m. I get picked up and driven to the different sites we have under construction. We have one project that’s newly finished and four that are under construction, including a rental [at 653-657 187th Street] that we broke ground at last month. I talk with everyone on 84 January 2015 www.TheRealDeal.com
Karim Rashid, Karl Fischer and WASA/ Studio A come in to talk about designs and layouts. Karim and I are very good friends, so we spend a lot of private time together. But we do have a lot of philosophical arguments. Karim has very interesting ideas, and we, as developers, try to bring some of them to life, and some of the ideas need to be adjusted.
He boxes with a trainer “just for fun.”
everyone talks about their day. I get very specific about my projects. My daughter gave her opinion on the original Pleasant Avenue building design to Karim directly. She didn’t like it. She didn’t like the colors, I don’t think. She’s 9 now — she’s out of her pink stage. She’s giving away her dolls and her dollhouse now. She preferred the new design. I think everybody does.
8 p.m. After the kids go to bed, I either go boxing or running. I box with a trainer at the Equinox gym, just for fun. During the summer, I go to Central Park. 10 p.m. I read a lot, but mostly newspapers and magazines. I watch a lot of documentaries. I recently saw “El Bulli: Cooking In Progress” — about the restaurant in Catalonia, Spain — and “Somm” — about the Master Sommelier exam. I also like documentaries about rock bands like the Doors, the Rolling Stones and the Beatles — those wild days.
4 p.m. In the afternoon, I focus on buying new projects and working on marketing. We hold internal meetings with the business development team, led by my partner Amir [Hasid]. Every two weeks, we check out two or three sites we really like that we might want to buy. We would walk around a particular neighborhood and eat there. We keep look-
6 p.m. I go home and spend time with my kids. Cooking is my main hobby. I cook fresh pasta and steak for dinner. My wife bakes cookies and cheesecake. (On Saturdays, we cook the whole day.) I also try to go out to dinner and drinks with my wife two times a week. We really like the Italian seafood restaurant Marea.
Karim Rashid is a close friend who designed several HAP projects.
12 a.m. I go to sleep. By Mark Maurer
PHOTOGRAPH OF ERAN POLACK FOR THE REAL DEAL BY DOMINIQUE PETTWAY
ARCHITECTURE REVIEW
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JA M E S G A R D N E R
Adding a cherry on top In the Meatpacking District, penthouse additions keep coming rom the very beginning of urban coexistence (or at on the Renaissance Revival building beneath it and crushing slated to open somewhere else in the neighborhood). The least from the moment when mankind came up with it into submission. former Pastis building is about to become a flagship for the bright idea of living somewhere other than the Something similar in spirit can be found just around Restoration Hardware, a home-furnishings retailer that ground floor of a one-story structure) there has been the the corner at 345Meatpacking, also known as 345 West recently signed a 15-year lease for nearly $250 million. temptation to build up, to maximize the profits from one’s 14th Street, an attractive pile completed only last year. The The building, which was built in the 1880s as a real estate, or, in the words of C. Gilbert, an early theoretician crucial difference between this project (designed by Morris stable, will be given an annex containing 70,000 square of the skyscraper, writing in 1900, “to make the land pay.” Adjmi Architects) and the foregoing one is that, whereas feet, as well as an outdoor space on the third floor and a wraparound terrace. That this trend continues unabatAfter a tug-of-war with the ed to this day, indeed, strengthened Landmarks Preservation as never before, should be news to no one who lives in New York City. Here Committee, the reliably expert even residential towers regularly rise firm of BKSK Architects came up with a design that appears higher than buildings dreamed of doing only a few years ago. to have passed muster. It Of course, proprietors have often consists of a three-story glass fought to gain a little extra from their annex that is very different in holdings by adding a few penthouse feeling from the two stories stories to a pre-existing building. of red brick that make up the These new additions, however, bear existing building, and also a modification of the ground little resemblance in spirit to the penthouses of yesteryear. Whereas floor into a continuous ribbon window at street level. those efforts strained to be drably inconspicuous, usually attempting Needless to say, neither adto fit in as seamlessly as possible dition is in the same style as that with the pre-existing host structure, of the original structure, but the or sometimes even to be invisible at interaction of the three elements street level, today’s version of the (as far as one can tell on the bapenthouse is intent on making a sis of the renderings) is chaste, statement, seeking to declare its respectful and strikingly elearchitectural emancipation from gant. The glass at street level, the structure that just happens to though of a different cut from be lying beneath it. that of the top portion, and more For some reason, the Meatpacktraditional as well, should open ing District in Lower Manhattan up the building to the street in seems to be one of the main sites interesting ways. Meanwhile for this sort of activity. The reasons the topmost portion, despite its are not especially difficult to divine: insistent symmetry, will add a Since much of it is landmarked, strong element of variety. there is a limit to how much new Surely it is a better effort in building can occur, and how high it every way than the latest designs can rise over the valued and picturfor Chelsea Market, which are esque structures that are already on somewhat old at this point, and the ground. At the same time, this Top left: A three-story glass annex will top 9-19 Ninth Avenue, which will soon become a flagship store for Restoration Hardware. may well change before we’re being a glamorous arts district, tra- Top right: The 20,000-square-foot addition on the top of Porter House, at 66 Ninth Avenue, was completed in 2003. Bottom left: done with them. The denizens of versed as it is by the High Line and The structure atop 345Meatpacking at 345 West 14th Street was part of the original design. Bottom right: After a failed plan to put Chelsea seem to see this building a hotel on top of Chelsea Market, the developer now intends to create a 330,000-square-foot addition consisting of office space. bordering as it does on Chelsea, it as a public trust, and they have not would seem almost impolite of architects not to try to that was an intervention upon a pre-existing building, every taken at all kindly to efforts to add to it in the name of profit. make some clamorous statement of their own fabulous part of this newer building was conceived and constructed According to the real estate website Curbed, the developindividuality. from the ground up. From the street to the eighth floor, the er Jamestown, having been disappointed in its attempts One of the earliest examples of this sort of construction building is clad in pale matte brick with punched-windows to place a hotel atop the building, now hopes to create a in the area is the Porter House, at 66 Ninth Avenue. This suggestive of those of an early skyscraper. But this brick 330,000-square-foot addition consisting of office space. consists of a 20,000-square-foot addition, completed in passage dissipates as it continues up three more stories to The newer plan will not be quite as bad as the original2003, to a brick building from almost exactly a century the top, where it becomes nothing more than a single bay. ly planned addition, which had no refinement whatever. before. This is also one of the earlier projects completed In its place is a metallic and decidedly more modern pres- A several-tiered curtain-walled excrescence, the old plan by SHoP Architects, which has subsequently gone on to ence, a three-story penthouse conceived very much in the was as mismatched to the preexistent Chelsea Market as bigger things. The addition could not look more different International Style of the mid-20th century, with elegantly the Porter House addition by SHoP was to its host-buildfrom the pale brick structure above which it rises, and elongated floor-to-ceiling windows. ing. But whereas the colliding masses of the latter project But where SHoP Architects sought a collision between over which it cantilevers eight feet toward the south, were intentional and artistically rewarding, the results even as it is set back from the brick building’s western the two parts of its building, the interaction here between above the Chelsea Market seemed boring and insipid. The newer rendering is a little better, insofar as the exposure. The addition consists of zinc panels that form the older and more modern styles is one of surprising haran elaborate and syncopated rhythm of floor-to-ceiling mony and grace. addition is more unified and sits within a red-brick frame windows, commingled with white and dark gray accents. Now there are two new projects in the offing, or poten- that at least has some contextual tact to it. But even this The latter predominates to such a degree as to form a tially in the offing: the expansion of Chelsea Market and the rendering is a few years old at this point, and if it too is in decidedly dark, almost menacing, presence on the local addition of several floors to the two-story 9-19 Ninth Avenue, the process of being redesigned — and ultimately superskyline. The augmentation seems to be alternately sitting best known as the former home of Pastis (a bistro which is now seded — that would not be a bad thing either. TRD
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Q&A
Is more partying ahead, or a hangover? After the close of a banner year, real estate pros weigh in on outlook for 2015 BY BRENDAN O’CONNOR here was plenty of Dom to go around on New Year’s Eve, with both the commercial and residential sides of the New York City market having racked up a year of strong pricing and blockbuster deals. So when does the hangover strike? Probably post-2015, according to our panel of market experts, though the word “concern” is coming up often. To take interest rates as an example: yes, some of our panelists expect rates to rise, but a jump from the current extremely low levels seems to be baked into market expectations.
T
Joseph Harbert President of the Eastern Region, Colliers International NYC’s commercial market continued to show strength in 2014. Are there any signs for concern? Where do you expect the market to be a year from now? All signs point to a strong 2015 for the New York City market. The local economy will benefit from the uptick in the national economy. In addition, we expect office leasing to be strong, and as a result we will continue to see declining vacancy and prices moving up. Retail remains vibrant and the investment market only suffers from one thing — a lack of product. Multi-family properties traded heavily in the last few years, particularly in Upper Manhattan and Brooklyn. Do you expect that market to stay active? Where do you think the focus will be in 2015? Multi-family will stay strong in Manhattan and Brooklyn; we expect it to pick up in Queens and the Bronx as well. Do you expect buyers or sellers to have the upper hand in the coming year? Sellers will continue to have the upper hand. Interest rates are still very low. There is domestic and foreign money that wants to buy. Development sites will command a premium going into 2015. We don’t anticipate any falloff in interest. Where are foreign buyers of commercial real estate from now, and where do you expect them to be from this year? Buyers are coming from China, Korea, and Japan, in addition to some European money as well. There is still some Middle Eastern interest, but the fall in oil prices will slow that down temporarily. Are you concerned that the anticipated interest-rate increase will put a damper on the NYC market in the coming year? We have no concern at all about the rise in interest rates. It looks like it will be moderate, and we have been talking 88 January 2015 www.TheRealDeal.com
about it now for so long that everyone has factored it in to some extent. What do you expect from commercial lenders in 2015? Do you expect any easing in lending standards to accompany an increase in interest rates? We expect lending standards to stay the same. The lenders have learned some lessons, as we all have, from the events of the last fifteen years, so the standards seem rational. We expect some softening on the residential side, as we all agree that Ben Bernanke shouldn’t have trouble doing a refi. Which geographical areas will gain the most steam in NYC in the coming year? The wonderful thing about the geography is that office space users seem open to going almost anywhere. It’s a highly fluid market. The days of there being a tenant who would only go to one submarket seem to be over. Which geographical areas do you expect to struggle most in 2015? We don’t see any of the submarkets struggling going into 2015. The reported death of the Grand Central and Sixth Avenue markets has been highly overrated. In fact, those markets have such great value now that it presents opportunities for tenants who are bottom-line thinkers. There’s been a significant amount of commercial brokerage consolidation recently. Do you expect it to continue in 2015? There will continue to be consolidation in the commercial brokerage arena. We will end up with something akin to the Big Four in the accounting world, possibly five full-service firms when all is said and done. What trends will you be watching for? I’m curious if we’ll see more growth in the shared office sector. We are also looking at growth in educational and medical uses, and we will watch to see if businesses start to push back at increasing rents and start to search for value plays. What do you expect the biggest challenges to be in the coming year? Our biggest challenge is to keep our sense of perspective about markets. We don’t
On individual topics, the theme seemed to be that this will be the year that might banish the crazy. Lending standards? “We expect some softening on the residential side, as we all agree that Ben Bernanke shouldn’t have trouble doing a refi,” noted Colliers International’s Joseph Harbert. Inventory? More projects coming online, though not enough in some segments: “Due to the rising costs of land and exorbitant construction budgets, we will see few ground-up rental projects in Manhattan,” notes Town Residential’s Andrew Heiberger. The outer boroughs? Well, read on to see what Eastern Consolidated’s Peter Hauspurg has to say about Queens…
worry about bubbles. Yes, the market is going higher, but it doesn’t seem to have hit its peak. Interest in New York City is greater than it has ever been, so we need to be grateful for what we have, as it is a great city to come to, to live in, work in, have friends, and careers in. We just need to find ways to make sure we keep it that way.
Andrew Heiberger CEO and Co-Chairman, Town Residential NYC’s residential market was strong in 2014, but some see signs for concern, especially as more new developments hit the market. What are you expecting to see in the New Year? While the frenzied pace of the market has slowed — all of the fundamental factors are in place for a healthy 2015. We are still seeing pent-up demand due to low inventory, with buyers anxious to capitalize on low interest rates, which, even with an anticipated increase, are still at a 40-year low. Sales prices continued to rise in Manhattan in 2014’s third quarter, although the pace slowed. What are you expecting for pricing in the coming year? The market is showing sensitivities and will only tolerate discerning properties that boast quality features and fundamental attributes like views, light, location and layout. We are anticipating that the standouts of 2015 will be the $1 million to $5 million price point, as well as thoughtfully designed penthouses and specialty properties. Which geographical areas do you expect to gain the most steam? Neighborhoods to watch include the High Line, Tribeca, Lower East Side, Financial District, City Hall area and the Upper East Side — all are seeing significant new development activity with buildings like the Four Seasons Residences and 150 Charles, 56 Leonard changing the landscape and The Charles setting price records for luxury infused with value. I also think that 432 Park, 520 Park and One57 will all be incredible successes.
What do you expect the biggest challenges to be in the coming year? Due to the rising costs of land and exorbitant construction budgets, we will see few ground-up rental projects in Manhattan. That, coupled with the increasing trend of existing rental projects converting to condo, will cause a ripple effect in the rental market with monthly rents rising as high as 5-10 percent in 2015. Areas such as Jersey City, Hoboken, Astoria, Long Island City, and all parts of Brooklyn will continue to reap the benefits of Manhattan’s white-hot sale and rental markets. Construction delays due to the unavailability of quality contractors will also bode well for the resale and high-end rental markets.
Peter Hauspurg Chairman and CEO, Eastern Consolidated NYC’s commercial market continued to show strength in 2014. Do you expect that to be the case again in 2015? Yes, I do expect the commercial market will continue to show strength in 2015, as we don’t really see any signs yet for concern … The real concern is what happens the year after 2015. Since the second quarter of 2010, the market has been appreciating 2-3 percent per month, maybe even more in the case of land prices. That’s unprecedented. Prices are way above those in 2007, with land prices being more than double the 2007 levels. While the market appears to be continuing to increase, we think land-sale prices may have peaked, because we’re seeing inventory build up on the very high end. Multi-family properties traded heavily in the last few years, particularly in Upper Manhattan and Brooklyn. Do you expect that market to stay active? Yes, we do expect the multi-family market to stay active, as it’s probably some of the most popular product that exists. It doesn’t seem to make any difference whether the units are rent-stabilized with giant upside Continued on page 90
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Q&A because of below-market rents, or free market. Investors believe that free-market rents are going to continue to rise in Manhattan, as they have up until today. Do you expect buyers or sellers to have the upper hand in the coming year? I expect it will continue to be a seller’s market, only because there is so much more money chasing product than there is product. If you don’t like the terms that a buyer may attach to his offer, there is always a guy behind him, and the guys behind him are all offering the same price level, [though] some may make it easier for the seller to transact than others. You mentioned the price of land continued to rise in Manhattan in 2014. What more are you expecting this year? The price of land is cause for concern, with the uncertainty of whether the 421-a [incentive] program will be extended, and the anecdotal evidence we’re starting to hear, on the part of the residential brokers, that the sales of very high-end and larger units are starting to slow down and hit pricing ceilings. That’s why we expect land prices to taper off from 2014, or at least until the 421-a program is resolved. We’ve been talking to certain members of the New York State Senate and Assembly, and pretty much everyone says that you’re not going to get a deal until the 421-a expiration in June 2015. While some have said residential prices cannot continue to rise, what do you expect to see on the commercial side when it comes to building sale prices and office rents? I expect to see less dramatic movement than there has been recently. Commercial rents seem to be strong, but not moving upward nearly as quickly as residential rents or sales prices. There are still surprisingly few commercial buildings on the market ... We have had a couple of recent land deals that we thought were going to become hotel or apartment buildings in the Meatpacking District and popular areas of Chelsea, but they ultimately turned into office space as a reaction to the $80-$90 dollar rents in those cool, hip new areas that have very few new office buildings … I think you will find more office development in these really hip locations. Do you expect any easing in lending standards in 2015 to accompany any increase in interest rates? We’ve already seen easing in lending standards, and we expect it to continue. Deals that required 50 percent equity, two and three years ago, now require 35 to 45 percent. In the multi-family market, we’re back to 25 percent, if the deal can support it. Rates are at rock-bottom levels and lenders are competing as hard as they can to get a loan, sometimes accepting prices that make you scratch your head and wonder how they’re even making any 90 January 2015 www.TheRealDeal.com
money on it. There’s also plenty of mezzanine money around to fill the gap up between 50, 60, and 80 percent. There’s so much of that money that mezzanine folks are having a hard time getting the pricing they did in the last cycle. It’s hard for them to break 10 percent now; in the last cycle it was 13 to 15 percent and up in some cases. Which sectors of the commercial market do you expect to perform well this year? The hotel market is on fire. Two years ago, a good residential site would normally pass a hotel development in terms of pricing, but recently, the hotel sector has become so popular and healthy that some sites we would have expected to become residential have actually become hotel instead. Which geographical areas do you expect to gain steam in the coming year? There are a few areas in Brooklyn that have not yet gained steam, but will probably continue to improve, including East New York, Bed-Stuy, and the Coney Island area…. The other area is Queens. The borough has really turned the corner and become a very desirable place to live, even in the former industrial areas, which are being transformed with new high-rise towers and communities.
Frederick Peters President, Warburg Realty While there is plenty of new construction, especially on the high end, limited resale inventory continues to be an issue. What are you expecting on the inventory front in the coming year? I doubt it will be all that different. So much of what is being built is not for the ordinary New Yorker. For a number of years, we have had what are essentially two markets — one for ultra-high-end new product mostly aimed at foreigners or global citizens, and one aimed at more ordinary New Yorkers. I expect there will be the beginnings of a glut in the former in 2015, while we continue to experience inadequate supply in the latter. Do you expect buyers to gain ground in 2015 or do you expect sellers to continue to have the upper hand? Sellers have already lost the upper hand in many segments of the marketplace. A lot of the time they just don’t want to acknowledge it. Several industry leaders have said recently that prices cannot continue to rise. Do you have concerns about a luxury market bubble in the coming year? No. Generally these issues are self-correcting in the absence of greater economic forces bringing too much pressure to bear.
I think we all welcome a hiatus in price increases. But seeing prices cease their upward trajectory is not the indication of a “bubble.” Do you foresee foreign buyers continuing to drive the luxury market? Are there particular countries you expect more buyers to be coming from? No doubt ultra-luxury purchasers will continue to come from the BRIC countries. And I expect we will see more Africans. Are you concerned that the anticipated interest rate increase will put a damper on the NYC market in the coming year? If interest rates increase in a significant way, that will likely have an impact on the lower end of the market, where the rent vs buy ratio tends to be delicately balanced and can easily tip. I think that end of the market is the greatest point of vulnerability. Which sectors of the market, both in price and product type, do you expect to perform well in NYC this year? These days, if given their druthers, most people want condos. So they will continue to perform well. I expect that the prejudice towards new construction or mint condition will also persevere. Most buyers have simply lost the appetite for doing a big renovation. And I anticipate, barring a big interest rate hike, that the market $2 million and below will continue to be the hottest, and the locus of the largest number of competitive bidding situations. Which new projects do you expect to generate the most excitement in the NYC residential market in the coming year? Hard to believe at this point that anyone will be all that excited by any of them. How do you expect the industry to respond to Mayor de Blasio’s affordable housing initiatives in 2015? Hopefully with enthusiasm. We sure need those initiatives!
Jonathan Miller President and CEO, Miller Samuel What are you expecting to see in the residential market this year? Where do you expect the market to be a year from now? I think 2015 will be a lot like 2014 sales-wise, with overall prices drifting higher. However, a lot of new development product will be hitting the market in 2015 with continued skew towards the high end, yet this small but very visible subset is not a proxy for the balance of the market. There is no real linkage between a $20 million new development sale in Midtown and a $500,000 sale in the East Village.
