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5 Nicest Celebrity Homes in New York City

Kevin BrunnockSociety’s elite, wealthy and famous are best positioned to afford luxurious New York City real estate.

For most middle-class Americans, purchasing a nice home in a big city such as San Francisco, New York City, Los Angeles, Dallas, or Boston, is something that one can only dream of. Not only are homes in these bustling areas come at a steep price, but the square footage per unit is rather small. Perhaps this is the reason there are so many celebrity homes located in the Big Apple; only the most elite individuals in society can afford the luxurious New York City real estate.

Sold for a cool $4.9 million, Daniel Radcliffe purchased his three-bedroom apartment overlooking the New York Harbor back in 2008. After choosing a bottle of wine from the home’s 500-bottle wine cellar, Radcliffe and his guests can watch the sunset through the beautiful curved windows. Complete with granite and marble countertops, this house is now valued at $5.2 million.

While the views in Radcliffe’s apartment are phenomenal, other celebrities prefer a more secluded and quiet space to come home to after a hard day’s work. Located in Chelsea, Cameron Diaz purchased her apartment for $9 million. The home features soundproof floors and walls that are 18-inches thick, ensuring maximum privacy to its residents. This cozy and warm retreat is one of the best pieces of real estate in the city, which is why there was a bidding war among several stars within the entertainment industry.

Another celebrity home that makes the list is Leonardo DiCaprio’s luxury green apartment located just north of New York City’s Financial District. Amenities in this two-bedroom piece of paradise include a wellness concierge and vitamin C-infused showers. Valued at $10 million, Leo’s sanctuary is located in Greenwich Village.

Bought for a whopping $14 million, Tom Brady and Gisele Bundchen’s mansion can be found in the Flatiron District. This three-bedroom condo is located on the 47th floor of a high-rise unit located in the heart of Manhattan. The marble countertops and floor-to-ceiling windows provide spectacular 360 views of the city all throughout the day.

Closing out the list of 5 nicest celebrity homes in New York City is Kelly Ripa and Mark Consuelos’ newly renovated SoHo penthouse. This piece of the lavish real estate includes a rooftop deck, top-of-the-line home gym, outdoor fireplace, and brand new white oak floors. Valued at $24.5 million, this five-bed, four-bath apartment is hands-down one of the best celebrity homes in the Big Apple.

To learn more about NYC celebrity homes, check out the articles published on the sites MyDomaine.com and Business Insider: http://www.mydomaine.com/celebrity-apartments-nyc and http://www.businessinsider.com/celebrity-homes-in-new-york-city-2014-6?op=1/#-peter-jacksons-duplex-duo-21

Dutch Startup Incubator Set to Open Location in Brooklyn Navy Yards

Kevin Brunnock, NYC, Brooklyn Navy Yards The Dutch startup incubator B. Amsterdam is set to open a location at Brooklyn Navy Yards. The Netherlands-based business incubator will introduce new jobs to the area as well as attract an increased number of global technology tenants. In addition to agreeing to occupy 100,000 square feet of the property’s space, they’ll create approximately 500 living-wage jobs.

The company, which provides business and real estate services, made the announcement on Wednesday, September 7th. At the new location, they will share their knowledge, with regards to tax planning, legal, real estate, and human resource, with about 300 early and growth-stage startups. According to a statement, Brooklyn Navy Yard Chief Executive Officer David Ehrenberg stated, “B. Amsterdam will connect the Brooklyn and greater New York business communities with dynamic product design and tech companies across Europe.”

“Cities like Amsterdam, Paris, and Stockholm are teeming with entrepreneurs looking to conquer the world with a new product or service. And they are all looking for ways to scale up,” said Kajsa Ollongren, the deputy mayor of Amsterdam, according to the Real Deal. “With the creation of B.NY, these startups will be able to enter the US market faster and easier.”

