On the Market: Bronx B&N Bookstore Spared; What Would Happen Without Rent Regulation?

New York ObserverOctober 24, 2014

There will probably be a lot of bad news in the coming days now that Ebola has hit New York, but at least not everything is bad: Barnes and Noble has reversed its decision to close its Bronx store, according to The New York Times, after what the newspaper described as a frenzied campaign to save the borough’s only full service bookstore. Landlord Prestige Properties has agreed not to raise the rent, as had been stipulated in the lease, for the next two years.


Meanwhile, in Citylab Sarah Goodyear examines how Barnes and Noble—a symbol of corporate greed not long ago—came to be so beloved in the borough. In short, it provides a “third space”—neither work nor home—where urban dwellers can hang out and interact, which is essential to a city’s fabric as it is bad for a business’s bottom line. But it’s something we might do well to remember with a burgeoning number of delivery services and a declining number of brick and mortar stores.


More good news: this Curbed guide to how to dress up like your favorite architect this Halloween. Just whoever you to decided to be “remember to keep your tone quixotic, your facial expression thoughtful, and, when your friends admit they don’t know who you even are, your demeanor aghast.”


While free market proponents have long advocated for the end of New York City rent regulation, arguing that all rents would go down to reasonable levels if we could free up the rent-regulated half of the housing stock, in Bloomberg  appraiser Jonathan Miller looks at what would really happen if we eliminated rent regulation. Basically, market rate rents would go down, but rent regulated rents would go up even more. According to Miller, “the rent on the average regulated unit would jump $686 a month, a 53 percent increase, while the average rent on the open market would fall $644, or 24 percent. (The smaller percentage decline for non-rent-regulated property is a reflection of how much higher rents are for open-market units.)”


More younger adults are opting to rent rather buy, according to The Times, spurring a building boom of rental apartment complexes. But are young adults simply gun shy when it comes to buying—having watched the mortgage crisis unfold—or have student loan debt and anemic employment opportunities made home ownership an impossibility for many in the generation? More of the latter, it seems. Even with the labor market improving, “they’re not going to go from living with their parents to buying a home,” said Mark Zandi, chief economist at Moody’s Analytics.


And whether it’s a condo or a rental, more and more Americans are moving to large, full-service buildings, embracing urbanism in strongholds of suburbia like Long Island, according to The Wall Street Journal. “I lived at a big house where I had to schlep,” one woman in her 60s told the paper. “When you get to be my age it is nice to have a doorman to run up the groceries.”


Amtrak is considering developing Sunnyside Yards and could start soliciting proposals as early as next spring, according to Capital New York, who attended a ULI panel moderated by Dan Doctoroff—who, we’re sure, was beside himself with joy that this will clear the way for Olympics to finally come to New York City. The de Blasio admin, of course, has some other ideas, among them using the yards to help meet the ambitious affordable housing goals, though Amtrak has stressed that it doesn’t want to sell the yards, only lease them.


Regarding trains—subway performers rallied after the Saturday arrest of a guitarist performing on a Williamsburg subway platform. Gothamist reports that performers called for the NYPD to learn that the MTA permits artistic platform performances; the guitarist actually read the relevant section of the MTA code of conduct to the officers arresting him, who arrested him anyway and took him to jail.


Related has bought a 50 percent stake in CORE, reports The Times, making its first foray into offering residential brokerage services and offering condo buyers the same full-service management services that residents in Related’s rental developments get. CORE CEO Shaun Osher will remain in his post and  Shaun Osher and “will collaborate with Related on the development and sales of future Related projects.” Both CORE and Related are private companies; the sales price was not disclosed.


Also looking into buying is actress Jessica Chastain, who toured a $3.5 Murray Hill townhouse—how is there a Murray Hill townhouses selling for just $3.5 million?—with her boyfriend this past weekend, according to The New York Post.


Meanwhile, the opulent Upper East Side condo of Joan Rivers, valued at $35 million “how Marie Antoinette would have lived if she had had money,” will go, unsurprisingly, to her daughter Melissa, according to USWeekly.  Melissa received the bulk of her mother’s estate.


If the de Blasio is really serious about reducing serious traffic injuries and fatalities, he might start with the city’s own employees, according to a report from the comptroller. As reported in The Journal, the city faced more than 1,400 injury claims between 2007 and 2014 from pedestrians struck by city vehicles and 22 died. There is also a high financial cost to the city—more than $90 million—in that same time period.


In things we are obsessed with news: Curbed National has a story on how Ben Bradlee, the former executive editor of the Washington Post who died on Tuesday and his journalist wife Sally Quinn bought and restored the Grey Gardens mansion after the Beales left. You know, it’s very hard to keep the line between the past and the present.


Big Developer and Boutique Firm Join Forces

The New York TimesOctober 23, 2014

If you are one of the hundreds of New Yorkers who live in a condominium built by the Related Companies, one of New York City’s most prolific developers, you might like to know that changes are afoot. That is because the company is making its first foray into offering brokerage services.


Related, which is behind some of the city’s most high-profile projects, including the Time Warner Center and the creation of the 28-acre Hudson Yards neighborhood, is buying a 50 percent stake in CORE, the boutique residential brokerage.


“We have built so many for-sale buildings, and we still manage every single one of them,” said Jeff T. Blau, the chief executive of Related. “But when it comes time for someone to move out, we can’t service them. This deal will allow us to keep our relationship with our original customers, many of whom become repeat buyers.”


So the relationship that begins with a buyer choosing a Related condominium and living in a Related-managed building, now can continue even as that buyer decides to move on and can choose to work with Related’s new brokerage partner, CORE. Related will continue to handle its rentals through its in-house team.


According to the terms of the deal, which was finalized Tuesday, Shaun Osher will remain as CORE’s chief executive and will collaborate with Related on the development and sales of future Related projects. Mr. Osher founded CORE with the Cayre family, which will continue to have a small stake in the company. Both CORE and Related, which are privately held, declined to disclose the sale price.


The deal marries a global developer with a carefully maintained reputation to a brokerage that came on the scene less than a decade ago with a much edgier aesthetic. CORE, after all, was one of the first agencies to sign on to “Selling New York,” HGTV’s reality series, and has marketed buildings like One Museum Mile on Fifth Avenue and Walker Tower in Chelsea, which last year broke a record for most expensive downtown sale with a penthouse that sold for more than $50 million.


The investment is the culmination of a six-month negotiation. “At first I wanted to see if we could steal Shaun away and have him come work here,” Mr. Blau said. “But he is very committed to his company, and out of those conversations came the idea to make a significant investment in CORE. As the slogan goes, ‘I liked it so much I bought the company.’ ”


While the main reason for the investment was Mr. Osher — “He is No. 1, 2 and 3,” Mr. Blau says — another factor is the capacity to build a resale business for Related.


