100 Varick could become first NYC development funded (almost) entirely from China

Renzo Piano-designed 100 Varick Street could become the first major New York development to get debt, equity and mezzanine financing all from China. The developers’ turn to China comes as U.S. lenders increasingly shy away from funding luxury condo development.

Bizzi & Partners Development, Halpern Real Estate Ventures and Aronov Development are raising EB-5 funds for their 115-unit, 320,000 square-foot luxury condo development in Soho, according to a press release from the leading Chinese EB-5 placement agency, Wailian Overseas Consulting Group. The developers already secured a $320 million construction loan from Bank of China and a $135 million equity investment from Cindat, the U.S. subsidiary Chinese investment firm Cinda Asset Management, as Crain’s reported in January.

It wasn’t immediately clear how much money the developers are raising through the EB-5 program, which offers foreigners U.S. visa in return for investments. Bizzi & Partners declined to comment, while Halpern and Aronov did not respond to requests for comment.

EB-5 investors typically provide mezzanine financing. If Bizzi and its partners manage to raise the funds, 100 Varick would become the first major New York development to get all three major layers of the capital stack – debt, mezzanine and equity – from Chinese sources. Presumably Bizzi, Aronov and Halpern hold equity stakes in the project, meaning it still won’t be entirely Chinese-funded.

Other projects have come close. Vornado Realty Trust secured senior and mezzanine financing for its luxury development at 220 Central Park South from Bank of China, but not equity. Meanwhile, Chinese developers in New York tend to mix in domestic financing. For example Xinyuan Real Estate secured a $165 million construction loan from U.S.-based Fortress Investment Group for its Oosten condo development at 429 Kent Avenue in Williamsburg.

As The Real Deal recently reported, domestic lenders are increasingly shying away from financing luxury developments amid slowing condo sales and global capital markets turbulence.

“Everyone’s a little worried,” Michael Stoler, a managing director at investment firm Madison Realty Capital, told TRD in February. “With anything at $2,500 (per square foot) or more, lenders are very cautious.”

Plans for Karim Rashid's Futuristic Soho Building Have Been Filed

Last summer, provocative designer Karim Rashid held a contest on his Facebook page, letting fans vote on the design of his forthcoming NYC building at 30 Thompson Street. Now, nearly a year after the contest was opened, 6sqft reports that plans for the building have been filed with the city's Department of Buildings.

Here's what we know about it so far: The building will rise about 113 feet, and will have eight apartments over as many floors, in addition to a lobby and off-street parking. According to YIMBY, the apartments themselves (each of which will occupy a full floor) could average as large as 1,700 square feet.

As for the look of the building itself, 6sqft reports that this trippy design was the fan favorite, winning the contest that Rashid had opened up on his Facebook page. True to form for the designer, it's slightly futuristic, with a white exterior and geometric windows overlooking the street.

Ceiling heights are movin’ on up in NYC

Design styles fall in and out of fashion. And just as skirt hems tend to rise, so do ceiling heights.

“Today, 11-foot ceilings are the new eight-foot ceilings,” said Izak Senbahar, the president of the Alexico Group, a developer behind the TriBeCa condo tower 56 Leonard.

One of the luxuries of building a new development is being able to incorporate features that cannot be made by simple renovations in existing buildings. Taking this into account, developers are starting to construct their tony new developments to include ceilings that are higher than the current norm — some from a whopping 11 feet to a sky-high 19 feet.

While creating these expansive spaces is far more costly–  both in construction costs and also in lessening the number of floors — it also distinguishes the building from the competition.

The New York Times reports Arthur Zeckendorf, a principal of Zeckendorf Development, estimated that placing 11-foot ceilings in the 33 units at 520 Park Avenue was adding an extra 10 percent to his building costs, and adding 10 percent more time to the construction schedule for the 54-story structure.

But there is a pay-off. buyers will often opt to pay more for spaces with higher ceiling heights because they offer more comprehensive views and better display areas for art collections, not to mention eliminating any feeling of claustrophobia.

Ashwin Y. Verma, a founder of Siras Development — which is building Soori High Line where 80 percent of the 31 condo units will have 13-to-18-foot ceilings — says new construction will incorporate higher ceiling heights from now on.

“As a developer, the New York market is one of the few places where you can change the story on architecture like this and still get rewarded,” he explains.

It’s baaack: City Council proposes new “mansion tax”

f at first you don’t succeed in bilking brokers of their hard-earned income, try try again. The City Council is bringing back Mayor Bill de Blasio’s once-defeated “mansion tax” proposal.

The Council included a potential new tax on high-value residential property deals in its response to the mayor’s 2017 budget proposal.

Under the plans, apartment buys over $1.75 million would be taxed at 1 percent, and those worth over $5 million at 1.5 percent. The Council also proposed a new tax on carried interest, the method by which many private equity managers are compensation, the New York Daily News reported.

All told, the lawmakers estimated the taxes would bring in around $410 million next year. The Council earmarked those funds for social programs for immigrants, women and youth. In total, the suggested budget calls for $790 million in new spending.

The city already collects a mansion tax of 2.825 percent. The Council’s proposed rates are the same as those pitched by de Blasio last year.