What are you expecting on the inventory front in the coming year? We already saw rising re-sale inventory throughout much of 2014, pulled in by rising prices. However, resale supply levels will likely remain inadequate to meet demand in 2015. New development volume will rise sharply, slowing their absorption rate. Do you foresee foreign buyers continuing to drive the luxury market? I do see foreign buyers continuing to be part of the luxury market.… My biggest concern is the strengthening U.S. dollar, which reduces the “discount” international buyers have been enjoying when purchasing U.S. property. However, the foreign buyer phenomenon has been driven by the “safe haven” concept and not so much by a “currency play.” That said, a continued increase in the U.S. dollar would likely take the edge off foreign demand. Are you concerned that the anticipated interest rate increase will put a damper on the NYC market? Since tight credit conditions remain in place, and 45 percent of Manhattan sales are cash, I’m skeptical the rising rates, if they rise at all, will have much of an impact on the sales market. Do you expect any easing in lending standards to accompany any increase in interest rates? No way. Credit conditions are being dictated by pressure on banks by Washington, which is justified, but should have happened 4-5 years ago rather than now, when the economy is beginning to improve. Record settlements with the DOJ, forced buy-backs of old mortgages by the GSEs, concerns about what will happen to Fannie Mae and Freddie Mac, low and slipping rates, and a slow economic recovery could prevent the easing of residential mortgage underwriting standards unlikely any time in 2015. How do you expect the industry to respond to Mayor de Blasio’s affordable housing initiatives in 2015? I think there will be a lot of “wait and see.” The administration is still trying to get their arms around the solutions to a vastly complex problem that has also occurred in most large U.S. urban centers. The city can’t afford to subsidize so they must create market incentives. What trends will you be watching out for in the coming year? Lots of outward geographic expansion and continued “neighborhood creep.” What do you expect the biggest challenges to be in the coming year? Affordability. Period. I get concerned that the upward pressure on rents will eventually dampen job growth. TRD
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Art Basel = game on Art Basel presented the perfect opportunity for South Florida real estate professionals to showcase existing high-end properties and debut new projects. “Absolutely there is an increase in sales traffic at my projects and my listings,” Chris Leavitt of Douglas Elliman Development Marketing said of last month’s event, which drew art collectors and investors from throughout the world.
“These are people who see Miami as an investment opportunity at a good price,” de la Vega told TRD. “They come during Art Basel and realize they can Art Basel drew investors to Miami’s real estate buy a [well-priced] unit One Sotheby’s Daniel de la that’s on the water.” Vega, whose firm helped organize the Dec. 5 groundbreaking of Market strength continues the Zaha Hadid-designed 1000 Developers and brokers are optiMuseum, also saw a positive mistic about Miami’s real estate industry impact from Art Basel. market for the foreseeable future,
Real estate news in the Sunshine State TheRealDeal.com /miami citing factors including a robust pool of wealthy out-of-town buyers and projects built by experienced, well-financed developers. Developer Richard LeFrak told The Real Deal he doesn’t see Miami’s current cycle slowing down soon. “I’d be worried if interest rates go up and consumer confidence drops,” LeFrak said. “But the U.S. economy is doing well and the stock market is high.” He cited the dramatic increase in the number of buyers from
Richard LeFrak
the northeastern U.S. over the past two years as evidence of a continuing bullish Miami market. However, Miami condo expert Peter Zalewski questioned whether developers really will be able to attract enough buyers to purchase the surfeit of preconstruction units announced since 2011. Alicia Cervera Lamadrid, managing director at Cervera Real Estate, had a tempered view. “I believe we are close to halfway through the current cycle,” she told TRD. “Although this cycle, the fundamentals are much stronger than the last one,” she added. “So whenever the wind-down occurs, the landing will be much softer.”
Star buys at Edition Poonam Khubani, Bollywood actress, producer and vice president of infomercial giant Telebrands, will be one of the first owners to experience hotelier Ian Schrager’s vision for the über-luxurious residences he built as part of the new Miami Beach Edition hotel. Only 26 condos — designed by
The Miami Beach Edition hotel. Below, Bollywood actress Poonam Khubani
world-renowned architect John Pawson — sit on the top floors of the 294-room hotel. Her family trust paid $34 million for two units at the Edition, according to public records. The seller was Seville Acquisition, an affiliate of Marriott International. The residences and hotel have separate doors, with the condos also having an anonymous “celebrity” entrance. Compiled by Heather Grossmann 92 January 2015 www.TheRealDeal.com
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50 S PO OIINT TE DR DRIV IV VE | 11101 01/8 /8 | CON ONTI ONTI T NU UUM II | MIA AMI M BEA EACH CH H $9.95M | 4BR/4 /4BA /4 4BA A | +// 3, 3,49 497 49 7 SF F | 5 BAL ALCO CO ONI N ES S | CIT TY/ Y OC O EA AN V VIIEW EWS
55 5 52 N IIS SLA L ND ND DR | GOL OLDE DEN BE BEAC ACH AC H | PRI RIVA VATE VA TE E GAT ATED D COM O MU MUNI UNI NITY ITY T $15. $1 5.9M M | 7BR BR/9 /9BA BA | 10, 0,17 1711 SF | LOT 17 OT 33 OT: 3,7 ,771 7 SF | WF: 71 F: 300’ 00’ 00
16 600 0 W 25 ST ST | SUN NSE ET IS SLA LAND D II | MIA AM MII BEA EACH ACH | PRI R VA AT TE E DOCK OC CK $8.6 $8 .6 6M | 4BR/4 BR/4 BR / BA A | 3,6 ,628 62 28 8 SF | LO OT: T: 24, 4,08 4,08 0 0 SF | WF: F 120 20’’
30 0 26 2 N B AY A R D | M IA I A MI B EA E CH | D OC O K | OP OPEN EN B A AY Y V IE E WS WS $9.9 $9 .9M .9 M | 6BR/7 /7+1 /7 7 +1 + 1 BA | 6 ,3 , 78 S F | L OT O : 20 0 ,5 5 00 S F | W F:: 1 0 00 0’
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1500 15 00 OCE CEAN CE AN N DR | 80 801/80 1//802 802 | MIA 80 AMI M BE EA AC CH H | ST TU UN NN NIN NG R RE ENOVATI TIION ON $7.9 $7 .9 95M M | 5BR BR/5 //5 5+11BA BA | 4,6 64 40 0 SF | DIR REC CT C CIITY T /O OC CE EAN EAN A //B BEA ACH CH VIE EW WS S
10 0295 29 95 CO C LL LLIN IN NS AVE AV VE | 17 704 | THE HE RIT ITZZ CA ZCARL RL RLTO LTO TON N BA BAL H HA ARB R OU OUR R $6,9 $6 ,9 999 99,9 999 9 | 3B BR R/3.5 /3 3.5 5BA BA | 3,3 350 5 SF | GOR ORGE EOUS OU US BA BAY AY & OC OCEA EA AN V VIIEW WS
80 8034 034 4 FIS ISHE HE ER IS SLA AND N DR | FIS ISHE HER R IS ISLA LAND ND | 3,1 ,140 40 SF | SE OCEA OCEAN N CORN CORNER ER $6 8M | 3BR $6 $6.8 R/3 / +1BA +11BA BA | IMP MPE EC CCABL CA ABLY Y RE RENO NO OVA ATED | OCE CEAN AN N & BEA ACH VIE IEWS WS
2 95 20 9 LAK AKE KE AV A E | PRE R ST STIG IG GIO OUS S SUNSE UNSET UN T IS ISLA LAND NDS ND S | MIA AMI M BEA EA ACH C $5 $ 5.2 2M | 5BR BR/3 /3B BA | 3,153 SF | LOT T: 15,3 ,3 309 09 SF | WF:: 90’ 0 | COU O NTRY RY STY TYLE LE HOM OME ME
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Snapshots of real estate news from around the U.S.
The first phase of Portside at East Pier is a five-story building with 176 rental apartments.
Venice Beach, California Don Cheadle bought an 800-square-foot bungalow in Venice for $894,000. The mid-century pied-à-terre has two bedrooms, one bathroom, and a breakfast nook. The “House of Lies” star owns other property in the L.A. area.
New rental developments like DSF Group’s Halstead Square in Vienna, Virginia, aim to draw tenants with luxe amenities like pool rooms and common areas filled with high-tech equipment.
BOSTON he $115 million second phase of a massive 26acre waterfront development in East Boston will be underway in the third quarter of this year, despite slow response to the project, which is in an area not traditionally considered residential. Mack-Cali Realty Corporation’s Roseland division recently completed the first of three phases of Portside at East Pier, on Jeffries Point, with the opening of a $75 million, five-story building comprising 176 rental apartments. While the
T
TULSA, OKLAHOMA The reopened Mayo Hotel and Lofts in Tulsa is one of the signs of a revitalized downtown.
More than 600 new apartments are expected to open up in downtown Tulsa through 2015, and seven new hotels are in various stages of planning and development there. The New York Times reported the activity is being interpreted as a sign of the revitalization of Tulsa’s downtown, after a period of decline when the city lost its title as the so-called “Oil Capital of the World” to Houston. However, the local oil and gas industries found steam again in the early aughts, and following a 1-cent sales tax increase in 2003, investors put more than $930 million into Tulsa’s central business district over the course of a decade. Developers are now converting many older buildings, like the former city hall, adding 526 hotel rooms downtown. The Mayo Hotel, an Art Deco masterpiece which closed in 1981, was bought for only $1, redeveloped for $42 million, and reopened in 2009 as the Mayo Hotel and Lofts.
Foreclosed homes like this one in Prince George’s County are drawing first-time homebuyers and investors.
WASHINGTON, D.C. Foreclosures in Maryland — which had the secondhighest foreclosure rate in the nation in September 94 January 2015 www.TheRealDeal.com
San Diego project is not far from the gentrifying Maverick Square area, Roseland found tenants for only 24 units in the first building in the first few weeks after launch, and was still negotiating leases for 3,500 square feet of retail space there, the Wall Street Journal reported. Financing was not yet finalized for the second phase, which will include two buildings housing 264 apartments. Another development and a park are also planned for the waterfront, where ferry service recently began.
after Florida, according to the RealtyTrac — accounted for some 13 percent of the market in the Washington suburb of Prince George’s County in mid-October, the Washington Post reported. These properties are increasingly attractive to both investors and first-time buyers, because properties in less-than-perfect condition can enable purchase of larger properties that can be fixed up to meet buyers’ tastes while remaining within their budget. Some banks offer potential owner-occupants a window to make an offer before offering to sell to investors, the Post reported. That’s because potential homeowners are often willing to bid more than the asking price, while investors aim to pay as little as possible.
CHARLOTTE, NORTH CAROLINA Encouraged by low vacancy rates, a lack of new construction and investors paying high prices for office property, two office-building developers are moving
Retired San Diego Charger Shawne Merriman relisted his San Diego home, most recently priced at $1.26 million, as a $1.05 million short sale. Merriman, a threetime NFL Pro Bowl linebacker, paid $1.47 million for the four-bedroom, five-bathroom, 4,000-square-foot home in 2005.
Avon, Colorado The late President Gerald R. Ford’s ski chalet in glamorous Beaver Creek was listed at $8.5 million. The 11,849-square foot ski-in ski-out home was built in 1983 and underwent a $4 million renovation in 2003. The entry hall is inlaid with the Presidential Seal, and the master suite’s fireplace is modeled after the White House’s Lincoln Bedroom. It is engraved with an inscription by President John Adams.
St. Phillips Island, South Carolina Portman Holdings is building a 19-story office tower in Charlotte.
ahead with speculative projects in Charlotte, North Carolina. Portman Holdings, an Atlanta-based company, plans to break ground during the second quarter with a 370,000-square-foot- project adjacent to one of its earlier projects, the Westin Charlotte, the Wall Street Journal reported. Crescent Communities, meanwhile, is planning to start on a $500 million mixed-use development. The overall vacancy rate downtown, according to a JLL report, is 7.1 percent; the report also found that the amount of space filled by office tenants increased by 267,812 square feet in the third quarter of last year. Compiled by Brendan O’Connor
Ted Turner put his private island off the coast of South Carolina up for sale. The CNN founder is asking $23.78 million for the 4,680-acre island, accessible only by boat and protected by a conservation easement. It features a 3,800-square foot, five-bedroom, fivebath main house and a caretaker’s house.
OW N D I F F E R E N T. 8% LEASEBACK PROGRAM
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ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATION OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY DEVELOPER TO A BUYER OR LESSEE. THE PROPERTIES OR INTEREST DESCRIBED HEREIN ARE NOT REGISTERED WITH THE GOVERNMENTS OF ANY STATE OUTSIDE OF THE STATE OF FLORIDA. THIS ADVERTISEMENT DOES NOT CONSTITUTE AN OFFER TO ANY RESIDENTS OF NJ, CT. HI, ID, IL, OR ANY OTHER JURISDICTION WHERE PROHIBITED, UNLESS THE PROPERTY HAS BEEN REGISTERED OR EXEMPTIONS ARE AVAILABLE. CONRAD® IS A REGISTERED TRADEMARK OF CONRAD HOSPITALITY, LLC, AN AFFILIATE OF HILTON WORLDWIDE (“HILTON” OR THE “HOTEL COMPANY”). NEITHER HILTON NOR ANY OF ITS PARTNERS OR AFFILIATES IS IN ANY WAY PARTICIPATING IN OR ENDORSING THE OFFERING DESCRIBED IN PUBLIC DISCLOSURE DOCUMENTS AND NONE OF THEM WILL RECEIVE ANY PROCEEDS FROM THE SALE OF THE CONDOMINIUM UNITS AND THE PURCHASERS OF THE CONDOMINIUM UNITS WILL NOT RECEIVE ANY INTEREST IN HILTON OR ANY OF ITS PARTNERS OR AFFILIATES. HILTON HAS NEITHER ENDORSED NOR APPROVED THE SALE OF THE CONDOMINIUM UNITS PURSUANT TO ANY PUBLIC DISCLOSURE DOCUMENTS.
Deal Sheet summary
The Deal Sheet, on pages 98 to 110, covers transactions from 11/11/14 through 12/10/14. Please submit future deals to deals@therealdeal.com.
Overview Property sales
Financing
Leases (# of deals)
Leases (square feet)
Deals
52
Transactions
16
Office
54
Office
938,666
Dollars
$921,900,000
Aggregate value
$183,810,000
Retail
52
Retail
279,839
Total
106
Total
1,218,505
Sales By dollar volume (in millions)
Retail
15
Development site
Office Retail Development site
7.1
Industrial Mixed-use
22
Multi-family
28.2
Office
24.5
Multi-family
2 3 2
4
1
36.4
By type
Industrial Mixed-use
67
22
1.
7
Office leases Office leases by industry Industry
Office leases sf, by industry Number of deals
Industry
Top tenant reps for office leasing, by sf Leased square feet
Broker
Leased square feet
Design
4
Design
39,713
CBRE
144,886
Fashion*
7
Fashion*
12,250
Newmark Grubb Knight Frank
133,215
Financial
7
Financial
209,364
Cushman & Wakefield
52,594
Health & Beauty
5
Health & Beauty
51,287
Colliers International
51,223
Legal
2
Legal
55,723
Lee & Associates NYC
51,223
Media
4
Media
141,200
Joseph P. Day Realty Corp.
35,145
Other
13
Other
225,743
Olmstead Properties
35,000
Professional Services
2
Professional Services
6,027
Kalmon Dolgin Affiliates
22,000
Real Estate
2
Real Estate
140,097
The Vortex Group, LLC
19,590
Retail leases Top tenant reps for retail leasing, by sf
Retail leases by industry
Newmark Grubb Knight Frank
17,500
Technology
KDA
16,000
Wireless
Retail Zone
15,500
Entertainment
Ripco
12,550
Fashion
Douglas Elliman
9,950
RFK
8,064
Other
Financial
5
5
Health & Beauty
2
25
Other
7
Technology
10
Entertainment
,55
0
Wireless
21
Fashion Financial
00
20,000
1
,0
Open Realty
Health & Beauty
65
20,000
14,941 16, 660
50
5
0 0,
38
Crown Retail Services
Food & Beverage 1
,0
20,800
80
51,718
Kassin Sabbagh Realty
7,600
Food & Beverage
SCG Retail
96 January 2015 www.TheRealDeal.com
Retail leases sf, by industry 00
Leased square feet
0 20,
Broker
(*includes showroom space)
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 11/11/14 to 12/10/14. Please submit future deals to deals@therealdeal.com.
Office leases Address
Size
Tenant / Representative
Landlord / Representative
Notes
125 Park Ave
133,215
Newmark Grubb Knight Frank / Brian Waterman, Newmark Grubb Knight Frank
SL Green Realty Corp. / n/a
The real estate company signed a renewal lease. It will expand its space by 31,377 square feet.
205 East 42nd St
125,000
WeWork / n/a
The Durst Organization / n/a
The office suite provider signed a 15-year lease to occupy seven floors. The reported asking price was $58 per square foot.
450 West 33rd St
123,000
JPMorgan Chase / n/a
Brookfield Property Partners / Bruce Mosler and Josh Kuriloff, Cushman & Wakefield
The bank signed a 10-year lease to occupy the ninth floor.
315 Park Ave South
90,000
VaynerMedia / n/a
Related Companies / n/a
The advertising and content-producing company signed a lease.
125 Park Ave
51,707
TD Bank / Robert Alexander, David Mauer-Hollaender, Douglas Lehman, CBRE
SL Green Realty Corp. / n/a
The bank signed a 15-year lease.
1251 Avenue of the Americas
51,223
Bernstein Litowitz Berger & Grossmann / Robert Koslow, Colliers International; Howard Rosen, Lee & Associates NYC
n/a / Peter Shimkin and David Falk, Newmark Grubb Knight Frank
The law firm signed a lease to occupy the entire 44th floor, and parts of the 41st and concourse level.
15 Metrotech Center (Brooklyn)
35,145
NY Methodist Hospital / Craig S. Berman and Ryan Herzich, Joseph P. Day Realty Corp.
Forest City Myrtle Associates LLC / Joseph Cirone, Cushman & Wakefield
The hospital signed a sublease to occupy the 10th floor. The sublandlord is Anthem Holding Corp.
315 Hudson St
35,000
Intent Media / Sacha Zarba, CBRE; Steven Marvin, Olmstead Properties
Jack Resnick & Sons / Brett S. Greenberg and Dennis Brady, Jack Resnick & Sons
The digital advertising company signed a lease.
330 Hudson St
34,350
Cadillac / John Nugent, CBRE
Beacon Capital Partners, LLC, Ivanhoé Cambridge, Callahan Capital Properties / Bob Alexander, David Maurer-Hollaender, Doug Lehman, Bruce Surry, Munish Viralam, Ross Zimbalist, Ben Fastenberg, CBRE
The luxury auto company signed a lease to occupy the 15th and 16th floors.
420 Lexington Ave
30,254
Metro-North Commuter Railroad Company / Josh Kuriloff, Jodi Roberts, David Heller, Cushman & Wakefield
SL Green Realty Corp. / n/a
The transit company signed a 20-year expansion lease to occupy portions of the fourth and sixth floors. The new lease increases Metro-North's total occupany to 296,257 square feet. The Metro-North Police Department will occupy the space.
229 West 43rd St
27,000
Snapchat / n/a
Blackstone Group / Brian Waterman and Brent Ozarowski, Newmark Grubb Knight Frank
The photo sharing app signed a lease to occupy the 15th and 16th floors. The reported asking price was $85 per square foot.
79 Fifth Ave
20,000
Hulu / Jason Frazier, CBRE
Kalimian Realty / Sylvia Haddad and Howard Dolch, Lansco
The video streaming service signed a 10-year lease to occupy the 15th floor. The reported asking price was $100 per square foot.