The company is also one of the city’s largest landlords of luxury rental buildings, and one of its signature features is the ability to be a full-service company for its tenants, helping them move within Related properties as they upsize or downsize. The investment in CORE will now allow Related to offer the same full-service menu to its condo buyers. CORE has 98 sales agents and three offices — in Chelsea, on Madison Avenue and the headquarters in the Flatiron district. Since its founding in 2005, CORE has marketed and sold more than 30 new development projects and generated more than $4 billion in sales. With this influx of new capital, it will continue to expand, opening offices in Brooklyn and the Upper West Side “in short order,” Mr. Blau said.



Related’s size and reach take CORE out of the boutique realm, but Mr. Osher said they would not change the younger, hipper brand that his firm has cultivated. “I worked for almost 10 years to build CORE in the city,” he said, adding that Mr. Blau “understands that the CORE brand is an extension of me.”


Related also liked that CORE could provide real-time market insight. “We have 100 agents who have their finger on the pulse of what people want, and because we are small, we can stay close to those who are really out there walking the pavement and getting the market intelligence,” Mr. Osher said.


Mr. Blau added, “Because Shaun is doing so many deals, he is very informed about the resale market and what people want, and can help make development decisions.”


Founded in 1972 by Stephen M. Ross, the Related Companies has taken stakes in other businesses that are often popular with Related residents, including the fitness chain Equinox and Union Square Events, which is backed by the restaurateur Danny Meyer. This is the first time it has invested in a brokerage firm. Previously, Related either marketed its projects using an in-house team of six agents or formed partnerships with outside brokerage firms.


Last November, it announced a deal to partner with the Corcoran Sunshine Marketing Group for about $5 billion worth of new developments, including 15 Hudson Yards, 35 Hudson Yards and the Zaha Hadid-designed 520 West 28th Street. The deal will continue to be honored, Mr. Blau said.


“We will see how it goes,” Mr. Blau said. “So far Corcoran Sunshine is doing a great job.” Kelly Kennedy Mack, the president of Corcoran Sunshine, said the CORE deal would have “zero impact” on Corcoran Sunshine’s agreement with Related. “We have been collaborating with Related on six different properties across the city,” she said in a statement. “We’re very excited to launch our first property with Related early next year.”


Mr. Osher said there were still many details to be worked out. “Corcoran Sunshine already formed this partnership, it was pre-existing, and it is just on a couple of projects,” he said. “Our relationship with Related is forever. They are going to be an equal-stake owner of CORE, so that is very significant and a very different type of thing.”


Related’s investment in CORE comes as several new brokerage firms have opened or expanded in New York, including Urban Compass and William Raveis Real Estate, while some developers have begun hiring in-house sales teams to market projects, rather than outsourcing the business. “There has been a lot of change in the market, and when there is a lot of flux and disturbance, deals like this seem to bubble up,” said Andrew Gerringer, the managing director of Marketing Directors, a development, leasing and marketing company.


The way in which Related handles its agreement with Corcoran Sunshine will be closely watched. “There could be some ego issues there,” said Mr. Gerringer, who worked with Mr. Osher at Douglas Elliman before he left to start CORE. “If I was Corcoran, I wouldn’t want some guy to get involved out of the blue who is eventually going to replace me, but on the other hand, in this business you need to roll with the punches.”



Related Buys 50 Percent Stake in CORE

The Real DealOctober 23, 2014

Related Companies, one of the city’s biggest landlords, is buying a 50 percent stake in CORE, a boutique residential brokerage firm.


The sale price has not been disclosed, according to the New York Times.


Shaun Osher, the chief executive officer of CORE, will stay on in his current position. Osher will work with Related on its future projects.


“We have built so many for-sale buildings, and we still manage every single one of them,” Jeff Blau, the chief executive of Related told the newspaper. “But when it comes time for someone to move out, we can’t service them. This deal will allow us to keep our relationship with our original customers, many of whom become repeat buyers.”



CORE was one of the first brokerages to sign onto HGTV’s “Selling New York” and has brokered deals in buildings such as One Museum Mile on Fifth Avenue and Chelsea’s Walker Tower.

Related Companies Acquires Stake in CORE

Real Estate WeeklyOctober 23, 2014

Related Companies today announced that it has acquired a stake in CORE, a boutique real estate brokerage in Manhattan, to further expand CORE’s brand and offerings throughout New York City. 


“This is an incredible opportunity for CORE to align ourselves and work alongside one the most respected developers in the United States,” said Shaun Osher, Founder and CEO of CORE. “Our teams share a similar vision and commitment to quality, design, lifestyle and innovation. This is a game changer.”


Jeff T. Blau, CEO of Related said, “Related and CORE both have creative, collaborative, customer-focused cultures and share a commitment to great design and best-in-class product. Shaun Osher has built a great brand and assembled a strong management team and group of talented agents. We saw an attractive opportunity to help fuel the growth of the platform, invest in great talent and optimize opportunities throughout the city. Related has an over $6 billion pipeline of new condominium developments, and with this investment we will be able to bring real-time market knowledge and customer feedback even closer to our development teams. In addition, we have built over a dozen condominiums in New York City and we saw great synergies to better serve our clients with direct involvement in the resales in those buildings.”


CORE will continue to operate its services to agents and residential and commercial developers throughout the City. In addition, Shaun and his team will collaborate with Related on product development and sales of future development opportunities and build a customer-focused resale business around Related’s past developments.


CORE will remain a separate autonomous company with Shaun Osher remaining as CEO, and maintain its offices in the Flatiron District, Chelsea and on Madison Avenue.


Related’s condominium pipeline in New York City includes: 520 West 28th Street in collaboration with Zaha Hadid, 15 Hudson Yards (555 West 30th Street) in collaboration with Diller Scofidio + Renfro and Rockwell Group and 35 Hudson Yards (550 West 33rd Street) in collaboration with David Childs and SOM, as well as additional properties in Chelsea, Tribeca and the Upper East Side.



Since its first condominium development, Related has been responsible for over $7 billion in sales volume. The team of Related Sales will continue to be dedicated to the Related condominium pipeline as well as resale opportunities throughout the portfolio. In 2013, Related formed a venture with Corcoran Sunshine Marketing Group on select projects including 520 West 28th Street and Hudson Yards. That venture will be unaffected by the transaction.

Suzuki Secures Construction Loan for Gramercy Condo

Real Estate WeeklyOctober 21, 2014

Developer Sam Suzuki has secured an $18 million loan to convert a former Gramercy police precinct into luxury condos.


