“The Market That Never Sleeps”
New American Luxury
CORE founder and CEO Shaun Osher was interviewed about trends in the New York City real estate market and how CORE stays ahead of them. Here’s Osher on what people want right now: “Clients are looking for quality—something they’ve become so used to seeing a lack of in this market. New Yorkers want turnkey, well-conceived, perfectly finished apartments and homes.”

“So You’re Priced Out. Now What?”
New York Times
The historic Ladies’ Mile section of Chelsea is offered up as a more affordable version of SoHo in an interesting Times story that looks at five pairs of neighborhoods, one expensive, one cheaper. Part of what gives the Ladies’ Mile its SoHo feel is the conversion of old department stores into lofts, like the Cammeyer, where the Times highlighted Kirk Rundhaug’s $2.8 million listing in the building (right).

“Watts up”
New York Post
Liev Schreiber and Naomi Watts checked out three of Vickey Barron’s townhouse listings in the Village, but in the end the celebrity couple decided to buy a loft in TriBeCa.

Manhattan neighborhoods are always evolving. 96th Street is an antiquated border that once denoted the northern boundary of the Upper East Side. Central Park is just as lush and green above 96th Street as it is below, and the architecture is equally as impressive. Both developers and savvy buyers recognize the value of having a Fifth Avenue address with direct park views, access to Central Park and presence along Museum Mile. It is that opportunity that is driving the growth along Upper Fifth Avenue, the newest in a long line of well-known neighborhoods that have evolved such as the Upper West Side, Chelsea, SoHo, and the Meatpacking District – all neighborhoods that are now among the most coveted in New York City.

“Opportunity” is a key word. As the Financial Times wrote, prices on Upper Fifth can be 25% to 50% below what’s asked south of 96th Street. For a look at some listings at 1280 Fifth, click here.

Is this lack of supply creating demand? It’s one of the major story lines to follow in 2012, according to Shaun Osher. CORE’s founder and CEO offered these predictions for the 2012 Manhattan real estate market, with the impact of new inventory being chief among them:

The NYC luxury market is an anomaly, and in 2011, that has certainly been true. This year, I expect that the pipeline of new development activity will supply product that will be readily absorbed (as long as pricing stays in line with the upper end of overall co-op and condo prices). The townhouse market has shown resilience above all other market segments as the value of owning a single family residence in Manhattan grows.

It’s not just talk. CORE has several new development projects, including the highly anticipated Walker Tower, readying for debuts in 2012. The market will be tested this year, certainly, but it’s ready for the test.

Graphics via the Wall Street Journal.

L-R: CORE's Shaun Osher and Doron Zwickel discuss pricing with 83 Franklin developer Francis Moezinia.

In “Big Decisions and Fast Deadlines,” CORE CEO Shaun Osher and top broker Doron Zwickel collaborated with developer Francis Moezinia of Rex Properties to bring a luxury rental building at 83 Franklin Street in Manhattan’s TriBeCa neighborhood to the market. The building’s high ceilings, high-end amenities and condo-like finishes made it a rarity in the Manhattan rental market, and pricing the apartments was tricky. Doron had to tour over a dozen other luxury rental apartments in the neighborhood in order to come up with competitive pricing for each of 83 Franklin’s 11 units.

Working with a hands-on developer isn’t always easy—and Shaun and Doron acted as the “voice of reason” when it came to identifying the perfect price range. While Francis was expecting around $9,000/month for the first apartments, it was ultimately decided that starting low at $8,500 would be the best way to get renters in quickly. According to Shaun, pricing is more of an art than a science, and it all worked out. A low-key open house event brought in a crop of candidates, and four weeks later 9 of the 11 units were rented — all for above the asking prices.

Keep on reading for some exclusive behind-the-scenes information about what didn’t make it into last night’s episode of “Selling New York” and what happened after the cameras stopped rolling!

1) TriBeCa’s industrial roots go deep. TriBeCa wasn’t always a downtown hotspot for trendy restaurants, celebrity sightings and exclusive real estate. In fact, 83 Franklin was originally a textile manufacturing facility, similar to many buildings in the formerly industrial neighborhood. Decades later these buildings became prized residential properties for their high ceilings, oversized windows and large open layouts. Even after its renovation, bits of 83 Franklin’s history and character remain.