80 Pine St
19,000
Snohetta / Richard Kennedy, Cushman & Wakefield
Rudin Management / Tom Keating, Rudin Management
The architecture firm signed a lease.
810 Seventh Ave
17,320
Brightwood Capital Advisors LLC / Cynthia Wasserberger, JLL
SL Green Realty Corp. / Tara Stacom, Barry Zeller, Justin Royce, Scott Silverstein, Cushman & Wakefield
The financial firm signed a 10-year plus lease to occupy the 26th floor.
1040 Avenue of the Americas
12,007
New World Travel, Inc. / Tim Freydberg and Larry Carroll, The Vortex Group, LLC
Skyline Developers / W. Cohen and A. Weisz, Newmark Grubb Knight Frank
The travel company signed a 10-year renewal lease to occupy the 7th floor.
54-01 35th St (Queens)
12,000
General Plumbing Corporation / Jeff Unger, Kalmon Dolgin Affiliates
ROM Realty / Jeff Unger, Kalmon Dolgin Affiliates
The tenant signed a lease and will relocate from Brooklyn.
153-30 89th St (Queens)
11,631
New York City School Construction Authority / David Lebenstein, Cassidy Turley
QFC Owner, LLC / Jay Gilbert and Hymie Dweck, Newmark Grubb Knight Frank
The tenant signed a lease.
933 Stanley Ave (Brooklyn)
10,000
United Yoram / Allison Chambers, Kalmon Dolgin Affiliates
Casella Food / Hillel Galosher, S&Z
The medical supply distributor signed a lease.
810 Seventh Ave
8,760
DH Capital LLC and DH Capital Securities / Allyson Bowen, Savills Studley
SL Green Realty Corp. / Tara Stacom, Barry Zeller, Justin Royce, Scott Silverstein, Cushman & Wakefield
The financial firm signed a seven-year plus lease to occupy a portion of the 20th floor.
250 West 57th St
6,882
The Shopping Center Group / David Firestein, The Shopping Center Group
Empire State Realty Trust / Keith Cody, ESRT; Harry Blair and Sean Kearns, Cushman & Wakefield
The real estate company signed a lease.
242 West 26th St
6,371
Precision IT / Henry Fuentes and Michael Heaner, The Kaufman Organization
n/a / n/a
The IT services provider signed a lease.
15 Maiden Ln
6,300
Thomas Juul-Hansen Architecture / Robert Alexander, David MauerHollaender, Douglas Lehman, CBRE
n/a / Melvin Heller and Fran McDonald
The architecture firm signed a lease.
350 Fifth Ave
4,904
Applied Value LLC / Ethan Ambalu and Benjamin Srour, Norman Bobrow & Co. Inc.
Empire State Realty Trust / Fred Posniak, ESRT; William Cohen, Jonathan Tootell, Shanae Ursini, NGKF
The professional services company signed a lease.
15 West 26th St
4,500
Mauriel Kapouytian Woods LLP / Bert Rosenblatt, Vicus Partners
n/a / Elliott Klein and Jared Anderson, EVO
The law firm signed a lease to occupy the seventh floor.
159 Bleecker St
4,200
Jax Media / Michael Rouzenrouch, Miyad Realty, LLC
Howie Hershkovich / n/a
The tenant signed a lease.
60 East 42nd St
3,829
The Overbrook Foundation / Silvio Petriello and Michael Affronti, CBRE
Empire State Realty Trust / Fred Posniak, ESRT; William Cohen, Jonathan Tootell, Julie Christiano, NGKF
The non-profit signed a lease.
98 January 2015 www.TheRealDeal.com
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575 MADISON AVENUE, NY, NY 10022. 212.891.7000 | © 2014 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS ARE DEEMED RELIABLE, BUT SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY.
Office leases continued Address
Size
Tenant / Representative
Landlord / Representative
Notes
1040 Avenue of the Americas
3,812
Air Berlin Americas, Inc. / Tim Freydberg and Larry Carroll, The Vortex Group, LLC
Skyline Developers / W. Cohen and A. Weisz, NGKF
The airline signed a short-term renewal lease to occupy the 14th floor.
1450 Broadway
3,771
Kidron Corporate Advisors / Tim Freydberg and Larry Carroll, The Vortex Group, LLC
Zar Group / Benjamin Bass and Jonathan Fanuzzi, JLL
The financial services company signed a long-term renewal lease to occupy the 39th floor.
152 Madison Ave
3,340
Liquid Agency, Inc. / Doug Dolgoff, Cushman & Wakefield
n/a / Howard Epstein and Barry Bernstein, EVO
The branding firm signed a lease.
1302 Kings Highway (Brooklyn)
3,200
Five Star Home Care / Commercial Acquisitions
n/a / Josh Augenbaum, Augenbaum Realty
The health care agency signed a lease to occupy the third floor.
214 West 39th St
3,000
12k Apparel / Albert Manopla, Kassin Sabbagh Realty
n/a / Albert Manopla, Kassin Sabbagh Realty
The apparel company signed a lease.
20 West 22nd St
2,782
Bohn Architecture and Design, P.C. / Jonathan Anapol, Prime Manhattan Realty
n/a / Jason Fein and Robert Finkelstein, ABS Partners
The tenant signed a lease to occupy the eighth floor.
20 West 22nd St
2,618
MultiNet International, Inc. / Shinya Sangu, Redac, Inc.
n/a / Jason Fein and Robert Finkelstein, ABS Partners
The tenant signed a lease to occupy the 11th floor.
130 West 25th St
2,600
The Art Newspaper / Jeff Buslik and Seth Godnick, Adams & Co.
Miltan Management / Gary Tannenbaum
The monthly newspaper signed a five-year lease to occupy the ninth floor.
383 Fifth Ave
2,500
Robin Ruth’s Inc. / Evan Lieberman, EVO; Michael Dylan, Inceptum Inc.
n/a / Elliott Klein, EVO
The fashion firm signed a lease.
60 East 42nd St
2,423
DSTG Services, LLC / Scott Brown and Richard Johns, NGKF
Empire State Realty Trust / Fred Posniak, ESRT; William Cohen, Jonathan Tootell, Julie Christiano, NGKF
The financial services company signed a lease.
375 Park Ave
2,383
ONEXIM Group / n/a
RFR Realty LLC / Steve Morrows, RFR Realty LLC
The private investment fund signed a renewal lease to occupy the 26th floor.
1359 Broadway
2,286
Global Convergence Solutions / William Carr, Douglas Elliman
Empire State Realty Trust / Keith Cody, ESRT; William Cohen, Neil Rubin, Andrew Weisz, NGKF
The technology company signed a lease.
276 Fifth Ave
2,002
Ther-Ex Unlimited, Inc. / Elliott Klein, EVO
n/a / n/a
The rehabilitation provider signed a renewal lease.
16 West 36th St
1,857
National Ethnic Coalition of Organizations Foundation, Inc. / Jared Winter, Capstone Realty Advisors, Inc.
n/a / Howard Epstein, EVO
The tenant signed a lease.
48 West 37th St
1,814
Brosur II Wholesale Inc. / Dave Levy and Brett Maslin, Adams & Co.
Forty Eight Thirty Seven Associates / Dave Levy and Brett Maslin, Adams & Co.
The tenant signed a renewal lease. The reported asking rent was $180,000 per year.
10 West 33rd St
1,750
Haddad International LLC / Dave Levy and Brett Maslin, Adams & Co.
Ten West Thirty Third Associates / Dave Levy and Brett Maslin, Adams & Co.
The apparel company signed a renewal lease. The reported asking price was $48 per square foot.
1410 Broadway
1,650
Fashion Flair Inc. / Evan Lieberman, EVO; Michael Dylan of Inceptum Inc.
n/a / Richard Doolittle and John P. Howard, MHP Real Estate Services
The tenant signed a lease.
152 Madison Ave
1,264
Lowell & Meader, LLC/ Howard Epstein and Barry Bernstein, EVO
n/a / n/a
The psychotherapy provider and consultant signed a lease.
152 West 36th St
1,200
Santori / Evan Lieberman, EVO; Michael Dylan of Inceptum Inc.
Falcon Properties / Carlos Silberman, Falcon Properties
The men’s suits and accessories sales agent signed a lease.
209 West 38th St
1,150
Shah Safari Inc. / Evan Lieberman, EVO; Michael Dylan of Inceptum Inc.
n/a / Matthew Mandell, Newmark Grubb Knight Frank
The sportswear firm signed a renewal lease.
60 East 42nd St
1,123
Jayne Gumpel / n/a
Empire State Realty Trust / Fred Posniak, ESRT; William Cohen, Jonathan Tootell, Julie Christiano, NGKF
The professional services company signed an expansion lease.
110 West 40th St
1,070
Winnitex America Inc. / Dave Levy and Brett Maslin, Adams & Co.
One Ten West Fortieth Associates / Dave Levy and Brett Maslin, Adams & Co.
The tenant signed a renewal lease. The reported asking rent was $48 per square foot.
10 West 33rd St
1,001
US Legwork LLC / Dave Levy and Brett Maslin, Adams & Co.
Ten West Thirty Third Associates / Dave Levy and Brett Maslin, Adams & Co.
The tenant signed a lease. The reported asking rent was $48 per square foot.
246 West 38th St
1,000
Sucomex International / Evan Lieberman, EVO; Michael Dylan of Inceptum Inc.
n/a / Evan Lieberman, EVO
The fashion firm signed a lease.
13 East 37th St
940
Pain Relief Center / Manny Kabiri and Warren Stein, Manhattan Commercial Realty Corp.
n/a / Michael Nahamias, AZN Realty
The tenant signed a five-year lease a five-year option. The reported asking price was $3,290 per month.
109 West 27th St
900
Byte Dept. Inc. / Marie Hammoudi, Viza Group
Silvia Braun Trust / Ioannis (John) Kourtis, NY Citi Group Realty, Inc.
The tenant signed a five-year lease. The reported asking price was $46 per square foot.
185 Madison Ave
850
Dag Tech LLC / Carlo Catuogno, EVO
n/a / Jeff Buslik, Adams & Co
The IT services provider signed a lease.
40 West 37th St
782
World Trade Travel Agency, Inc. / Howard Epstein, EVO
Park Ridge International / Roy Kim, Park Ridge International
The travel agency signed a lease.
To view more deals visit our website: www.TheRealDeal.com
100 January 2015 www.TheRealDeal.com
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Retail leases Address
Size
Tenant / Representative
Landlord / Representative
Notes
1095 Sixth Ave
42,996
Whole Foods / Chase Welles and Jacqueline Klinger, SCG Retail
Blackstone / Patrick Smith, SRS Real Estate Partners
The supermarket chain re-signed a lease for the new space (after a deal last year unraveled) , adding an additional 8,000 square feet of space.
247 Bedford Ave
20,000
Apple / Chris DeCrosta, Crown Retail Services; Open Realty
Red Sky Capital and Waterbridge Capital / Peter Braus, Lee NYC
The technology company signed a lease for its first Brooklyn store.
102-16 Liberty Ave (Queens)
15,500
Blink Fitness / Ezra Saff, Retail Zone
Reda Group / Ezra Saff, Retail Zone
The fitness center signed a lease.
600 DeGraw St (Brooklyn)
11,000
Brooklyn Fencing / Jean Cook, Kalmon Dolgin Affiliates
600-608 DeGraw LLC / Allison Chambers, Kalmon Dolgin Affiliates
The private fencing instructors signed a relocation lease.
1791 St. Marks Ave (Brooklyn)
10,200
Deals by Dollar Tree / Harris Reichenbaum, Esther Bukai, Miles Mahony, Richard Senior, Jeffrey Howard, Ripco
RW1715 St. Marks, LLC / Harris Reichenbaum, Esther Bukai, Miles Mahony, Richard Senior, Jeffrey Howard, Ripco
The discount retailer signed a 10-year lease.
757 Third Ave
10,000
CVS Pharmacy / Jason Pruger, Newmark Grubb Knight Frank
n/a / Jeffrey Roseman and Drew Weiss, Newmark Grubb Knight Frank
The pharmacy signed a lease.
700 St. Nicholas Ave
9,950
Capital One / Faith Hope Consolo, Joseph Aquino, Arthur Maglio, Douglas Elliman
Hillview Towers / Faith Hope Consolo, Joseph Aquino, Arthur Maglio, Douglas Elliman
The bank signed a lease.
1407 Broadway
6,710
Wells Fargo / Annette Healy, CBRE
Lightstone / Matthew Gorman and Joshua Gettler, New Street Realty Advisors
The bank signed a renewal lease.
224 East Fordham Rd (Bronx)
6,000
City Mall / Albert Manopla, Kassin Sabbagh Realty
Fordham Emerald LLC / Albert Manopla, Kassin Sabbagh Realty
The tenant signed a lease.
608 DeGraw St (Brooklyn)
5,000
South Brooklyn Crossfit / Allison Chambers, Kalmon Dolgin Affiliates
608 DeGraw St LLC / Allison Chambers, Kalmon Dolgin Affiliates
The fitness company signed a lease.
49 West 28th St
4,817
Wholesale Bridal Accessories / BLU Realty Group
n/a / BLU Realty Group
The tenant signed a lease.
424 Madison Ave
4,600
Joseph Abboud / Gary Alterman, RFK
n/a / n/a
The men’s apparel company signed a lease.
326 Bleecker St
4,550
Maison Kayser / Davie Berke and Paul Berkman, JLL
Gilman Management / David Firestein and Taryn Brandes, SCG Retail
The café signed a lease.
1311 Broadway
4,500
Verizon Wireless / Robert Gibson, JLL, Tom Citron, Newmark Grubb Knight Frank
JEMB Realty / Bobby Dweck, JEMB Realty
The wireless retailer signed a lease for its flagship store at Herald Center.
2051, 2053 86th St (Brooklyn)
4,000
Kings Kitchen Restaurant / Josh Augenbaum and Allie Beyda, Augenbaum Realty
2051 & 2053 86th Street Realty LLC / Josh Augenbaum and Allie Beyda, Augenbaum Realty
The restaurant signed a lease.
345 Amsterdam Ave
3,700
Chop’t / Craig Hantgan, Esquire Properties
Lichter Number One, LLC / Ross Kaplan and Stu Morden, Newmark Grubb Knight Frank
The restaurant signed a lease.
455 Fulton St (Brooklyn)
3,024
Social Apparel / Young Byunn and Ezra Safdieh, Winick Realty Group
Solil Management / n/a
The apparel company signed a lease.
375 Hudson St
3,000
Juice Press / Jason Pruger and Aaron Cukier, Newmark Grubb Knight Frank
Tishman Speyer / n/a
The beverage company signed a lease.
225 East 59th St
2,905
The Shade Store / Charles Rapuano, Winick Realty Group
BMB Commercial Corp. / Kelly Gedinsky and Darrell Rubens, Winick Realty Group
The windows treatment store signed a lease for its 22nd showroom.
204 East 38th St
2,800
Sons of Thunder / Rachel Kim, SCG Retail
204 East 38th Property / Steve Rappaport and Margie Sarway, Sinvin
The tenant signed a lease.
892 Manhattan Ave (Brooklyn)
2,500
JY Produce INC / Albert Manopla, Kassin Sabbagh Realty
Forest Hills Property Group / Albert Manopla, Kassin Sabbagh Realty
The food company signed a lease.
1607 Westchester Ave (Bronx)
2,350
Burger King / Richard Senior and Isaac Shabot, Ripco
West Morrison Realty LLC / Richard Senior and Isaac Shabot, Ripco
The fast food chain signed a 10-year lease.
3550 Johnson Ave (Bronx)
2,200
European Wax Center / Fritz Kemerling, The Dartmouth Company
Friedland Properties / Aaron Prince, Friedland Properties
The tenant signed a 10-year lease.
38-42 Bell Blvd (Queens)
2,000
Caffé Bene / Jack Lee, Kassin Sabbagh Realty
Briarwood Properties / Briarwood Properties
The café signed a lease.
44 Trinity Pl
1,800
51 Dream / James Famularo and Ravi Idnani, Eastern Consolidated
n/a / James Famularo and Ravi Idnani, Eastern Consolidated
The health and wellness center signed a lease to occupy the second floor. The reported asking price was $90 per square feet.
185 Bleecker St
1,780
Esquared Hospitality / Philip Katz, Katz Properties
Bleecker Horatio / Joshua Siegelman, Winick Realty Group
The restaurant signed a lease.
191 Amsterdam Ave
1,773
Open Sesame / Gary Alterman, RFK
n/a / Gary Alterman, RFK
The tenant signed a lease.
17 West 125th St
1,700
Buffalo Boss / Adam Stupak and Alex Spanbock, Task Real Estate
Treetop Development / Dan Myers, Kassin Sabbagh Realty
The organic chicken wing chain signed a 10-year lease. The reported asking rent was $100 per square foot.
80 John St
1,691
Dunkin’ Donuts / Andrew Stern, RFK
John Gold Realty / Joshua Siegelman, Winick Realty Group
The retailer signed a lease.
816 Broadway
1,600
Caffé Bene / Albert Manopla, Kassin Sabbagh Realty
Lighthouse Properties LLC / Albert Manopla, Kassin Sabbagh Realty
The café signed a lease.
2176 White Plains Rd (Bronx)
1,500
ScriptX / Albert Manopla, Kassin Sabbagh Realty
ComJem / Albert Manopla, Kassin Sabbagh Realty
The pharmaceutical company signed a lease.
977 Eighth Ave
1,400
Paris Baguette / Tony Park, Pd Properties LLC
Gary Fieger / Tony Park, Pd Properties LLC
The bakery signed a lease.
940 Southern Blvd (Bronx)
1,400
Sneaker Train / Albert Manopla and Marc Sitt, Kassin Sabbagh Realty
Delmar Realty Co. LLC / Albert Manopla and Marc Sitt, Kassin Sabbagh Realty
The apparel company signed a lease.
163-26 Jamaica Ave (Queens)
1,400
NY FIX / Albert Manopla and Marc Sitt, Kassin Sabbagh Realty
Sol Goldman Investments LLC / Albert Manopla and Marc Sitt, Kassin Sabbagh Realty
The wireless retailer signed a lease.
420 Madison Ave
1,400
Jin Sun Inc. / Albert Manopla, Kassin Sabbagh Realty
Lee Tai Enterprises / Albert M. Manopla, Kassin Sabbagh Realty
The salon signed a lease.
20-21 Sixth Ave
1,372
Papyrus / Jacqueline Klinger, SCG Retail
Albert Laboz and United American / n/a
The gift store signed a lease.
102 January 2015 www.TheRealDeal.com
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Retail leases continued Address
Size
Tenant / Representative
Landlord / Representative
Notes
2 Astor Pl
1,256
Semson / Craig Hantgan, Esquire Properties
Broadway LLC / Ross Kaplan and Kate Cohen, Newmark Grubb Knight Frank
The Lebanese restaurant chain signed a lease.
1216 Cortelyou Rd (Brooklyn)
1,200
Domino’s Pizza / Craig Hantgan, Esquire Properties
1216 Cortelyou Rd LLC / Allie Beyda and Josh Augenbaum, Augenbaum Realty Corp
The pizza chain signed a lease.
92-94 Seventh Ave
1,150
LaToue Spa II / Sagirah Abraham, A.C. Lawrence
George Kotsonis Management, LLC / Jeffrey Kessler, Warren Lewis Sotheby’s International Realty
The nail spa signed a 10-year lease.
63 Wall St
1,100
Minas Shoe Repair / Darrell Rubens and Lee Block, Winick Realty Group
RBNB Wall Street / Darrell Rubens and Lee Block, Winick Realty Group
The shoe repair store signed a lease and will relocate from 67 Wall Street.
3231 Richmond Ave (Staten Island)
1,000
Jimmy Johns / John Oliveri, STL Realty LLC
Greenridge Plaza 674 LLC / n/a
The tenant signed a 10-year lease.
1919 Hylan Blvd (Staten Island)
1,000
Jimmy Johns / John Oliveri, STL Realty LLC
n/a / n/a
The tenant signed a 10-year lease.
