Did The Obamas Just Close On This UES Duplex For Almost $10M?

In October, 6sqft reported that Barack and Michelle Obama had been spotted on their way to view a listing in Yorkville’s 10 Gracie Square. At the time, it was speculated that they checked out a five-bedroom duplex that had gone into contract for $10 million shortly following the visit. The buyer wasn’t confirmed, but the unit has now closed for $9.64 million (h/t Katherine Clarke), purchased through a “Gracie Square Revocable Trust. So while it’s still not confirmed that the Obamas are moving to the Upper East Side, the building is one of New York City’s most prestigious addresses, located just a stone’s throw away from the Mayor’s residence and over the years attracting the likes of Alexander Woollcott, conductor Andre Kostelanetz, Gloria Vanderbilt and Madame Chiang Kai-Shek.

The home’s interiors were designed by Vicente Wolf, and it has appeared on the cover of Elle Decor. Features include a private elevator landing, a 29-foot central gallery, 11-foot ceilings, views of the East River and Carl Schurz Park and a master suite with a separate sitting room, dressing room and bath.

The timing certainly makes sense: The Obamas had just dropped daughter Malia off at Harvard for her freshman year and are already settled in their DC home, an $8.1 million Tudor mansion that they bought in June.

The Upper East Side building has plenty of perks that would suit the former first family including an indoor basketball court for the hoops-loving Prez, pet-friendly policy (we can’t imagine they’d leave Bo behind), and a super-secure underground drive-in garage that would allow them to enter privately.

Subway Map Designer Massimo Vignelli’s UES Apartment Hits The Market For $6.5M

The Upper East Side home of iconic designer-duo Lella and Massimo Vignelli will be listed for $6.5 million, according to the New York Times. The 3,900-square-foot three-bedroom duplex at 130 East 67th Street features super high ceilings, wide plank oak floors and a beautiful library. The Italian-born couple first bought the home in 1978 for $250,000, and it served as their first New York abode. While best known in NYC for his 1972 design of the subway map for the Metropolitan Transportation Authority, Massimo, who died in 2014, is also credited with creating iconic branding for companies, like the big brown bag logo for Bloomingdales. His wife, Lella, who died in 2016, was a licensed architect and created furniture and tableware for Vignelli Designs.  According to the son of the late couple, Luca, the apartment served as a “cultural hub for artists and designers.”

The listing says the home “is a prime example of the iconic couple’s aesthetic of modern minimalism and timeless elegance.” The living room boasts nearly 20-foot high, coffered ceilings, original double-height lead glass windows, stunning oak floors and a wood-burning fireplace. Much of the furniture and other elements in the apartment were designed by the Vignelli’s.

Located next to the living area, there is a spacious eat-in kitchen and a bedroom with its own private entrance. Natural light fills the spectacularly simple library, which connects to a study and/or dining room. In total, the apartment boasts more than 600 linear feet of bookshelves.

The upper floor includes a spacious gallery that overlooks the gallery as well as a master bedroom with an ensuite bathroom. The third bathroom also boasts its own bathroom; the windowed dressing rooms could be restored to the original fourth bedroom.

Besides the conversion in 2000 of the dining room into a library and the den into an office, the duplex has remained the same since the couple first moved in. The Italian-Renaissance style building on East 67th Street was designed by Charles A. Platt in 1907 and was later converted into a co-op in 1959.

Gossip: Elie Tahari Wants A Development Partner For His Everlasting Penthouse Project

Designer Elie Tahari has spent 12 years lining up permits to expand his penthouse at 860 Fifth Avenue, and now he’s looking for an investor to join the project for $35 million.

The fashion guru has finally secured permission from the city’s Landmarks Preservation Commission and the Department of Buildings, and just started construction on the project, reported the Wall Street Journal. Once completed, the designer and his partner plan to sell the penthouse or one would buy out the other’s interest.

