$1.16 Trillion Skyline

The total tentative assessment for all the properties in New York City hit $1.16 trillion this year, an 8.74 percent increase from 2016, when the total crossed $1 trillion for the first time. That’s according to new data from the city’s Department of Finance.

Jacques Jiha, DOF commissioner, attributed much of the increase to new developments in Brooklyn that are disproportionately driving up property values in the borough.

And the data show that Brooklyn had some of the highest increases across the board. In a borough where multifamily buildings now regularly sell for more than 15 or even 20 times the rent roll, the assessment increase for multifamily rental properties was up 19.05 percent year-over-year. The borough also saw the sharpest uptick in assessment for commercial properties, which rose 13.49 percent year-over-year, as well as the largest rise in market value for one-, two- and three-family homes homes, which rose 13.77 percent.

At $538.8 billion, one-to-three family homes homes make up almost half of the city’s total tentative property assessment. Assessed value, however, should not be confused for the true market value a property might actually sell for, which is typically much higher.

Although it may seem logical that a rising property market brings with it higher assessments, Jeffrey Golkin, a real estate tax attorney, said that’s not a good enough reason for citywide assessments to be rising at their current rates.

“It’s clearly pricing people out of New York City,” he said. “This is just a continuation of what I consider an egregious trend of over-assessment which the people who live and work in the city can’t keep pace with.”

In Brooklyn, particularly, rising property tax rates are putting pressure on small commercial property owners who may have to “get out of the way for the next condominium,” Golkin said.

Assessments have long been politicized, with many choosing to direct their ire at whoever occupies City Hall at the time that tax roll numbers climb. Last week, a former city official told the Wall Street Journal that mayors “can largely raise property value assessments for commercial properties at will.”

“This is false,” a spokesperson for the Department of Finance told The Real Deal on Tuesday. “The mayor does not have any control over the assessment process. It’s calculated by a professional staff who are members of the international association of assessing officers. Values are based on information provided by commercial property owners on their income and expenses that reflect economic growth in the City.”

One of the biggest property tax exemptions on the books, 421a, was unavailable to developers that began new construction projects over the last year. But even though new applicants couldn’t sign up for it, buildings already in the program cost the city more than $1 billion in foregone tax revenue last year. On Sunday, Gov. Andrew Cuomo announced a plan to revive 421a (which also subsidizes some affordable housing) and retroactively grant the benefit to the builders who started work without it last year. He dubs the proposal “Affordable New York.”

City property owners have until March to decide whether to challenge their new tax assessments through a process known as tax certiorari. The DOF will release a final assessment roll for fiscal year 2018 in June.

Monthly Update - January 2017

Happy New Year!

The election dust has settled, the holidays have passed and a new year has begun. We bid adieu to our current president, and shortly, will inaugurate a new one. But before we plunge headlong into the rest of 2017 — sure to be an interesting year — let's pause and take a look back at the end of 2016.

Compass recently released its Q4 2016 Manhattan Market Report, and the results show a marketplace in flux and influenced by real-world events, namely the election and the Fed's long-expected decision to raise interest rates. Some key findings from the report include:

  • Overall, closings were down year-over-year, but much of that slowdown might be attributable to a collective holding of breath before the election. Compass data finds that there were 24 percent more contracts signed in the four weeks after the election (837) than in the four weeks before the election (677).
  • Inventory, especially in the condo market, continues to be out of pace with current consumer demand with units priced above $3 million comprising 29 percent of total inventory, but only 15 percent of signed contracts.
  • Asking and closing prices continued to trend up at a significant pace, meaning that while total annual closing numbers were down from 2015, total sales volume was down a mere 3 percent for 2016 ($24.4 billion) compared to 2015 ($25.2 billion).

While post-election activity ended the year on the upswing, the potential impact of the new administration leaves us with more questions than answers, making it more important than ever to make smart, informed real estate choices in the coming months.


For more information, download the full report and for instant access to real-time market data any time of year, download the Compass Markets for iOS app.

Stay Tuned, Coming January 17th....

    Hot Off The Press:

Compass Expands In Miami; Acquires Local Firm
City Biz List |  Read Full Article

Billion-Dollar Trio: Here's a look at NYC's unicorns of 2016
New York Business Journal |  Read Full Article

"Compass is building the first modern real estate platform, pairing the industry's top talent with technology to make the search and sell experience intelligent and seamless. "


As part of our promise to offer a more intelligent and seamless real estate experience, we’ve launched Market Insights HERE. You can gain timely insights about your local market by scrolling down the page and entering your ZIP code.
 