Once a shipbuilding site for the U.S. Navy, The Navy Yard later became a city-owned industrial park. During the peak of World War II, the Yards employed 70,000 people, and it currently houses 7,000 workers. That number is expected to double over the next five years as Navy Yard projects unfurl.

The commercial development plans grew from a partnership that began with Alicia Glen, New York’s deputy mayor for housing and economic development, and Amsterdam Deputy Mayor Kajsa Ollongren. B. Amsterdam will dedicate about 15 percent of their space to businesses centered on technology, hardware, and product design companies. 

The development of the facility will begin during the early months of 2017. After it’s completion, it’ll be a homestead for European markets looking to expand into U.S. markets, and it will also enable local entrepreneurs to develop relationships  with European clients. The incubator will occupy Building 127 at the complex. They’ll be joining the ranks of companies, such as Brooklyn Brewery, which signed a lease to take 75,000 square feet at the Navy Yard’s Building 77. Also, 1776, a tech incubator and seed fund, signed a 30,000-square-foot lease.

 

Brexit Fears Drive Investors Toward New York’s Commercial Real Estate Market

Kevin Brunnock, NYC, Commercial Real Estate

New York City has taken the throne as the capital of commercial real estate.

London, which once took the position of the world’s premier city for foreign investment in commercial real estate, has been unseated due Brexit-bred fears. There seemed to be greater unease among investors leading up to the vote to leave the EU, which was approved by voters in late June.  

There was a 44 percent decrease when looking at cross-border capital flowing into London real estate when comparing post-referendum numbers to those during the same time frame in 2015. Erosion of London’s identity as a premier financial center has led many to forget that Britain has long been seen as a far more investor-friendly than the U.S., due greatly beneficial tax arrangements. Property investors have downsized the value of investments, particularly office buildings. One of Britain’s greatest foreign investors is Norway’s sovereign wealth fund, and they’ve chosen to reduce the value of their UK property portfolio by five percent.

During an interview, David Green-Morgan, director of global capital markets research for Jones Lang LaSalle Inc (JLL). in Chicago, said, “It would be fair to say that London bore the brunt of Brexit fears. The big fear is that London will lose a lot of the financial service jobs that has made it such a global financial center.”

New York has seen gains of $10.3 billion in foreign investments. Compare that to the $6.9 billion that London took in during the same period. Just one year ago, London acquired $12.4 billion in foreign investment, surpassing New York by $1.1 billion, according to JLL.

Prices reached unsustainable levels just as concerns about the UK market began to circulate., which only partially demystifies decreases when investment to Britain are concerned. This year saw the largest decline since of financial crisis that took place during the years 2007 and 2008.

The U.S. has adopted underlying property fundamentals and strong demand in order to attract capital. Brexit has led cautious investors away from Britain, and, to some extent, away from Europe, and that investment is being driven toward the U.S. Capital is being routinely deployed through gateway cities such as Boston, New York City, Los Angeles, and San Francisco.

Cornell University Leases Midtown Manhattan Space

cornell_2Cornell University has opted to lease midtown Manhattan space for the purpose of student and alumni networking. The institution will be taking three floors at 45 W. 57th St., totally 4,000 square feet.

The Ithaca-based Ivy League establishment will occupy the second, fourth, and fifth floors of the seven-story building for 22 months, with an option for renewal. Priced at $60 per square foot, Cornell’s graduate school of management, school of hotel administration, college of business, and school of applied economics and management, as well as other academic branches. The space will act as a bridge between campuses and a beacon for the engineering campus being built on Roosevelt Island. Next month, Cornell will begin its occupancy by using the space for events.

“We see a strong presence in New York City as essential for enhancing our relationships with our alumni, corporate partners, and other key stakeholders,” said Soumitra Dutta, dean of the Cornell College of Business, according to Crain’s New York. “The space will also provide an excellent platform venue for our faculty and students to take advantage of the unique resources of New York City.”