Tahari tapped CookFox Architects to design the glassy addition, which will give the penthouse a total of 7,500 square feet, plus 5,500 square feet of terrace space. “It’s almost like you’re dropping an Apple store on a co-op building on the Upper East Side,” said Town Residential’s Benjamin Benalloul, who is representing the offering with Loretta Shanahan-Bradbury and Victoria Terri-Cote.

Plans call for a master suite on the top level, as well as an outdoor kitchen for entertaining on the roof deck.

The designer bought his first apartment for $325,000 in 1979. He paid another $4.2 million for a neighboring unit in 2011. Tahari, who owns a $25 million condo at 15 Central Park West, recently listed his Hamptons estate for $45 million . [WSJ] — E.B. Solomont

4Q17 Brooklyn Market Report

4Q 2017 Highlights

01.

Brooklyn echoed Manhattan market in closing activity this quarter as buyers anticipated sweeping changes of the tax legislation and rushed to lock in the full $1M mortgage interest deduction on new originations. This urgency was reflected by a 14% year-over-year increase in the number of closings by December 15th, coupled with a surge of transactions occurred in the $500K-$1M price segment, which was most impacted by the mortgage interest deduction limit change. Additionally, it is interesting to note that the resale condos and co-ops primarily contributed to the year-over-year increase in the number of closings. While the new development closings distributed with less extremity this quarter against 4Q16, demonstrated by five vs. two projects with 10 or more closings totaling the same number of 106 transactions.

02.

Buyers had fewer options in the fourth quarter as the overall number of available units declined by 10% year-over-year, coupled with an increase of contract activity, indicating a healthy demand and absorption level on the market. The median asking price of $945K in Brooklyn was down 3% compared to 4Q16, signaling sellers’ gradual price adjustment in reaction to the relatively “more attainable” Manhattan market.

03.

4Q17 contract activity was particularly strong, as the number of contracts signed surpassed the 1,000-unit threshold for the fourth time in the past 10 years, achieving the highest number vs. all previous fourth quarters. Contract activity in the below $1M price segments exhibited strength during the fourth quarter, with both the below $500K & $500K-$1M categories posting year-over-year gains of 19% and 15%, respectively. The 13% year-over-year condo contract velocity increase was mainly driven by an 81% year-over-year increase in the $2M-$3M price segment as a result of 9 contracts signed at 280 St. Marks and 5 contracts signed at The Standish. Please note that prices of contracts signed represent last asking prices and do not take into consideration new development properties which decline to report sales.

Big Price Reductions Made For A Soft Week In The Luxury Market

The number of luxury contracts signed in the residential market last week looked a lot like this time last year. But prices were pushed way down due to big reductions on the week’s priciest deals, according to Olshan Realty’s luxury market report.

The week of the Martin Luther King holiday saw 18 contracts signed at $4 million and above, the same number from a year ago. But luxury units saw a 20 percent discount from their original to final ask, a result of developers who spent years marketing their units at what Olshan called “fantasy prices.”

The priciest contract signed was on the penthouse at DHA Capital’s 12 East 13th Street in Greenwich Village, which took a haircut of nearly 60 percent from its original ask. The 5,704-square-foot triplex went into contract with an asking price of $12.95 million, down from the $30.5 million it was asking when it first hit the market in December 2013.

That apartment was tied for the No. 1 spot with a resale at 213 West 23rd Street, which had an asking price of $12.95 million as well. That was reduced from the original ask of $14.5 million when it was first listed in October 2016.

The weekly asking-price volume for luxury contracts totaled $149.46 million, and luxury homes spent an average of 787 days on the market. [Olshan] – Rich Bockmann

A 407-acre State Park Will Replace A Landfill In Brooklyn Next Year

Gov. Andrew Cuomo on Thursday announced a plan to create a 407-acre state park on Jamaica Bay in Brooklyn, which would be the largest state park in New York City. As a part of the $1.4 billion “Vital Brooklyn” initiative, the park would add much-needed green space in the Central Brooklyn neighborhood, an area the governor has described as a “park desert.” Formerly the site of two landfills, the open space will be converted into parkland with opportunities for biking, hiking, fishing, kayaking, as well as educational facilities and an amphitheater.