That measure was defeated by Albany lawmakers last year. The new proposal would similarly require approval at the state level. [WSJ] – Ariel Stulberg

Another sign the luxury condo market is cooling

The median price reached $1.1 million, up 17% from the same time a year earlier, but that figure is inflated

The median price reached $1.1 million, up 17% from the same time a year earlier, but that figure is inflated

The overall market for Manhattan homes remained strong during the first quarter of this year despite the luxury segment cooling off, according to a number of reports released Friday.

However, the $1.1 million median price reported by Douglas Elliman Real Estate—up 17% from the same time a year earlier and the second-highest on record—was artificially inflated by a slew of new development contracts closing during the first three months of the year. Those deals, which also pushed the average price to new heights, were likely inked more than 12 months earlier.

"I think of the market as three broad areas all performing in different ways," said Jonathan Miller, whose appraisal firm, Miller Samuel, prepared the report for Douglas Elliman. "And the further down in price you go, the more intense the demand is."

The luxury portion of the market, which Miller considers the top 10% of all sales based on price, has slowed by many accounts. Despite a number of new projects coming online in the past year, the number of sales increased by a mere 8%, while the number of units on the market fell as developers of new buildings opted to keep homes off the market.

The trend was even starker for apartments in newly constructed buildings, many of which also fall into the luxury category. Even though developers built an estimated 5,500 units in 2015, there were fewer units being marketed in the first quarter of 2016 compared to a year ago. That decline in active listings, which fell by 44%, was largely due to sellers keeping new units off of the market in response to the sluggish pace of contract signings in recent quarters, according to Miller.

The median price for new developments jumped by more than 60% compared to a year earlier, but this was more of a reflection of the market at the time the contracts were signed during headier days in late 2014 and early 2015. Now it's a different story. 

"I think on the higher end, buyers are balking a bit on the pricing and looking for deals," said Pamela Liebman, chief executive of the Corcoran Group, which also released a report Friday. "Prices have been going up for so many quarters in a row it is not unusual for them to take a breath."

But the opposite was true in the resale market, which makes up more than three-quarters of all transactions in New York City. There, buyers quickly snapped up lower priced units. In fact, the largest share of sales during the first quarter were for homes priced between $500,000 and $1 million, according to Corcoran.

And inventory increased by double digits as more owners opted to cash in on what the Douglas Elliman report showed was steady price growth: The median price for resales reached $950,000 at the end of the first quarter, a 7.3% increase compared to a year before.  

Going forward, real estate experts believe the lower-end and resale markets will remain strong. But developers at the high end of the market need to be willing to price their apartments appropriately in order to move units. 

"The real sellers have made adjustments to what was unrealistic pricing," said Andrew Heiberger, chief executive at brokerage firm Town Residential, who said that more developers will likely begin following suit for homes that have sat on the market.

City Hall Quietly Eyes Neighborhoods for New Jails to Replace Rikers Island

NEW YORK CITY — City Hall officials are quietly exploring a proposal to move inmates off Rikers Island and into renovated borough detention centers and two new jails in city neighborhoods, DNAinfo New York has learned.

The move runs counter to public statements made by Mayor Bill de Blasio last month where he called plans to shut down the city's controversial central jail a "noble concept" that was unworkable because it would "cost many billions" to do.

"In the end, you still are going to need facilities," he said. "Where are you going to put them?"

But city officials have identified possible locations on Staten Island, The Bronx, Brooklyn and Queens where two new jails — each housing as many as 2,000 inmates — could be built.

Space next to the NYPD’s newly opened police academy in College Point is one possible location, according to sources.

Another location is in Hunt’s Point on land next to where an 800-inmate jail barge is moored. The barge, known as the Vernon C. Bain Center, would also be shuttered under the plan, sources said.

City officials, who have been studying the idea of a Rikers shutdown for more than a year, have also identified two locations in Brooklyn as possible jail sites, sources said.

The plan could cost as much as $7 billion and would take over a decade to build the new facilities and perform renovations, sources said. In all the entire phase out of Rikers could take 30 years.

Rikers Island’s inmate population hovers around 10,000, but de Blasio has set a goal of reducing the size by a quarter.

Under the Rikers shutdown proposal, the two new jails and rehabbed correctional facilities would hold roughly 7,500 inmates, de Blasio’s target population.  

De Blasio spokeswoman Monica Klein said the mayor believes there are "many significant challenges" that must be addressed before Rikers could be closed.

"For years, an environment of violence, abuse and neglect has been tolerated at Rikers," she continued. "The situation is unacceptable and must change now, not another decade from now."

She added that the administration is "putting into place serious reforms, which are reducing violence in targeted areas and keeping the population down. Closing Rikers does not close the jail system, and we need to fix what's inside these buildings — wherever we put them."

'THEY'RE TERRIFIED'

Sources said City Hall officials see the $7 billion cost as an extremely rosy estimate, but perhaps the biggest obstacle to the proposal is the Uniform Land Use Review Procedure, or ULURP.

“They’re terrified of it,” one source said of the public vetting process on how land-use changes would affect their neighborhood.

If the city were to build new jails or make major renovations of existing facilities, then the changes must be approved through a years-long multi-tiered process, which includes votes by the affected community boards and the City Council.

City officials fear the resistance would slow the process to a standstill.