2) The building is “decked out”…literally. Rental buildings in Manhattan are typically light on amenities, especially when they only have a handful of apartments. But at 83 Franklin, there is a lot more than meets the eye. The episode showcased the gym and children’s play room, and there is also a bike room, direct elevator access into the apartments and an expansive rooftop deck perfect for a party or relaxing. Another bonus: Each of the 11 units comes with a private storage room, a great perk in Manhattan, where closets carry more value than gold.

3) Renters flocked at warp speed. This TriBeCa development was poised to set records, and Doron didn’t disappoint: The entire building was almost fully rented out within a month. The penthouse took a bit longer (its price limited it to a fairly exclusive segment of the market) but it too has since been rented out. The building is close to the Financial District in Lower Manhattan, and many of 83 Franklin’s new residents work in the financial sector.

4) No rent is too high (well, almost). Most viewers probably suffered sticker shock when they saw the $9,000 to $22,000 monthly price tags attached to the apartments at 83 Franklin Street, but renting has long been the preferred way of life in Manhattan, and prices in prime buildings have been soaring, especially in popular downtown neighborhoods like TriBeCa. As Doron explained to us, especially in times of global financial uncertainty, renting is considered to be a low-risk commitment in comparison to purchasing an apartment. The Wall Street Journal explored this trend today.

5) The local favorites. An episode of “Selling New York” is always go-go-go, but everyone needs a break once in a while. It’s always fun to find out which neighborhood establishments become favorites of the cast and crew. During filming, the excellent La Colombe coffee shop on Church Street became everyone’s go-to for a necessary pick-me-up. The Pecan Cafe, a deli on Franklin Street and West Broadway, became a lunchtime obsession thanks to its mouth-watering Chicken Moroccan Sandwich.

“Inside a Revamped and Relisted $7.46M Tribeca Condo”
Curbed (12/9)
CORE Managing Director Vickey Barron’s penthouse listing at 60 Beach Street, a stunning loft building in TriBeCa, caught the attention of Curbed because of the condo’s extensive high-end renovation. Check out the “after” pictures.

“Broker Beat: Core Group’s Shaun Osher”
Gotham (12/6)
Shaun Osher spoke with Gotham about the CORE’s pioneering use of technology in the New York real estate space. Said Osher, “We live in a world of transparency. Both buyers and sellers should embrace the technology and use it as an asset.”

“A ‘Cozy Treat’ in SoHo”
Wall Street Journal (12/4)
The 600sqft townhouse co-op listed by Ivana Tagliamonte at SoHo’s 47-49 King Street may be on the small side, but it’s getting big attention. Curbed loved its cuteness, and now the historic home has been featured as a Wall Street Journal “House of the Day.” Check out the slideshow for a full tour of the “cozy” charmer.

Tony Sargent joined CORE this year after a long association with a much larger firm. He is an agent who has built a sound reputation in the industry and is known for his Sargent Report. His attention to detail and thorough knowledge of the market is an asset to us as a company and he is also one of the most approachable people in the business.

1) How long have you been selling real estate?
Twelve years.

2) How did you get involved in real estate?
I grew up moving around internationally and so I saw a lot of different styles of living and design in my youth, and I love architecture and working with people. In 1999 I met someone in real estate and we talked about his clients. One morning I started looking online at luxury townhouses and apartments and never stopped. A month later I was sitting on the beach watching the sun rise and I knew I wanted to do this. I am driven by my passion to help others and to be able to create a positive difference in someone’s life by helping them find or sell their home. It makes me incredibly happy.

3) What was your quickest transaction?
A Park Avenue classic seven. I was sharing it with another broker. The co-op board rejected the first buyer on a Thursday. The other broker called me to say the owner’s daughter had called on Friday out of the blue and was threatening to pull the listing. Given my numbers background and the fact that the owner’s daughter was in finance, I called her and used my business skills to give her confidence we were going about things the right way. I shared that we’d had another buyer interested three months prior who had strong qualifications. I reached out to that buyer’s broker on Super Bowl Sunday with a strategy. I let her know that the deal had dissolved, but we were about to raise the price (true). If her buyer was willing to come up $150,000 higher than their last offer, make no contingencies and simultaneously sign a contract by Tuesday morning with the seller, they had a deal. It happened in two days for over $3 million.