Before/Now

After

Never before open to the public, the 407-acre site formerly held the Pennsylvania Avenue Landfill and the Fountain Avenue Landfill, both of which were in operation until 1983. The city’s Department of Environmental Protection began a $235 million remediation of the site in 2002, which included an installation of an impermeable cap, as well as spreading 1.2 million cubic yards of clean soil and planting more than 35,000 trees and shrubs.

Following a final agreement between the state and the National Park Service, the first phase of the project will begin this year. Phase one will be funded by a $15 million state investment in order to open the restored property and is expected to fully open in 2019. Later phases will include the construction of connecting bridges between the two sites, the educational facilities and the amphitheater.

“This new state park will be a treasure in the heart of Brooklyn, offering hundreds of acres of beautiful parkland on the shores of Jamaica Bay,” Cuomo said in a press release. “We are committed to ensuring every New Yorker can access the recreational, health and community benefits of open space, and this park will open new doors to wellness for New Yorkers who need it most.”

Before/Now

After

Last March, Cuomo announced his “Vital Brooklyn” initiative, aimed at transforming the Central Brooklyn region by increasing access to open space, healthy food and healthcare services. The state found 84 percent of residents in this area have gone without adequate physical activity in the last month alone, 30 percent higher than the rest of the state.

To ensure Central Brooklynites have access to recreational amenities and nature, Vital Brooklyn wants every neighborhood to be within a ten-minute walk of green space and athletic facilities. Amenities at over a dozen community gardens and schools yards will be improved. Roughly $140 million of the $1.4 billion initiative will be allocated for open space and recreation.

The city supports the park planned for the Jamaica Bay waterfront and will work with the state on this project. Deputy Mayor for Housing and Economic Development, Alicia Glen, said: “It’s a monumental undertaking to close and cap a landfill, and transform it into beautiful open space and restored wetlands. The City proudly supports this endeavor.”

This Week In LA Celebrity Real Estate: Whoopi Seeks $9M For Brentwood & More....

Awards season may be in full swing, but celebrities are hot and heavy in the real estate biz. Fleetwood Mac’s lead guitarist Lindsey Buckingham relisted his Brentwood mansion for the same price — a hefty $22.5 million — after a six-month hiatus. It spans 11,000 square feet, includes six bedrooms 10 bathrooms and a spa. David Offer of Berkshire Hathaway holds that one. One can only “Dream” it sells this time.

Actor, comedian and TV talk show host Whoopi Goldberg is also seeking to unload her home, a 7,000-square-foot Art Deco in the Pacific Palisades. She listed it at $8.8 million. Inside, there are five bedrooms, six bathrooms, a staff office and “speakeasy” bar. David Mossler of Mossler Properties has the hillside listing.

A Beverly Hills compound — once home to legendary singer Cher and comedian Eddie Murphy — hit the market this week, asking a whopping $69 million. That’s still cheaper than its initial price tag of $85 million in 2016. Yikes. The home is 20,000 square feet with 10 bedrooms and 17 bathrooms. The estate spans more than 13 acres and includes a 7,000-square-foot guest house, an equestrian facility with two riding rings, a swimming pool, and a tennis court. Vicki Walters currently owns the house.

Just down the street, Hollywood couple Jane Fonda and Richard Perry sold their 7,100-square-foot home for $8.5 million. The Contemporary-style home includes four bedrooms and seven-and-a-half bathrooms, as well as bamboo floors and motorized shades. A small office, recording lounge and wet bar can also be found inside the home, Variety reported.

Jason Biggs Sells Tribeca Loft For $2.7M

“American Pie” actor Jason Biggs and his wife Jenny Mollen have sold their spacious three-bedroom Tribeca loft for $2.65 million, after first putting the pad on the market nearly a year ago. The 2,200-square-foot apartment at 288 West Street boasts authentic details throughout, like timber beams and columns, as well as hardwood oak floors. As the Observer learned, Biggs and Mollen bought the apartment for $2.55 million in October 2013 and tapped designer Cliff Fong to decorate the space. The couple moved to the West Village this past summer after purchasing a $6.98 million four-bedroom condo at the Shephard.