With Market Insights, here’s what we’re offering:

  • Gain the following high-level insights based on your ZIP code
    • Percent change in home sales for the previous two quarters
    • Trends in home sales over the past eight quarters
    • Pricing patterns for properties per square foot
  • Feel free to share the report by email address or even post it to your social networks

Going, Going, Gone...

Thanks to our friends over at StreetEasy, we’re rather on top of this city’s real estate comings and goings — emphasis on goings.

This week, a handful of highly priced pads left the market, and here are the ones we’re saddest to see go — although, we rather suspect we’ll see some of them again soon, perhaps with a spanking new price tag.

781 Fifth Avenue 18th Floor | Off Market

We happen to know that the full floor unit on the 18th floor of the Sherry Netherland makes an excellent party venue, but alas that doesn’t seem to be enough to sell the pricey pad.

Most recently asking a whopping $78 million, the spread has been on and off the market since 2015, and was originally asking an even more sizable $86 million. It comes with seven bedrooms, a library, and a balcony with a hell of a view.

Billionaire hedge fund manager and record-breaking art collector, Steven Cohen is the owner of this spread, and it seems as though he just can’t get rid of it. Cohen snapped up the unit in 2005 for $24 million, and first listed it for $115 million back in 2013. Then the price was dropped to $98 million, then $82 million, then $79 million before it was taken off the market altogether last December. In April 2016 it reappeared with a $72 million price tag, then asked $67.5 million – still to no avail.

Some say its cursed, and we’re starting to think they might be right.

This $25 million penthouse belongs to Tamara Mellon, the shoe designer and co-founder of Jimmy Choo.

It first hit the market back in 2014 for $34 million, and since then it saw a couple of price chops. It comes with five bedrooms, 12-foot ceilings, a chef’s kitchen, a formal dining room, maid’s quarters, an enclosed solarium, a walk-in closet that is currently filled to the brim with shoes, and a whopping 5,290-square-foot of terraces.

34 East 74th Street | In Contract 

This is likely the last we’ll see of this particular Upper East Side townhouse for a while.

The home — which was last asking $19.9 million — has gone into contract. It comes with five stories plus a basement, an elevator, an eat-in kitchen, high ceilings, a library, a wine cellar, a rooftop terrace, and a garden.

It was once owned by millionaire newspaper executive Harry F. Guggenheim (nephew of Solomon R. Guggenheim, of museum fame).

7 East 76th Street | Off Market 

This 14,000-square-foot townhouse has also bid farewell to the market.

It was last listed for $42 million, and features nine bedrooms, two kitchens, two staff rooms, and original details galore. Plus a handball court, gym, greenhouse, finished basement in addition to the six other floors. Below the basement there is storage space and a wine cellar.

By 2020 You’ll Be Able To Walk From Manhattan To Buffalo.....If You Wanted To

Imagine a trail that connects the metropolises, small towns, historic landmarks, and parks of New York state—and know that it’s not far off. Today Governor Cuomo announced the Empire State Trail, a 750-mile path for anything but driving that will stretch from Manhattan to northern New York, across to Albany and Buffalo.

The announcement came during the second stop on Cuomo’s week-long State of the State tour. The Empire State Trail is envisioned as a way to continue stoking tourism throughout the state, already at an all-time high.

“It would change the economic activity throughout the state,” Cuomo said. “The Empire State Trail, once completed, will be the nation’s largest state multi-use trail network, providing residents and visitors alike unprecedented access to New York's outdoor treasures, driving tourism and economic activity to communities across the state and helping to protect our environmental resources for generations to come.”

The Empire State Trail will be a paved surface along which trail-goers can run, bike, walk, and rollerblade (if anyone still does that) through parks and valleys, and along waterways across the state. It will complete and connect the unfinished Erie Canalway, which extends from Albany to Buffalo, and the Hudson River Greenway that runs 11 miles along Manhattan’s west side and into the Hudson River Valley, while also branching towards the Canadian border.

Though its a long way off, Cuomo’s vision is clear: the Empire State Trail would require the state to build, pave, and grade 350 miles of multi-use trails that would be constructed over three phases. The first phase would include 72 miles of trail, the second, 82 miles, and 196 miles in the third phase. The additional mileage is already built out through the Hudson River Greenway and Erie Canalway. The trail in its entirety is expected to be complete by 2020.

The state already owns most of the land the trail would wind past, and $53 million has been committed from this budget to see it realized. The experience, of course, wouldn’t be complete without a new website and app, which will connect users to local economies by helping them scout out attractions and services.

New ‘One-Seat Ride’ Options to JFK Airport Proposed By The Gov.