The property is owned by the U.S. subsidiary of a Turkish real estate development and investment company, Sedesco Inc.. The development firm’s general counsel, Derek Gilchrist said the relationship between Sedesco and Cornell was a close one, and it came about organically when following Cornell’s Roosevelt Island. As soon as space became available, the two entities hashed details about to establish an outpost in Manhattan.

Silicon Valley Bank Doubled Their Manhattan Office Space

svbThe West Coast established Silicon Valley Bank recognized for catering to tech firms has nearly doubled their Manhattan office space, taking over an entire floor at 387 Park Avenue South. This move is expected to bring New York City one step closer to the tech community.

Established in Santa Clara, California, the financial institution leased 20,000 square feet, relocating to the new space from the current 10,400 square feet space located at 303 Fifth Ave. After their move, Silicon Valley Bank will sublease their current space.

Matthew Leon, an associated with Newmark Grubb Knight Frank, help to broker the deal, negotiating on behalf of the building’s landlord TF Cornerstone, as well as Chip Sealy, an executive at TF Cornerstone. According to Silicon Valley Bank representative Robert Tunis, the intention of the move is to grow and become closer to clients they finance in the tech sector. Park Avenue South  has easily matured into one of the most essential for office space in midtown south, nestled in a neighborhood that’s become a home for multiple tech companies within recent years.

“It’s where their constituency is,” said Tunis, who along with Ferriello will handle the sublease of the bank’s space at 505 Fifth Ave. “This new office puts them closer to that. You go where your business is.”

This latest deal is just one of many signed with TF Cornerstone since their multi-million dollar renovation of 387 Park Avenue South, which involved installing a private roof deck, a new façade for the three lowest floors of the building, new elevators, and HVAC. Criteo, a tech firm, leased the top three floors of the building last year, which granted them exclusive access to the private roof space. Criteo later leased another floor, taking on additional square feet.

Only the ninth and a portion of the eighth floors are presently available at the 13-story property. Also, the third  floor will soon become vacant when SUNY Stony Brook’s 10-year lease expires at the end of the month.

Commercial Real Estate Value Waning in NYC, Survey

“Gotham Commercial Real Estate Monitor,” a survey commissioned by Marks Paneth’s Gotham Commercial Real Estate Group, indicated that commercial real estate value may be waning in New York City.

The survey, which was published in late May, revealed that in just three months time, the number of executives expecting values to increase has fallen from 43 percent to 31 percent, with nearly 20 percent predicting a downturn in prices. New laws, the economy, and digital shopping collaboratively play a rousing role when it comes to New York City commercial real estate decline.

The survey indicated that NYC-based commercial real estate professionals expect that they’ll begin to see values recede or at least hit a ceiling. When slumping asset prices are combined with the perceived deterioration of paper wealth, rent tends to follow suit and decreases. The effect? Lower rent will help business tenants’ bottom line, but wealth backsliding may encourage customers to spend less money. Decreased rent paired with a smaller revenue stream could ignite a stagnation period.

While businesses that have already reached the luxury status are able to attract the one percent, the ‘aspirationally wealthy’ customers may be less inclined to purchase luxury items, effectively leading to many luxury shops to shutter.

The survey gathered data from nearly 150 bankers/lenders, developers, legal counsel, bankers/lenders, commercial real estate professionals, owners, and property managers. The common belief was that values have peaked, but will hold. Overwhelmingly respondents believe the market is overvalued when compared to other cities. Nonetheless, 64 percent remain optimistic, expecting a runaround next year.

To properly address the peaking value of commercial real estates, it’s necessary to discuss interest rates, which The Federal Reserve increases at the economy improves. Nearly half of survey respondents (46 percent) believe the impact would be negligible, even if they increased between 1 and 2 percent from today’s 0.5 percent. Just 11 percent predicted that there would be a significant negative effect, particularly when addressing the residential side. Foreign buyers continue to purchase properties in the name of asset management, viewing it as a lower-risk alternative to the stock market, which carries security concerns rather than maximum yields.