"It's daunting, It's big. It's huge money and it's huge political costs," said another source who helped study the issue for City Hall but asked not to be named to protect relationships. "Opening a homeless shelter is difficult. Imagine dropping a 1,500-person jail in someone's neighborhood."

Glenn Martin, a criminal justice reform advocate and founder of JustLeadershipUSA, said expending political capital seems to be one of the biggest obstacles to closing Rikers.

Martin spent six years in prison and has been named to a commission led by the former chief judge of the state, Jonathan Lippman, to examine a Rikers shutdown. 

"We're back to having a very political mayor in office. This is not Mike Bloomberg," Martin said. "The mayor is the main holdout in the growing chorus to close down Rikers."

RESISTANCE ALREADY

And the pushback to building neighborhood jails has already begun — before any ideas have been publicly floated.

After City Council Speaker Melissa Mark-Viverito called for an overhaul of the city’s criminal justice system in her state of the city speech Feb. 11 and announced the formation of the Lippman commission, Councilman Joe Borelli, who represents Staten Island’s South Shore, wrote a letter to the speaker telling her that he doesn’t want a jail in his district. 

His concern was that Mark-Viverito’s commission would identify a possible jail site on a tract of land in Rossville along the Arthur Kill that the city Department of Correction owns.

Borelli said he deduced the site would be considered using common sense but was called "crazy" for suggesting it. Over the years, the city's Economic Development Corporation issued a Request for Expressions of Interest for the 33 acre parcel but nothing ever came of it.

Borelli said another idea was floated of doing a land swap with the owners of the adjacent LNG tanks site where the city would trade the Arthur Kill side of the property in exchange for the backside of both properties and create a park.

The Staten Island Advance reported earlier this month that the owner of LNG tanks site hired an architectural firm to develop plans to turn the space into a "regional factory outlet center" with a fast ferry, movie theater and park.

"Somebody really smart decided we're going to put people who are potentially violent criminals on an island away from society. No one wants a jail next to their house," said Borelli, who called for the current Rikers facilities to be modernized to help reduce violence.

"I have not had one complaint from a constituent that visiting their family at Rikers Island was too far," he continued. "If it is, I really don't care. Putting this in an obscure residential part of Staten Island doesn't necessarily help make this more accessible to potential prisoners' families."

Borelli is right about the Rossville site — city officials identified it as a possible location for a new jail, sources said.

'FAIRER, BETTER AND MORE HUMANE'

Mark-Viverito stood behind the importance of shuttering Rikers.

"For too long, Rikers Island has been emblematic of the deep institutional flaws in our city's jail system. New Yorkers deserve a fairer, better, and more humane system that treats everyone with respect and dignity," Mark-Viverito said in a statement. 

The City Hall plan, which sources say could save more than $500 million annually, includes spending nearly $3 billion to expand or renovate the detention centers in Manhattan, Brooklyn and Queens.

The Manhattan center would house women, according to sources. 

And there are already blueprints for an expanded Brooklyn Detention Center, which had been closed for a decade when it reopened in 2012 with a limited population.

In 2010 Ricci Greene Associates and 1100 Architects created a design for an expanded, state-of-the-art Brooklyn Detention Center for the city’s Department of Correction. 

During the Bloomberg administration, then-Commissioner Martin Horn had envisioned reestablishing a community-based jail system where inmates were closer to their families, their attorneys and the courts.

“In Marty’s view, housing all the inmates on Rikers was not the most efficient policy,” said David Burney, who, at the time, was the Department of Design and Construction commissioner and was tasked with overseeing the redesign. “His idea was that what we should really be doing is putting the detention housing next to the courts.”

Burney said moving inmates closer to the courts was more sustainable and would have cut down on the costs of bussing inmates to and from Rikers.

The design would have more than doubled the number of inmate beds at the Brooklyn center to nearly 1,500 from 600.

But the center, which runs along Atlantic Avenue between Boerum Place and Smith Street, was never renovated because of neighborhood opposition. Horn also resigned as commissioner in 2009 before the Ricci Greene-1100 Architects study was completed.

His successor, Dora Schriro, opted against a community-based jail system and instead planned a new $600 million admissions facility at Rikers, which has yet to be built.

“We had done the design. It was ready to go,” Burney said. “But Marty Horn left. Dora came in. Her philosophy was different.”

The source who studied closing Rikers for City Hall said he didn't understand why de Blasio would nottake smaller steps as part of a compromise.

"Politically, it was disastrous not to say well, we can't move everybody but dammit we're going to move the juveniles," the source said. "You can take off a couple of other populations, the women's population, the mentally ill. You could maybe come to some place in between."

Gas Station Closures Could Spell Disaster in Another Sandy, Neighbors Say

LOWER EAST SIDE — As the last remaining gas station in Lower Manhattan prepares to close within the coming weeks to make way for office and retail development, residents and local community organizations fear the loss could jeopardize resiliency efforts in the event of a disaster similar to Superstorm Sandy.

The BP station at 300 Lafayette St. near East Houston Street will close on April 14, as reported by EV Grieve, and neighbors said they are losing a valuable resource that kept them afloat during the 2012 hurricane, allowing residents to fill their cars and power back-up generators for electricity.