1143 Second Ave
800
Bakeshop by Woops / Gary Lowitt, Baloo Properties
Stonehenge Partners / Richard Skulnik, Andrew Mandell, Jason Maurer, Daniel Mirea, Ripco
The bakeshop signed a long-term lease.
757 East Tremont Ave (Bronx)
800
Verizon Wireless / Albert Manopla, Kassin Sabbagh Realty
757 East Tremont Avenue LLC / Albert Manopla, Kassin Sabbagh Realty
The wireless retailer signed a lease.
82 Christopher St
800
La Gringa Taqueria / Albert Manopla and Jeff Znaty, Kassin Sabbagh Realty
Jayvanka II LLC / Albert Manopla and Jeff Znaty, Kassin Sabbagh Realty
The fast casual restaurant signed a lease.
1359 Second Ave
500
Sprint Spectrum / Melinda Miller, Winick Realty Group
Walsam East 72nd / Melinda Miller, Winick Realty Group
The wireless retailer signed a lease.
396 East 149th St (Bronx)
500
Honey Cosmetics / Albert Manopla, Kassin Sabbagh Realty
JEM Realty / Albert Manopla, Kassin Sabbagh Realty
The cosmetic company signed a lease.
247 West 36th St
500
VapeNy / Meyer Tawil, Kassin Sabbagh Realty
247 Realty Associates LLC / Meyer Tawil, Kassin Sabbagh Realty
The e-cigarette retailer signed a lease.
1701 Broadway
400
Sprint Spectrum / Jeremy Scholder, CBRE
Britannia 54th / Patty Holmstrom, Winick Realty Group
The wireless retailer signed a lease.
912 Seventh Ave
400
Vive La Crepe / Albert Manopla and Meyer Tawil, Kassin Sabbagh Realty
Lighthouse Properties LLC / Albert Manopla, Kassin Sabbagh Realty
The food company signed a lease.
45 Spring St
315
Birdbath Bakery / Joshua Siegelman, Winick Realty Group
Margi Holding Corp / Joshua Halegua, Jonis Realty
The bakery shop signed a lease.
115 Delancey St
65,000
Regal Cinemas / n/a
L+M Development Partners, Taconic Investment Partners, BFC Partners / n/a
The cinema signed a 15-year lease.
Buys Address
Size
Buyer / Representative
Seller / Representative
Notes
485 Seventh Ave
16-story, 235,000 sf
The Lightstone Group / n/a
Eretz Group / n/a
The property sold for $200 million.
176 East Third St, 420 East 66th St , 336 East 81st St, 344 East 85th St, 404 East 88th St (East Side Elevator Portfolio)
5 bldgs, 5 and 6-story, 144,043 sf, 267-units total
Nader and Lisa Shalom and Trevi Retail / n/a
Stonewood Properties / Bob Knakal, Thomas D. Gammino, Jr., Guthrie Garvin, Michael DeCheser, Massey Knakal
The portfolio consisting of five properties sold for a total of $126.2 million.
627 Greenwich St
12-story, 106,400 sf
Brack Capital Real Estate / Adam Spies, Doug Harmon, Daniel O’Brien, Eastdil Secured
LG Acquisitions I LLC / Adam Spies, Doug Harmon, Daniel O’Brien, Eastdil Secured
The property sold for $106 million.
114 East 25th St
12-story, 42,000 sf
MetroLoft / Neil Helman, Jon Epstein, Vincent Carrega, Charles Kingsley, Avison Young
Extell Development / Neil Helman, Jon Epstein, Vincent Carrega, Charles Kingsley, Avison Young
The property sold for $36.5 million.
305-315 East Fordham Road (Bronx)
2-bldgs, 30,000 sf
The Harbor Group / n/a
The Jackson Group / n/a
The two properties sold for $34.6 million, or $1,145 per square foot.
1697-1701 Amsterdam Ave, 2500-2504 Adam Clayton Powell Blvd, 2090-2093 Amsterdam Ave
6-bldgs, 123-units total
Acuity Capital Partners / Peter Vanderpool and Lazer Sternhell, Cignature Realty Associates
n/a / Peter Vanderpool and Lazer Sternhell, Cignature Realty Associates
The six properties sold for $30 million.
530 Parkside Ave, 179 Linden Blvd (Brooklyn)
2-bldgs, 6-story, 159-units, 144,212 sf total
Parkside530 LLC, Linden179 LLC / Amit Doshi and Joseph Friedman, Besen & Associates
Dmg 530 LLC, Fire 530 LLC, Js 530 LLC, Wish 530 LLC / Raphael Toledano, Weissman Realty
The two properties sold for $28.6 million.
11 Jane St
2-story, 31,032 buildable sf
Minskoff Equities / n/a
Marital Trust of Sydelle Yager Mitchell and the Wolk Family Limited Partnership / n/a
The property sold for $26 million.
101 East 10th St
5-story, 28-units, 30,662 sf
Slate Property Group and RWN Real Estate Partners / Victor Sozio and Shimon Shkury, Ariel Property Advisors
n/a / Victor Sozio and Shimon Shkury, Ariel Property Advisors
The property sold for $25.9 million.
264 Fifth Ave
5-story, 30,000 buildable sf
n/a / Bob Knakal and John Ciraulo, Massey Knakal
n/a / Eran Elhanani, Esquared Realty
The property sold for $25.9 million, or $850 per square foot.
165 William St
10-story, 31,076 sf
Princeton Holdings and Bluestone Group / Amit Doshi and Daniel Shapiro, Besen & Associates
Kash Group / Amit Doshi and Daniel Shapiro, Besen & Associates
The property sold for $21.5 million, or $690 per square foot.
3572-3574, 3576-3578 DeKalb Ave (Bronx)
4-bldgs, 6-story, 140-units, 133,200 sf total
n/a / Aaron Jungreis, Rosewood Realty Group
n/a / Aaron Jungreis, Rosewood Realty Group
The four properties sold for $18.8 million.
37 Crosby St
7-story, 8-units, 8,621 sf
n/a / n/a
Icon Realty / Robert Burton, Massey Knakal
The property sold for $17.9 million.
287-291 East Houston St
27,000 buildable sf development site
n/a / Michael DeCheser, Massey Knakal
n/a / Michael DeCheser, Massey Knakal
The development site sold for $15.2 million.
104 January 2015 www.TheRealDeal.com
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Buys continued Address
Size
Buyer / Representative
Seller / Representative
Notes
3820 Broadway
6-story, 44-units total, 43,748 sf
Broadway 3820 LLC / Lazer Sternhell and Peter Vanderpool, Cignature Realty
3820 Broadway LLC / Lazer Sternhell and Peter Vanderpool, Cignature Realty
The property sold for $15 million.
2053-2061 Second Ave
4-bldgs, 26-units, 60,000 buildable sf
n/a / n/a
Thomas Young / Edmond Levy, Cornerstone Real Estate Investments, Inc.
The four properties sold for $14.7 million.
171, 173 First Ave
2 bldgs, 5-story, 42-units, 21,640 sf total
Adam Daniels and Aaron Daniels / Janet Sedaghatpour, Plaza Real Estate Group
Steve Kessner and Michael Kessner / Thomas D. Gammino Jr., Bob Knakal, Robert M. Shapiro, Massey Knakal
The two properties sold for $14.5 million, or $671 per square foot.
427-433 Dean St (Brooklyn)
2-bldgs, 4-story, 36,420 sf total
n/a / Bob Knakal, Paul J. Massey Jr., Stephen P. Palmese, Winfield Clifford, Massey Knakal
n/a / Bob Knakal, Paul J. Massey Jr., Stephen P. Palmese, Winfield Clifford, Massey Knakal
The two properties sold for $14.5 million, or $398 per square foot.
15-17 Arden St, 149, 157 Vermilyea Ave
4-bldgs, 95-units, 62,120 sf total
n/a / Bob Knakal and Robert M. Shapiro, Massey Knakal
n/a / Bob Knakal and Robert M. Shapiro, Massey Knakal
The four properties sold for $14.1 million, or $227 per square foot.
269-271 East Houston St
15-units, 12,504 sf
n/a / Bob Knakal and Michael DeCheser, Massey Knakal
Charlie Gambetta / Bob Knakal and Michael DeCheser, Massey Knakal
The property sold for $12.8 million.
331 East 81st St
6-story, 15-units total
Jur-Stin Realty Corp. / Jacky Teplitzky and Geraldine Dayan, Douglas Elliman
14 Ben Court LLC / Shay Zach and Shy Galor-Fieldust, Epic Commercial Realty
The property sold for $12.2 million.
2380 Grand Concourse, 2679 Decatur Ave, 3053 Hull Ave, 375 East 209th St (Bronx)
4-bldgs, 5-story, 84-units, 85,244 sf total
2679 Decatur Ave LLC, Dec-Hull 209 Realty LLC, Eib Grand Concourse LLC, 3053 Hull Ave LLC / Jackie Himmelstein, Besen & Associates
2374 Concourse Associates LLC, 2679 Decatur Ave LLC, 3053 Hull Ave LLC, 375 E 209TH St LLC / Amit Doshi, Besen & Associates
The four properties sold for $10.2 million.
1613, 1617, 1621, 1625, 1631 Eastern Pkwy (Brooklyn)
5 bldgs, 61-units, 73,450 total
n/a / Stephen P. Palmese, Bob Knakal, Edward Gevinski, Massey Knakal
n/a / Stephen P. Palmese, Bob Knakal, Edward Gevinski, Massey Knakal
The five properties sold for $9.6 million, or $131 per square foot.
55 West 19th St
5-story, 8,905 sf
n/a / Brock Emmetsberger, John Ciraulo, Craig Waggner, Massey Knakal
n/a / Brock Emmetsberger, John Ciraulo, Craig Waggner, Massey Knakal
The property sold for $8.5 million, or $955 per square foot.
2254 Bassford Ave, 1195, 1199 Boston Rd, 2280 Bathgate Ave (Bronx)
4-bldgs, 5-story, 69-units, 65,470 sf total
n/a / Alex Frants, Besen & Associates
Z Metro Pollis LLC / Alex Frants, Besen & Associates
The four properties sold for $8.5 million.
141 Nagle Ave
5-story, 44-units
n/a / Isaac Kohanim, Capin & Associates Inc.
145 Nagle Avenue Corp. / Nathan Benelyahou, Capin & Associates Inc.
The property sold for $8 million.
70 Henry St (Brooklyn)
4,163 sf
JMH Development and Madison Estates / Stephen P. Palmese, Michael Mazzara, Thomas Freeland, James Berluti, Massey Knakal
Ridgeton Poultry, Inc. / Stephen P. Palmese, Michael Mazzara, Thomas Freeland, James Berluti, Massey Knakal
The property sold for $7.5 million.
39 Ferris St (Brooklyn)
40,000 buildable sf
KB Global Partner / Yoko Evans, Furumoto Realty
39 Ferris Street Realty LLC / Jeffrey Unger, Kalmon Dolgin Affiliate
The property sold for $5 million.
834 Lexington Ave (Brooklyn)
33,000 buildable sf
n/a / Michael Amirkhanian, Massey Knakal
Ciliano Garage Inc. / Michael Amirkhanian, Massey Knakal
The property sold for $4.3 million.
4103 Seventh Ave (Brooklyn)
4-story, 20-unit, 14,456 sf
n/a / n/a
700 Sackett Street LLC / Adam J. Hess, TerraCRG
The property sold for $4.1 million, or $207,000 per unit.
246 West 38th St
6,062 sf
Divine Apparel Inc / Evan Lieberman, EVO; Michael Dylan, Inceptum Inc.
Voorsanger Architects PC / Evan Lieberman, EVO; Michael Dylan, Inceptum Inc.
The penthouse, located on the 14th floor of the building, sold for $4 million.
65 Nagle Ave
5-story, 26-units, 21,080
Nagle Realty Associates, LLC / Lazer Sternhell and Peter Vanderpool, Cignature Realty
New York Commercial Property Group LLC / Lazer Sternhell and Peter Vanderpool, Cignature Realty
The property sold for $3.9 million.
277 West 150th St
5-story, 21-units, 14,554 sf
n/a / n/a
Kpp 150th Street LLC / Victor Sozio, Michael A. Tortorici, Josh Berkowitz, Marko Agbaba, Ariel Property Advisors
The property sold for $3.6 million.
2265 Grand Ave (Bronx)
5-story, 27-units, 25,500 sf
2265 Grand Ave Bronx LLC / Amit Doshi, Besen & Associates
Grand Realty Management LLC / Matt Garcia, Besen & Associates
The property sold for $3.4 million.
1097 Prospect Ave (Brooklyn)
4-story, 13-units, 15,028 sf
n/a / Jacob Aronov, Alpha Realty
1097 Prospect LLC / Amit Doshi and Michael Besen, Besen & Associates
The property sold for $3 million.
411 Graham Ave (Brooklyn)
4,375 sf
n/a / Shaun Riney, James Saros, Michael Salvatico, Marcus & Millichap
n/a / Shaun Riney, James Saros, Michael Salvatico, Marcus & Millichap
The property sold for $2.4 million, or $550 per square foot.
59-05 70th Ave (Queens)
6-units, 5,610 sf
59-05 70th Ave LLC / Daniel Barcelowsky, Misrahi Realty
Henryk Kwiatkowski / n/a
The property sold for $2.3 million.
318 East 117th St
3-story, 7,569 buildable sf
n/a / n/a
Kenjo Management Corp. / Michael A. Tortorici, Victor Sozio, Marko Agbaba, Josh Berkowitz, Ariel Property Advisors
The property sold for $2.2 million.
165 Diamond St (Brooklyn)
2-story, 2-units, 1,764 sf
n/a / Michael Kawochka, Warren Lewis Sotheby’s International Realty
165 Diamond Street LLC / Tamara Abir and Brian Lewis, Halstead
The property sold for $2.1 million.
1322 Cortelyou Rd (Brooklyn)
8,000 sf
n/a / Derek Bestreich, Lucien Sproviero, Erik Rodriguez, Marcus & Millichap
n/a / Derek Bestreich, Lucien Sproviero, Erik Rodriguez, Marcus & Millichap
The property sold for $2.1 million.
414-416 Tompkins Ave (Brooklyn)
6,400 sf
n/a / n/a
n/a / Ofer Cohen, Melissa Warren, Dan Marks, Peter Matheos, Michael Hernandez, TerraCRG
The property sold for $2 million.
197 St. Marks Ave (Brooklyn)
3-story, 6-units
n/a / Shlomo Antebi, GFI Realty
n/a / Shlomo Antebi, GFI Realty
The property sold for $1.9 million.
390 Fifth Ave
5,000 sf
Ki Wan Kim / Tony Park, Pd Properties LLC
n/a / Tony Park, Pd Properties LLC
The retail shop, W Cafe, sold for $1.8 million.
37-10 11th St (Queens)
3,500 sf
n/a / Wook Chung, Marcus & Millichap
Setay LLC / Wook Chung, Marcus & Millichap
The property sold for $1.7 million.
1092 Nostrand Ave (Brooklyn)
3-story, 8-units total
n/a / Yona Edelkopf, EPIC Commercial Realty
n/a / Shay Zach, EPIC Commercial Realty
The property sold for $1.7 million.
47-42 48th St (Queens)
3-story, 6-units
Tornello Michael / Yuriy Ustoyev, EPIC Commercial Realty
48 ST LLC / Yuriy Ustoyev, EPIC Commercial Realty
The property sold for $1.2 million.
106 January 2015 www.TheRealDeal.com
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Buys continued Address
Size
Buyer / Representative
Seller / Representative
Notes
121 Irving Ave (Brooklyn)
6-unit apt. bldg
n/a / Bart Zimmermann, Barcel Group
n/a / Michael Fridman, Barcel Group
The property sold for $1.2 million.
232 Stanhope St (Brooklyn)
6-unit apt. bldg
232 Stanhope LLC / Marcel Fridman, Barcel Group
Nenita E. Soriano / Marcel Fridman, Barcel Group
The property sold for $1.2 million.
188 Suydam St (Brooklyn)
6-unit apt. bldg
Mjs Suydam LLC / Marcel Fridman, Barcel Group
Jlw Properties Management, Inc. / Marcel Fridman, Barcel Group
The property sold for $1.2 million.
653 Marcy Ave (Brooklyn)
4-story, 4-units, 4,000 sf
n/a / n/a
n/a / Michael Amirkhanian, Massey Knakal
The property sold for $1.2 million.
17-34 Menahan St (Queens)
5-unit apt. bldg
Menahan Squared LLC / Marcel Fridman, Barcel Group
Gerardo Vera / Marcel Fridman, Barcel Group
The property sold for $1.1 million.
377 Menahan St (Brooklyn)
6-unit apt. bldg
n/a / Marcel Fridman, Barcel Group
377 Menahan Street LLC / Marcel Fridman, Barcel Group
The property sold for $1 million.
Financing Address
Size
Borrower / Representative
Lender / Representative
Notes
44-54 Ninth Ave, 351-355 West 14 St, 362-364 West 15th St
82 residential units, 29,409 sf retail
Tavros Holdings LLC and Arel Capital / Steven Klein and Jennifer Keller, HFF
Blackstone Mortgage Trust / n/a
A loan of $85 million was provided to the three-building portfolio.
30-34 West 47th St
10-story, 55,100 sf
n/a / Allan Lieberman, Rael Gervis, Asher Haft, Meridian Capital Group, LLC
n/a / n/a
A $31.3 million, seven-year loan was arranged for the property.
465-476 84th St, 2566 Ocean Ave, 1745 East 12th St, 1811 Quentin Rd (Brooklyn)
4-bldgs, 260-units total
Landau Real Estate / Jacob Schmuckler, Meridian Capital Group, LLC
Astoria Bank / n/a
A $30 million mortgage was arranged for four properties.
1100 Clove Rd (Staten Island)
300-unit co-op
Fountains-Clove Road Apartments, Inc. / n/a
NCB / n/a
A $9.2 million first mortgage and a $500,000 line of credit were arranged for the cooperative.
4 Dartmouth St (Queens)
175-unit co-op
Tennis View Apartments / n/a
NCB / n/a
A $5.2 million first mortgage and a $500,000 line of credit were arranged for the cooperative.
1075 Grand Concourse (Bronx)
111-unit co-op
1075 Concourse Tenants Corp. / n/a
NCB / n/a
A $5 million first mortgage and a $350,000 line of credit were arranged for the cooperative.
2186 Cruger Ave (Bronx)
72-unit co-op
2186 Cruger Avenue Apartments Corp. / n/a
NCB / n/a
A $4.3 million first mortgage and a $400,000 line of credit were arranged for the cooperative.
380 West 12th St
52-unit co-op
The Waywest Tenants / n/a
NCB / n/a
A $3.2 million first mortgage and a $500,000 line of credit were arranged for the cooperative.
3400 Wayne Ave (Bronx)
103-unit co-op
Lenru Apartment Corp. / n/a
NCB / n/a
A $3.1 million first mortgage and a $500,000 line of credit were arranged for the cooperative.
64-70 Grand St
18-unit co-op
Grand Street Artists Cooperative / n/a
NCB / n/a
A $2.3 million first mortgage and a $500,000 line of credit were arranged for the cooperative.
219 West 71st St
4-story
Fine Times Incorporated / Shamir Seidman, Meridian Capital Group, LLC
n/a / n/a
A $2.3 million, seven-year loan was arranged for the property.
82-04 Lefferts Blvd (Queens)
39-unit co-op
82-04 Lefferts Tenants Corp. / n/a
NCB / n/a
A $1.1 million first mortgage was arranged for the cooperative.
17-19 East 95th St
25-unit co-op
17-19 East 95th Street Tenants Corp. / n/a
NCB / n/a
A $850,000 first mortgage and a $500,000 line of credit were arranged for the cooperative.
63 East 79th St
9-unit co-op
63 East 79th Street Corporation / n/a
NCB / n/a
A $550,000 first mortgage and a $250,000 line of credit were arranged for the cooperative.