As commercial rents/values make an impact, residential markets will also feel the pressure of that, which could be a good thing. Even as rates lower and many struggle through higher vacancy rates, property owners will proceed to earn through rent collection. Those who managed to refrain from over-leveraging equity during the good times are better positioned to survive the economic downturn. Also, tenants experiencing lower rent cost are left with additional cash to spend on household needs and other items.

The spending cycle, whereby income shifts hinder some and help others, isn’t a new phenomenon, and it’s expected that a rainbow will appear after each of these storms. However, it must be stated that consumers’ shift in buying behavior was mentioned in the report.

More than half of respondents (55 percent) indicated they expected an increase in foreign investment. With that said, the foreign investors are far more likely to have an attachment to residential assets, rather than commercial real estate. Nonetheless, at least 30 percent of respondents expect that foreign investors will have a ‘big influence’ on hotel, office, and retail real estate markets.

The report also showed that respondents had opinions on the stock market. Approximately 55 percent believe that volatility will negatively impact New York commercial real estate. Conversely, 29 percent indicated the effect would be positive, due to investments offered by buyers hailing from oil producing countries, benefitting residential and office/retail markets.

Brick-and-mortar sales have begun to stagnant as consumers make the move toward online and mobile purchasing and away from prime physical locations, which is likely the reason that 31 percent of respondents indicated that real estate is ‘highly overvalued,’ while 53 percent indicated that it is moderately overvalued. Shopping remotely speaks to convenience and immediate gratification, and the changes have spurred retail focused tech startups. However, tech startups may opt to purchase a brick and mortar component if rent for commercial real declines, because the need for a physical location is understood by even those who deal chiefly in digital e-commerce.

A Cushman & Wakefield study published in late 2015 confirmed that New York has the most expensive real estate in the world. Luxury brands outlets line the streets, occupying physical locations, at the cost of $3,500 per square foot per year. It 50 percent more costly to be stationed in New York City than Hong Kong’s Causeway Bay, which comes in as the second most expensive. Nonetheless, rates have increased amid economic uncertainty.

Additionally, the report indicated that the North American real estate market continues to see the highest concentration of private investment through 2015, which approximately a third of commercial real estate investments coming from the private sector. The market like likely see an enormous capital flow increase from Asia due to policy changes that will ease investments from China and Japan.

 

Large-Scale Real Estate Projects Underway in New York City

city-road-street-buildingsNew York City has a number of large-scale real estate projects in the works, headed by numerous Manhattan developers, including Joseph Chetrit’s Chetrit Group, L+M Development, Sumaida + Khurana, and Kenneth Horn’s Alchemy Properties.

Half of permits filed during the month of April were for projects greater than 100,000 square feet, according to PropertyShark. The other half consisted of filings for residential projects, as well as a Brooklyn office, school expansions, and hotels. These projects,whether launched by larger or smaller firms, are important constructional developments, offering New Yorkers housing and schooling options, as well as a closer proximity to retail outlets.

One of New York City’s more prolific affordable developers L+M Development Partners filed a permit application for a 59-story, 266,000-square-foot residential tower, which will be located in the Financial District (23 Park Row). Joe and Rachelle Friedman, the founders of J&R Music and Computer World, partnered with L+M Development Partners to construct the apartment complex, which will hold 108 apartments. Also, COOKFOX Architects have been slated to design the property.

A 19-story,174,000-square-foot Downtown Brooklyn office building may be erected at 540 Fulton Street if the Dushey family’s Jenel Management has anything to say about it. The future office building will have three levels of retail space, and it will be replacing the  two-story, 26,000-square-foot retail establishment that stood there one year ago prior to demolition.

The Tel Aviv, Israel-based property management firm Sumaida + Khurana and the Chelsea-based firm LENY are planning an 80-unit, 34-story, 123,000-square-foot condo tower in Hell’s Kitchen (609 West 56th Street). Also, on the base floor, there will be retail outlets available. In addition to the Hell’s Kitchen property, they 823 11th Avenue.