Earlier this week, Governor Cuomo unveiled his latest nine-figure infrastructure proposal, a $10 billion overhaul of JFK Airport. As 6sqft explained, the plan address three main issues: “unifying all the terminals with an interconnected layout so the airport is more easily navigable; improving road access to the airport; and expanding rail mass transit to meet projected passenger growth.” This final point included a direct rail link so that passengers traveling to and from Manhattan wouldn’t need to ride the subway to connect to the AirTrain. The Regional Plan Association decided to explore this idea further, and in a report out today they’ve detailed five different approaches for a “one-seat ride” to JFK, which includes an extension of the Second Avenue Subway and a new underground tunnel.

Photo of the JFK AirTrain courtesy of the Port Authority of New York and New Jersey

According to the report, the five options are as follows:

Air Train Connection: Connect the existing AirTrain to the LIRR mainline at Jamaica, creating a one-seat ride from Penn Station and Grand Central to JFK.

This option is feasible since it relies mostly on existing infrastructure, though it would require the construction of a “flying junction to connect AirTrain to the LIRR main line” and since the tracks and trains of both systems are different, a “hybrid vehicle” may need to be developed to bridge both lines. Other issues are the already-taxed train slots at both Grand Central and Penn Station and the small nature of the current AirTrain stops. On the plus side, it would be a future connection with the East Side Access project and could run express to Manhattan after Jamaica Station.

+++

The following three options use all or part of the existing Rockaway Beach Branch of the LIRR (which, it should be noted, is the site of the proposed QueensWay park). It’s currently an abandoned line that runs 4.8 miles from Rego Park to Howard Beach, and it connects with the Lower Montauk Branch (a freight line) and the Atlantic Branch to Downtown Brooklyn’s Atlantic Terminal. They would function in addition to the AirTrain, but would cost significantly more than the AirTrain Connection outlined above.

LIRR Airport Express: Extend the unused Rockaway Beach Branch LIRR line in Queens into the airport, and run service from Penn Station or Grand Central along the LIRR mainline to the branch line.

Save for a new on-airport tunnel and stations, this could be done with little new infrastructure and could run express from JFK to Manhattan. However, it could only run to Penn Station or Grand Central (not both), and commuter service would be reduced on the LIRR to accommodate the new airport trains (unless a new East River tunnel was constructed).

2nd Ave Subway Extension to Airport: Extend the Second Avenue subway to Brooklyn and connect to the airport using the Atlantic and Rockaway Beach rights-of-way.

Like a subway, this option would run 24/7 and provide more connections with existing subway lines in the outer boroughs. Because it would connect at Atlantic Avenue, it would also preserve most of the Rockaway Beach Branch for the Queensway. But the subway element has its drawbacks; there would be no express service, so timing would be slower, and many existing subway stations lack accessibility (even more of an issue when you’re traveling with luggage).

3rd Avenue Express: Connect a new rail line along Third Avenue in Manhattan through the Atlantic and Rockaway Beach rights-of-way as part of a larger transformation of the region’s rail network.

This option would link up with both the LIRR and Metro-North and create another new subway line for the east side. Like the 2nd Avenue idea, it preserves most of the line for the QueensWay, but unlike it, the 3rd Avenue option would allow for “limited-stop, express service to JFK and service to major business and tourist destinations in Manhattan, and possibly Brooklyn.” On the con side, this is an entirely new subway line, and we know how long and how much money that took to put in motion on Second Avenue.

+++

Super Express: Construct a new rail right-of-way, most likely a tunnel, between Manhattan and the airport.

The RPA calls this the “most direct, fastest, express alignment between JFK and Manhattan.” It would avoid all the complexities of reinstating the Rockaway Beach Branch, but it would also be the most expensive option since it utilizes no existing infrastructure. Additionally, it would only benefit airport travelers and would pass through a good deal of private property (which could spell eminent domain).

2016 Closing Thoughts...

As 2016 comes to a close we reflect on the year, we are grateful for the friendships and new opportunities that have supported our team’s continued growth.

The hard work and dedication of everyone on the team has played a tremendous role in our successful year. By joining COMPASS this year we are fortunate to now be at the forefront of the city’s real estate market, and are being supported by its cutting edge technology.


We wanted to take this opportunity to thank you for your continued business, trust and support throughout this past year. We wish everyone a healthy, safe and prosperous New Year, and can't wait to share our 2017 together. 

                  - The Hoffman Team

17 Predictions For NYC's Real Estate In 2017

MANHATTAN — As the year wraps up, one thing hasn't changed in the city's real estate market: affordability still eludes many New Yorkers.