161 West 76th St
8-unit co-op
161 West 76th Street Apartment Corp. / n/a
NCB / n/a
A $360,000 first mortgage was arranged for the cooperative.
816-826 43rd St (Brooklyn)
30-unit co-op
Finnish Home Building Association / n/a
NCB / n/a
A $250,000 line of credit was arranged for the cooperative.
108 January 2015 www.TheRealDeal.com
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Other Deals Stone Street sells its last five NYC properties for $61M
Omega, Lululemon sign up at Brookfield Place
Stone Street Properties sold its last five New York City holdings — five connected buildings on Soho’s Elizabeth Street — to an unidentified buyer for $61 million, The Real Deal has learned. The five walk-ups in question — which Stone Street is selling together with its equity partner Meadow Robert Morgenstern and Jeff Kaye Partners — 260, 262, 264, 266 and 268 Elizabeth Street, contain a total of 48 residential units and 6 retail spaces and offer a total of 63,500 buildable square feet. Shoe retailer Tom’s is scheduled to take one of the retail spaces early next year. Westwood Realty Associates’ Steven Vegh was the sole broker on the transaction. He declined to comment. Stone Street was founded in 2011 by former residential broker Robert Morgenstern and Gotham Organization alum Jeffrey Kaye. Over the past three years, the Midtown-based firm spent more than $200 million to buy a 29-building Manhattan and Brooklyn portfolio with nearly 800 apartments, according to Real Capital Analytics. Morgenstern declined to comment on the deal. Kaye told TRD last June that it was planning to add another 400 apartments to its Manhattan portfolio. But based on the list of properties on Stone Street’s website, plus a $132 million, 16-building deal with Jared Kushner, and another $31.5 million deal to sell the Jesse on East 3rd Street to Gatsby Realty, the company no longer has any holdings in the city. (The deal was announced after the deadline for the Deal Sheet.)
Brookfield Office Properties signed up two high-profile retail tenants for its Brookfield Place complex: Omega, the tony watch manufacturer, and Lululemon, the godsend of Bikram Yoga enthusiasts everywhere. Both tenants inked leases for roughly 3,000 square feet apiece, the New York Observer reported. Omega’s space will be located in the winter garden, while Lululemon will sit adjacent to Spanish restaurant Amade. Brookfield Properties is asking $500 per square foot on the ground floor and $350 per square foot on the upper floors. The retail portion of the complex is now about 90 percent leased. Edward Hogan and Soozan Baxter represented Brookfield in-house. The Auber Group’s John Auber represented Lululemon and Cushman & Wakefield’s C. Bradley Mendelson and Alan Schmerzler represented Omega, according to the newspaper. (The deal was announced after the deadline for the Deal Sheet.)
TF Cornerstone gets $250M financing for DoBro resi development
TIAA-CREF, Korean credit union get in on Mobil building action
33 Bond Street
Brookfield Place
Thomas and Fred Elghanayan’s TF Cornerstone secured a $250 million mortgage from the New York State Housing Finance Agency for its planned 714-unit residential building at 33 Bond Street, according to property records filed with the city. TF Cornerstone is building a 25-story building at the Downtown Brooklyn site, which will include 143 affordable units. The project will total 599,375 square feet, including 546,480 square feet of residential living space and 30,000 square feet of retail space on the lower level. The developer purchased the site from Joseph Sitt’s Thor Equities last April for $70 million. Gary Handel is the architect of record. (The deal was announced after the deadline for the Deal Sheet.)
TIAA-CREF and the Korean Teachers Credit Union acquired a $175 million loan on the Mobil building at 150 East 42nd Street. The financing is part of David Werner and his partners’ $900 million purchase of the 42-story Midtown office tower, Bloomberg News reported. TIAA-CREF and the KTCU, which both manage teachers’ savings, are looking to invest in mortgages that are backed by all types of big buildings in gateway markets across the U.S. TIAACREF originated the $175 million mezzanine loan on the tower and sold it to the joint venture after the partnership TIAA-CREF CEO Roger Ferguson deal was completed last week, a spokesperson for TIAACREF said. Werner and his investors landed about $700 million in financing for the acquisition of the tower in August, as The Real Deal reported. (The deal was announced after the deadline for the Deal Sheet.)
Touro College may take nearly 300K sf at Chetrit’s 500 Seventh
Urban Muse buys FiDi development site for $52M
Touro College has signed a lease for a two-floor, 57,000-squarefoot space at the Chetrit Group’s 17-story Garment District office building at 500 Seventh Avenue, and is in advanced talks for an extra 230,000 square feet, The Real Deal has learned. The Jewish-sponsored private school has a memorandum of understanding for the additional space, Alan Schoor, senior vice president at Touro, confirmed to TRD. If a lease deal is arranged for the full 287,000 square feet, Touro will Joseph Chetrit occupy nearly half of the 606,000-square-foot Class B office property. “Negotiations are ongoing and proceeding in a positive fashion,” Schoor said in a statement. Sources close to the deal said that it isn’t yet clear how many floors Touro will occupy in total. Michael Dreizen and Matthew Feigen of Newmark Grubb Knight Frank represented the Chetrit Group, which owns a majority stake in the building. Joseph Moinian’s the Moinian Group owns a minority stake there. Solil Management, the company that manages the assets of late real estate mogul Sol Goldman, owns the ground lease, as TRD reported. A FedEx Office outpost occupies the ground-floor retail space. (The deal was announced after the deadline for the Deal Sheet.)
Glauco Lolli-Ghetti’s Urban Muse bought 1 Beekman Street on the border of Tribeca and the Financial District for $52 million. This is the first trade of the development site in more than 40 years. Two low-rise buildings, together totaling roughly 25,000 square feet, currently occupy 34 Park Row the location, also known as 33-34 Park Row. The so-called “Pearl on the Park” site can hold between 73,000 and 87,300 buildable square feet, according to the listing with Massey Knakal Realty Services’ James Nelson and Will Suarez. When the site first hit the market, Pei Cobb Freed & Partners Architects created a concept rendering for the site, envisioning a glassy tower. Sharonarn Associates is the seller. The site could hold a minimum of 48,500 square feet of residential space, or 52,200 square feet if 5,000 square feet of recreation space were created, according to the listing. The site also holds up to 14,550 buildable square feet that can be used for retail or commercial space. If the site receives a plaza bonus, it could allow for a project of up to 87,300 square feet. (The deal was announced after the deadline for the Deal Sheet.)
To view more deals visit our website: www.TheRealDeal.com
110 January 2015 www.TheRealDeal.com
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PROFILE Anthony Orso, CEO and co-founder of Cantor Commercial Real Estate
Taking on the big guys at Cantor Commercial Young firm originates $10B in loans for 2014, double the year before BY E.B. SOLOMONT ining a windowsill in Anthony Orso’s office at Cantor Commercial Real Estate are dozens of statuettes — deal toys, he calls them — one for each of the $8 million to $580 million loans the commercial lender has done to date. “We do this to celebrate our small victories,” said Orso, 51, CEO and co-founder of CCRE, the commercial lending arm of Cantor Fitzgerald. One wouldn’t think the head of a successful firm would need to be surrounded with trinkets, but these are reminders of hard-won victories. “The branding of CCRE has been a little bit challenging. We compete with small companies like Wells Fargo, Bank of America and Citi,” Orso quipped. “Small companies, right?” Still, since launching in 2010, CCRE has emerged as a force to reckon with. It was on track to originate $10 billion in loans last year, nearly double the $5.5 billion in loans it originated in 2013, and almost 10 times its volume in 2011, the year of its first deal. Over those four years, as the commercial lending environment rebounded, CCRE went from being a shop focused on commercial mortgage-backed securities to one that offers an array of products. In April, it acquired Maryland-based Berkeley Point Capital and added loan servicing to its offerings. The firm is reportedly weighing an initial public offering as it looks to grow further. A Staten Island native, Orso was a driving force in Cantor’s acquisition of Berkeley Point and has earned a reputation for being willing to roll up his sleeves and go above and beyond for clients, including the Sapir Organization, which he advised last year as it negotiated a $1.8 billion lease renewal for Credit Suisse at 11 Madison Avenue. Orso said his motto is a simple one: “Do every good loan.”
L
112 January 2015 www.TheRealDeal.com
“What that means is, ‘Strive to be there for your clients. Strive to execute on what they need, and work as hard as you need to, to get every opportunity in front of you closed,’” he said. “Money has become, on the real estate side, a commodity. In a commodity business, you differentiate yourself by client service.” While Cantor’s other marquee deals include leading a group that provided a $580 million loan for Las Vegas’ Miracle Mile Shops (Cantor kicked in $290 million), Orso acknowledges that smaller deals ($15 million and under), are the key to its growth. To date, the firm has originated $2 billion in loans under $10 million; its average loan size is $20 million. “A lot of the big guys who don’t have a lot of staff won’t even look at loans under $10, $15, $20 million,” he said. Orso said having “boots on the ground” — a reference to CCRE’s team of 330 employees Orso collects a “trophy” in 15 cities — makes for each completed loan done by Cantor handling those loans Commercial Real Estate. possible. And the unit has been capitalizing on the evolving needs of clients, who often start with a single, small loan, and increasingly come to Cantor seeking larger, more complicated financings. “It’s easy to bind on a $100 million loan. Everyone wants to do that, there’s no doubt,” Orso said. “But guess what? If that same borrower has an $8 million loan, it’s just as important. And our ability to help on smaller loans has developed trust by our clients and has put us in the position to grow our business with their capital needs.” PHOTOGRAPHwww.TheRealDeal.com OF ORSO FOR THE REAL DEAL BY DOMINIQUE PETTWAY January 2014 35
PROFILE Recruited as a team Orso, 51, is at the helm with longtime business partner Michael Lehrman. The duo ended up at Cantor Fitzgerald after a beachside conversation in 2009 with CEO Howard Lutnick, who wanted to add a real estate platform to the investment firm’s operations. By that time, Orso had been immersed in real estate for decades, starting with small jobs on his father’s construction sites. He recalled pushing wheelbarrows on sites as a teenager, making cement manually, and breaking apart construction debris. “I learned this business literally from the ground up,” he said. Attending business school at Columbia University was a turning point. On the first day of orientation, he met Lehrman, and the two became partners and best friends. After B-school, Orso landed a job at Chemical Bank. In 2002, he went to Credit Suisse, where he was co-head of the Credit Suisse Real Estate Direct Group and responsible for over $100 billion in loans. In 2009, Lutnick promised to give Orso and Lehrman the capital and resources to build a real estate finance business, and the pair launched CCRE. As a CMBS shop, CCRE completed its first deal in 2011, just as the market was starting to stabilize. “People thought we were crazy, because we were hiring when there was no market, and later people thought we were lucky that we hired back then,” Orso said. “Maybe we were lucky. I can’t tell you I knew exactly what was going to happen.” Meanwhile, Cantor Fitzgerald was moving into commercial brokerage. In 2011, it bought Newmark Knight Frank, and in 2012, Cantor spinoff BGC Partners closed on its purchase of Grubb & Ellis to form Newmark Grubb Knight Frank. The units, while run separately, are symbiotic. Cantor may tap Newmark for property-level information, while Newmark may refer a client who needs financing to CCRE. Either way, CCRE has made a name for itself. “They’ve gone from zero to 60 in the past couple of years in the CMBS business,” said Manus Clancy, senior managing director at Trepp LLC. Among its top deals, CCRE provided Normandy Real Estate Partners with $145 million in financing for twin buildings at 80 and 90 Maiden Lane. CCRE also loaned $231 million to Sapir, for 260 and 261 Madison, in 2012. Outside of New York, CCRE’s loans include a $180 million loan for an office building at One Wilshire in Los Angeles in 2013 and a $156 million loan at RiverTown Crossings Mall in Michigan in 2011. Still, Clancy said Orso’s quest for brand recognition for CCRE “can’t be underestimated.” “In this business, it’s not your model or your algorithm, it’s who you are and what you’ve done before,” he said. “When you’re a guy looking for a loan, your first thought is to call your insurance company, call BofA, 34 January 2014 www.TheRealDeal.com
JPMorgan, Credit Suisse. [Orso] has that added challenge of, ‘How do I get my name out there? How do I make sure people think of me when they’re looking for money?’”
Bumpy road ahead To that end, CCRE doesn’t have an entirely clear path to the finish line. Moody’s Investors Service assigned CCRE’s corporate family a Ba3 rating, and its senior unsecured debt a B1 rating, citing its “mono-line business model as a
To that end, Cantor’s deal with Berkeley could be game-changing. “The company has broadened its business model with the … acquisition of Berkeley Point, which provides it with an agency platform as well as a recurring servicing fee stream,” according to Moody’s. The acquisition required painstaking salesmanship on Orso’s part. Last year, Cantor hired Michael C. May, the former head of Freddie Mac’s multi-family group, to help identify acquisition targets. He and Orso spent about six months sifting
loan also ushered through by Cantor. “If it was a year ago, [Orso] would not have gotten the [second] deal,” Potter said. “Here, the borrower was like, ‘I know Cantor Fitzgerald.’” He said the same client is shopping for a $7 million loan and is likely to go through CCRE again. Potter, who worked under Orso at Credit Suisse, said his former boss is “all about results.” “He’s that type of guy who will jump in there and help out, whether to deal with a bureaucratic issue or a client. He has a lot of energy and he gets it,” he said.
CCRE’s top deals, 2011-2014 YEAR
BORROWER
STATE
PROPERTY TYPE
LOAN AMOUNT
2014
ARCP Portfolio
California
mixed use
$465 million
2013
Miracle Mile Shops
Nevada
retail
$290 million
2012
260-261 Madison Avenue
New York
office
$231 million
2013
Magna NYC Hotel Portfolio
New York
hospitality
$220 million
2012
The Prince Building
New York
mixed use
$200 million
2013
One Wilshire
California
office
$180 million
2014
South Towne Center
Utah
retail
$167 million
2011
RiverTown Crossings Mall
Michigan
retail
$156 million
2014
Yorktown Center
Illinois
retail
$150 million
2014
80 and 90 Maiden Lane
New York
office
$145 million
Source: CCRE
260 Madison
commercial real estate lender, which is a highly competitive business.” Both ratings are considered non-investment grade, more commonly called “junk.” “Although CCRE has posted good profitability to date, it has a limited history and has been operating amidst generally favorable market conditions since its inception,” Moody’s analysts wrote in June. And the conduit lending business as a whole is more competitive than it was even one year ago, said Dan Altscher, a research analyst at FBR Capital Markets who covers CCRE competitor Ladder Capital. Ladder raised $260 million in its own IPO last February. “A lot of [the competition] is driven by the fact that there’s a lot more volume to do,” said Altscher, referring to a healthy commercial real estate market. But, he said, “the more competitive it’s getting, the thinner the margins are ultimately getting.”
The Prince Building
through a list of companies. Berkeley Point always emerged on top. Orso said he spent six months having breakfasts, lunches, dinners and drinks with the firm’s principals, at least three, but sometimes six times per week, trying to convince them to do a deal. “It wasn’t just because I was trying to woo them,” he said. “I wanted them to understand the vision of how this could work together.” Less than a year after the deal closed, the benefits are clear. Ray Potter, whose firm R3 Funding, a lender correspondent that brings together mortgage brokers, borrowers and lenders, did $125 million in loans with CCRE last year, attributes that volume to new product lines that Orso added. For example, in early 2014, one of Potter’s clients in Rochester, New York, obtained a $5.8 million CMBS loan from Cantor. That was followed by a $26.2 million Freddie Mac
With 330 employees, Cantor Commercial is still a small group, considering that Cantor Fitzgerald and its affiliate BCG employ 8,000 people worldwide. Orso declined to comment on a possible public offering, though industry sources said that going public is a logical way for Cantor to grow. “If you’re building a big company like that with multiple product lines, the public money is generally cheaper than the private money,” Potter said. About 25 percent of Cantor’s loan volume over the last few years has been in the New York metro area, but the company is growing aggressively on the West Coast, too. Also, following the Berkeley Point acquisition, CCRE is servicing nearly $30 billion in loans, a business line that’s poised to grow “significantly,” said Orso. “I think we’re just at the beginning stages of building a dominant commercial real estate finance business.” TRD www.TheRealDeal.com January 2015 113
DEVELOPMENT UPDATES
DESIGN FOR THE WORKPLACE
SALES UPDATES
Gowanus 465 Carroll Street
BY WASA STUDIO
Marketed by Ideal Properties, sales have launched in the four-unit boutique condominium building at 465 Carroll Street. The units range in size from one- to three-bedrooms, and in price from $699,000 to $1.55 million. Each unit features stainless-steel appliances, quartz countertops, marble-tiled baths and wide-plank floors. The building is just a block away from the historic Carroll Street Bridge. Contact: www.idealpropertiesgroup.com.
Shamir Shah, ranging from two-bedroom units to one seven-bedroom unit. The seven-bedroom home is part of the building’s Premium Residence Collection, which also includes four-, five- and six-bedroom homes with private swimming pools and double-height living spaces. Building amenities include La Palestra, a 40,000-square-foot athletic club and spa that features a 75-foot swimming pool, 38-foot rock-climbing wall, basketball and squash courts, a bowling alley and a golf simulator. Marketing and sales for the building are being handled by Corcoran Sunshine. Contact: oneriversidepark.com.
Hell’s Kitchen 432 West 52nd Street
Dumbo Waterbridge 47 47 Bridge Street
Your purpose. Your identity. Your style. 212.420.1160 x135 www.wasallp.com ARCHITECTURE ENGINEERING PRESERVATION INTERIORS SUSTAINABILITY
Sales launched at Waterbridge 47, a boutique condominium building comprised of 25 luxury residences. Residences include one-, two-, and three-bedroom homes, as well as three duplex homes and two penthouses. Units range in size from approximately 700 square feet to more than 1,200 square feet; prices start at approximately $850,000 and run as high as $2.2 million. Building amenities include a wine cellar and tasting room, concierge access, roof deck, fitness center, children’s playroom, bike storage, and private parking. All units come with stainless-steel appliances, marble countertops, and laundry machines. The penthouses feature wraparound terraces. Marketing and sales are being handled by aptsandlofts.com. Contact: www.waterbridge47.com.
Come and visit us at Duravit NYC: 105 Madison New York, NY
Design by Matteo Thun & Partners
Upper West Side
DuraStyle. The new standard for your bathroom. Excellent design. Smart technology. Best price-quality ratio. Unlimited possibilities. Quality that lasts. A Duravit original. Curious? info@us.duravit.com, pro.duravit.us, www.duravit.us
114 January 2015 www.TheRealDeal.com
One Riverside Park 425 Freedom Place
Developed by Extell, One Riverside Park has now reached 85 percent sold. The luxury waterfront condominium building offers 219 homes designed by architect
Developed by JVL Property Group, Okada Acquisitions and Zion Enterprises, sales have launched at 432 W 52, a seven-story, 55-unit building comprised of units ranging from studios to two-bedroom apartments. The units range in size from 432 square feet to 1,488 square feet. Prices range from $600,000 to $2.4 million. Building amenities include concierge services, a resident lounge with Wi-Fi and bar area, fitness center, and a 4,200-square-foot rooftop terrace. Stribling Marketing Associates is handling sales. Contact: www.432w52.com.