4) What is the most challenging part of your job?
In this market it’s finding the right inventory for my clients to buy. There is not enough available. Also, keeping a healthy balance between life and work. I could do this 24/7, but it’s important to re-charge and do things outside of real estate to come back with new and innovative ways to market and look at the business.

5) Who is your mentor?
I have four. My business coaches Christina Banaga and Tom Ferry, Tony Robbins and you. I always look to see who is doing things differently and succeeding in their field, and then I ask, what can I improve on? I know it sounds hokey but I met you when you were a broker working on the conversion of the GMHC building on West 20th Street. Watching you start CORE and make this company what it is today inspires me. It’s why I moved here.

6) You produce the “Sargent Report.” Why?
The Sargent Report is a brochure that delivers insight and perspective on the market. It grew out of a one-sheet I started in 2005 which summarized new developments. In 2006 I wanted to provide my clients with a more reality-based perspective on the market, and discuss what was truly happening: the good, the risks and my predictions. While there’s a lot of information out there today, my question always is, “Who’s giving you a trusted local perspective on the real estate market?” The Sargent Report covers both Manhattan as well as national and international news, and I’ve taken it online as well.

7) When and how do you know if a buyer or seller is wasting your time?
I prefer to think of that question as, “When is a buyer afraid to commit or a seller not ready to sell?” I don’t think anyone sets out to waste time. Buying and selling stirs up a lot of emotions for a client and sometimes they get overwhelmed. For me the signs are: 1) A buyer continually makes offers close enough to be in the game but always just low enough to miss out. 2) A seller won’t negotiate or sets unreasonable price expectations or makes the property incredibly challenging to show. Clients need to trust and value their broker and be in communication. If they cancel appointments repeatedly, find something wrong with every apartment or want to see units that they are not financially qualified for, these people make me ask if they are serious about making the move. Then I’ll have the conversation with them and we’ll go from there.

8) How many apartments do you show on average before you make a sale?
It varies from client to client. With serious buyers I’ve narrowed it down quickly and made the sale after showing the best five units. My first-ever client needed to see about 100! But she bought. Today, because of my knowledge of the market and ability to interpret a client’s ideal and match it with my market knowledge, the average is probably ten units.

9) Where do you see the market going in the next year?
The “market” is actually many micro markets in my opinion. I believe that a lot depends on where the European and financial market shakeout ends up. Overall, I envision that the Manhattan market will continue to see market stability due to foreign interest in Manhattan apartments, low inventory and a growing need for more housing. Certain segments will lag due to high inventory levels – entry-level in Midtown East for example, but it provides opportunity. The mid-luxury $2-$4 million market will be stable assuming everything remains economically as it is now. The high end: some predict it will slow down, but I think while it may short term, that segment of the market has been robust in terms of rebounding from the crisis in 2008. Manhattan provides a safe harbor for foreign and national high net-worth individuals. It’s also the diamond-in-the-sky dream for many people. So when they make it, they want to own a piece of it.

10) Do you have a question for me?
I’m excited about the Hudson Yards development plans and northwest Chelsea. I think it’s going to open a whole new commercial and residential neighborhood in Manhattan that will attract investors and residents alike. Do you agree?

Yes, I do agree. I think it is one of the most exciting under-developed neighborhoods in Manhattan. It will be transformed over the next ten years.

Photo by Richard Caplan

What will CORE bring to 1280 Fifth Avenue to highlight the building’s special features?
1280 Fifth is one of the best new projects to come to market over the past 5 years. It has all of the attributes a buyer could want in a new development property. One of the hottest neighborhoods. A 5th Avenue address. The best views of Central Park. Every amenity one could want. A developer who has a stellar reputation. One of the most renowned residential architects of our generation. A price point that is not available anywhere else on 5th Avenue and the Park. We will educate buyers on these qualities.

What would buyers be surprised to find out about the development?
Really, it’s the proximity to everything. A 5th Avenue address has more to offer than just Central Park at your doorstep, though that’s obviously an incredible benefit. It’s such a convenient location.

The Wall Street Journal recently wrote that upper Fifth Avenue “went largely ignored by high-end developers.” Why do you think that was, and what changed developers’ minds?
This was a neighborhood that was on the fringe of a prime neighborhood. It takes a pioneer with vision to recognize the potential of a site like this. Much like the first project we brought to market on the Bowery at 52 East 4th Street or the first residential project on the High Line that CORE sold at 520 West 19th Street. All pioneers.