Gasoline was already difficult to come by at the time, said a leader in resiliency efforts, and the worsening dearth of places to fill up could seriously strain the community if Lower Manhattan gets hit again.

“We learned from that gas shortage that occurred in Superstorm Sandy how important this resource is to a community, and now we find ourselves with no gas stations anywhere near,” said Damaris Reyes, executive director of Good Old Lower East Side and chair of emergency preparedness group LES Ready.

The Lafayette station — where Reyes recalls desperate drivers lined up in Sandy’s aftermath — was the neighborhood’s last remaining gas station. Two in the East Village — one on Second Street near Avenue C and another on Second Avenue near First Street — have shuttered since the hurricane and will be replaced by residential and commercial developments.

Taxi drivers and car owners have already felt the sting of the filling station famine, the Observer reported, but the shortage could have ramifications for resiliency that have gone largely unconsidered as developers grab up the land for more profitable enterprises, said Reyes.

“This does not do well for thinking about a balanced community with all of the resources that are necessary to help it be functional and resilient in a time of need,” she said. “It’s not just the residents who are at risk of displacement — it’s our resources.”

With the April closure, the last station below 14th Street will be a Mobil station on Eighth Avenue in the West Village. East Siders can still make the trek to a BP at 23rd Street off the FDR, though Reyes said the prices are sky-high and would still be a major inconvenience during a disaster.

Residents would most likely have to leave the city to power their vehicles or generators, said a concerned neighbor and leader of a local tenant advocacy group — significantly crippling community members’ ability to mobilize or supply electricity for their homes, either in preparation for a storm or in an effort to recover afterwards.

“Having to cross a bridge or go through a tunnel to get gas is not the best way to prepare for an emergency,” said Trever Holland, president of the Two Bridges Tower Tenant Association. “If there are no gas stations to go to, it becomes extremely problematic as to how you’re going to get gas for generators.”

The Monthly Update | April 2016

New York State of Mind

In January, the New York Department of Finance reported that, for the first time in history, the total property value for New York City has risen over the trillion-dollar mark. Manhattan’s surging market combined with an incredible construction pace in Brooklyn and Queens brought total market value of taxable property to $1.072 trillion, a more than 10 percent increase for the 2017 fiscal year.

These types of numbers do and will encourage the average seller of an averaged priced property in Manhattan (which happens to be about $1.75 million, by the way) to price his or her apartment as if they were solely responsible for launching property values over the trillion-dollar mark. Sellers must, instead, do themselves a favor, and unburden themselves from this temptation. More and more, the pendulum seems to be swinging to the buyer side as the market adjusts itself after a rough start to the year.

I had Barry Weidenbaum, partner at real estate law firm Weidenbaum & Harari, in to speak to the team recently, and he shared what he is seeing in the market. His outlook is, of course, very different from a real estate professional's point of view, but a real estate attorney's perspectives is valuable and can shed light on an ever-changing market, enabling us to adjust quickly and nimbly, before the market does it without us. He stated that, while in 2015 the NON-mortgage contingency was commonplace in deals, the mortgage contingency is being found in deal contracts more and more as 2016 unfolds. Sellers accepting mortgage contingency could be the begging signs of a shift in the market from seller to buyer. Of course, no one knows for sure, but we are all noticing a slower super-luxury market, which is now starting to affect the luxury market (properties valued at over $3 million). The $1 to $3 million category is still strong, but you better price your two-bedroom correctly in the market.

I visited an owner last week who put his two-bedroom co-op on the market in Lenox Hill matching the lowest priced listing on the market at the time, rather than trying to price the home too high. The bulk of the 40-plus two-bedroom, two-bathroom homes at the time were priced between $1.5 million and $1.6 million, but by positioning his property at such a compelling number — knowing that his layout, finishes and overall quality were on par with his $1.5 to $1.6 million competitors — he knew the market would have a huge reaction to his listing. And it did: He received seven offers the first weekend, and by the time the second open house was finished, he had 11 more offers — three more than expected. From these 14 to 15 offers, the seller brought pendulum back to his side of the market. He accepted a NON-contingent offer over the $1.55-million mark, and he controlled his own destiny.

The lesson? Stay ahead of the market and make the market react to you. It’s the best way to move property in the current market. And, if you're a buyer, remember, there are 39 other properties in Lenox Hill that aren't receiving much interest and have nervous owners ready to strike a contingent deal with you.


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Plaza Hotel foreclosure auction canceled after lenders grant extension

Next month’s auction for the Plaza Hotel in Manhattan was canceled after the holders of the mortgage reached a deal to give the borrowers more time to sell the property and pay back the loan, said a person with knowledge of the matter.

The hotel’s ownership has been in limbo for two years. Billionaire brothers David and Simon Reuben hold the mortgage on the five-star hotel and had scheduled a foreclosure auction for April 26, according to the person, who asked not to be named because the deal is private. The Reubens bought the loan from Bank of China Ltd. after a default by the property’s current majority owner, Sahara India Pariwar, last year. Sahara is controlled by Subrata Roy, who was imprisoned in India in early 2014 for defrauding investors.

A spokesman for the Reuben brothers didn’t immediately respond to an e-mailed request for comment.