The average sale price for an apartment in Manhattan, including co-ops and condos, surpassed $2 million for the first time ever, according to City Realty, which predicts that 2017 will see average prices for condos drop for the first time in more than 5 years.

But that's little consolation given that 2016’s average Manhattan apartment price was 91 percent higher than just 10 years ago, City Realty found.

And rents are still pricey, even with many landlords offering a free month.

Manhattan’s average price for a one-bedroom in November was $3,440 a month, according to a Douglas Elliman report. Since landlords often require you earn 40 times the monthly rent, that means you’d need to earn $137,600 a year to afford it.

Here’s what experts are forecasting for 2017:

1. Interest rates will increase.

With the Federal Reserve, which raised interest rates for the first time in 2016 on Dec. 14, likely to increase rates over the course of the coming year, mortgage rates will likely inch up.

Mdrn. Residential’s Zach Ehrlich believes rate increases will positively affect the market by narrowing the spread between the asking price and bidding price.

"More sellers will adjust pricing to ensure they don't get caught in receding sales market," he said. "More buyers will lock-in and pull the trigger given upward trend of rates."

He also predicted that some potential buyers will opt to continue renting instead as their buying power decreases.

2. Landlords will continue offering deals.

The rental market will remain “soft” into spring, Ehrlich said, with inventory increasing as new projects open.

“Smart renters will negotiate with current management companies to limit or block increases and in some cases may even be able to get concessions on existing apartments if they speak up,” he advised.

The incentives, however, are largely in the new developments, said BOND New York’s Douglas Wagner, giving some renters a misconception about how widely available deals are.

“We’re seeing people coming in for lower-priced apartments thinking they’ll get a deal,” he said. “If you’re spending $4,200 a month you can get a free month, but not necessarily if you’re spending $2,400.”

3. There will be more migration between Manhattan, Brooklyn and Queens in all directions.

A rendering of the rooftop at Astoria's Graffiti House, which is attracting Manhattan and Brooklyn renters. Courtesy of AKI.

As pricey new developments floods the market in Long Island City and parts of Brooklyn, rents in Manhattan might not look too bad anymore, brokers said.

“The run-up in pricing in Brooklyn and Long Island City will get some residents to look back at Manhattan,” Ehrlich predicted.

The migration will go in all directions, said Eric Benaim, CEO of Modern Spaces.

“People will be more open to hopping around,” he said.

4. Developers will convert some rentals to condos.

With so much competition in Long Island City — where roughly 9,000 new units are expected in the latter part of the year — and in Brooklyn, where another 5,000 units are expected, the softening prices and competition will force some developers to rethink the rental market, Benaim said.

“Developers will change their business plans and convert their small rental projects to condos, or sell them altogether,” he believes.

5. The Second Avenue subway will boost the Upper East Side.

Regardless of whether the MTA meets its deadline at the end of this month, the Second Avenue subway is expected to be ready for the spring buying and rental season.

“Rental demand east of Third Avenue will change overnight,” Ehrlich said. “Expect more sales activity with units and buildings there as well. It’s easier for the average buyer to understand once they see subway opened and operating.”

6. South Williamsburg will become more popular.

With the construction of the mega-project at the former Domino Sugar site and the 18-month shutdown of the L train between Brooklyn and Manhattan pegged for 2019, the South Side of Williamsburg is gaining ground, many brokers said.

A rental with about 80 units and rooftop garden plots near the Marcy Avenue J, M, Z stop has been leasing briskly, said Mehul Patel, COO of Midwood Investment and Development, of the 282 S. Fifth St. project.

“It’s near the first stop over the [Williamsburg] Bridge, well placed considering eventual shutdown of L train,” he said.

But don’t discount the Northside just yet, especially as jobs are expected to move to 25 Kent Ave.

And while rental and condo prices will likely dip because of the L train, Benaim said, “2017 would be a good time to buy in the neighborhood, as prices will rebound afterward.”

7. Queens gets higher-end projects.

With prices in Long Island City rising, many see a spillover effect in markets like Astoria, Flushing and Forest Hills/Rego Park.

More developers are also eyeing Sunnyside, Woodside and Jackson Heights.

“You’ll start to see more modern, architecturally-driven product there,” said Benaim. “Queens is where it’s happening.”

8. Astoria is on the rise.

Already, a new wave of tenants from Manhattan and North and Brownstone Brooklyn are coming to Astoria, said Brett Harris, managing partner at AKI Development, whose Graffiti House building along Astoria's rapidly changing waterfront has such upscale touches as radiant heated floors, heated terraces and outdoor showers.