Mortgage Equicap LLC announced this morning (Monday) that it arranged the non-recourse construction loan for a 12-unit condominium conversion near Gramercy Park.


Daniel Hilpert, managing director, said the firm was able to arrange 80 percent financing through a participation between a bank, taking the A note, and an unconventional lender, providing a highly leveraged B-piece.


In April this year, Suzuki paid $11.5 million for the property at 327 East 22nd Street along with 7,000 s/f of additional air rights. It was later reported that he planned to demolish the four-story structure that once housed the 21st Precinct and later became a group home for lesbian, gay, bisexual and transgender  young people.



Over the summer, Suzuki tapped residential sales and marketing firm CORE to handle sales of the two-and-three bedroom condos in the new building being designed by Philip Johnson Alan Ritchie Architects. The building is expected to be completed in fall of 2015.

The Window Shoppers

New York ObserverOctober 20, 2014

Sometimes it only takes one open house to find the right place - but that's certainly not the norm. According to the 2013 National Association of Realtors' Profile of Home Buyers, the typical homebuyer nationwide searches for three months and views 10 homes.


But in New York City, according to a wide-range of Manhattan-based brokers, the number of showings can vary from about 12 to as much as 130-plus before a client pulls the trigger - despite the lack of inventory. 

Renwick Street in Soho Seeing Hotel, Resi Redevelopment

The Real DealOctober 17, 2014

Four residential projects are in the works along a block-long stretch of Renwick Street, between Canal and Spring streets, in Soho.


One of the projects is IGI-USA’s 31-unit loft building under construction at 15 Renwick Street.


Condos are slated to range from $2 million to $10 million in price. CORE is marketing the property, which is launching sales later this month and will open by next year. The block largely features old-school bars such as the Ear Inn, Emerald Pub and McGovern’s Bar. But in addition to several forthcoming apartment buildings, hotels have invaded.


Tommie Hotel is opening a 329-room hotel at nearby 231 Hudson Street next summer.


Fortuna Realty Group’s Morris Moinian, in partnership with developer Matthew Moinian, opened the 122-room Hotel Hugo this spring.


“There’s only so much product in the north Tribeca area, and [people] are migrating to Hudson and Renwick,” Mara Flash Blum, a Sotheby’s International Realty broker told the Wall Street Journal. “It’s like being in Soho and not being in Soho.”



At the Top of the World, a View of the New York Real Estate Market

The New York TimesOctober 17, 2014

Rising home values around the country are welcome news six years after the housing market collapsed. But there is a growing segment of buyers who are capable of spending so much money that they operate in rarefied space, paying prices that are rising into the tens of millions of dollars and have no bearing, on the usual rules of supply and demand.


That is especially true in some New York neighborhoods like the one along 57th Street in Manhattan, known as Billionaire’s Row. There, apartments with Central Park views have fetched in excess of $30 million. What you get is nice: three bedrooms, four baths, floor-to-ceiling views. But the price is so detached from anything comparable, save what someone else has paid for similarly opulent pad next door, that the phenomenon raises some intriguing questions:


No matter how much money you have, how would you know if you were getting a good deal?


And beyond price, what is it like to buy one of these baubles of the 0.1 percent? How different is the experience from what everyone else in the world goes through to buy a home? Are there moments when egos flared and deals got ditched? Or are the buyers so wealthy that the gargantuan sums – and even the whole experience – are meaningless?


The prevailing view is that most of the buyers are international. Many at the highest end are from South America, China and Eastern Europe, said Leonel Piraino, a broker at Douglas Elliman Real Estate. In Manhattan, their purchases are generally confined to condominiums, which are about 30 percent of the market and have laxer requirements for disclosing financial information and renting than the larger co-op market.


Regardless of where the buyers come from, Mr. Piraino said most super rich international and American buyers looking at New York real estate as an investment were aiming in the $2 million to $4 million range.


International buyers “see the U.S. as a safe place to come to invest their money even if the return is not the highest return,” he said. “They look at it as a bank account: You come here, you park your money in real estate and you assure yourself that you’re in a safe place.”


Others, he said, look at New York real estate as a long-term growth investment, where they can use the monthly rent to cover their carrying costs.


Michael, a 45-year-old London-based digital media entrepreneur who asked that his last name be withheld for privacy, has done just that.


He bought the fourth-floor apartment at 50 Bond Street in New York’s NoHo area for $5.65 million at the end of 2012 and the third floor a few months later for $5.3 million. He rents them for $21,000 and $20,000 a month, and owns them through a limited partnership.


“To be honest it was an investment decision for me,” he said, adding that he’s never lived in New York nor even spent a night in one of his condos. “London is one of those markets where property right now doesn’t offer a lot of value.”


He said he based his decision on considering the similarities of the two cities as global financial centers and then calculated that property values per square foot would have to rise 60 percent in New York to reach where they are in prime London neighborhoods like Chelsea. He could also charge enough rent in New York to cover all of his costs, including 30-year mortgages on both properties at interest rates under 4 percent.


“I’m better off borrowing at 3 to 4 percent and buying two condos,” he said. “I do think we’re going to look back in 10 years’ time and say gosh that was the most amazing opportunity of our lifetime.”


He was persuaded to buy the second property by his agent, Mr. Piraino, who pointed out that owning two 3,000-square-foot condos on Bond Street that someone else could combine was more valuable than similar apartments apart.


Yet for foreign buyers owning real estate in New York – or anywhere in the United States – their heirs can end up with a hefty estate tax bill they might not be prepared for. The exemption for nonresident aliens is only $60,000, with a 40 percent tax on real property over that. (The exception is if the United States has an estate tax treaty with the person’s home country.)


Depending on the level of wealth, buyers can set up expensive and complicated structures to own the property or they can buy life insurance to cover the estate tax. But getting that insurances is not cheap.


Bryan Schick, president of NFP BVI Ltd., an international insurance brokerage firm, said the premiums varied widely depending on the risk rating of the country where the person resides. For an A-rated country, like Britain, the annual premium for $10 million of life insurances would be about $75,000 a year. But for a C-rated country like Colombia, that premium jumps to more than $122,000 a year.


When international owners are ready to sell or buy, that transaction typically takes longer and requires more patience on the other side. Jason Walker, another broker at Douglas Elliman, just brokered the sale of a $7 million downtown loft that was owned by a Middle Eastern princess.


“It definitely added a layer of complexity to everything,” Mr. Walker said. “I had to be careful to manage the expectations of the purchaser. The offer came in during Ramadan so I stopped getting responses.”