The home, currently set up as a two-bedroom with a home office, features seven deep set oversized windows, all of which retained their original design but have been outfitted with bronze soundproof insulation. The chef’s kitchen includes a huge concrete center island, custom cabinets and Sub-Zeo and Viking appliances.

The master suite is both spacious and private. It boasts a spa-like en-suite bathroom with marble stone, a steam shower and a large walk-in closet.

The building includes just two apartments per floor and boasts a 1,000-square-foot landscaped rooftop with Ipe-wood decking. Perfect for parties, the roof features a Weber grill and stunning Hudson River views.

Under Proposed Congestion Plan, Driving Into Manhattan Will Cost $11.52

Drivers entering the busiest areas of Manhattan might soon be required to pay $11.52 per trip under a congestion pricing plan expected to be released by Gov. Andrew Cuomo on Friday.  According to the New York Times, the proposal comes from an advisory panel “Fix NYC,” a group assembled by the governor to explore ways to reduce congestion and also fund the city’s strapped-for-cash transit system. Under the proposal, trucks would pay $25.34 and taxis would see a surcharge of $2 to $5 per ride if entering the “pricing zone,” which would run south of 60th Street. Cuomo first introduced the idea of a congestion pricing plan to fund the MTA‘s transit repairs in August, after declaring the subway in a state of emergency earlier that summer.

According to the report from Fix NYC, the pricing plan could take up to two years to fully implement, but it has to be approved by the state legislature first. The group estimated that the plan could raise up to $1.5 billion every year, with that money being directed to mass transit. However, the panel’s draft of the report says no fees will be charged until transit repairs are made: “Before asking commuters to abandon their cars, we must first improve transit capacity and reliability.”

Cuomo said the plan will not extend to the East River Bridges. However, it will not reduce the cost of tolls at other crossings as some transit groups pushed for as a way to make the plan more equitable and more likely for lawmakers outside of the borough to support it.

The congestion fee would also not be in effect 24 hours a day, with tolling on private cars expected to occur at a minimum between 6 a.m. and 8 p.m. On the weekend, there might be a charge between 12 p.m. and 10 p.m. for private vehicles and trucks.

Sam Schwartz, who worked on the panel’s report, told the New York Post: “It’s going to accomplish a good deal to reduce congestion and raise revenue to improve transit. The fees for the for-hire vehicles will happen this year.”

Cuomo’s plan is roughly based on Mayor Michael Bloomberg’s failed attempt in 2008. The former mayor’s idea served as a major part of his environmental agenda, which he claimed would have raised $500 million annually to fix the subway’s infrastructure. The plan failed because elected officials from Brooklyn, Queens and suburban areas outside of the city felt it benefited Manhattan at the expense of their own constituents.

Mayor Bill de Blasio has criticized the Cuomo’s idea and called it a “regressive tax.” Instead, he has floated the idea of a “millionaires tax” to fund subway repairs, increasing the tax rate of the city’s wealthiest residents to 4.4 percent from roughly 3.9 percent for married couples with incomes over $1 million and for individuals who make more than $500,000 per year.

45 Tudor City Place, Unit 306

45 Tudor City Place, Unit 306

MIDTOWN EAST, MANHATTAN

Studio |  1 Bath

Offered At $329,000

Maintenance: $734/mo. | Co-op | Doorman | Roof Deck | Gym

 

This open-layout studio facing south at Prospect Tower in Murray Hill enjoys ample sunlight and lovely park views. A great home, pied-a-terre or investment, perfectly located across the street from two private parks creating a quiet oasis in the midst of the bustling city. The charming prewar apartment features classic details, mint-condition hardwood floors, and a large walk-in closet. The already low maintenance includes utilities! Prestigious Prospect Tower in Tudor City is a full-service 1920s prewar building with attractive amenities that include a doorman, full-time super, handyman service, central laundry, a bike room, common storage and wonderful rooftop deck. Its prime Midtown location off East 43rd Street affords easy access to the United Nations, Grand Central Station, fine restaurants, gourmet markets, transportation, parks and other conveniences. The building allows pied-e-terres, unlimited subletting after two years of ownership and gifting. No dogs, but cats are OK. 
Assessment of $54/month until 2023.