“We see this neighborhood taking off,” Harris said.

New ferry service to Astoria is expected to launch in the spring, the MTA is renovating the subway stations in the neighborhood, and it brought back the W train. The city earmarked $30 million to restore Astoria Park and is continuing to push it pricey streetcar project that would terminate in Astoria.

“That would be a major catalyst,” he said.

9. Attention turns to The Bronx’s Concourse...

Lee Williams, of Level Group, has seen an uptick of renters looking at The Bronx's Concourse neighborhood, which is just two stops from Manhattan on the express train and has one-bedrooms for $1,400 a month.

Plus the area has dry cleaners and grocery stores, he added.

10. ...and Riverdale neighborhoods.

Elizabeth-Ann Stribling-Kivlan, president of Stribling and Associates, is also seeing renewed interest in Riverdale.

“For $800,000 you can have an incredible view and amenities,” she said. “People don’t realize how close it is and that if you live outside of Manhattan, you can have a car.”

11. People just might pay $1,735 to live in a studio in Staten Island.

Urby Staten Island, on Stapleton's waterfront, is a project to watch for, said Kathy Braddock, of William Raveis Real Esate.

“I think you will hear more about Staten Island in the years to come,” she said. “You can get beautiful new apartments with all the amenities for $1,700.”

The trick is giving the ferry more cachet like ferries have in Sydney, Istanbul and Chicago, she said.

“Wall Street is becoming hipper and happening, and it’s a hop, skip and a jump to Staten Island. How cool would it be to take a ferry there and back?” she said.

12. Amenities will focus more on experiences than space.

Especially for millennials, buildings are more about lifestyle, so amenities will focus more on building-wide programing, like at 1 North Fourth St. in Williamsburg, where there’s yoga night, Monday Night Football and celebrations like National Cookie Day — anything that brings people together, said Andrew Barrocas, of MNS Real Estate.

“These are amenities that are not only going to attract people but keep them,” he said.

13. Yes, more affordable is coming.

More projects being built under the de Blasio administration's Mandatory Inclusionary Housing program will coming through the pipeline, said Jolie Milstein, president and CEO of the New York State Association for Affordable Housing (NYSAFAH), a group that represents affordable housing developers.

Communities whose neighborhoods have been targeted for the program, including a wide stretch of The Bronx along Jerome Avenue, East Harlem and East New York, however, have raised concerns about the impacts of new zoning and whether new buildings will be affordable enough for existing residents.

Milstein said her group plans to work with City Council and community leaders “to fully explain new projects, address concerns and reach positive resolutions.”

14. But $2 billion in affordable housing funds still hangs in the balance with a 421-a deal in limbo.

Until the agreement over 421-a, a tax break for certain newly built residential developments that expired in January, is finalized with a vote in Albany, the state legislature has refused to release $2 billion in state affordable housing funds.

“New Yorkers are at risk of losing thousands of already-planned affordable housing units,” Milstein said.

Other developers are pushing for the state to approve 421-a, as many can’t do rental projects without the tax break, they said.

“No one is doing land deals anymore,” Harris said. “We can’t make our numbers work. We’re waiting on the sidelines."

Instead, Barrocas said, many development firms have been looking at buying older buildings in prime neighborhoods that they can renovate to command higher rents, like the 890-unit former Mitchell-Lama complex at Kips Bay Court.

15. Affordable housing goes super green.

Affordable housing developers are embracing the latest in energy efficient construction — like Passive House standards — as a way to keep operating costs down, said Don Clinton, partner at Cooper Robertson architecture and design firm.

“This uptick is driven by sustainability advocates working together with the nonprofits who provide financing for affordable housing projects," he said.

“We'll likely also see affordable housing developments that are more sustainable and technologically advanced than a lot of their market-rate counterparts."

16. The wealthy will return to older buildings for security and privacy.

Buildings made of stone or brick are becoming popular again, said Richard Cantor at marketing firm Cantor-Pecorella.

“Top-level buyers [are] gravitating towards their thick walls, shapely windows, and quiet central courtyards that provide safe, bomb-proof security and privacy along with a sense of elegance and style that new glass towers can't match,” he said.

17. Bespoke kitchens are all the rage.

The "It" kitchen of 2017 from 443 Greenwich. Photo by Adrian Gaut and courtesy of MetroLoft.

“Look for more kitchen designs that truly embody the luxury lifestyles in leading properties,” Cantor said.

For instance, he noted MetroLoft's collaboration between the architectural firm CetraRuddy and cabinetmaker Christopher Peacock at TriBeCa’s 443 Greenwich.