He added, “You had American buyers, a Middle Eastern seller and European lawyers – there were cultural sensitivities.”


This is a segment of the market, the globe-spanning superrich, that real estate firms are chasing the way other luxury brands are. To that end, Douglas Elliman and Knight Frank Residential, a similar high-end, London-based brokerage firm, recently announced an alliance to serve and share clients buying property around the world – to keep them from going to different brokerage firms in different markets.


A New Yorker by birth, Marc Rappaport has a different view of the city’s booming luxury real estate market: It’s a more interesting investment than stocks and bonds. He bought three apartments in Lower Manhattan in 2012 and 2013 that ranged in price from between $1 million and $2 million to more than $3 million. He is now looking to buy a pied-a-terre in Paris, even though he doesn’t speak French. (He does have a girlfriend there.)

“I look at it more as a lifestyle,” said Mr. Rappaport, whose wealth comes from distributing mutual funds. “I could make more money in stock and bond investments. The investment performance is not the driver.”


With mortgages on two of the three New York properties, he said he was also spurred by low interest rates.


Yet at the highest end, a mortgage typically has to come after an all-cash purchase. Competition can be fierce, and that increases the pressure to pay cash for these properties or make other arrangements.


Walter Welsh, head of private banking at PNC, said consumer financial protection regulations that came into effect this year make the mortgage process much longer and more complicated, even for people with plenty of money. To get access to money more quickly, he said clients prefer to use other assets as collateral — in effect, a high-end margin loan.


Still, in this rarefied world, now is a moment when people believe strongly in luxury real estate. Some international clients are buying it for children attending college in New York, while others, like real estate investors before them, see it as an asset that will just go up in value.


"I don’t know what my exact plan is," said Michael, the London buyer. “I have fixed mortgages. I expect to hold them for 10-15 years. By that time, the rents will go up and my monthly mortgage bill won’t." Or at least that's the hope.

Many on Renwick Street Embrace Development

The Wall Street JournalOctober 16, 2014

Renwick Street, one of a few, largely hidden one-block streets in Manhattan, is coming out from the shadows with a burst of new development construction.


The semi-industrial block-long patch between Spring and Canal streets has four new residential developments under way. Along with several other new buildings of the last five or so years, it’s nearly a wholesale redevelopment of the street.


“I’m not bemoaning the loss of the old neighborhood—it was quiet and nice, but this development is needed and well deserved,” said Giorgio DeLuca, a longtime resident and proprietor of Giorgione restaurant near the intersection of Renwick and Spring.


A cluster of old-school drinking establishments—the Ear Inn (established in 1817, making it one of the oldest bars in the city), Emerald Pub and McGovern’s Bar (now a dance club called Sway Lounge beneath its original dicey facade)—still anchors the intersection of Spring and Renwick. But now construction workers—not vagrants, as one longtime resident remembers—far outnumber pedestrians and residents, heralding the changes to come.


“I would venture to say that Renwick Street is probably the most changed block in New York City,” said Shaun Osher, chief executive of CORE, which is marketing the 31-unit residence at 15 Renwick St. Slated for 2015 completion, the loft-styled apartments will start at $2 million and three-bedroom apartments will reach $10 million.



Renwick Street once was home to horse stables and families, recalls Francis Healy, 88 years old, who lives around the corner on Hudson Street, noting that in his time police blocked off the street on weekends so children could play. But for decades it has been home to warehouses and garages for food vending carts.


Karla Maria Rothstein, co-founder of Latent Architecture, whose offices have been on the street since 1999, said, “We love buildings that have integrity and believe in giving [them] a second and third life. But there was nothing here that I could see was an aesthetic loss.”


Latent is among the many small design-oriented firms that have long made the neighborhood its home. She and her partner, Salvatore Perry, say they are “thrilled with the transformation” on the street.


That is a feeling Ellen Baer, president and CEO of the Hudson Square Connection Business Improvement District, hopes will telegraph to others considering locating in the enclave.


“We expect thousands of people moving in over the next 10 years….We want to create a neighborhood with more neighborhood-type services,” Ms. Baer said. She noted last year’s rezoning of the Hudson Square Special District will bolster the larger neighborhood, which historically lacked housing and services.


While the changes are welcomed by many, Andrew Berman, executive director of the Greenwich Village Society for Historic Preservation, raised questions about the impact of Renwick’s development wave on schools, parks and other public resources.


“We’re not opposed to new development taking place here, but there really was no comprehensive plan for dealing with the burden on local infrastructure these new developments would create…and for ensuring that this area had some socioeconomic diversity,” he wrote in an email.


It isn’t just housing that is popping up. Surrounding Renwick, new hotels are entering the market: the Hugo at 525 Greenwich St. opened this spring, and a 325-room hotel on the corner of Renwick and Canal is nearing completion, according to an application on file with the city department of buildings. Nearby, Tommie Hotel, a division of Commune Hotels, will open a 329-room hotel at 231 Hudson St. next summer.


In anticipation of welcoming residents and visitors alike, the local BID launched a $27 million streetscape improvement project to spruce up the area and make Spring Street—one of the few Manhattan streets to run from river to river—“more like a Main Street for our little neck of the woods,” said Ms. Baer.


Chris Miele, co-owner of reGeneration furniture, a fixture at 38 Renwick St. since 1997, said her business—like many others in the area—doesn’t depend on foot traffic, but referencing No. 45, the sole vacant retail space on the street, she said that “anyone who’s smart should do well here.”


Nick Incantalupo, who since 1979 has owned that storefront at No. 45, once home to a gallery, agreed the location is prime.


“If I was younger, I would put a pharmacy in there, but I’m beyond that stage—I want to go out of business, not in business,” he said.


Mara Flash Blum, a broker with of Sotheby’s International Realty, said she has been “selling a lot in the area—a lot.”


“There’s only so much product in the north Tribeca area, and [people] are migrating to Hudson and Renwick,” she said. “It’s like being in SoHo and not being in SoHo.”


Ms. Blum echoes what Mr. DeLuca’s instinct 20 years ago when he purchased 40 Renwick St., then a broken and abandoned building. It was the first property on the block to undergo redevelopment.


“I saw development surging in SoHo proper. This is close to the river, an affordable building we could afford to take a chance on,” he said. “I knew it was a matter of time but what I didn’t expect was the rate of development—the acceleration.”


Mr. Incantalupo said he, too, appreciates the changes.



“It’s gone from very low end to high end. I remember hookers, longshoreman, and drunks at night on the street,” he said. “Within the year, the bar should be [raised] unbelievably high.”