Could Legalizing Marijuana Be The State’s Solution To Fixing The Subway?

Gov. Andrew Cuomo plans to present the state legislature this week with ways to fund the financially troubled Metropolitan Transportation Authority. On Tuesday, he released his $168 billion budget proposal for the fiscal year 2019, which includes a proposal for charging vehicles for driving in the busiest areas of Manhattan during peak hours, with the money raised going to mass transit. According to the Daily News, a Republican gubernatorial candidate has a different idea. Joel Giambra, a former Erie County executive who announced his bid for governor last week, said he wants to legalize marijuana to fund the city’s desperately-needed transit repairs.

Giambra’s formal proposal for legalizing weed will come later in the campaign. A source close to the candidate told the Daily News, “Adult use of marijuana can produce revenue for the state that can rebuild the MTA and our roads and bridges throughout the state. Many of our neighboring states now allow for adult use and New York will miss out on billions in revenue and further expand the black market.”

Currently, eight states and the District of Columbia have legalized recreational marijuana, and New Jersey’s new governor, Phil Murphy, supports it. While medical marijuana is legal in New York, Cuomo has previously called it a gateway drug that leads to other drugs.

Cuomo’s stance on pot might have slightly changed; on Tuesday, the governor called for the funding of a study on a regulated marijuana program. While little details are known now, Cuomo’s budget proposal says the impact of legalizing pot on health, the economy and on the state’s criminal justice system will be the focus of the study. All of the proposals within Cuomo’s budget must be approved by the legislature by April 1.

[Via Daily News]

67 East 11th Street, Unit 519

67 East 11th Street, Unit 519

GREENWICH VILLAGE, MANHATTAN

1 Bed |  1 Bath

Offered At $725,000

Maintenance: $1,411/mo. | Co-op | Doorman | Roof Deck

 

Welcome to a perfect one-bedroom, one-bathroom home, where stunning architectural details and phenomenal storage meet in a friendly Greenwich Village co-op building.
This bright and airy home beckons you inside with breathtaking 13-foot ceilings and extra-tall arched windows. Flooded with southern light, the double-height living room invites quiet relaxation or lively entertaining surrounded with expansive art walls for your growing collection. The well-planned kitchen is filled with cherry cabinets and great appliances, including a gas range, built-in microwave and dishwasher, and the nearby dining area provides the perfect spot for a table and chairs. The well-appointed bathroom is flanked by two extra-large closets and features lovely tilework and a big tub-shower. Head upstairs to find a roomy sleeping loft that puts the ornate top of an original Corinthian cast-iron column at eye-level — a view rarely enjoyed in historic homes. Open to the living room below, this serene space provides room for a bed and sitting area as well as access to an unbelievable 87-square-foot storage area. 


67 East 11th Street is a handsome pre-war building where residents enjoy full-time doorman service, live-in superintendent, laundry room, private storage and a landscaped common roof deck. This pet-friendly, elevator co-op allows 80 percent financing, subletting, parents buying for children, guarantors and pied-à-terres.


Set in prime Greenwich Village/Union Square, on the corner of 11th Street and Broadway, you're surrounded by great shopping, dining and entertainment at every turn. The famous Strand bookstore is on the next corner, Webster Hall is two blocks west, NYU is to the south, and gourmet food shopping is a breeze with both Trader Joe's and Whole Foods minutes away. For open space, take your pick from Washington Square Park to the south and Union Square and its phenomenal greenmarket to the north. Access to transportation is unbeatable with 4/5/6, N/Q/R/W, L, F/M and 1/2/3 lines all within reach.