Murray Hill 325 Lexington Avenue The recently completed 325 Lex, a 31-story luxury condominium tower, is 30 percent sold after two months. Each unit features floor-to-ceiling windows and 9-10 foot ceilings. There are two full-floor penthouses, each with three bedrooms and three-and-ahalf baths. Building amenities include a 24-hour doorman, a fitness center designed by The Wright Fit, and a furnished roof deck featuring a barbecue and views of the East River, Empire State Building, and Chrysler Building. Available residences start at $1.2 million for a one-bedroom home to $8.25 million for a penthouse. 325 Lex offers a 421-a tax abatement. Corcoran Sunshine is handling sales. Contact: www.325Lex.com. Compiled by Brendan O’Connor
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RESIDENTIAL DEALS
SELECT LISTINGS East Harlem $620,000 249 East 118th Street, #8A
Two-bedroom, two-bathroom 963-squarefoot condo in the Ivy Condominium. Features 180-degree views through oversized, Italian-imported, sound-resistant windows, as well as recessed lighting and a balcony. Building, originally built in 1949, was converted to condos in 2006. Common charges: $766 per month. Abated taxes: $63 per month. Asking price: $574,000. 29 weeks on the market. (Brokers: Josephine Ciliento, Realty Collective; Jon Abeles, Corcoran.) “This was a first-time buyer. He’d grown up on Long Island and lived in Carroll Gardens for a long time. This was a little bit of a headache deal, but the buyer’s patience and determination sealed it. The seller didn’t like the offer at first; he didn’t want to close under his own name, he wanted to sell it to his partner first. It was a big mess. As we were closing the deal, we did our final walk through — it was on a Monday — and it was pouring rain. There was water damage that hadn’t been there before, coming from the outside. For a first-time buyer, he went through a lot. I told him, ‘If it wasn’t raining, you wouldn’t have known!’ Now he loves it there. I’m really looking forward to the holiday party.” Josephine Ciliento, Realty Collective
Lower East Side $1.25 million
195 Bowery, #5E One-bedroom, one-bathroom, 1,000 -square-foot condo with a high-ceilinged, loft-like living area with oversized windows and oak floors. A private balcony offers views to the north, south, and east. Common charges: $490 per month. Taxes: $920 per month. Asking price: $1.25 million. 3 weeks on the market. (Brokers: Kim Skarvelis, Cast Iron Real Estate; Roy Silber, Citi Habitats.) 116 January 2015 www.TheRealDeal.com
“This buyer was looking for charm and character. We started in the Upper East Side, went out to Williamsburg. When we found this apartment, at first we were just looking at the floor plan and pictures. There was a tenant in the apartment, and it was difficult to get access. But it was everything the buyer was looking for — a commercial structure converted to residential, which really added to its character. Even though it’s on the Bowery, it’s facing east, away from the noise. The buyer was looking for a primary residence, but the current tenant had a very long lease, and an option to renew. She purchased the place not knowing when she’ll be able to move in. It was marketed before, at a much higher price point, and then came off the market. The seller was an attorney, representing herself. There were some interesting moments at the closing, but we forced the deal through.” Roy Silber, Citi Habitats
Crown Heights $762,600 1590 Pacific Street, #2
Three-bedroom, two-and-a-half bathroom, 1,650-square-foot penthouse duplex in a newly constructed condominium building. Kitchen features white-quartz countertops and stainless-steel appliances. Staircase leads up to roof deck with panoramic views of Manhattan. Common charges: $443 per month. Taxes: $679 per month. Asking price: $749,000. 13 weeks on the market. (Brokers: Hakim Edwards and Howard Ramlal, Halstead; Porter Hovey, Harkov Lewis Team, Halstead.) “This is a unique property, an upper duplex over 1,600 square feet, with city views, on the northeast side of Crown Heights. It’s a new construction. I had spoken to the owner about converting it into condos about a year ago. We had multiple offers — everybody wanted the penthouse, because of the view. That location in Crown Heights, it has the Bed-Stuy appeal as well. The buyers were a couple from Williamsburg, they wanted to stay in Brooklyn, and be closer to Barclays. They’re big Nets fans. Before they even moved in, they were hanging around the block, visiting with neighbors. But it was the view — the view sold the apartment before I ever did.” —Hakim Edwards, Halstead Compiled by Brendan O’Connor
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Winter getaways
from page 76
Jackson Hole, Wyoming he site of closely watched global monetary conferences, Jackson Hole is also a favorite destination for Wall Street bankers and other New Yorkers. They come for the wide-open spaces, dramatic scenery and outdoor recreation, from skiing to mountain biking to golf, said Rob DesLauriers, founding agent of the Realty Group of Jackson Hole, a Sotheby’s Real Estate firm. “We have a very laid-back culture, an authentic Western environment with amazingly civilized and elegant offerings,” he said. “There is a certain escapism that Jackson offers in its anonymity for high-profile folks.” DesLauriers said New York buyers are looking for one of two types of residences: either a large home with great views, or (for the focused skiers) low-maintenance condominiums. For the latter, there are several condohotels, such as the Four Seasons, Hotel Terra and Teton Mountain Lodge, all located at the base of the slopes. They offer full-service resort environments with restaurants, spas, pools and in-house management.
T
“Owning is luxurious, convenient and absolutely hassle-free,” he said. In the third quarter, the median price of a condominium/townhome in Jackson Hole was $452,000, while the median price of a single-family home rose to a range of $300,000 to $1.1 million, according to Jackson Hole Real Estate Associates. The luxury market fared the best, with sales up 18 percent. The average sales price above $3 million was $5.71 million. Among the Realty Group of Jackson Hole’s most prestigious listings include the penthouse at the Four Seasons Jackson Hole for $4.95 million. The four-bedroom, 4.5-bathroom residence comes with a gourmet kitchen, fireplace, private underground parking and unparalleled views of Jackson Hole Mountain. Further out, the firm represents many ranch estates like the Bar B Bar ranch in North Jackson Hole for $24.75 million featuring a 7,600-square-foot rustic (but luxurious) main house, a 4,624-square-foot bunkhouse and a 2,070-squarefoot recreation house with an observatory, squash court,
climbing wall and gym. The 72-acre property is on the Snake River and has two creeks and several ponds along with views of the Cathedral Group of the Teton Range. “So many circles of very active and influential people seem to gravitate to Jackson,” DesLauriers said. “I often see new arrivals surprised by the network of friends that they share here.”
Skiing in the Tetons is just one of the appeals of Jackson Hole.
Vermont or New York ski buffs who prefer East Coast snow, the mountains of Vermont remain a popular choice. Annie Bessette, a principal broker with TPW Real Estate in Bondville, Vermont, is seeing everyone from young families to active retirees venturing from the Big Apple to enjoy the Green Mountain State’s quality of life. At Stratton Mountain, those getting away can enjoy skiing, both downhill and cross-country, along with snowshoeing and ice skating. In the warmer months, there’s kayaking, fishing, golf and hiking at the birthplace of the Appalachian Trail, Bessette said, along with great restaurants and cultural events in the towns of Manchester and Dorset. The area offers ski-in-ski-out condos, condos in the middle of town, and single-family homes of various sizes, from one- to six-bedroom properties. In Stratton, prices
F
This five-bedroom estate in Stratton is listed at $3.8 million.
New building codes
from page 78
with Disabilities and Fair Housing acts) with those of the widely recognized International Code Council. The city used the ICC codes, which are revised every three years, as its base for recommendations. Yet the process is so time consuming, the city’s codes lag one cycle behind the international council’s: both the 2008 and 2014 codes were built on the ICC’s from three years prior. More than half a dozen committees worked to put the city’s new guidelines together, and the real estate industry made its presence felt on the managing committee, which included representatives from the Real Estate Board of New York, Rudin Management and members of various other industry organizations. And while there seems to be consensus that four decades is a long time to go between overhauling the codes, successive changes can start to become burdensome when they’re not considered in the context of previous revisions. “My impression is that with the 2008 code, everything got a little bigger, and now everything is getting bigger again,” said Kartik Desai, a partner at Tamarkin & Co. and the firm’s director of development. “The cores are getting bigger; the stairs getting bigger. We’re just getting really
118 January 2015 www.TheRealDeal.com
range from $200,000 to $1.5 million. In Manchester and Dorset, prices can go as high as $3 million for a singlefamily home. So far this season, buyers have been active, Bessette said, but she would love more. Among the priciest listings in the area include a sixbedroom, seven-bathroom winter ski lodge home in Stratton for $4.9 million. Situated on 140 acres, the home has horizon views of Mount Snow, Stratton Sun Bowl and Bromley Mountain. In Dorset, an eight-bedroom, eightbathroom country estate is listed for $5.95 million. On 47 acres, the property includes a guest house, pool and pool house, two-story barn and a four-car garage with a caretaker’s apartment. “We’re looking forward to a busy winter, when it really gets to be a bustling community,” Bessette said. “It’s snowing as we speak.” TRD
squeezed with our ability to make efficient floor plans.” The bigger rooms can be more easily accommodated in large luxury apartments. But as speculation increases about a potential glut of product at the top end of the market, developers are beginning to turn toward smaller condos in an effort to appeal to mid-market buyers. Desai said that in areas with lower price points, such as the Lower East Side, the new building codes, combined with restrictive zoning, can make it difficult to find development sites that pencil out attractively. “It’s becoming increasingly difficult to fit everything in. We end up being deterred, and if it’s deterring us it’s deterring others as well,” Desai said, adding that while he thinks the rules do indeed make for a better quality of life in the city’s housing stock, lawmakers would be better off applying them in a more holistic manner. And that may be just what’s in store next time around. When the ICC kicked off its newest code-revision cycle in November, it included a new provision requiring all proposed changes to be accompanied with a calculation the change would have on construction costs. “If the cost-impact statement or substantiation is
not provided, the proposal is considered incomplete and will not be processed,” the organization said in a statement. TRD
CORRECTIONS A N D C L A R I F I C AT I O N S In the December magazine story “Spurring slow-season sales,” the amenities at Flank’s 224 Mulberry were described incorrectly. Each apartment in the building includes two parking spots. *** In the December architectural review, “A touch of glass on Lex,” the reason the building at 229 Lexington Avenue includes a recessed facade was mischaracterized. The recession was required under NYC zoning law. *** In the December By the Numbers, the number of acres that will be devoted to public space at Hudson Yards was misstated. The correct figure is 14 acres. Also, the number of retail tenants signed on so far was incorrect. There are two, Neiman Marcus and Fairway Markets.
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Interest rates
from page 48
said Jonathan Aghravi, senior director of Eastern Consolidated’s capital advisory division. One side worries that rate increases may set off a wave of defaults, because highly-leveraged investors won’t be able to refinance, much like in 2007 and 2008. The other side believes that rates will first rise gradually, and only after the central bank determines that the economy is healthy enough to absorb them. If the economy is strong, that translates to higher rents for property owners, Aghravi said. “Again, the speed at which rates go up is very critical,” he said.
INVESTMENT LOANS
5-YEAR FIXED: 3-3.5% 7-YEAR FIXED: BEST RATE AT 3.5% 10-YEAR FIXED: 4-4.5% CMBS 5-YEAR: 3.5-4% (Source: Eastern Consolidated)
The Fed indicated it could start tinkering with rates as early as May, though most pundits are eyeing the latter half of the year. “We’ve been telling our clients to take advantage of the low rates now, with increases to come some time,” this year, said Michael Korine, director of capital markets for Berko & Associates. “Our clients are trending toward longer-term financing, with a 10-year at 4.25 percent.” Korine has also noticed that more banks are offering 10year products, when historically they tended toward 5-year or 7-year marks. There is also a direct correlation between interest rates and capitalization rates, said Jerry Swartz, one of the founders at HKS Capital, “in that they rise and fall together.” He explained as rates increase, the cost of capital rises for borrowers, which eventually leads to lower pricing of real estate. When values fall, appraisers use higher cap rates based on comparability.
The good news, though, is that there is still a lot of equity looking to fund deals now. (See related story, page 60.) “We’re doing a lot more equity transactions,” Swartz said. “We’re seeing a lot of private wealth managers for foreign investors putting money in New York. Rates have come down on that, too.”
CONSTRUCTION LOANS
FROM CONVENTIONAL BANK: 5-6% (Source: Berko & Associates) Construction loans aren’t as sensitive to rate hikes as investment loans, said Swartz. Their rates are not as competitive as purchase or refinance commercial loans either, because they are riskier, especially as the cost of construction continues to rise, said Korine. Banks still don’t have a very strong appetite for the construction market, sources noted, although it’s getting better. Lenders also require more post-closing liquidity to make deals. TRD
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Currency rates
from page 22
is developing The Oosten in Williamsburg, a condo building being built by and marketed heavily to Chinese investors. “Compared to Hong Kong, it’s an absolute bargain.” For instance, a new Hong Kong luxury condo costs $5,300 per square foot, versus $2,400 per foot for the Manhattan equivalent, said Ozden. On the commercial side, cap rates for Manhattan properties are at 4.7 percent, versus 3.1 percent in Hong Kong, according to Real Capital Analytics. “The bulk of the foreigners in the marketplace are looking at the value of the investment of real estate, especially trophy buildings,” said Melissa Cohn, president of GuardHill Financial, a New York-based mortgage company. “A 5-percent differential in the currency is not going to make or break them, in terms of making that investment in New York City.”
unsustainable pace, Chinese investors haven’t been swayed from investing in New York, Ozden said. The country’s currency was relatively stable against the dollar over the last year, mostly because it’s not free-floating, but rather pegged to a basket of currencies with a very tight margin. “It’s not going to fluctuate that much unless the government moves to depreciate or appreciate it,” said Ozden, who also pointed out that most Chinese investors’ money is already in U.S. dollars, so currency exchange rates are moot. “Generally, it would have a neutral impact,” he said. “Or, for developers or long-term investors, if the dollar goes up, eventually they will sell in the dollar and will get the appreciation in the sales price.”
Russia: the cautionary tale? The Chinese, unruffled Even as growth in their country slows from its previously
The striking story of the ruble, though, may pose an example of when a currency’s plummet could stem NYC real estate
investment. Oil-dependent Russia’s currency crashed last month, following a steady decline in oil prices. “We don’t anticipate the ruble recovering,” Mermelstein said. To try to halt the ruble’s slide, Russia’s central bank in mid-December hiked interest rates to 17 percent from 10.5 percent. The Russian Finance Ministry also pledged to sell $7 billion in foreign currency reserves to support the currency, which became free-floating in November. However, the economy minister promised Russia wouldn’t take draconian measures to keep money from flowing out of the country. “Until last week, we had quite a bit of interest in planned developments going up in New York. Deals were moving forward. Investments were being made,” said Mermelstein in late December, regarding Russian investors. “We won’t know if there will be significant changes until after the 15th of January, when the holidays of Eastern Europe are over.” TRD
Calatrava from page 52 comparison with the offices of say, Skidmore, Owings & Merrill or Robert A.M. Stern Architects.]
Any parts of that culture you’d like to expound on?
What about 80 South Street? Do you think that unbuilt visionary design of yours might be revived?
You know, that’s not an institution that we locals usually associate with imaginative architecture…
That building was like a dream. The site is magical, across from Brooklyn and next to some of the oldest buildings in Manhattan. But it is not entirely Utopian. Buildings have their moments. Sometimes they are conceived before their moment comes. As Mahler said about his symphonies, ‘Meine Zeit wird kommen. My time is yet to come.’ Perhaps that can be said about 80 South Street as well. In Manhattan there is … a culture of construction that permits the exception to occur.
Without the support of the Port Authority, a project like the transit hub could never have become a reality. The Port Authority wanted to memorialize all of those whom it had lost on 9/11. To understand that, I think, is fundamental. A private developer like Larry Silverstein could never have done something like that.... In fact, much of my work around the world has been done for state agencies.
Well, the Port Authority …
Let’s come back to the idea of the Trade Center site as a whole. I have great regard for what Daniel Libeskind was trying to do. He has created a skyline on the site that reflects the larger skyline of the city itself. And the New York Skyline is one of the great inventions of the 20th century. The aesthetic consequence of the skyline at the World Trade Center site will become clearer when all of the towers are built. There is an almost musical element to the way in which the towers interact, as though rising from each one to the next in a steady crescendo that culminates in the Freedom Tower. TRD James Gardner is the architecture critic for The Real Deal.
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Wendy L. Richardson Licensed Associate Real Estate Broker 445 Park Avenue, New York, NY 10022 wrichardson@bhsusa.com 212-906-9257
c: 646-734-2601
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Iconic buildings that met the wrecking ball A look at properties that recently bit the dust, and some that are coming down soon BY CLAIRE MOSES rom brownstones in Park Slope to a late 19th-century office building in NoMad to the final razing of an artists’ stronghold in Long Island City, many of the city’s iconic buildings were slated for demolition in 2014. The Real Deal rounded up some of the buildings that met — or are about to meet — the wrecking ball to make way for new developments.
Two Trees got the necessary approvals to demolish the buildings in 2013. The developer bought the Domino Sugar site in 2012 for $185 million.
efforts by preservationists to save the historic building. The LeFrak family and Vornado Realty Trust are planning a new high-rise condominium at 31 West 57th Street.
5Pointz, Long Island City
Roseland Ballroom, Midtown
The long-standing graffiti mecca in Long Island City is no more. The building came down last year to make way for Jerry Wolkoff ’s new development at the site. Wolkoff ’s, with his company G&M Realty, plans two residential towers that will bring roughly 1,000 apartments.
Lady Gaga was the last performer to ever grace Roseland Ballroom’s stage, in March. The historic music venue at 239 West 52nd Street, which occupied the entire block, was demolished to make way for Algin Management’s 50-story, 450,000-squarefoot mixed-use building. CetraRuddy is designing the new tower.
Methodist Hospital Expansion, Park Slope
F
Bancroft Building, NoMad Ziel Feldman’s HFZ Capital plans to build a 350,000-square-foot mixed-use building at the location of the Bancroft Building at 37 West 29th Street. The celebrated 10-story structure, built in 1896, once housed photographer Alfred Stieglitz’s Camera Club of New York, which moved to West 37th Street.
Domino Sugar Factory, Williamsburg Demolition of the industrial complex on the Brooklyn waterfront started in October to make way for Two Trees Management’s $2 billion multiple mixed-use towers at the
74 Trinity Place, Financial District
Clockwise from top left, NoMad’s Bancroft building is making way for a mixed-use project; Demolition of Williamsburg’s Domino Sugar Factory began in October; 5Pointz in Long Island City will be replaced with residential towers; and Staten Island’s Mount Manresa will be a housing development.
Williamsburg location. The Bin Structure, the Boiler House and more came down.
Trinity Real Estate, the real estate arm of the Trinity Episcopal Church, plans to build a 46-story tower at this location. Two properties at the site will have to be demolished to allow for the development: a six-story building at 68 Trinity Place and a 25-story building at 74 Trinity Place.
Rizzoli Bookstore, Midtown A permit to demolish the 109-year-old building that housed the Rizzoli bookstore on West 57th Street was approved in May, despite
To the dismay of some local residents, the city granted the New York Methodist Hospital the necessary zoning variance to build a 500,000-square-foot extension to its facility. In order to add ambulatory care to the facility, more than a dozen townhouse-style buildings on 5th and 6th streets, as well as Eighth Avenue, will have to be demolished.
Mount Manresa, Staten Island The Savo Brothers development firm plans a 250-unit condominium project at the location of this historic Jesuit retreat house on Staten Island. Demolition of the location, however, was put on hold last month, after problems with the asbestos removal procedures. The developers will have to notify surrounding residents about their plans before the demolition can proceed, according to the Staten Island Advance. TRD
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Top commercial sales
from page 62
SL Green and Jeff Sutton; Extell Development; and Harry Macklowe broke the $1,000-per-square-foot mark for a development site for the first time in 2014. SL Green and Sutton, for example, bought 719 Seventh Avenue in Times Square for $1,462 per buildable square foot, or $41 million, in June. Buyers are seeking opportunities to add value to a building by eventually redeveloping or renovating it. More and more, they are taking a strategic approach, as opposed to making a market bet and riding the wave, Heller said.