A History of New York in 101 Objects: 6sqft Edition

6SqFtOctober 16, 2014

As urbanists we tend to define the city by locations and the historic events that unfolded at them. But what about getting even more specific and looking at New York’s past through tangible objects? That’s exactly what New York Times urban affairs correspondent Sam Roberts has assembled in a new book, A History of New York in 101 Objects. And a corresponding exhibit at the New York Historical Society puts Roberts’ choices, along with objects from the Society’s collection, on view.



We were so intrigued by this idea that we decided to put together a 6sqft version of the list. From preservationists to architects to real estate brokers, we’ve asked ten people to give us the ten objects that they feel best define New York City’s history. There are definitely some favorites that emerged like cobblestones, Metrocards, and pizza, as well as an eclectic mix of items that speak to our participants’ personal connections to New York.

Made in the Shade?: As the W. 57th St. Area Sprouts Superdeluxe Towers, Long-Term Residents Face a Choice

New York Daily NewsOctober 16, 2014

Call them the humble millionaires of Billionaires’ Row.


Apartment owners living just south of Central Park are seeing their neighborhood altered by a stream of uber-pricey skyscrapers debuting along the short corridor between Sixth and Eighth Aves. from W. 57th to W. 59th Sts. The question on some of their lips: Should we stay or should we go?


Resales of existing condo and co-op units along the 57th St. corridor have ticked up in recent months as owners opt to sell their pads amid the development boom. There was an 83.9% increase in resales in the area in the second quarter, according to listings website StreetEasy, an early indication that some long-term owners in older buildings may be starting to get itchy feet.


“This is a case of a rising tide lifting all boats,” said Alan Lightfeldt, a data scientist at StreetEasy. “There’s certainly more interest in properties on the 57th St. corridor, which used to melt into the rest of Midtown. Now, it’s quite a powerful address.”

Manhattan’s Most-Celebrated Architects and Interior Designers Go Large-Scale

New York PostOctober 15, 2014

The latest crop of luxury residential developments is breaking ground in a whole new way: by hiring interior designers and architects better known for their work in hotels, restaurants and product design — along with swanky private homes.


Previously lauded for their smaller-scale commissions, these talents bring a fine eye for architectural and design detail to their first-ever large-scale residential developments.  Along the way, they’re imbuing these projects with bespoke features that come from very personal visions.


“Who knows how to better craft homes than interior architects?” says Barbara van Beuren, managing director of Anbau Enterprises, which hired Andrew Sheinman of Pembrooke & Ives for a new Upper East Side development. “They have a deeper understanding of lifestyles and needs, and that translates into
the design.”


“People want beautiful design rather than a brand name just for the sake of the name,” says Shaun Osher, CEO of CORE, which marketed 141 Fifth Ave., one the city’s first bespoke developments, in 2008. “Something that feels customized to the buyer and feels unique is what they’ll put the value on.”


Citing the high stakes and high costs of today’s market, Jonathan Miller, president and CEO of real estate appraisal firm Miller Samuel, sees this new trend driven by economics.


“There’s an extra cost associated with a brand that might not translate into additional returns,” he says. Bringing in “people who have been successful in their own right [versus a ‘starchitect’] but that don’t have the brand recognition [is] a cost-effective alternative.”


On the Upper East Side, developers are placing a value on reinterpreting history, selecting interior designers who can straddle tradition and trends, and respect the neighborhood context.

Peek in the Seller’s Closets, Nix the Bathroom Stop, and More Ways to Ace the Open House

Brick UndergroundOctober 14, 2014

For buyers and nosy neighbors alike, open houses can be a welcome opportunity to poke around other people's homes and see how they live (and decorate). But if you're genuinely looking to buy in a city as rife with bidding wars as NYC, the open house is also a crucial time for you to make a good impression. The seller's broker could be silently vetting you for a massive financial transaction and, if you're looking in a co-op, how you'd fare in a board interview, to boot.


"How someone conducts themselves in an open house is generally a good indication of how they'd act in a board interview, and how likely they are to be approved," says Halstead Property agent Chris Kromer. And no seller wants to waste their time with a candidate who’d never impress the board.


Coming across as the ideal buyer is a delicate balance: you don't want to seem desperate or likely to overpay, but you do want to come across as a legitimate, interested purchaser with the means and the know-how, not just another voyeur who stopped by to gawk. You also want to leave the sellers with the impression that you'd be easy to work with. "We definitely get a sense of a person’s personality and how the process would go [during the open house]," says CORE agent Dana Karson, who adds, "it can sometimes lead to the seller wanting to work with someone else."


So how do you leave an open house in good standing with the seller and ahead of your competition? We grilled experts for the best tips (and cautionary tales), and came up with these no-fail guidelines:


1.     DON'T overdress


While a seller might assume you're not serious if you show up in sweats, it's also possible for the pendulum to swing too far in the other direction. "Some people walk in flaunting everything they've got like it's a special occasion—diamond jewelry, the works—but you don't really want the listing agent to assess your financial situation from what you're wearing," says Gea Elika, principal broker of Elika Associates. "It's important to show that you're a strong candidate, but not over-the-top. Think professional, not flamboyant—don't go in dressed like Liberace."


Mostly, the rule of thumb is not to overthink it, and Karson advises to aim for "comfortable and appropriate." 


2.     DO play it cool


As with outfit choice, you want to show that you're legitimately interested in (and capable of) buying but not come across as over-eager, lest you ruin any future attempts at negotiation. "I wouldn't make any declarative statements, like 'I will definitely be bidding,'" Warbug Realty broker Jason Haber tells us.


"An open house is about learning about the property," rather than becoming best friends with the listing agent, Elika adds. "If you try to negotiate there, it shows that you're not qualified and you don't know what you're doing." Put it this way: "Would you ever walk onto a used car lot and say, 'I love that car!'?" 


Another upside to not spending the whole time gushing to the seller: the opportunity to eavesdrop.


"Listen to other people and see what they think," advises Elika. It could give you a sense of the competition, or potential points for negotiation down the road. 


3.     But DON'T play it too cool


If you're interested in making an offer, say something more along the lines of "I love the home, it could be a great fit for me, and I'll get back to you as soon as possible," Elika suggests. Ask smart, specific questions about the building's financials and maintenance charges, and how many residents live there year-round. 


You want to be remembered. "It will always raise eyebrows if the seller or their broker gets your offer and doesn't even remember meeting you at the open house," explains RealDirect CEO Doug Perlson.


Since so many ultra-competitive buyers are in the habit of putting "placeholder" bids on the apartment right then and there—and never following through—you should have a brief, polite, conversation letting the broker know that you're seriously considering the place (not just bidding to keep it on the back burner), and will be in touch again. 