MTA Rolls Out New Electric Buses For 3-Year Pilot Program 11

The MTA is gearing up to modernize its bus fleet and has launched a three-year pilot to test out 10 all-electric buses that not only reduce emissions, but also enhance customer experience by offering modern conveniences like Wi-Fi and USB ports.

Following the successful completion of a four-year study of global best practices for electric buses, Governor Andrew Cuomo announced that the MTA will test out 10 zero-emission buses and possibly order 60 more, given all goes well with the pilot program. (h/t Untapped Cities).

“This new program helps the MTA secure a cleaner and greener future while leveraging the latest in innovative enhancements to push New York’s transit systems into the future,” said Governor Cuomo in a press release.

The MTA commissioned two vendors to manufacture the new buses: Proterra will provide five buses that will operate on the B32 route in Brooklyn and Queens while New Flyer will provide five that will run along the M42 and M50 routes in Midtown.

As part of the pilot program, both vendors will have to install new charging stations at various bus depots. New Flyer will install two within Manhattan’s Michael J. Quill bus depot and Proterra will provide six between Manhattan and Brooklyn depots.

Additionally, the MTA has ordered 110 new Compress Natural Gas buses to replace older buses that operate in the Bronx and Brooklyn.

Data collected during the pilot will be passed along from the MTA to electric bus manufacturers to determine what will work best for the city.

,

630 East 14th Street, Unit 4

,

630 East 14th Street, Unit 4

EAST VILLAGE, MANHATTAN

1 Bed |  1 Bath | Co-op

Offered At $499,000

Maintenance: $662/mo.

 

Enjoy ample charm and modern updates in this pin-drop quiet, renovated one-bedroom, one-bathroom home in a well-maintained East Village co-op. 

Chic painted brick walls create a stylish backdrop in this pre-war gem where ceilings soar more than 10 feet overhead and hardwood floors pave each room. Windows on three exposures provide light and air throughout the 500-square-foot abode. In the oversized living room, you'll find a generous footprint for living and dining, while the beautifully updated open kitchen features sparkling quartz countertops and a breakfast bar. The serene bedroom is placed at the quiet rear of the home, and the adjacent white-on-white renovated windowed bathroom includes a new modern vanity and large tub-shower.

630 East 14th Street is part of a six-building, pet-friendly co-op situated between Avenues B and C. The handsome pre-war buildings feature restored brownstone facades and amenities include a common backyard and barbecue area, basement bike room, shareholder storage and a live-in superintendent. Maintenance charges include heat, water, gas, real-estate taxes and all building maintenance. Pied-à-terres and parent co-purchases permitted.

The home's surrounding East Village neighborhood is filled with shops, services, dining and entertainment sure to suit every need. Many of New York's best restaurants are within blocks, plus Trader Joe’s and Target will opening one block west making shopping super convenient. Lovely Tompkins Square Park is just four blocks south, providing 10-plus acres of open space, a year-round greenmarket, playgrounds and a dog park.

69 East 130th Street, Unit 2A

69 East 130th Street, Unit 2A

HARLEM, MANHATTAN

2 Bed |  2 Bath | 1,021SqFt | Condo

Offered At $750,000

CC: $930/mo.  |  Taxes: $3/mo.  |   Doorman  |  Free Laundry

 

Stretch out and relax in one of Harlem's most affordable and spacious doorman two-bedroom, two-bathroom homes. Featuring pristine finishes and more than 1,000 square feet of living space, you'll love this move-in-ready, modern condominium in the heart of one of Manhattan's most exciting neighborhoods. 

Beautiful northern light and neighborhood views that skim over the quiet gardens and courtyards of the quaint nearby homes follow you throughout this well-planned home. You'll be greeted by gleaming hardwood floors, high ceilings and a large walk-in entry closet the moment you arrive, and the oversized great room provides a generous footprint for living and dining areas. The well-stocked kitchen is pure perfection with granite countertops and tons of handsome cabinetry surrounding full-size stainless steel appliances, including a built-in microwave, gas range and brand-new Bosch dishwasher. Serene and spacious bedrooms are tucked down a quiet hallway. The master features an en suite bathroom and large closet, while the second bedroom is positioned across from the second well-appointed bathroom. Another huge walk-in closet in the hallway ensures that storage will never be a concern in this Harlem dream home.