“The look is perfect for New York in 2017: dark-stained white oak cabinetry with walnut interior surfaces and antiqued bronze hardware, and the island is topped with Calacatta marble, highlighted with polished stainless steel straps,” he said.

The 10 Biggest Sales Of 2016

A decade after developer Harry Macklowe acquired the site for 432 Park Avenue, sales at the supertall condo tower dominated 2016’s top residential deals.

Six of the building’s ultra-luxe pads were among this year’s 10 priciest closed sales — including the building’s $87.7 million penthouse, which closed in September. The spate of big-ticket deals at 432 Park  can be attributed to the fact that three years after sales launched, developers Macklowe Properties and CIM Group finally obtained a certificate of occupancy in late November 2015, allowing buyers to close on their purchases.

Overall, the top 10 sales of 2016 accounted for $517.4 million in deals, an 8 percent drop from last year, when the aggregate sale price of the 10 priciest pads was $565 million.

This year’s drop isn’t too surprising given the widespread softening in the high-end market.

Even at Rafael Vinoly-designed 432 Park, buyers who signed contracts and closed on their units this year received an average discount of 10 percent, according to a recent analysis by real estate appraisal firm Miller Samuel.

Barring any deals at the 11th hour, this year’s priciest transaction also falls short of last year’s biggest purchase, when an investor group led by hedge funder Bill Ackman shelled out $91.5 million for a penthouse at One57. But with several other ostentatious pads on the market — the 12,000-square-foot apartment listed for $96 million at 834 Fifth Ave comes to mind — anything could happen.

Here’s how this year’s top closed sales stack up. Keep in mind that the closed sale prices in property records do not reflect so-called price concessions, which are indicated on a separate rider and are not publicly recorded. So some of these buyers on the list below may have paid less than the prices indicated.

View from the Penthouse at 432 Park Avenue

1. 432 Park Avenue, PH 96 | $87.7 million
Three years after going into contract, Saudi retail magnate Fawaz Al Hokair reportedly closed on the highest — and priciest — pad at Harry Macklowe’s stratospheric 432 Park Avenue. In September,  Al Hokair shelled out $87.7 million, or over $10,600 per foot, for the 8,255-square-foot aerie. In an unusual move, co-developer CIM provided a $56 million money mortgage to acquire the unit, which was asking $95 million. The penthouse features a wood-burning fireplace and the building’s signature 10-foot-by-10-foot windows.

2. 432 Park Avenue, Unit 88 | $60.9 million
Lew Sanders, the former CEO of asset manager AllianceBernstein, forked over $60.89 million — or just under $7,600 per square foot — for one of the priciest penthouses at 432 Park. The five-bedroom, 8,055-square-foot pad, one of the last full-floor units in the building, was first listed in May 2014 for $76.5 million, or $9,497 per square foot. Sanders retired from AllianceBernstein in 2008 and now runs his own money-management firm, Sanders Capital, which claims to have $20 billion in assets under management.

3. 432 Park, Unit 79 | $59.1 million
In June, a Los Angeles-based corporation, 432 Crotona Park Avenue LLC, plopped down $59.1 million for a full-floor spread on the 79th floor, property records show. The buyer paid roughly $7,337 per foot for the apartment, a combination of two half-floor units that together span more than 8,000 square feet.

4. 4 East 66th Street, 5 | $52 million
Hedge funder Chase Coleman III parted with $52 million in July to expand his den at 4 East 66th Street, paying a premium over the co-op’s $48 million asking price. The Tiger Global Management head and his wife bought the fifth-floor pad from Gracie Capital’s Daniel Nir and his wife, Jill Braufman, who paid $29 million for the 15-room apartment in 2007. They listed the apartment for $48 million last year. The Colemans already live in the building, having spent $36.5 million in 2007 for two apartments on the sixth floor that were once owned by Veronica Hearst.

5. 212 West 18th Street, PH2 | $45 million
Talk about a workout: LA Fitness CEO Louis Welch sold his Walker Tower penthouse for $45 million in June, two years after picking up the Chelsea pad for $40 million. According to brokers in the building, the unit wasn’t even listed for sale when the mystery buyer — identified as Walker Tower 1-8 LLC — came out of the woodwork, paying $6,678 per square foot for the pad. Welch paid just over $6,044 per foot for the five-bedroom condo, which has 360-degree views and three wood-burning fireplaces. The 47-unit tower served as an office for Verizon before JDS Development Group and Property Markets Group converted it to high-end condos.