What makes 1280 Fifth Avenue a compelling product in this market?
The quality of the design, construction and what you get for your money.

Is there a specific type of buyer that makes the most sense for this building, or is it more of a something-for-everyone type of project?
This is a buyer who recognizes the value in the fundamentals of a piece of real estate.

A brand new “modern traditionalist” collection of residences sitting atop the future Museum for African Art, the 21-story 1280 Fifth Avenue completes Fifth Avenue’s famed Museum Mile, serving as the northern border of a stretch that includes cultural landmarks like the Metropolitan Museum of Art and the Guggenheim Museum. Add those artistic surroundings to timeless architecture and staggering Central Park views that only a Fifth Avenue address can provide, and it’s no secret why 1280 Fifth Avenue will be a desired place to call home. “We’re incredibly excited to lead this development,” said Shaun Osher. “1280 Fifth Avenue offers unparalleled architecture, layout and design – set in one of the most beautiful neighborhoods in New York City.”

The building has studios, one-, two- and three-bedroom homes as well as penthouses ranging up to 2,118 square feet, and the units are ready for occupancy. Amenities include a rooftop swimming pool, children’s play room, residents’ lounge, catering kitchen and private dining room, and prices range from $595,000 to approximately $3.25 million. For more on the building, click here.

According to a Bloomberg News article this week, there’s a lack of inventory of luxury housing, and prices are robust. Well, no kidding! This was predicted by yours truly (OK, and a few others) a few years ago when the development world took a dive in the wake of the credit crunch and no one was building anything new. Most of the “luxury” inventory consists of only a few types of product, and ironically, there is very little of it in Manhattan – one of the most expensive cities on the globe. If you own one of these — new development, prime location large homes on Central Park, Park and Fifth Avenues, penthouses, townhouses, and large downtown lofts — then you have a trophy.

Owners of these types of properties are generally financially sound enough to only sell when they want to. They can weather a bad market and sell when the market is more favorable. Developers who time this market right have a huge advantage to sit on their inventory, and wait for their number. And wait, they have.

If you’re lucky enough to be able to afford a trophy you should buy it because it wasn’t too long ago that talk of $2,000 per square foot on 57th Street was the stuff of a fiction novel. Now a developer is claiming $10,000 per foot for a building with a view.

To be continued…

Shaun Osher is the founder and CEO of CORE.

Reba Miller has been in the business for almost 30 years! Even after selling over a billion dollars worth of real estate, she has an impeccable reputation and a zest for the business. She recently caused a stir by joining our team in a senior leadership role, and I’m looking forward to working with her to help build our company, our culture, and our brand.

1) What is one the one thing about you that you think defines who you are?
I am very driven.

2) You’ve been in the brokerage business for almost 30 years. What has been your biggest surprise?
How much I still love each day as if it’s my first!

3) You recently joined CORE as our Senior Managing Director of Sales. Why move now?
I felt the business was changing and I bee-lined for the coolest and most reputable company to align myself with. I figured the owner’s name spelled the same way as my son Shaun was a great sign.

4) What was the toughest negotiation of your career?
Selling myself to the developers of 22 West 66th Street when they bought the building from the Resolution Trust Corp. They did not speak a word of English, so every bit of the exclusive from beginning to end was translated into Italian.

5) Who is your mentor?
Presently it’s Barbara Fox.

6) You have been actively involved in REBNY. Why?
I became active as a concerned business owner interested in protecting, supporting and improving small real estate firms. Ultimately, my input helped everyone.

7) What has been the biggest change in selling real estate over the past 30 years?
Keeping up with the fast pace of technology.

8) What is the one thing you enjoy most?
That’s easy: the people.

9) You are an avid tennis player and have a semi pro game. What is your greatest tennis memory?
Winning bronze medals for the USA in women’s doubles and mixed doubles at the Pan American Maccabi games in my late 30’s.

10) Do you have a question for me?
What made you interested in hiring me?

I have a great eye for talent, and I identified you as someone who understands the value CORE brings to an industry that is constantly evolving. I also was in need of a good tennis partner!