150 East 42nd Street, which saw the sixthbiggest building sale of 2014.
The office market Office leasing, which continued to recover after a decline in 2012, is also factoring into the strength of investment sales. Average asking rent in Manhattan was $65.97 per square foot in the third quarter of 2014, up 10 percent year-over-year, according to data from Colliers. In the third quarter, the vacancy rate for Manhattan office space slipped to 10.2 percent, from 11.9 percent the year earlier, Colliers data showed. The Downtown office vacancy rate dropped to 12.2 percent, its lowest level since late 2009. Major office tenants steered clear of large blocks of office space two years ago, but that trend largely reversed itself last year. The biggest new office lease based on the space’s size was Time Inc. taking nearly 670,000 square feet at Brookfield Office Properties’ Brookfield Place, according to CompStak data. The top office lease overall was a renewal of 1.2 million square feet by Credit Suisse at the Sapir Organization’s 11 Madison Avenue. Starting rent for Time Inc. and Credit Suisse will be in the $50s and $70s per square foot, respectively, CompStak showed. Investment sales volume for office buildings exceeding $15 million in sales price was on pace to reach $20 billion by year’s end, one of the highest on record, Colliers data showed.
124 January 2015 www.TheRealDeal.com
The three non-office investment sales to make the priciest deals of 2014 list were the Waldorf Astoria, the retail component of office tower One World Trade Center and a five-floor retail condo at the St. Regis New York. In 2013, the only non-office entry was the $660 million sale of the Helmsley Park Lane Hotel at 36 Central Park South.
Brooklyn and Queens Despite the vitality of the New York City market, outer boroughs such as Brooklyn and Queens have yet to take a sizable bite out of Manhattan’s dominance with massive deals. Nevertheless, both Brooklyn and Queens climbed to new heights in sales activity. The top investment sales transaction in Brooklyn was the
Chinese firm Greenland Group’s purchase of a 70 percent stake in Forest City Ratner’s Atlantic Yards project, now known as Pacific Park Brooklyn, with a 2014 commitment of $740 million, according to sources close to the deal. Greenland also made a $1.5 billion equity commitment over the term of the project. CBRE’s Darcy Stacom and William Shanahan served as brokers on the stake purchase. The year’s largest single-building office deal in the borough was RXR Realty and American Landmark Properties’ $194.5 million purchase of a long-term ground lease on the office building at 470 Vanderbilt Avenue from Starwood Capital and GFI Capital Resources. The deal marked RXR’s premier buy in Brooklyn. In Queens, the biggest single-building office deal is expected to be for the Center Building, which Vornado Realty Trust is in contract to acquire from Madison Marquette and Perella Weinberg Partners for $142 million. Overall in the borough, Macerich’s reportedly $1 billion deal for the Queens Center mall from Cadillac Fairview was the largest one in 2014. Marcus and Millichap’ s Parker said he expects the city’s investment sales market to hold steady through 2015. “Everybody wants to own a piece of New York — a trophy like the Waldorf Astoria — in their portfolio, and that fuels the market,” Parker said. Knakal was more skeptical about the market’s fate — and questioned whether the bubble is about to pop for residential as well as investment sales. At this point, Knakal said, it could go either way. “The question is: Is 2014 more like 1988, in that there will be a downturn soon, or like 1998, in that the market will continue its run for another four or five years?” Knakal said. “Right now it’s 50/50.” TRD
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New development sales
from page 47
One Vandam
50 United Nations Plaza
knows New York only marginally, the bigger marquee neighborhoods and intersections would appeal to them.” Dave Maundrell, founder of aptsandlofts.com, cited tremendous interest in three Brooklyn developments with a range of prices, a sign, he said, of broad interest in the borough. At developer Boaz Gilad’s 954 Bergen, in Crown Heights, brokers gave tours to 80 prospective buyers in the span of four hours on Dec. 14, Maundrell said, and there were contracts out on 16 of 36 units within six days. Prices are around $900 a foot. Similarly, Maundrell is seeing high demand at Gilad’s 531 Vanderbilt in Clinton Hill ($1,050 a foot), where he’s scheduled 130 appointments to see 18 units, as well as Greystone’s Waterbridge 47 in Dumbo, which has 500 appointment requests for 25 units. Prices there are almost $1,500 a foot, he said. “People who are buying today, they lived through the downturn in the market already,” he said, adding that they see the potential for price appreciation. “You have the investor mentality in the typical customer, who wants to live there, too.”
Sweet spot at $2,000 a foot Eddie Shapiro
Shlomi Reuveni
Waterbridge 47
launched in mid-September, and the building was 70 percent sold as of mid-December, said agent Ariel Tirosh of Douglas Elliman. The developers, Adam America, The Naveh Shuster Group and The Horizon Group, raised prices twice. “It’s a very striking building,”
Urban Compass’ Kim said that developers who’ve designed product with native New Yorkers in mind are reaping rewards. As an example, he cited Matrix Development’s 12-unit condo project, Seven Harrison Street in Tribeca, where 10 units are in contract. Kim
Tirosh said. “Being in this kind of gritty area, with a lot of contemporary culture, the architect was able to attempt something he wouldn’t in a more traditional area.” Similarly, units at the Robert A.M. Stern-designed 30 Park Place, which is being developed by Silverstein Properties, are going fast. The building is over 50 percent sold, six months after sales launched. “It’s an exceptional product, and Downtown is becoming a destination again,” said Stephen Kliegerman, president of Halstead Property New Development Marketing, who is not involved in marketing the building.
said the blended sales average is $2,600 a foot, up from the pro forma price of $2,000 a foot. Urban Compass is marketing the development. Another example is Quinlan Development Group and Tavros Development Partners’ One Vandam, between Prince and Spring Streets on the western edge of Soho. Kim said the building, which is being marketed by Stribling, is banking on neighborhood to appeal to buyers. “It’s very much about New Yorkers who know New York and know it’s an interesting location,” Kim said, “versus if you’re reaching someone in China or Russia who
Commercial market
$1.82 million ($1,723 per foot) and two-bedrooms listed for $3.98 million ($2,292 per foot). At a condo conversion at 498 West End Avenue, Halstead sold five units within a week. Units are priced at $2,196 per square foot, according to StreetEasy. “In this price point, we saw a very good demand 12, 18 months ago [and] we’re seeing even more now,” said Kliegerman. TRD
from page 30
will bode will for Midtown East,” Hennessy said. Several large blocks of sublease space hit the Midtown market last quarter, driving down the asking rent and increasing the availability rate, the Colliers data revealed. The average asking rent declined by 96 cents in the fourth quarter to $74.78 per square foot. But over the last year, the asking rent was up about 7 percent. The availability rate rose by 0.1 point to 10.7 percent in the fourth quarter, according to Colliers.
Yet the asking rents are even steeper in some Midtown South buildings. Two floors at 675 Sixth Avenue hit the market last month for $85 per square foot, a listing on CoStar revealed. Adding potentially more upward pressure on rents, in the fourth quarter, the availability rate declined sharply by 0.6 points to 7.9 percent, Colliers statistics said. The market tightened because of several large deals, such as the Internet publisher BuzzFeed taking 194,000 square feet at 225 Park Avenue South.
Midtown South The Nation is expecting to move to a new location after its lease expires in 2016 because asking rents at its current building, 33 Irving Place, at the corner of 16th Street, are $63 per foot, far higher than its current rent. “A lot of publishers are moving Downtown. That is where the affordable deals are,” Stack said. The magazine is being advised by Cassidy Turley’s Susan Kahaner and Jennifer Ogden. The asking rent at 33 Irving was close to the average asking rent for the market, which rose sharply last quarter to $61.50 per foot. That was up $3.31 per foot over the third quarter, and up more than $6 per foot over the last year, Colliers figures show.
126 January 2015 www.TheRealDeal.com
Along with developments like Seven Harrison, buildings in the $2,000 per square foot range have the most traction with buyers, brokers and marketers said. “I think that market has still got some legs to it,” Gerringer said. “There’s not enough product.” At Time Equities’ 50 West, 40 percent of the units sold after five months. “We’re selling faster than projected,” said sales director Roberta Axelrod, who said the first units will close in 2016. The 191-unit building, which is in the pre-construction phase, has one bedrooms starting at
Downtown Brokers are chipping away at one of the largest blocks of office space to remain on the market for years in Lower Manhattan, at MetLife’s 85 Broad Street. The 1.1 million-squarefoot tower between South William and Pearl streets has more than 500,000 square feet listed as available in CoStar. Yet there are several new leases in the building. One significant tenant is the academic organization the Modern Language Association, which recently signed a 20-year lease for about 38,000 square feet on a lower floor of the building, information from the leasing database CompStak showed. The group’s rent starts in the high $30s per square foot, according to CompStak.
A JLL leasing team of Peter Riguardi, Cynthia Wasserberger and Frank Doyle represented the building, according to CoStar. Neither the association nor JLL responded by press time to a request for comment. Looking ahead, Hennessy said some new buildings in the market will compete with 85 Broad and towers along Water Street. “I think Chase Manhattan Plaza is a great product and if [the landlord] Fosun [International] works hard and is ready to make deals, it will pose a challenge for other product that is available,” Hennessy said. The Modern Language Association’s rent was below the market’s average asking rent last quarter, which was $52.23 per square foot. That is up by 53 cents per foot from the third quarter and up more than 7 percent over the last year, Colliers data showed. The availability rate Downtown fell sharply last quarter to 11.7, percent, compared with 12.2 percent in the third quarter. The drop over the past year was the most dramatic of the three markets. The rate fell 3.9 percentage points, Colliers data show. “Overall asking rents continued to climb as leasing was healthy and availability rates further declined,” said Joseph Harbert, president of the Eastern Region for Colliers. TRD
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Lawsuits
from page 72
a June lawsuit between the two residential brokerages. Town sued Douglas Elliman, accusing the firm of engaging in unfair competition by poaching Oge and encouraging her to break her non-compete agreement to join the larger brokerage. Town also sued Oge, who joined Elliman just two months after leaving Town, claiming breach of contract as well as breach of fiduciary duty. Town asked the court to prevent Elliman from hiring Oge in a marketing capacity, and also sought punitive damages. A judge ruled in August that Oge violated her non-compete agreement, and said she could not perform real estate marketing services for Elliman in Manhattan, but could do so elsewhere. Town said it would appeal. Oge is Elliman’s global chief marketing officer.
IF funding, THEN lawsuits: Urban Compass Avi Dorfman, who founded two now-defunct real estate startups, sued well-funded new brokerage Urban Compass, claiming that the firm’s chief executive officer Robert Reffkin adopted his product under false pretenses, and then cut him out of the business. In a July suit, Dorfman alleged that Urban Compass is actually built on his software and that he was promised an ownership stake. Dorfman sought compensatory and punitive damages, and also wanted a judge to bar Urban Compass from using trade secrets that he claims the firm took from RentJolt, one of his startups. He also claimed Urban Compass promised to acquire RentJolt but never completed the deal. Urban Compass was sued again in August, when rival brokerage Citi Habitats claimed that it was hacking into its proprietary database. A judge granted a restraining order against Urban Compass, preventing it from accessing the database. Citi Habitats also wanted the judge to halt Urban Compass’ software development. The court didn’t grant that request.
Avi Dorman and Robert Reffkin
The spy who loved me In November, a young Upper West Side resident filed suit against her landlord and former employers Eli Kadoch and Michel Kadoe, claiming they spied on her while in her bedroom and bathroom in her rent-free apartment at 7 West 82nd Street. The woman, Aksana Kuzmitskaya, said room and board was part of her compensation for her job maintaining and cleaning apartments at the nineunit brownstone, and the landlords repeatedly urged her to move in. Kuzmitskaya claimed in the suit that over the course of roughly six months, the defendants gathered at least 70 videos of her engaging in private acts, and claimed the landlords engaged in “intentional infringement on her privacy rights.” Kadoe responded to the suit through his lawyer, denying all the allegations made against him, and claiming that Kuzmitskaya never lived in the apartment for free.
Nicole Oge and Dottie Herman
Double-crossing church: Madison Equities Robert Gladstone’s Madison Equities sued the Serbian Orthodox Cathedral of St. Sava, accusing it of breaching a letter of intent by not disclosing a $13.5 million bill the religious institution owed to brokerage Tenantwise, which the church asked Madison to cover. Madison agreed to help fix up the landmarked sanctuary on West 26th Street in exchange for the use of its air rights, but claimed it was unaware the church had hired Tenantwise, and that fees were exorbitant. TRD The Serbian Orthodox Cathedral of St. Sava and Robert Gladstone
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128 January 2015 www.TheRealDeal.com
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J A N U A RY Oculus Book Talks presents Dr. Mindy Thompson Fullilove, who will discuss her book Urban Alchemy: Restoring Joy in America’s Sorted-Out Cities, published by New Village Press, in conversation with William Morrish. Topics covered will include the intersection of public health and urbanism. Tickets: Free for AIA members and students with ID; $10 for non-members. 6 p.m. to 8 p.m. Center for Architecture, 536 LaGuardia Place. Information: cfa.aiany.org.
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Turnstile Tours and BLDG 92 present a photography tour of the Brooklyn Navy Yard. Highlights include the 19th-century buildings of the Navy Hospital, the World War II-era pier, and the still-operational dry dock. Participants will be bused from one location to another. Admission: $30. 11 a.m. to 1 p.m. The Brooklyn Navy Yard Center, BLDG 92, 63 Flushing Avenue. Information and registration: turnstiletours.com.
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6 Crain’s hosts a business breakfast forum with Manhattan District Attorney Cyrus R. Vance, Jr. Vance will discuss cybercrime, publicprivate partnerships and other topics. 8 a.m. to 9:30 a.m., Yale Club of New York City, 50 Vanderbilt Avenue. Fees: $125 for individual ticket; $1,250 for tables of 10. Information and registration: www.crainsnewyork.com.
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The New York Building Congress hosts its Annual Membership Meeting & Construction Industry Luncheon Forum. The featured speaker will be Thomas F. Prendergast, chairman of the Metropolitan Transportation Authority. 11:30 a.m. to 2 p.m. Mandarin Oriental, 60 Columbus Circle. Information and registration: www.buildingcongress.com.
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11 The Real Estate Board of New York honors Steven Spinola with the Harry B. Helmsley Distinguished New Yorker Award at the organization’s 119th Annual Banquet. Spinola has served as REBNY’s president for nearly 30 years; he plans to retire at the end of 2015. Other honorees include William Rudin, CEO and vice chairman of Rudin Management, and Barbara Fox, president of Fox Residential. 7 p.m. to 10 p.m. Tickets: $1,100. New York Hilton, 1335 Avenue of the Americas. Information and registration: www.rebny.com.
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Inman News presents Real Estate Connect NYC, a four-day conference for industry professionals to network and discuss where real estate is going. Speakers will include Sherry Chris, president and CEO of Better Homes and Gardens Real Estate; Robert Reffkin, founder and CEO of Urban Compass, and Chris Heller, president of Keller Williams Worldwide. Fees: $899. 9 a.m. Tuesday to 11:30 a.m. Friday. New York Marriott Marquis, 1535 Broadway. Information and registration: www.inman.com.
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17 The Metropolitan New York chapter of the Appraisal Institute presents an Appraiser Qualifications Board-approved course on market analysis and highest and best use. The course will survey approaches to three property types: suburban residential subdivisions; existing multifamily properties, and office buildings. 9 a.m. to 5 p.m., Tuesdays and Thursdays, for two weeks. Fees: $595 for members; $625 for non-members. At the Association of the Bar of the City of New York, 42 West 44th Street. Information and registration: www.myappraisalinstitute.org.
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The Institute of Real Estate Management hosts its annual awards dinner. David Von Spreckelsen of Toll Brothers is IREM’s Real Estate Person of the Year and Elizabeth Majkowski of SL Green is IREM’s Certified Property Manager of the Year. The event is Black Tie optional. Cocktails at 6:30 p.m.; dinner at 7:30 p.m. Tickets: $200. The Water’s Edge, 401 44th Drive, Long Island City. Information and registration: www.iremnyc.org.
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The Real Estate Lenders Association hosts its Annual New Year’s Networking Event. This is the event’s 24th year. 6 p.m. to 9 p.m. at Cipriani, 110 East 42nd Street. Information and registration: www.rela.org.
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130 January 2015 www.TheRealDeal.com
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Interior Designers for Legislation in New York hosts a town hall-style gathering promoting “Grass Roots Empowerment for the Interior Design Profession.” The program includes refreshments, networking, and a legislative update from lobbyists. Teknion, 641 6th Avenue. 6 pm. to 8 p.m. Information: asidnymetro.org.
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The Urban Land Institute of New York presents “Emerging Trends in Real Estate.” National trends, development trends, and the state of the New York market will all be discussed. Panelists will include Robert Knakal, chairman of Massey Knakal, and Darcy Stacom, vice chairman of CBRE’s investment properties group. The TimesCenter, 242 W 41st Street. 7:30 a.m. to 11 a.m. Information and registration: newyork.uli.org/real-estate-outlook/.
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REBNY hosts its annual Benefit Fair, in which members have the opportunity to visit with vendors of REBNY’s Benefit Reward Program, including health insurance, discounted health plans, long-term care vendors, 401(k) programs, and staging and organizing vendors. The event is free to REBNY members. 10 a.m. to 1 p.m., REBNY Mendik Education Center, 570 Lexington Avenue. Information and registration: www.rebny.com.
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www.TheRealDeal.com January 2015 131
RE:CAP A roundup of real estate-related happenings last month COMPILED BY ANN IMPERATORE
LUXE 30 Hudson Yards may have a high-floor walkway that ... tilts. Related president Jay Cross said of it recently, “You can choose to pay for it separately and crap your pants.”
This brag by MDLNY’s Luis Ortiz, “Nothing like driving in the rain when the city is quiet. If you have the chance, get a Maserati for the day and go responsibly crazy!”
In an ironic twist of fate, a 41-year old single mom with the surname Young sues Zillow (headed by Spencer Rascoff, left) for age discrimination, citing management comments like “younger people are faster” and “do you even know how to work a computer?”
Elliman launches new app “Elli Vision;” 1992 calls wanting its Club Kid name back.
…its developer tells a reporter the building is for “rich hipsters” and its website uses twee characters to pay homage to the Victorian era.
The city’s priciest rental listing, a 6BR, 4,800 sq. ft. $500,000-per-month unit on the 39th floor of the Pierre Hotel, has successfully rented for the full asking price via Town Residential, setting a new record.
Fredrik Eklund launches new site with addictive quiz: Which Celebrity Home Do You Belong In? BONUS: Enter to win a dinner with Fredrik (left) and his husband Derek at ABC Kitchen.
15 Renwick in Hudson Square, a steampunk-themed luxury development offering condos from $2 to $7.5 million, offers a “high design boxing gym,” zen garden and 24-hour butler.
PlaceInvaders, super-secret dining club held in vacant apartments, follows up pop-up event in Black Apartment with one in a fourstory Fort Greene townhome listed for rent at $9k. Best part: NUTELLASAGNA served!
WIN
FAIL
Nassimi Group holds swanky holiday party at Downtown W featuring the Lohan clan. In shocking news, Lindsay is a no-show.
High-end Flea Market: Buy this 22 CPS PH at $19.8m and for just $1m more, Elad Group will throw in a pile of fancy schmancy tchotchkes from Lalique and Christofle for your housekeeper to dust.
Annie flops as a film, but wins bigtime when, as the New York Post review described, it “drops all pretense of a plot and turns into heavy-duty real estate-porn.”
In a recent NYT article, experts can’t agree on what shade of white paint is best to use when selling a home. File that under #WhitePaintProblems #FiftyShadesofWhite
HBO announces “Jinx,” a six-part Robert Durst documentary, which is sure to have everything: crossdressing, public urination, beheading, triple shots of murder and that mad RE cash.
This brilliant New Yorker cartoon. NYC voted #1 U.S. city for people 35 and under, according to Vocativ’s second annual Livability Index.
Even though #TheRentIsTooDamnHigh These flyers and banner of union protest against the Related Companies on the Upper East Side. “And So It Goes,” a film starring Diane Keaton and Michael Douglas as a hated realtor, comes out on DVD to bad reviews. No wonder it did poorly — who’d believe a real estate agent could be unlikeable?
Also ranks as top U.S. city and #17 overall in Global Livable Cities Index.
Once a notorious haven for unsavory types, East Village landmark The $119-a-night St. Mark’s Hotel is getting an upgrade, expanding to eight floors from two.
Brooklyn artists stage NYC sidewalk rooms from discarded furniture (after spraying it THREE times for bedbugs) that look good enough to rent.