The chateau-like Plaza, located at the corner of Fifth Avenue and Central Park South, has changed owners many times over its 109-year history. Presidential candidate Donald Trump bought the Plaza in 1988 and married his second wife, Marla Maples, there. Trump sold it to a group including Prince Alwaleed bin-Talal of Saudi Arabia, who then sold it to Israel’s Elad Group, which converted some of the hotel rooms to condominiums. Bin-Talal retains a minority stake in the Plaza, as does an entity tied to hotelier Sant Singh Chatwal.

For sale were the Plaza’s hotel rooms, its restaurants and retail space, according to the person with knowledge of the matter. It was to be sold in a package with the Dream Downtown hotel, a trendy property in Manhattan’s Chelsea neighborhood that is located one block from the elevated High Line park, the person said.

The two hotels serve as collateral for the Bank of China loan and are cross-collateralized with the Grosvenor House hotel in London. The Dream hotel is owned by Sahara’s Roy and Chatwal. The combined mortgages for the New York properties total about $500 million, the person with knowledge of the matter said.

Going to New Heights to Please Buyers

Until recently, if you were looking to buy a condominium with high ceilings, your choice was limited to prewar apartments, lofts or penthouse units. Now several developers are offering new condo projects that have soaring ceilings in more than half the building, giving buyers the option of taking a unit on a lower floor with ceilings 11 feet or higher.

“Today, 11-foot ceilings are the new eight-foot ceilings,” said Izak Senbahar, the president of the Alexico Group, a developer behind the TriBeCa condo tower 56 Leonard.

Unlike a kitchen that you can renovate to your liking, a ceiling can’t be pushed higher once the building is constructed, he said. The 60-story condominium at 56 Leonard incorporates ceiling heights of 11 to 19 feet in each of its 145 units.

“You can’t fake the sense of space, air and light without high ceilings,” Mr. Senbahar said.

Higher ceilings generally translate into higher construction costs, but some developers feel the money is well spent, since high ceilings can help create grander spaces. The extra height can set a development apart from the pack and be a helpful marketing tool as the city’s high-end real estate market begins to soften.

On a national level, most buyers of a standard home prefer nine-foot ceilings on the first floor, according to a 2015 survey conducted by theNational Association of Home Builders. In New York City, while prewar buildings tended toward nine-foot ceilings, most postwar buildings were built with eight-foot ceilings because it was more affordable to do so, according to Richard Lambeck, clinical associate professor and chairman of the construction management graduate program at the New York University School of Professional Studies Schack Institute of Real Estate. Apartments were compact, which also coincided with the availability of portable air-conditioning units, he said.

“With high ceilings, developers can lose an entire floor and, at the same time, add another 15 percent to their construction costs,” Mr. Lambeck said.

The need to use multiple sheetrock panels for the walls, add more bolts, and order customized doors and windows all add to the cost of the final product. Increasing the ceiling height from eight to nine feet adds an extra $4,000 to the cost of an average home, according to the home builders’ survey.

Arthur W. Zeckendorf, a principal of Zeckendorf Development, estimated that placing 11-foot ceilings in the 33 units at 520 Park Avenue was adding an extra 10 percent to his building costs, and adding 10 percent more time to the construction schedule for the 54-story structure.

Nicholas Werner, a founder of Largo Investments, one of the developers of the Fitzroy in Chelsea, where all the rooms will have 11-foot ceilings, said, “There’s no need to build a room that’s an echo chamber, but we wanted to build a home that seemed gracious and proportionate.”

Technological advancement in building materials has also made it easier for developers to expand in volume, Mr. Werner said. For example, residences at the Fitzroy will have hydronic radiant floor heating, and not just in the bathroom, where it is customarily found, to better heat the entire home, since warm air rises. Larger windows that were selected in proportion to the higher ceilings add more natural light, which cuts electricity costs, he said.

Vickey Barron, an associate broker at Douglas Elliman, said she started to notice clients’ asking about ceiling heights about five years ago. “I now have clients who will give up having a pool or other amenities in a building, but will not budge on ceiling height,” she said. “Buying a home is an emotional thing, and that ‘wow’ factor a high ceiling provides is something you can’t replace.”

Lori Goldstein, a fashion stylist and creator of the LOGO clothing line, is one such buyer. After living in a Chelsea loft for almost 15 years, she is set to close on an apartment at 10 Sullivan Street, a new condo complex on the southwestern edge of SoHo that has ceiling heights of 11 feet in all 22 units in the tower. In addition, four townhouses in the complex have 11.7-foot ceilings.

“I can’t stand being claustrophobic,” Ms. Goldstein said. “There’s something about a room that’s taller than it is wider.”

To show potential buyers how one feels in an expansive room, some developers have taken the extra step of finding a showroom large enough to build an exact replica of a room with such height — no small task in itself.

Joseph A. McMillan Jr., the chief executive of DDG, one of the developers behind a new condo building at 180 East 88th Street, said he looked at 30 to 40 commercial spaces before finding one on Third Avenue and East 64th Street where he could build a room with 14-foot ceilings.

“It’s impossible to explain” the impact of ceiling height, he said. “You have to experience it.”

It took the developers behind 20 East End Avenue, where units will have 11-foot ceilings, about a year to find a commercial space for their showroom, according to Nicole Siciliano-Trazzera, the sales director at the Corcoran Sunshine Marketing Group, who is marketing the new building. “It’s been the best sales tool,” she said. “The reaction is utter amazement.”