4.     DON'T be an armchair critic 


Openly critiquing the apartment won't score you points, and it definitely won't score you a better price. "Lots of buyers think they have to be poker-faced—or worse: negative—​in order to have better leverage when making an offer. Not so," says Realty Collective agent Tina Fallon. "The listing agent will be more willing to work with a buyer who demonstrates a sincere interest in the property."


"Don't be mean," adds Brennan Realty Services broker Barbara Wilding. "You can explain why a place isn't for you—​not enough space, too dark, etc.—without being personal." After all, home decor is something that can be changed, but making a terrible impression—or offending the seller—isn't.


5.     DO surrender your shoes


No one likes walking through an open house in stocking feet, but think of it as a necessary evil. (And also, pretty understandable if a seller's got dozens of people coming in off the city streets and tromping through their home.)


"Don’t roll your eyes if they ask you to take off the shoes," says Halstead's Kromer. The no-shoes request is particularly common in higher-end listings, but is a universally accepted practice. "I've even had listing agents give us medical booties to put on over the shoe," says Citi Habitats broker Corlie Ohl. Best to wear your good socks and go with the flow on this one—after all, if you can't handle a basic request during an open house, how will you respond to the building rules if you're a resident?


6.     DON'T use the bathroom (and if you can't help it, at least close the door)


Bathroom use is a lightning rod of open house etiquette—some say it's strictly verboten, but everyone agrees that if it absolutely can't wait, you must follow certain rules. 


"Use it for 'number one' only," our etiquette columnist Jamie Lauren Sutton advises. "Don't stink it up, or worse, clog or break the toilet—which has happened," Brennan broker Tiffany Lee adds. If you simply can't wait to get to a Starbucks, always ask before availing yourself of the apartment's facilities. And be quick: "Especially if the open house is crowded, understand that everyone's going to want to see the bathroom, and getting in there to use it makes things a little awkward," Kromer says. 


One major don't he's encountered after years of open houses: a well-known retired athlete using the bathroom during a showing with the door open. It should go without saying, but just in case: Don't. Do. That.


7.     DO snoop—within reason. 


The whole point of an open house is to scope out a potential purchase, so don't be shy. "Sometimes people are hesitant to do things like open up closets, or they sort of lean into a bathroom instead of walking in," says Haber. "If someone has an open house, though, they’re anticipating people poking around the apartment, and you should do that." 


That doesn't mean rifle through the medicine cabinets and the bedside table. A good rule of thumb is to refrain from opening drawers in furniture that'll be going along with the seller—coffee tables, dressers, etc. "You’re buying the apartment, you’re not buying the seller’s underwear," Haber says. "You’ve got to get acquainted with the space, while being mindful that all the stuff in the apartment isn’t yours when you buy it." Sit on the furniture to "test it out" if you'd like, but know that it's not likely to be part of the purchase.


8.     DO stay on schedule


Yes, we told you to play it cool, but no need to be "fashionably late." "If the showing's from 12:30 to 2 and you show up at 1:59 expecting a full tour, the listing agent probably has other places to be," says Kromer. Besides potentially irritating the seller's broker, it won't give you the time you need to properly scope the place out. Citi Habitats' Ohl recommends allowing yourself at least 15 minutes to look around the apartment and ask a few question. And if you're a leisurely browser, get there towards the beginning so you don't have to rush yourself.


9.     DON'T let your kids run wild. 


In fact, you may not want to bring them at all. Simultaneously keeping an eye on your kids and a potential apartment will distract you from the whole process, and you want to focus your attention on the property (which probably won't be childproofed if the seller doesn't have kids). Let the kiddies scope out the place for themselves if you like it enough for a second visit.


If you do need to bring your children, "they should behave as they would on a school interview," etiquette expert Sutton advises, and they shouldn't wander the house unsupervised or touch valuables.


Depending on their age, put them in a stroller or hold their hands while you walk through the place.


"Children have a way of finding plugs or other knick knacks and causing damage," Ohl says.


Sometimes, though, they can make unexpected appearances: "I once had a client go into labor while she was at a showing," recalls Warburg's Haber. "Her kid was almost there by accident!"


10.   DO be careful with the snacks (and the wine). 


Outside food or drink is a no-no at the open house (after all, dozens of people may be coming through, and the seller doesn't want any unnecessary mess or stains). On the flip side, a lot of open houses serve up snacks and wine (the better to keep you lingering in the apartment). 


If you'd like to stay in everyone's good graces, do your eating near the table, or make sure you're putting all your detritus in a trash can, not on the coffee table. (As with so much etiquette advice, a lot of this comes down to common sense.)


If you're not making a serious play for the apartment, well, the rules are (hypothetically) a little looser. At one of Haber's open houses, which he hosted in an East Village townhouse on Halloween, a woman came in off the street, had a few glasses of wine, and passed out downstairs. "We turned off the lights when we left and she slept there overnight," he says. "The owner came in the next day, said hi, made her breakfast, and they had a nice chat. These things happen; it's the East Village." 



Williamsburg is Not in Manhattan, and 6 Other Surprises For NYC’s Foreign Apartment Buyers

Brick UndergroundOctober 08, 2014

For the average overseas buyer, the NYC apartment search will be an education

The New York City real estate market already feels like a foreign country, with its own language (alcove studio, classic-fives, mansion tax), geography (no, "the city" is not the five boroughs, according to some people), and social conventions (yes, it's perfectly acceptable never to speak to your neighbors). But when you're shopping for an apartment and you actually come from a foreign country, the hunt is that much more complex—and filled with assumptions that are all too quickly dispelled. 


With the firm belief that ignorance is not bliss, we spoke to local real estate brokers who frequently work with buyers from China, Russia, Europe and elsewhere to enumerate the most common myths their clients have about the New York market. Below, the biggest reality checks for buyers from outside the United States:


1. Most apartments are not actually for sale

Many clients are surprised to find out that the ratio of all apartments is 70/30, of which only 30 percent are sales and 70 percent are rentals. —​ Eliot Bogod, founder of brokerage Broadway Realty


Compared to the fast developing cities in China, New York City has a very low inventory.​ —​ Li Chen, a broker at Siderow Residential Group


The inventory that hovers between $800,000 and $1.5 million is very minimal. So the all-cash buyer who believes they can come here and make a quick deal is not so quick. — Reba Miller, founder of brokerage RP Miller Realty Group


2. And the apartments that are for sale are off-limits


Approximately 80 percent [of the apartments in New York] are co-ops, which are hard for foreigners to purchase. They are always surprised when they hear about the concept of a co-op. —​ Nataly Rothschild, a broker at Engel & Volkers