The Walden is a beautiful, modern condominium building featuring doorman service six days a week, complimentary central laundry facilities and a bike room. A tax abatement in place until 2031 adds to this gorgeous home's tremendous appeal.

Nestled on a quiet, tree-lined block between Park and Madison avenues, this home is at the heart of the Central Harlem renaissance. Within a 10-block radius, you'll find proposed new construction, building sites and sold out developments at every turn, all pointing to the tremendous value and upside potential to be found in the area. There are excellent greenspaces in every direction including the newly announced expansion of the East Side Greenway which the city just announced a $100 million commitment to extend the Greenway from 125th Street to 132nd Street and develop the East Harlem Waterfront. Once completed the Greenway and park will extend from East 53rd Street to 132nd Street. The area's coveted shopping, dining and entertainment venues are just blocks away, including Sylvia's, Red Rooster and the brand-new Harlem Whole Foods on 125th Street. The 4/5/6 and 2/3 subway lines, plus Metro-North trains, provide easy access to the rest of the city and beyond.
Temporary assessment inplace till 2022 of $203 per month.

4Q17 Manhattan Market Report

01.

In anticipation to sweeping changes to tax legislation, resale activity ramped up during the fourth quarter as buyers rushed to lock-in the full $1M mortgage interest deduction on new mortgage originations. Resale closings for condos and co-ops within the $1M - $3M price segment, where buyers could be most impacted by the new limit in mortgage interest deductions, increased 11% and 13% year-over-year, respectively. Furthermore, resale activity within the $500K - $1M price segment increased 21% year-over-year as potential buyers originally feared a mortgage interest cap of $500K. In fact, median condo resale prices were down 13% this quarter compared to 4Q16, which was not attributable to any particular project or neighborhood, but as a result of a broader shift in resale volume to units priced between $500K - $1M. However, it remains to be seen how the GOP Tax Bill will impact Manhattan real estate performance long-term, especially when taking into account the $10K cap to state and local income taxes (SALT) deductions, lower marginal taxes for many income brackets, and the new $750K limit in mortgage interest deductions.

02.

The disconnect between luxury condo inventory and market demand remains wide as condo inventory priced above $3M made up 38% of condo inventory, but only 25% of condo contracts signed. Notably, condo inventory priced between $3M-$5M increased by 7% year-over-year, which added choices for buyers and reduced urgency. Co-op inventory is limited (44% of total inventory) and demand is high (56% of contracts signed) as the relative price differential between ownership types continues to push buyers toward co-ops.

03.

The median price of a new development condo fell to $2.8M during the fourth quarter, which represents a 5% year-over-year decline, as there continues to be less ‘noise’ from closings at ultra-luxury projects such as 432 Park Avenue and 56 Leonard, which have typically distorted new development median prices. During the fourth quarter, new development pricing was impacted by clustered closings at projects in the $1M - $3M price segment (i.e. One West End Avenue, Citizen360, and 389 East 89th Street). Furthermore, in neighborhoods such as Upper West Side, Midtown, and FiDi & BPC, the new development median price changes were affected by clustered closings at one or two projects, which essentially defined median new development prices in these submarkets (i.e. One West End Avenue on the Upper West Side, 252 East 57th Street in Midtown, and 5 Beekman in FiDi & BPC).

The Monthly Update - January 2018

2017, Whew! Hello 2018!

From stock market highs to North Korea blues, the ups and downs of 2017 were unprecedented, unexpected and really just unbelievable. And, based on just the first few days of 2018, it looks like we’re in for more of the same this year. Maybe this time around, we will all be more prepared for it — or not! Whatever 2018 has in store, we are more accustomed to the unexpected and hopefully more able to weather what's quickly becoming the norm.