Homes with large rooms and high ceilings are often sought by buyers with art collections. Every livable room at 180 East 88th Street will come with art rails that hang a few feet below the ceiling. Not only are the rails convenient for hanging art, but they also help bring one’s sight line just a bit lower, making you feel more grounded in a room that is extra tall, Mr. McMillan said.

And sometimes it’s all about the view. When designing the Gibraltar, a new six-story condo building going up at 160 West Street in Greenpoint,Brooklyn, the architect Joseph Eisner said he wanted future residents to enjoy the views of Manhattan and the East River from the living room, which will have 11.3-foot ceilings.

“I didn’t consider lower ceiling heights, because I wanted the cleanest, freest feel,” so common areas feel larger than they are, Mr. Eisner said.

How to incorporate a sense of space in home design has always been part of the discussion for architecture students, said James Garrison, an architect and adjunct associate professor at the Pratt Institute’s School of Architecture. “Sure, you can have bragging rights when you have high ceilings, but people can really feel space,” he said. “And the way you design a room with height can bring a hierarchy to how certain rooms are utilized.”

Ashwin Y. Verma, a founder of Siras Development, which is building theSoori High Line on West 29th Street, where about 80 percent of the 31 condos will have 13- to 18-foot ceilings, says new condo construction will incorporate higher ceilings from here on.

“I think the market is moving toward” measuring rooms in cubic feet, he said. “As a developer, the New York market is one of the few places where you can change the story on architecture like this and still get rewarded.”

Correction: March 25, 2016
An earlier version of this article included a picture caption that misstated the location of a showroom. It is for 56 Leonard, not 180 East 88th Street.

8 The megaproject, developed by Eliot Spitzer, will bring nearly 900 apartments to Brooklyn

Last year, erstwhile New York governor Eliot Spitzer revealed plans to bring three blocky towers to the South Williamsburg waterfront, each of which will rise 24 stories and will hold, in total, around 850 apartments (20 percent of which will be affordable).

While some exterior renderings had been revealed (and deemed "offensive" by Brooklynites and De Blasio advisers alike), a new batch of images discovered by 6sqft shows some new looks at the building. The new images show the public park and waterfront esplanade that will sit between two of the buildings, along with a close-up view of a tower and one of its rooftop pools.

The buildings are designed by ODA New York, and true to the firm's reputation, the towers have a boxy, Jenga-like feel, with plenty of outdoor space built into the design. Per 6sqft, excavation work on the site has already begun, paving the way for this development to mold the future of the neighborhood (along the Domino Sugar Factory development, a SHoP undertaking developed by Two Trees).

The Luxury of Living Small

Samantha Bucolo and Keith Denis met as schoolmates in high school onLong Island. They reconnected in an astronomy class at Suffolk CountyCommunity College.

The couple, who plan to marry next winter, later moved to a three-bedroom rental in a house in Bay Terrace, Queens, which they shared with Ms. Bucolo’s younger sister, dividing the monthly rent of $2,100 evenly among the three of them.

Ms. Bucolo, who is now 29 and has been a hairdresser since her teens, took the Long Island Rail Road to her job in product development at Bumble andBumble in the meatpacking district, while Mr. Denis, now 30, drove toMercy College in the Bronx, where he was working toward a graduate degree in physician assistant studies.

But once he began working as a physician assistant in the neurosurgical care unit at North Shore University Hospital in Manhasset, N.Y., on Long Island, Ms. Bucolo said, “We wanted to treat ourselves and fill that craving of being in the city.” Knowing that they would eventually settle on Long Island, they wanted to have “that New York City lifestyle,” she said, while they could. Besides, she was tired of commuting, which she had done since she transferred to New York University: “I would rather walk anywhere than take a subway or a cab.”

So in the fall, all three prepared to move — Ms. Bucolo’s sister to live with a friend on the Upper East Side, and Ms. Bucolo and Mr. Denis to their own Manhattan apartment.

Their budget was $3,000 to $3,500, and to keep costs reasonable, they didn’t mind downsizing to a studio, as long as the building had plenty of amenities. “The city is not a place where you are staying in your apartment all the time,” Ms. Bucolo said. “I know friends who are paying $1,900 for a one-bedroom that might as well be a studio.”

She found a listing for a one-bedroom near the Queensboro Bridge. She wouldn’t be able to walk to work, but Mr. Denis could easily drive to work over the bridge, which requires no toll. When they visited, however, they found an apartment that was tiny and “unlivable,” she said.

Mr. Denis added: “I was second-guessing my agreement to move to the city.”

Ms. Bucolo liked the Caroline, which opened in 2002 in the Flatiron area on West 23rd Street; a friend who used to live there had gushed about the roof deck. Hunting alone while Mr. Denis was studying, Ms. Bucolo contacted Marilyn De Amorim, a saleswoman at Mirador Real Estate with a listing in the building.

Studio prices there were in the low to mid $3,000s. But the only vacant studio was already rented, Ms. De Amorim told her. Ms. Bucolo didn’t want to wait for another vacancy, so Ms. De Amorim took her to a building nearby, True North Flatiron 27 on West 16th Street, which had been remodeled a few years earlier. Prices there were in the high $2,000s to low $3,000s.