Fox’s “Mulaney” devotes a whole episode to the woes of NYC real estate. We aren’t sure which is a more distasteful task: Trying to find an affordable rental or watching. “Mulaney?” Finding an apartment in New York is insane. You move to New York and you realize that you can Yor either afford an apartment in New eith York or an entire block in Alabama.
And real estate agents start to try to rent these outdoor installations for a commission in 3...2…1…
LOW RENT 132 January 2015 www.TheRealDeal.com
Councilman pushes to landmark Coney Island’s historic wooden boardwalk to prevent it from being turned into a cement sidewalk. Those who oppose will be forced to walk the plank.
COMINGS & GOINGS Top NY Cushman exec Suzy Reingold departs
Movers and shakers
uzy Reingold, a top executive at Cushman & Wakefield’s New York office who sued the brokerage, alleging gender and age discrimination, has left the firm. Reingold, 67, joined Cushman in 2005 and was most recently chief operating officer of its TriState region office. In February 2013, the company brought over 38-year-old Ronald Lo Russo from Vornado Realty Trust to be the new president, passing Reingold over for the top job. In response, she filed a $20 million lawsuit in New York State Supreme Court in October 2013, seeking unpaid wages, back pay and damages. The suit claimed she was, “eminently qualified for the position,” to be local president. Suzy Reingold Furthermore, she claimed that the firm’s CEO of the Americas, James Underhill, had promised she would get the job. In January 2014, Cushman responded in court to the lawsuit, saying the claims were without merit. It further explained that as far as there were differences in pay between Reingold and other “similarly situated male employees … such disparities are due to a merit system, and/or a system that measures earnings by quantity and quality of production.” Reingold resigned on Oct. 17, she told The Real Deal in an interview last month. “I am talking to [several] firms about similar management positions and also looking at other potential opportunities in different directions,” she said. She declined to discuss the lawsuit, other than to say it was “resolved.” Cushman did not respond to a request for comment. By Adam Pincus
Matthew Winn is joining Olshan Properties as chief operating officer. He will report directly to CEO Andrea Olshan. Most recently, Winn was Global Retail COO at Cushman & Wakefield, Americas. He previously worked for Starwood Capital Group, Prudential Financial and the Matthew Winn American Council of Life Insurers. Eyal Reggev has been named president of Stonehenge Partners. Reggev joined Stonehenge in 2013 and was strategic advisor to the co-chairman and CEO, Ofer Yardeni. Previously he was the CEO of a publicly traded real estate corporation and development group based in Israel. The Corcoran Group appointed Tim Cass and Paula Manikowski as senior managing directors in the firm’s Soho office, Corcoran’s second-largest sales office. The Soho office comprises more than 150 agents. Maggie Hui was named chief accounting officer at SL Green. She succeeds Matthew DiLiberto, who will become the company’s chief financial officer. Hui joined SL Green in 2004 as vice president. Previously, she was vice president and controller at Acadia Realty Trust. Owen Hane was promoted to executive director at Cushman & Maggie Hui Wakefield. Hane has been with the firm for over 20 years; he has managed approximately three million square feet of building agency assignments. Rose Associates promoted Chris Gibaldi as director of development and George Olmo as director of construction. Gibaldi joined the firm as a development associate in 2011, and he helped with the rapid leaseup of the Maximilian in Long Island City. Olmo joined Rose in 2005 and Chris Gibaldi was named senior project manager in 2009. He oversaw all aspects of construction during the development of the Chelsea Landmark and the renovation of the Sheffield. Equity Office hired Zachary Freeman as vice president of leasing in New York City. Freeman will be responsible for leasing Equity’s 3.6 million-square-foot NYC portfolio. He has 16 years of experience in the industry, and comes to Equity from CBRE’s strategy agency group. Gregory Havio, formerly of Bond New York, joined RLTY NYC. Born and raised in Paris, Havio worked in luxury residential real estate for five years in France before moving to New York. Havio has also sold luxury residential properties in Tel Aviv.
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Corcoran in global alliance with John Taylor he Corcoran Group and John Taylor Group are teaming up to capitalize on international buyers’ appetite for high-end real estate worldwide, the companies said. For Corcoran, the alliance with Monaco-based John Taylor, which has $12 billion in worldwide listings, reflects a strategy for expanding internationally. The alliance will give Corcoran a foothold in “targeted global markets,” Pamela Liebman, Corcoran’s president and CEO, said in a statement. She added: “With a large percentage of Corcoran condominium sales coming from international buyers today, our affiliation with John Taylor enhances the level of client services and property selections both firms can offer on a global basis.” The alliance is the latest effort by a New York brokerage to tap into the international luxury market. In September, Douglas Elliman and international brokerage Knight Frank Residential announced a partnership aimed at selling luxury real estate. Douglas Elliman Knight Frank Residential is targeting the top 10 percent of the market. John Taylor, which caters to high net-worth clients, has 19 offices worldwide, including locations in Paris, London, Madrid, Moscow and Monaco. The brokerage currently has 2,400 listings. In 2013, the firm’s average sale was $5.5 million. A subsidiary of real estate conglomerate Realogy Holdings Corp., Corcoran has 40 offices and 2,220 agents in New York and Florida. In New York City, the brokerage Pamela Liebman had 1,249 agents and more than $4.1 billion in listings as of last November 24, according to data from On-Line Residential obtained by The Real Deal. “New York City, the Hamptons and South Florida are the three top destinations attracting our international clients in search of exclusive luxury real estate properties in North America,” Delphine Pastor, John Taylor’s president, said in a statement. By E.B. Solomont
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Spiegelman to lead C&W’s North American retail ene Spiegelman, a vice-chairman at Cushman & Wakefield and one of New York City’s top retail brokers, was tapped last month to lead the firm’s North American Retail Services Group, the company said. Spiegelman, with Cushman for nearly 15 years, has completed some of the firm’s top deals in the local market, and was named as a top retail producer for the firm in 2011, 2008, 2007, 2005 and 2004. He will keep his client base, but will focus more time on management, insiders said. The move, which creates a new point position in the firm for retail, underscores the greater importance that retail holds in commercial services firms. “Commercial real estate firms are viewing retail as more important in the scheme of their overall business,” said Paul Massey, CEO of Massey Knakal Realty Services. “The dollar velocity of transactions has dramatically increased over the past few years along with a very healthy retail [leasing] climate, so the absolute number of transactions has also increased.” Cushman’s parent firm, the Italian public company Exor, reported last month that global retail leasing revenue was up sharply in the first nine months of 2014, compared with the same period of 2013, boosting the service line’s relative importance. While office leasing revenue was up 13 percent, retail leasing revenue leaped nearly Gene Spiegelman 30 percent, Exor reported. Spiegelman will work alongside John Strachan, Global Head of Retail; Mark Burlton, Global Head of Cross Border Retail; Justin Taylor, head of Retail Services for Europe, and James Hawkey, head of Asia Retail Services, according to a statement from Cushman. Spiegelman has twice won the sought-after Retail Deal of the Year awards given out by the Real Estate Board of New York. In 2008, he was part of a team that won the “most creative” award for representing Gucci in a sublease to Diesel at 685 Fifth Avenue, and in 2001 he won for the “most significant” deal that year, when Crate & Barrel took 48,000 square feet at 611 Broadway in Soho. By Adam Pincus
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134 January 2015 www.TheRealDeal.com
Gregory Havio
Also on the move Matthew Charles, Michael Bushkanets, and Keisha Nia Charles joined RLTY NYC… Corcoran hired Antony Bitar as a licensed sales agent… Kirill Galperin joned TerraCRG as an associate.
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The calm before the storm WE H E A RD
Thor sponsored a female-only day of relaxation for retail brokers during ICSC
day before the start of the city’s largest store leasing event of the year, a dozen or so retail brokers got a chance to take a few deep breaths, thanks to Thor Equities. Exhale Mind Body Spa, at the Hampshire House at 150 Central Park South, was the setting for a day of woman-only relaxation hosted by Thor, representing something of a break from the majority Joanne Podell of gatherings at last month’s International Council of Shopping Centers’ New York
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National Deal Making Conference. The group included some of the city’s top retail brokers, such as Joanne Podell of Cushman & Wakefield and Robin Abrams of Lansco. It was a break from the vast majority of all real estate events, for that matter. While there are a higher percentage of women in the store-leasing business, compared with office Robin Abrams leasing or investment sales,
REBNY gets ready to say goodbye Annual banquet will be President Steven Spinola’s last he Christmas parties may be over, but there’s still the Gala: On Jan. 15, the upper echelons of New York City real estate will head to the Real Estate Board of New York’s 119th annual banquet. Billed as the industry’s most celebrated event of the year, the black-tie fête traditionally acts as a networking event, fundraising gala, awards ceremony and idea exchange rolled into one, providing major real estate players with cocktails, dinner, facetime with some of the city and state’s top elected officials, and a venue to reflect on the challenges that lie ahead in the next year. But this year, honoring the past is likely to be top of mind as well. REBNY President Steven Spinola, who is the organization’s longest-serving president, will be hosting the banquet, to take place at the New York Hilton, for the last year. Having overseen the trade organization’s explosive growth —to over 16,000 members today from 4,000 members in 1986 — Spinola plans to retire at the end in 2015.
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Steven Ste teven ve en Sp e S Spinola, pino ino nola, la a, Ro a, Rob b Spey S Speyer pe pey eyyer er and nd Go n G Gov Gov. ov. v. A An And Andrew ndrew rew re w Cu C Cuomo uomo m at mo at la llast ast st yea ye yea year’s ear’s earr’s ’ss REBNY REBNY RE BN N gala. gala. ga la a. (Credit: a (Cred (C edit: ed dit: it: it t Steve Steve St ve Friedman) Fried Fr edman ed man ma an))
(For a look at his successor, see page 38). Spinola, whose powerful advocacy contributed to key rezoning and Downtown revitalization before and after Sept. 11, will be honored with the Harry B. Helmsley Distinguished New Yorker Award, recognizing his contributions to the city’s civic welfare and real estate community.
Manhattan retail brokers are predominantly men. But not so at the spa. In addition to Podell and Abrams, there was Grace Yang and Kelly Harman, both of Thor Equities. Other attendees included Virginia Pittarelli of Crown Retail Services, Jackie Totola of RKF and Robin Zendell of RZ & Associates. And of course, there was a chance to network as well. “We all got a spa treatment, and then there was fruit, cookies and goodie bags,” one source said. “All the girls talked after treatment. It was very civil and very polite.” By Adam Pincus
That will put him in distinguished company — Seymour Durst, Jerry Speyer, and Larry Silverstein are past recipients. REBNY will also celebrate five other industry leaders: Rudin Management CEO William C. Daniel Kindbergh Rudin for a lifetime of leadership achievements; president of Fox Residential Group, Barbara Fox, for her contributions in community service; Eastern Consolidated CEO Peter Hauspurg for being an exemplary commercial broker; Brookfield Property Partners SVP of Operations Daniel Barbara Fox Kindbergh for accomplishments in commercial management, and director of leasing at Vornado Realty Trust, Glen Weiss, who was selected by the Young Men’s/Women’s Real Estate Association of New York to be acknowledged for his integrity, professionalism, and William Rudin personal ethics. By Tess Hoffman
The Robert Durst chronicles A look at the estranged real estate scion’s most notorious moments, ahead of HBO’s series, “The Jinx” he new season of “True Detective” isn’t the only hotly anticipated murder mystery coming to HBO. Real estate folk with a proclivity for stories that involve missing young wives, unsolved murders and multimillion dollar deals, next month will be able to check out a six-part documentary about Robert Durst, the estranged brother of the Durst Organization’s chairman Douglas Durst. And, much like other dramas, watchers may need a quick refresher course. In preparation for the six-part series, The Real Deal rounded up some of the most notorious moments from Durst’s past. While the documentary — titled “The Jinx: The Life and Deaths of Robert Durst” — will focus mostly Robert Durst in a scene from the on his alleged involvement in the upcoming HBO series. disappearance of his first wife and the murder of a close friend and confidante, Durst has been in the tabloids for other fiascos as well. He was arrested in the summer of 2013, accused of violating a restraining order issued in April 2012 barring
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136 January 2015 www.TheRealDeal.com
him from contacting or coming near his brother Douglas. He skipped a Manhattan court date in September — his lawyer said he was in Texas and suffering from “medical issues” — and was acquitted last month. In July, Durst was arrested again, accused of exposing himself and urinating on a cash register in a CVS in Houston. Afterward, he calmly left the store without causing a scene, according to news reports. His antics haven’t stopped Durst from being an active player on the NYC real estate scene. In July, he sold two buildings — one at 234 Union Avenue in Williamsburg and one at 250 Pacific Street in Carroll Gardens — for a combined $21.2 million. He bought the buildings in 2011 for $8.7 million with a portion of his $43 million trust fund. BCB Property Management, which is run by Durst’s estranged wife Debrah Lee Charatan and her son Bennat Charatan Berger, announced the sales. The incidents for which he is most notorious are the
disappearance of Kathleen McCormack and the murder of Susan Berman. McCormack, Durst’s first wife, disappeared in 1982. Her body was never found. Berman, a friend who supposedly had knowledge of the case, was found dead in 2000 in her California home, after having been shot in the head twice. Durst wasn’t charged in relation to either of the cases. After Berman’s death, Durst relocated to Galveston, Texas, where he started masquerading as a mute woman. He was arrested in 2001, accused of shoplifting a sandwich from a Wegmans Supermarket in Bethlehem, Pennsylvania. When they searched his car, police found money, guns and his dead neighbor’s driver’s license. He was put on trial for the murder of his 71-year-old neighbor Morris Black — whose body parts were found floating in the Galveston River. While Durst admitted to dismembering the man, he was acquitted of all murder charges in 2002 after the case was deemed one of self-defense. Durst served three years in prison in the early 2000s for bail jumping and evidence tampering. By Claire Moses
TO ALL OF OUR VALUED CLIENTS, DEVELOPERS AND FRIENDS IN HELPING US ACHIEVE A REMARKABLE 2014
Fieber Group AB Capstone Adam Americare Flatiron Real Estate Advisors G&M / Wolkoff AIG GDC Properties Bokhour Developers Goldman Sachs Bronstein Properties Great Point Properties BRP Companies Hudson Companies Carlyle Group The Iconic Group Cayuga Capital Imian Partners Central Construction Compass Rock Real Estate Jonis Realty Kalikow Group CW Capital Kushner Companies Daten Group Lalezarian Properties Douglaston Development Levine Builders East River Partners Ekstein Development L+M Development Partners Essex Capital MacFarlane Partners Magnum Real Estate Fetner
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Wishing You All HEALTH, HAPPINESS AND A PROSPEROUS NEW YEAR FROM ALL OF US AT
THE CLOSING
WITH DON
PEEBLES
Since launching Peebles Corp. nearly three decades ago, Don Peebles has developed six million square feet of real estate in Florida, California, Washington, D.C., and, for the past three years, New York. The author of “The Peebles Principles: Tales and Tactics from an Entrepreneur’s Life,” Peebles was a major developer in Miami before he scooped up a Tribeca development site in 2013. Today, he is partnering with the Elad Group on the nearly $500 million conversion of 108 Leonard Street. In all, Peebles has approximately $2 billion of active development projects nationwide, and a pipeline of around $1.7 billion of future projects in the works. NAME: ROY DONAHUE PEEBLES JR. BORN: MARCH 2, 1960 HOMETOWN: WASHINGTON, D.C. MARITAL STATUS: MARRIED 22 YEARS CHILDREN: SON AND DAUGHTER How did you end up being called Don? My grandfather’s name was Royal Peebles. My grandmother didn’t want to name her son Royal, so she named him Roy Donahue Peebles. I was named after my father. My son Donahue, [20], who’s a junior at Columbia University and works here part time, is Roy Donahue Peebles III. My daughter, Chloe, is 12. Same wife, by the way, unlike most real estate developers. How many homes do you have? I have a home in Washington, D.C., but I spend very little time there, not enough to justify having a house there. We have a home in Bridgehampton, a small beach house in Sag Harbor, a [penthouse] apartment at the Setai [in the Financial District] and then our home in Coral Gables in Florida. I hear you’re grooming your son to run the business? I thought it was important for him to get some exposure early. The last two summers, he’s worked for me full-time. Part of that is he wanted to earn money to live off campus, and I was [only] prepared to pay for living in a dorm. Anything after that, I thought it was important for him to earn. You were pre-med at Rutgers University before dropping out. What would you think if your children did the same? They have a luxury I didn’t have. It was an economic decision for me. Education for Chloe and Donahue gives them the freedom to choose. I would be disappointed if they didn’t finish. Why did you drop out? Going to college was a step down for me, to a degree. My last two years of high school, I was working on Capitol Hill. My senior year, I was making the equivalent of $45,000 to $50,000 a year. I was standing in the House chamber when the president would give the State of the Union address. At Rutgers, I took a political science class, and the professor would have these lectures on how laws are made in Washington … and he was so wrong. So I said, ‘OK, I’ll go back to Washington, D.C., and I will figure it out.’ 138 January 2015 www.TheRealDeal.com
And that’s when you got into real estate? I became a sales agent. But interest rates were 20-plus percent then, so I had to figure out how to earn a living. I started appraising properties. At 24, I was named chair of the Property Tax Appeals Board in Washington. You were appointed by Mayor Marion Barry, right? It was Marion Barry who appointed me. I met him when I was 14 years old at a ‘meet the candidate’ event I attended with my mother. He was then a candidate for the first elected City Council. That summer, I volunteered for his campaign. He was a political mentor to me. I went to his funeral, which I spoke at. You fundraised for former President Clinton and President Obama. Are you still a big fundraiser? Yes. You can’t complain ... if you’re not going to engage. In 2010, you almost ran for mayor of Washington, D.C. Do you think you’ll ever run, there or somewhere else? Absolutely. I would look [to run for mayor in] New York. There’s something to be said for having somebody who understands business, politics and also has a social agenda that is looking to change the status quo. Did your parents have a plan like that for you? My paternal grandfather was a farmer and janitor in rural Virginia. My maternal grandfather was a hotel doorman at the Wardman Park Marriott for 41 years. They had high expectations of me. When I quit college, other than my mother, they pretty much lost confidence in me. One of the disappointments for me was that my grandfather wasn’t alive to see that I had gone the right way. Forbes has called you one of the wealthiest African-Americans in the country, and I hear your net worth is approaching $1 billion. Is that a lot of responsibility? As an African-American businessperson, there’s a greater level of expectation of me. I can’t just be a businessperson
and I don’t want to just be a businessperson. The system is operating unfairly and that is not an Al Sharpton problem. That’s a business opportunity problem. Business people have to be part of the solution. Did you face those challenges when you were younger? Yes and no. When I got to be appointed chairman of the Property Tax Appeals Board at 24, I was appointed by a mayor who was part of the Civil Rights movement. He was elected for the purpose of opening and expanding rights for minorities. There was a door that the residents of the city wanted opened. They wanted people like me to walk through. If I had been born in New York , I’d be struggling. That’s a pretty damning indictment for this city. I can go through a typical day in New York and not interact in business with a minority or a woman. In Washington, I have multiple meetings involving banking with other developers, and there’s diversity across the board. New York in that one measure is a generation behind D.C. Do you have vices? I tend to buy a lot of homes. It can be expensive and my wife begs me, ‘Don’t buy any more houses.’ I’m told you make your employees read your book. Can you give me the crib notes version? Each setback is an opportunity in disguise. What’s something most people don’t know about you? I used to have a big Afro when I was 13 and 14. As big as de Blasio’s son [Dante]. In 25 years, what do you want people to say about you? I want my family to say I was a good father and a good husband. When they’re lowering me into the ground, I don’t want my kids and grandkids to say, ‘There goes the guy who made all the money.’ By E.B. Solomont PHOTOGRAPH FOR THE REAL DEAL BY STUDIO SCRIVO www.TheRealDeal.com July 2006 00
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