But even in this new age of expecting the unexpected, there are a few things that held steady. One of which was our team’s strong and steady sales! In only 22 months at Compass, the Hoffman Team has done over 230 transactions and closed more than $200 million in total sales to date. We’re so excited and so happy to provide impeccable service to all of our current and prospective clients, always with the highest level integrity trust and professionalism. We have to tip our hats to Robert Reffkin and Compass for giving us the incredible platform that enables us to deliver unparalleled customer relations to each one of our important clients. Thank you!

Now, what to expect in the age of the unexpected!

There a lot of Nostradamus types who are saying 2018 will be a robust year for the global economy, Goldman being one of them. I think, for our purposes in the New York City real estate markets, it's best  to be a bit more grounded and assume conservatively based on the 2017’s results. If buyers and sellers can stick to what has gotten them to this point, then 2018 should and will be a productive year for all who choose to be or need to be in the market. Last year saw buyers taking more time to find what they’re looking for and being a bit more cautious. 2017 also showed that when sellers were realistic about their selling price, property moved.

These two factors contributed to a resale market that saw a 17 percent jump in transactions year-over-year at the lower end below $1 million. The stubborn condo and new development market saw not only price drops, but also 74 percent of all the inventory has been listed for 180+ days, which is a 31 percent year-over-year increase  

How the markets react to the new tax code in the long term remains to be seen, but if buyers and sellers stay grounded, and do what they did in 2017, the real estate market will continue to turn and be productive.

COMPASS News

  • Our goal is for Compass to be everywhere, and by the end of 2018, we will be operating in every major metro area in the United States, bringing us to 100 offices nationwide! #CompassEverywhere
  • Softbank invests $450 million in real estate tech company Compass at a $2.2 billion valuation. Read full article
  • Copass co-founders Robert Reffkin and Ori Allon are named as 1 of the 7 most interesting people in real estate 2017. Read full article
  • Watch out Dallas! Compass is coming for you.
  • The Hoffman Team has grown! Please join us in welcoming Scott Sobol to the team.

Manhattan Resi Sales Volume Down 13%

According to this week’s market reports, Manhattan residential sales slowed down in the fourth quarter and New York ranked fourth in the country in terms of self-storage construction.

Residential

Sales | Stribling

A total of 2,203 residential sales were recorded in Manhattan during the fourth quarter, down 13 percent from a year ago. The co-op market was the most robust segment, accounting for 52 percent of all closings. For the quarter, Lower Manhattan registered the highest number of closings at 25 percent. It was also the most expensive market with an average of $1,715 per square foot. Read the report here.

Sales | Halstead

The average price for resale apartments dropped 2 percent year-over-year to $1.48 million during the fourth quarter. Co-op resale prices stood at $1.24 million, a 0.7 percent increase from the same time last year. Condo resale prices, meanwhile, registered a four percent drop to $1.98 million.Read the report here.

Sales | TOWN Residential

Manhattan condos, co-ops and townhouses all registered price drops during the fourth quarter. The best performing segment was condos, which saw median sales price drop 5.6 percent year-on-year to $1.6 million. Co-ops registered a 6.8 percent decline while townhouses decreased by 6.6 percent. Studios, one-bedrooms and two bedrooms all posted modest growth. However, it was not enough to offset a 19.7 percent drop for three-bedrooms or larger. Read the report here.

Luxury Sales | Olshan Realty

There were 11 contracts that were signed last week at $4 million and above, making it a typically slow week after Christmas. The most expensive contracts were for two penthouses at 432 Park Avenue. Units 9H91A and PH91B had a total asking price of $80 million. Read the report here.

Commercial

Inside Self Storage | BBG

New York ranked in the top five in the country in terms of new construction for self-storage facilities. In 2017, New York accounted for 16 percent (around 2.92 million square feet) of the 900 self-storage properties built across the country. Dallas placed first in the survey with 9 million square feet. Read the report here.

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