Ms. Bucolo found the studio she saw “really new and crisp-looking,” but didn’t like the rectangular layout, which had a kitchen she found obtrusive. “If I am on my bed, I am seeing my kitchen,” she said. “Everything was in one room, and you could see everything.”

She was equally ambivalent about a 1960 building on East 18th Street south of Gramercy Park, where studios were in a similar price range. “This didn’t have the newer finishes she was looking for,” Ms. De Amorim said. “It’s nice to be the first to cook in the kitchen and take a bubble bath in the bathtub.”

So Ms. De Amorim suggested they head north to a new 45-story residential tower with lots of amenities, One Sixty Madison. The building was north of NoMad, at 33rd Street, in a commercial area not far from the Empire State Building. But it was sufficiently close to work for Ms. Bucolo, and she loved the gleaming interior and the amenities, which included indoor and outdoor rooftop lounges.

She visited a furnished model and a few empty studios, returning with Mr. Denis a few days later. “We loved that no one had lived here before,” she said, “because I am such a clean freak and germophobe.”

They walked around the neighborhood to check out the parking situation. Parking right outside was allowed only from 7 p.m. to 7 a.m., but that worked well with Mr. Denis’s irregular schedule and 12-hour shifts.

Last fall, the couple moved into a studio of about 500 square feet on one of the lower floors, for which they pay $3,490 a month, with one month free on a 13-month lease. The amenity fee, which includes access to the rooftop, the gym and an elevated park that wraps around the fourth floor, is $1,000 a year for two.

“We weren’t really concerned about a view,” Ms. Bucolo said. “We have the rooftop.”

The kitchen is separate from the living space, with its own little hallway. And the ceilings are so high — even in the bathroom — that they require an extra-long shower curtain.

Now Mr. Denis has a drive of around 20 minutes, by way of the Queens-Midtown Tunnel, which does have a toll, but “I’m surprised at how easily I’m able to park,” he said.

Ms. Bucolo, who is often laden with bags filled with hair products, groceries and wedding-planning paraphernalia, sometimes uses the rideshare serviceVia to get to work, but walks home when the weather is nice.

They are thrilled to have a washer and dryer in their apartment. Mr. Denis wears scrubs at work, so he has plenty of laundry, and so does Ms. Bucolo: “I cook a lot,” she said, “so I have a lot of dish towels.”

And although Mr. Denis has an earlier schedule than Ms. Bucolo does, he keeps the bathroom door closed and is able to dress in the large closet to avoid waking her.

“We don’t even notice that it is a studio,” she said. “We feel like we are in a hotel room.”

 

What If Central Park Was Surrounded By 1,000-Foot Glass Walls?

UPDATE: One of the designers behind the project reached out to Curbed to clarify the project. The structure surrounding Central Park will in fact be habitable and have public and private spaces with unobstructed views and access to the Park. The 100-foot amount refers to the thickness of this structure. The 1000-foot glass walls will rise to street level, hence the Park would be dug extensively underground to reveal the bedrock below.

Could a New Yorker ever imagine Central Park being demolished and then surrounded by a giant glass wall on all sides? Well a couple of designers just did. What's more, their idea won first place in eVolo Magazine's 2016 Skyscraper Competition.

The project description isn't the most informative, but it seems like the winning duo, Yitan Sun and Jianshi Wu, want to get rid of the existing Central Park, lower the ground to reveal the existing bedrock underneath, and then erect a structure with 1000-foot walls with reflective glass that run all along the Park. It looks like they want to maintain the park in one form or another, but the renderings certainly bear no resemblance to the existing landscape. This glass wall would rise up to street level.

This 1000-foot superstructure would be 80 times bigger than the Empire State Building, and be habitable - used for public and private spaces. Those inside will have unobstructed views of the Park and access to it.

The idea behind the project was to "make Central Park available to more people," according to the designers.

With its highly reflective glass cover on all sides, the landscape inside the new park can reach beyond physical boundaries, creating an illusion of infinity. In the heart of New York City, a New Horizon is born.

And so it follows that the designers have called it New York Horizon. The second place finish in the competition would perhaps qualify as even more outlandish than the first: A skyscraper made out of drones.

Water Mill Mansion Hits Market AGAIN for $72M

The estate of the late Vince Camuto, co-founder of Nine West, is putting the 20,000-square-foot mansion in Southampton on the market once again, this time for $72 million.

Camuto bought the 15-acre property, a former convent called “Villa Maria,” for $35 million in 2005 from the Sisters of the Order of St. Dominic of Amityville, which had owned it since 1931. The shoe mogul and his wife Louise spent five years renovating the manse in Water Mill, N.Y.

The main house has 11 bedrooms, 12.5 bathrooms and a three-story spiraling staircase with a iron and bronze balustrade forged in Austria, Forbes reported. There is also a 2,400-square-foot, two-story, separate gatehouse that has two bedrooms and three baths. The estate also features a wine cellar, tennis court, heated outdoor pool and a solarium, according to Forbes.

Villa Maria was first listed for $100 million in 2008. Then, only the 7.6 acres was listed for $49.5 million five years later. Last fall, it hit the market for $85 million before getting the price chopped to $67 million, Forbes reported.