In partnership with Shifra Hager’s Cornell Realty Management, Joseph Chetrit’s Chetrit Group acquired a number of retail properties near Penn Station in a deal with investor Charles D. Cohen. After parting ways, the Chetrit Group filed a permit for a 122,000-square-foot hotel, which will have approximately 33 floors and 300 rooms. The proposed hotel is expected to be located at 249-263 West 34th Street.

Another hotel is planned for Long Island City, where investment firm Brooklyn North Capital filed a permit for a 198-key Red Lion Hotel. Expected to open in 2019, the building will stand 14 floors and will have 61,000 square feet of space. The investment firm purchased the site, located at 38-15 9th Street, for $4.7 million in March.

iStar, which is a real estate finance firm and developer, is planning to construct a 135-unit, 107,000-square-foot supportive housing project just minutes from Coney Island’s boardwalk. They leased the promising space from the city’s Economic Development Corporation last year. In months and years to come, iStar plans to build 1 million square feet of housing in the area.

The New York City School Construction Authority is planning a five-story, 96,000-square-foot expansion of P.S. 19 in North Corona, Queens (40-10 99th Street) and they’re planning to add a  five-story, 67,000-square-foot building at P.S. 46 Edgar Allen Poe branch in Fordham, Bronx (2760 Briggs Avenue). These changes will bring forth more space for cafeterias, classrooms, auditoriums, offices, and an outdoor playground.

 

The Manhattan Luxury Real Estate Market Outperforms Other Markets Even as it Fluctuates

17178926219_ccbab87595_oAccording to reports, the NYC real estate market, particularly the luxury condo developments in Manhattan, are stalling. In fact, properties are apparently sitting on the market longer, while banks reevaluate their approach to construction lending and industry experts question the health of the high-end market, as well as its impact on the greater real estate market of New York City. However, no matter how many challenges there are, the Manhattan real estate market outperforms other markets.

Ari Harkov, a writer for NY Daily News, recently sat down with David Amirian, CEO of the Amirian Group and a prolific young developer, to inquire about the state of New York City real estate. Amirian communicated that there are more people looking to sell development sites today than any other point in recent history. Nonetheless, developers and sponsors are experiencing difficulty when it comes to raising debt and equity financing. This ultimately impacts the market.

I believe there will be a slow growth in new ground-up development and conversions because of the financing market and the velocity in which new development apartments are being sold,” said Amirian. “Lending for new, luxury condominium projects has either slowed tremendously or stopped completely in some areas of the city. It does not exist. Period. End of story.”

Development costs have increased by nearly 20 percent annually, which has put a strain on the market. This has impacted contracts and operations, which means that lenders and investors are more able to dismiss a developer if budgets and deadlines aren’t met. Brisk real estate growth has begun to taper off and is the lowest that it’s been in three years, according to a StreetEasy Market Report. With that said, New York’s investment prospects, particularly long-term investments, continue to outshine other markets.

“The Manhattan market is highly influenced by what happens in global markets,” said Alan Lightfeldt, a data scientist at StreetEasy. “Manhattan is seen as a safe real estate investment, so when there is heightened volatility in other markets, we typically see demand for New York luxury properties increase. Recent turmoil in China’s stock market, for example, caused an increase in Chinese demand for US-properties.”

Manhattan has seen 3.8 percent growth over the past 12 months, which is the lowest on record since September 2012. Because of a slowing market, offers tended to be closer to asking prices, and price cuts were smaller and far less common than in the past. In Q1 2015, 31.2 percent of Manhattan listings had a price cut, compared to just 27.6 percent of Manhattan in 2016.