6. 432 Park Avenue, Unit 64A | $44.8 million
Bennett LeBow, chairman of Douglas Elliman’s parent company, Vector Group, made a big splash at 432 Park this year — dropping $44.8 million on a 64th-floor pad. LeBow bought the full-floor condo in April, joining partner Howard Lorber, who bought a half-floor unit on the 67th floor. LeBow paid roughly $5,562 per square foot for his digs, several floors below Lorber.

7. 432 Park Avenue, Unit 82B | $43.3 million
At $43.4 million, 432 Park’s Unit 82B was one of the year’s priciest sales — but the condo is just one of two units the mystery buyer picked up for a combined $62 million. Property records show that buyer Blessings Investments also paid $18.6 million for Unit 82A, giving the LLC a full floor at Macklowe and CIM’s ritzy tower. The larger condo, Unit 82B, spans 5,421 square feet and was not publicly marketed. The smaller unit, with 2,633 square feet, was listed for $21.5 million.

The Baccarat Penthouse

8. 33 East 74th Street | $42.8 million
Russian billionaire Alexey Kuzmichev jumped into the megamansion game this year, dropping $42.8 million on the 10,000-square-foot Atterbury Mansion at 33 East 74th Street, which he planned to combine with a smaller unit to make an even bigger spread. Kuzmichev, head of Russia’s Alfa Bank, closed on the townhouse in May, when he also shelled out $15.5 million for a 3,800-square-foot condo in the adjacent Whitney Condos, a 10-unit building developed by Daniel Straus. But Kuzmichev has since had a change of heart: In September, he listed the quadplex for $44 million.

9. 20 West 53rd Street, PH | $42.6 million
A mystery buyer paid $42.6 million for the penthouse at the Baccarat Hotel & Residences — a nearly 30 percent discount from the condo’s original price. The buyer — identified in public records as PH 20 West 53rd LLC — snagged the condo in July for $5,771 per square foot. The 7,381-square-foot duplex, with five bedrooms and five baths, was originally asking $60 million when it hit the market in August 2015. Developers Starwood Capital Group and Tribeca Associates later cut the price to $54 million. According to the developers, there are only two unsold units left in the 60-unit building.

10. 432 Park Avenue, Unit 77B | $39.2 million
A mystery buyer paid $39.2 million in July for a casa in the sky at Macklowe and CIM’s 432 Park. According to public records, a corporation known as Residencia LLC closed on Unit 77B, paying $7,242 per square foot for the four-bedroom, five-bathroom condo spanning 5,421 square feet.

This Map Reveals The Shadows Cast By Bvery New York City Building

The Times calls the phenomenon a “struggle for light and air.” And indeed, while New York City architecture is lauded for both its design and innovation, the decades-long race to build bigger and taller has taken a toll on the cityscape, particularly in the form of shadows. While any recent criticism of the effect has been directed towards the tall towers rising along Billionaire’s Row, as The Upshot’s interactive map reveals, New Yorkers on the whole spend most of their time cutting through long stretches of shadow. The map documents thousands of buildings across the five boroughs, denoting age, height and the resulting shadows cast at ground level over the course of one day, down to the minute, during all seasons. As seen above, tall-tower haven Central Park South is cloaked in darkness 24/7 during the fall, winter, spring and summer months—but then again, if you peruse the map, you’ll see a lot of other blocks are too.

As the paper points out, New York City’s latitude and orientation (the grid is 30 degrees off of true north) gives way to a skewed sunrise and sunset, where in the summer the sun rises in the northeast and sets in the northwest, and in the winter the sun rises in the southeast and sets in the southwest; incidentally, the standard east/west sunrise/sunset is an outlying event that happens only the equinoxes when day and night are of approximately equal duration. As such, the angle and length of a building’s shadow will vary significantly depending on the time of year. Moreover, neighborhoods that exist in shade in the winter can also be soaked in sunlight in the summer.

Parts of the West Village exist primarily in the shadows during the winter but are bathed in sunlight during the summer months

However, according to research provided by Claudio Silva and Harish Doraiswamy, engineers at New York University, “on average, most neighborhoods in Manhattan are covered in shadow for at least half of daylight hours.” And this has considerable implications.

As the Times writes, “Sunlight and shadow shape the character and rhythm of New York’s public spaces … In most parts of America, sunlight is not debated the way it is in New York, where the city’s thirst for living space, working space and economic growth has turned the sun into a virtual commodity.”

We see this as New Yorkers often opt to skip over dark “side streets” sandwiched between more major thoroughfares like 14th Street, 23rd Street, or 57th Street, as well as with rents where smaller, independent retailers (and to be sure, sometimes big chains) will set up shop along darker corridors to save cash.