In regards to purchasing in a co-op, these buyers are also sometimes taken aback by the lengthy board approval process and the restrictions that come along with ownership in these buildings.​ —​ Keren Ringler, a broker at CORE


They are even more interested to find out that only 30 percent are condos... ​Many of my foreign clients are surprised to find out that most "desirable" real estate is out of touch for them. As an example, they inquire about Fifth Avenue buildings north of East 57th Street along Central Park. When they learn that area is mostly co-ops that allow full-time residents only, they are disappointed. —​ Eliot Bogod


3. Some sellers find out everything about your finances


Foreign buyers are always surprised and easily annoyed by the fact they need to be fully prepared with their financial documents before they make an offer, and sometimes even before they can see apartments. ... The different buying process makes it harder for them to understand that the sellers need to see all funds for the down payment in a U.S. bank as well as a pre-approval letter from the bank in order to be considered a serious offer. —​ Li Chen


4. Prices may seem comparatively low...


Prices are reasonable compared to other major international cities such as London.​ —​ Keren Ringler


Very wealthy buyers accept [the prices] as they are looking for a status symbol or are used to high prices in other cities where they already own real estate. —​ Nataly Rothschild


Someone from Hong Kong is usually surprised at how much bigger apartments here are.  A studio in Manhattan is the size of a two-bedroom in Hong Kong.​ —​​ Wei min Tan, a broker at Rutenberg Realty


5. ...Until you realize what you get for those yen, Euros and pounds


For a lot of buyers [with budgets] between $1 and $10 million, they need a learning curve of several months to understand what is available for the money they want to spend. This will most likely be a much smaller place than they thought they could buy and could afford in their hometown, with some exceptions of similar expensive cities around the globe. They will most likely lose some great apartments because they are not quite ready to understand the market. —​ Nataly Rothschild


Buyers from overseas are used to living in high-end glass towers back home, so when they come to New York, they expect to buy similar spacious apartments with high [ceilings] and in brand new condition. Many of them consider post-war buildings too old. Only buildings [that are] three to five years old are acceptable to them. —​ Li Chen


6. Neighborhood choices are all over the map


Usually foreign buyers come anticipating to buy in Times Square, Wall Street, Central Park and Fifth Avenue [because] these are the names they are familiar with. These are touristy areas but may not always be the best for investment.​ ... Those buying for investment decide based on metrics such as demand/supply, rental prices and vacancy rates. —​​ Wei Min Tan


There are two groups of overseas buyers: investors and homeowners. For pure investors, they will compare the rental market, fees that are involved, return rate and potential growth of value. Many of them prefer neighborhoods close to universities for the stable rental income that this provides, while some of them will consider buying in neighborhoods which are up-and-coming, such as central Harlem, and the First and Second Avenue areas. For homeowners, they scatter all over the city. They care more about safety and convenience. Many of them like buildings which are only two to three blocks to subways stations, supermarkets, and sometimes close to their work place. ​—​ Li Chen​


Always very popular with our international clients: the West Village, Soho, Chelsea and the Flatiron, as well as centrally located in Midtown. And the "classic" buyers who still love the areas around Central Park best. —​ Nataly Rothschild


7. Oh, and Williamsburg is in Brooklyn


"Williamsburg is now an entity unto itself. I get phone calls—usually from foreign buyers looking to buy something for their children—who are absolutely sure it’s a neighborhood on the island of Manhattan."​ —​ Jacky Teplitzky, a broker at Douglas Elliman



Good Morning New York Real Estate

Voice AmericaOctober 07, 2014

Parul Brahmbhatt is featured in this weekly online real estate segment.

Just Stopping By: Briefly Occupied Two-Bedroom at One57 Lists for $10.75 M.

New York ObserverOctober 03, 2014

One57 has never evoked a homey vibe—from the early renderings of a vast apartment occupied by a bored-looking woman in evening dress to the building’s reputation for attracting buyers shopping primarily for a safety deposit box. But since closings started at 157 W. 57th Street early this year, a smattering of residents have indeed come to call the striped glass tower home. Among the units with the lights on these past six months has been 44B, which an entity by the name of 44B LLC purchased for $7.02 million in April, according to city records.


But simply it doesn’t do to get too familiar, and now, after an evanescent acquaintance, the unit is back on the market for the considerably larger sum of $10.75 million.


Listed with Emily Beare at CORE, the spacious two-bedroom (it clocks in at just over 2,000 square feet) boasts two distinct advantages over the sponsor units lingering on the market (as Bloomberg recently reported, just two sponsor units have gone into contract this year and 25 percent of the building’s units remain unsold). All the other two-bedroom units in the building have been sold out, according to Ms. Beare, and the listing has a new development rarity—actual photos. What’s more, there is furniture in the photos, courtesy of the owner’s son and daughter-in-law, whom Ms. Beare said had decided to leave after such a short residency because of their expanding family.


True, the sparse, modern furnishings don’t exactly make the place look cozy, but even a gloss of habitation at One57 is a distinction that makes the place appear downright liveable. Provided that one has $10.75 million, of course.


Ms. Beare said the owner, a domestic type that the broker declined to identify further, hadn’t intended to sell the unit so fast, but was persuaded by the strong market that now was the time to list.


Whether or not the owner will be able to realize a $3.73 million profit—more than $500,000 for every month he’s been in possession of the pad—remains to be seen. Of the five One57 resales currently on the market, only one has found a buyer, albeit for an impressive $34 million, as The New York Daily News reported yesterday. A tidy profit considering that the owner had paid $30.5 million a few months before, but a far smaller percentage increase than 44B is trying for. Still, Ms. Beare said that she has had “quite a bit of showings.”



“It’s a two bedroom, probably one of the lesser apartments in the building, but still very impressive,” she noted. “Every room has a view.”

Superfund Chic: In Gowanus, Industrial Touches Aren’t Just Affectations

New York ObserverOctober 01, 2014

The very word “Gowanus” seems to resist the possibility of glamor. Were the Brooklyn neighborhood’s famously fetid canal to vanish suddenly, there would still be that name—an unpleasant gulp of syllables, somehow reptilian in flavor. Until recently the province mostly of garages and machine shops, it is not the sort of place where one expects to find condos on the market for $4.395 million.


But one evening last week, at an open house for the lower of two duplex apartments occupying a brick building at 459 Carroll Street, that’s just what we discovered. A former brush and ink factory dating to 1888, the structure was purchased by two couples in 2006, divided and outfitted for occupancy.