The listing also has new brokers, the brothers Cody and Zach Vichinsky of Bespoke Real Estate.

Camuto died in January 2015. The shoe mogul had other properties in the Hamptons and was known for working with Tory Burch and Jessica Simpson.[Forbes] — Dusica Sue Malesevic

Fatal crane collapse could cost the city $30M

A 73-year-old man who was nearly killed when a construction crane crashed onto his car on Worth Street back in February will sue the city for $30 million for his injuries.

Thomas O’Brien’s skull and spine were fractured when strong winds sent a 600-foot-tall crane crashing down onto his Jeep, according to court papers cited by the New York Post.

O’Brien suffered a “traumatic brain injury,” court documents say. He was also traumatized by the wait for rescue workers to free him, he claims.

The city “failed to ensure cranes were being properly used” and “failed to secure cranes despite warnings of extreme weather/high winds,” according to the papers.

The accident killed mathematician David Wichs, and a New Jersey woman, Dawn Kojima, suffered head and leg injuries. [NYP] –Christopher Cameron

432 Park Avenue's First Closed Sale Appears As $60K Rental

The ink has barely dried on the deed for the first recorded sale at 432 Park Avenue, and already that apartment—a three-bedroom unit that sold for $18 million—is back on the market. Well, the rental market, anyway: It popped up on StreetEasy recently, asking $60,000 per month. (That's $720,000 a year for those playing along at home—which hardly puts a dent in the sale price, but hey.) The buyer of the apartment was a generically-named LLC—432 Parkview—so it's no big surprise that the rental turnaround happened this quickly. Per the listing, the apartment measures 4,003 square feet, and it has an eat-in kitchen, two master bathrooms, an entrance gallery, and a private elevator. Also notable: There appear to be actualphotos of the apartment, not just the same renderings we've seen before, offering an unadorned look inside the building.

· Listing: 432 Park Avenue #35B [StreetEasy]

New Looks At the $60M Crystal-Adorned Baccarat Penthouse

Since the condos atop the super ritzy Baccarat Hotel on West 53rd Street hit the market in 2013, real looks inside of them have been kept pretty exclusive. But it appears the building is turning a new leaf, and letting just about anyone in on the condos' tricked-out crystal splendor. In an attempt to put out a contract for its $60 million crowning penthouse, which has been on the market since August, the folks marketing the apartment have sent Curbed a look inside the newly-staged digs.

The 7,400 square foot penthouse's more notable features include, but are not limited to, a glass and marble staircase, a master suite that's larger than most peoples' apartments at 1,150 square feet, a 600 square foot loggia, a master bathroom with honed and radiant-heated marble slab floors, and access to all of the amenities the Baccarat Hotel has to offer, like the Spa de la Merby the eponymous skin care brand, a marble-clad pool, and multilingual concierge services. So, is all of this worth $60 million?

Mayor Protects NYers Right to Use Restrooms That Align With Their Gender Identity

New York City has taken a step forward for providing the city's 25,000 transgender and gender non-conforming residents with safe, comfortable access to public restrooms. Yesterday, Mayor Bill de Blasio signed an executive order mandating that municipal buildings provide access to restrooms that align with a person's gender identity, and that individuals using them should not face harassment or questioning. Failure to enforce the mandate could lead to prosecution under the city's Human Rights Law.

"Today’s order makes it clear that New York City fully supports the right of every New Yorker to use the single-sex facility consistent with their gender identity," Mayor de Blasio said in a statement. "New York City is the birthplace of the fight for LGBT rights, and we continue to lead in that fight so every New Yorker can live with dignity."

The mandate would affect a wide swath of city-owned buildings, including those in parks, some museums, public pools, and recreation centers. Per the order, signage that makes the new policy clear must be installed within the next three months.

"New York City is proud to enforce one of the strongest human rights laws in the country, which protects the rights of transgender and gender non-conforming individuals to live freely and with respect," Mayor de Blasio said.

MTA Unveils New Tech-Friendly Buses With Wi-Fi, Charging Ports

Just a few months after Governor Andrew Cuomo announced plans to bring the New York City subway system into the 21st century, it looks like MTA buses will be following suit. The governor's office revealed plans today for a new batch of 2,042 city buses that will be equipped with tech-friendly touches like Wi-Fi hotspots and USB charging ports. It's all part of an effort to "create a stronger, more convenient and more connected mass transit system for years to come," per Governor Cuomo.

Each bus will be equipped with between 35 and 55 charging ports, depending on the make and model; buses will also get a new look, which Governor Cuomo apparently likened to a Ferrari, which, lol. In the first wave of the rollout effort, 75 of these swanky new rides will hit the road in Queens by the end of this year; later waves will go in the Bronx, Brooklyn, and Manhattan, with all 2,042 expected to be on the road by 2020. The projected cost: $1.3 billion.

The "improvements" are fueled by the apparent need for connectivity regardless of location; in a statement, MTA chairman Thomas Prendergast said that, "Wireless connectivity is prevalent in the lives of our customers," therefore the MTA is taking steps to "accommodate this growing trend by introducing high-speed connectivity and charging ports on-board MTA buses."

It all sounds great in theory, but should it be prioritized over other pressing issues, like faster bus service? We'll let you argue that one out in the comments.