We’re reminded by data that the overall Manhattan market may be faltering, but subsets of the market continue to boom. Upper Manhattan surged 9.7 percent, with much of that success occurring on the Upper West Side (5.7 percent). East Brooklyn, South Brooklyn and Prospect Park in Brooklyn also experience success. While Downtown Manhattan, the Upper East Side, and Midtown had rates below the average. Also, real estate throughout the nation has been experiencing fluctuations, it isn’t just Manhattan. Regardless, wealth projections show that a long-term interest in real estate is a safe one.

 

4 Up-&-Coming, Hot NYC Neighborhoods

New York City is a paradise for those in search of trendy, hot neighborhoods. It’s up to the real estate industry to predict which neighborhood will be hot before it has even begun to warm.

The next “it” neighborhood can be determined by gauging local access to public transportation and attractive architecture, and clues that developers have identified a particular neighborhood as the next hot neighborhood is when rezoning, new supermarkets, restaurants and cold-brew coffee shops begin to sprout up, which invites new arrivals who are in search of low-cost housing, often to the dismay of longtime residents. There are four neighborhoods that have been identified as the next ‘hot’ neighborhood, based on indicators, such as commercial developments.

Sunset Park West, Brooklyn: Considered to be one of Brooklyn’s “most heterogeneous neighborhoods,” Sunset Park is a rising star, attracting countless individuals to its brownstone blocks and pre-war co-ops. From Bush Terminal Park to the soon-to-be-updated Industry City (a 16-building waterfront industrial complex) to the Design Within Reach warehouse, there is definite growth in Sunset Park. Additionally, Brooklyn Flea & Smorgasburg is located here, the startup MakerBot, the new Brooklyn Nets center, and warehouses, which beckon the partygoer crowd.

The Rockaways, Queens: The Rockaways have long been a go-to for surfers and beachgoers. However, the area is becoming more attractive to families and professionals year-round. Co-ops and starter apartments are available are available at a fraction of the cost of other NYC apartments. Also, there are developments on the horizon. This includes the development of a series of 18 duplexes across nine detached houses. As well as other vast oceanfront constructions, restaurants and more.

Flatbush, Brooklyn: Flatbush, with its stunning Victorians and retail corridors, s attractive to those who enjoy Caribbean restaurants and historic churches. The restored 1929 Kings Theater stands in the heart of the area and the neighborhood offers stand-alone homes and attached house, convenient public transportation and it’s extremely diverse.

East Harlem: East Harlem is a culturally-rich district, which runs from 96th street to the mid-140s. It remains one of the only neighborhoods in Manhattan, proper, that can offer valuable housing. The neighborhood is a lovely one, also known as Spanish Harlem or El Barrio, and it has beautiful cultural centers, many local small businesses, and robust commercial developments in progress.

5 Exciting Real Estate Projects in NYC

NYC is an incredible bustling city, and it always has some amazing projects in the works. With that said, some are far more exciting than others. Below, you’ll read about five exciting real estate projects taking place in NYC.

Hudson Yards is NYC’s largest project since Rockefeller Center and it’s the biggest private real estate development in the nation. It’s an incredible 17 million square feet with multiple office towers and 5,000 apartments, and it will house NYC’s first Neiman Marcus.

New York Wheel: NYC has endeavored to create the world’s largest Ferris wheel in Staten Island. The must-see tourist attraction will likely cost $35 a ride, and construction is slated to cost more than $500 million.

Central Park Tower: The residential project previously known as Nordstrom Tower is a 1,500-foot-high luxury condo, and it’s projected to sell out at $4.4 billion.

Essex Crossing: Formerly known as Seward Park Urban Renewal Area, the lower east side-located tenement housing development will hold 1,000 apartments and 850,000 feet of commercial space. The project will also introduce a park, a movie theater, and a bowling alley to the community. They’re also expanding the Essex Street Market.

Brooklyn Navy Yard: The industrial park is located near Clinton Hill, South Williamsburg, and Downtown Brooklyn, and it will be home to a number of tech-driven manufacturing projects. Traditional and new manufacturing companies will be housed in the massive complex.