The lower unit, an airy abode of 3,300 square feet, is owned by artists and evinces a variation on Soho chic, rather than a take on the brownstone aesthetic of pricier neighborhoods nearby. Walls of clean, white-painted brick rise to high ceilings, while dark, intricately tooled radiators offer warmth and slatted skylights peer out at the world above. An open kitchen softens bright metallic appliances with a block counter of smooth, blonde wood.


Industrial styling notwithstanding, as we entered, we could smell neither the sulfur nor the gasoline of Gowanus’ traditional bouquet, detecting instead the unmistakable aroma of fine hors d’oeuvres. A small crowd composed chiefly of real estate agents invited by CORE listing brokers Doug Bowen and Paul Johansen moved over dark wood floors, sipping wine and plucking dainty toasts spread with sprouts, fennel and sea bass from passing trays.


“There really aren’t any comps for this,” Mr. Bowen said, meaning area properties of comparable style and not the asking price. “It’s a condo, but it’s a potentially attractive option for a townhouse buyer.”


One broker cooed over a swing hanging whimsically from the ceiling between the kitchen and dining space on great lengths of rope. Another offered an approving one-word appraisal: “Damn.” Yet a third considered that the sellers were “shooting for the moon.”


We ascended the “sculptural” staircase, wherein light wood steps climb inside a weathered-looking metal frame, to inspect a trio of simple and elegant sleeping quarters, and a sleek, lumbered roof deck.


The master bedroom had been configured as an artist’s studio, with an array of worktables, fabric rolls and small images attached to walls. We peeked through a window looking out onto Carroll Street, across which stands a dark brick building with graffitied garage doors. Outside, a man in mechanic’s garb wearing forearm tattoos buffed a late model BMW to high sheen.


New York's Super Brokers: Tom Postilio and Mickey Conlon

Mann Report ResidentialOctober 01, 2014

Tom Postilio and Mickey Conlon stand out even among the exclusive coterie of New York's "Super brokers." As the breakout stars of HGTV's hit reality series Selling New York, which airs in 65 countries and 99 million American homes, Tom and Mickey have been hailed as the show's "Dream Team," with a track record to support the title. Responsible for more than $1.5 billion in residential sales, the duo are internationally renowned for their unique command of the luxury market, repeatedly shattering price records at many of Manhattan's most desirable addresses. Last year they were named CORE's top-producing agents, helping Shaun Osher and Jack Cayre's firm to seize the coveted ranking of #1 Midsize Brokerage for the third consecutive year.

ModernNYC.Weekly Featured Listing – 459 Carroll Street, 1

Modern NYCSeptember 30, 2014

Formerly an Ink & Brush factory circa 1888, the residence located at 459 Carroll Street is an innovative industrial space reimagined as a cutting-edge functional home. This prime Gowanus locale has seamlessly made the transition from its original workingman's roots into two distinct condominium residences. The 25-foot by 100-foot property sits on Gowanus' most significant block and was developed by its two current residents and completed in 2006. The entire building was stripped to its core and then completely rebuilt including all systems and mechanical. The lower two floors were crafted into an approximately 3,300-square-foot multi-level modernist home. The voluminous living floor is accentuated by its high ceilings, six skylights and sculptural metal and wood staircase; this floor also contains a gallery/office/guest suite space. The upper level has three bedrooms and is the egress to a remarkable 900-square-foot private outdoor space. Additionally, there is an approximately 1,200-square-foot cellar area with 10-foot ceilings that is a fully built-out artist studio. Please note: the common charges for this home are yet to be determined.

The Price of Parking: There’s More Than One $1 Million Parking Space in Manhattan

6SqFtSeptember 30, 2014

Car-owing New Yorkers can probably recite year-round alternative-side parking laws on cue, but most will also tell you how they loathe circling their block for 20 minutes, tracking which days to stay put, the inconvenience of babysitting a spot before the switch, figuring out a cluster of parking signs or, worse yet, arguing with a paid-for parking squatter. It often drives one batty.


Yet, there is an option and that’s paying for a monthly but costly sliver of asphalt—hopefully an elevator ride away or at the very least, a quick walk a few doors down. However, the key word here is “paying” and if you live in New York, that slice of space could put you back a pretty penny, especially if you’re shoveling out dollars for one in a new development.



Unless you’ve been living under a real estate rock, there’s no doubt you’ve read about the $1 million dollar spaces at 42 Crosby Street’s garage in SoHo. Is this lofty price tag for parking a market first? Nope.


Last spring, nearly all 28 parking spots at 56 Leonard went in a New York-minute at $500,000 a pop. Same thing at the Delos-developed (pioneer of Wellness Real Estate with an advisory board filled with the likes of Deepak Chopra and Leonardo DiCaprio) at 66 East 11th Street. They’re remaining firm on a million dollarparking space from the penthouse buyer, which, at $50 million, is still on the market.


Many ask if selling spots at absurd prices is simply a clever publicity stunt to garner lots of ink and airtime for a new project—or is this yet a new benchmark for guaranteed parking? Perhaps it is possible to shell out the kind of money (the current average cost is about $140,000), given that the Department of City Planning conducted a comprehensive parking study in 2011 and reduced the number of off-street parking spaces from 127,000 to 102,000 below 60th Street in Manhattan.



But more importantly, how are on-site parking prices determined? Jacqueline Urgo, the president of The Marketing Group said: “There is no formula, but an on-site garage is a highly coveted amenity, much like buying a townhouse with a private garage versus one without. The cost is determined by several factors, including the level of the product, the overall pricing of units and garage space inventory. In other words, pricing in a luxury condominium might be more than one in a building that would be considered more mid-market.”


Expert development marketers such as Ms. Urgo and Stephen Kliegerman, the president of Halstead Property Development Marketing, agree that they are involved early in the game, which is when a decision must be made about building an on-site garage, given that a potential car-owning buyer won’t even take look inside if there’s no garage. “Another aspect of including a garage is the local zoning regulations. Outside of Manhattan, the number of required parking spaces is tied to the number of units,” said Mr. Kliegerman. “But for New York City, there are no requirements to be met. That being said, on-site parking in a luxury development in Manhattan is key to distinguishing that development from another one.”



Some other things to keep in mind: The developer can sell a garage outright to a garage operator. And though you may pay a king’s ransom for a parking spot, you’re required to sell your parking spot to another resident if you move. In 80/20 buildings, spaces must be available not just to market-price residents, but to those residing in Affordable Housing units as well.

Good Morning New York Real Estate

Voice AmericaSeptember 30, 2014

Parul Brahmbhatt is featured in this weekly online real estate segment.

On the Market in New York City

The New York TimesSeptember 28, 2014

In the Sutton Area, a three-bedroom two-bath with a fireplace and a washer/dryer in a prewar full-service building with 24-hour doormen.

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