Explore the map here >>

Five Largest Units On The Manhattan Market Right Now

As nice as private pools and radiant floors are, everyone knows that the ultimate luxury in New York City real estate is space. While most New Yorkers make do in cramped quarters (or just give up and adopt Marie Kondo’s philosophy), for a lucky — and very wealthy — few, it is possible to snag a home that is big enough to accommodate even the most extensive collections. As proof, take a look at the homes below, which are the biggest non-commercial units on the market right now. Read ’em and weep.

Address: 50 East 69th Street
Price: $72,000,000
Size: 21,070 square feet
The gargantuan Upper East Side spread is the largest home on sale in New York — though it is in need of a little TLC, much like the guests it has been housing recently. Up until May 2016, the building was home to the Center for Specialty Care, an outpatient facility for plastic surgery.

Address: 3 Pierrepont Place, Brooklyn
Price: $40,000,000
Size: 18,000 square feet
We guess you really do get more for your money in Brooklyn! The second-largest home in the city is significantly cheaper than the Manhattan-based winner. Of course, it is the most expensive home in the borough and it’s apparently attracted some star visitors; Matt Damon was spotted checking out the home in September.

Address: 12 East 96th Street
Price: $19,500,000
Size: 17,700 square feet
Built in 1916 by Ogden Codman, Jr., the building once belonged to Robert Livingston, a blue-blooded American financier, but since 1990 the house has been home to the Italian international school, La Scuola d’Italia Guglielmo Marconi. It comes with seven stories, an elevator, a wood paneled ballroom, seven fireplaces, high ceilings, a garden, and right now – a whole lot of classrooms.

Address: 12 East 79th Street
Price: $38,500,000
Size: 16,200 square feet
This building, which currently serves as the New York headquarters of the School of Practical Philosophy, has seen a couple of serious price chops since it first hit the market in 2014 asking for a whopping $51 million. Its sizable 16,000 square feet is spread across six stories, an English basement and a cellar. It’s right across the street from former Mayor Michael Bloomberg and his very-very-nearly two townhouses.

Address: 62 Cooper Square #PH
Price: $29,500,000
Size: 15,781 square feet
Spread across the top three floors of the Carl Fischer Building, this unit – obviously – holds a whole lot, including two private terraces, a billiards room, a library, and personal yoga studio. Pretty impressive. No news on who’s selling up, but songstress Norah Jones once owned in the building.

Central Park Ghost Tunnel Will Reopen For 2nd Ave. Subway

There are countless relics from the subway’s past hidden beneath NYC, but one of the most intriguing will reveal itself again in just 10 days when the Second Avenue Subway (SAS) invites straphangers to swipe their Metro cards for the first time. As Quartz noticed this past summer, a peculiar loop cutting through Central Park appeared when the MTA released their new subway map touting the addition of the SAS. Reporter Mike Murphy immediately questioned the mysterious addition that would move the Q train further north without issue (“I felt like people would have noticed if the MTA had been ripping up Central Park to build a tunnel,” he wrote). After a bit of digging, he found out the half-mile stretch was built over 40 years ago and, at least according to archival maps, it’s only been used only twice since then.

With the help of the Transit Museum, Murphy found that the “ghost line” runs between the 57th Street and 7th Avenue, and Lexington Avenue and 63rd Street in Manhattan, and was built in the 1970s as part of a past attempt to bring the Second Avenue Subway to life. The plan, however, was squashed when the city went into recession.

1998 map depicting the ghost tunnel via Quartz courtesy of the NYC Transit Museum

But the line wasn’t a total waste. Working with museum archivist Halley Choiniere, Murphy found two instances, of about six months each, where the tunnel appeared on transit maps. He writes:

“In 1995, the mysterious tunnel was included on the map when the Manhattan bridge was out of service, allowing Q trains to cross back over to Long Island farther up the East River while the bridge was being worked on. Once the work was completed in late 1995, the tunnel disappeared, and the Q train went back to its regular route. In 1998, the tunnel reappeared as a special temporary shuttle service while work was being done on the Sixth Avenue line, cutting off access to lower Astoria through the regular route. Again, when the work was finished, the tunnel disappeared, and the map went back to its regular delineations.”

And now, with the SAS opening in just over a week, the Q train will once again be rerouted—but this time permanently—to travel through the forgotten tunnel and up the newly constructed line.

[Via Quartz]

Gramercy Park Will Open To The Public For One Hour

For one precious hour, mere mortals will have the chance to walk through Gramercys Park‘s iron gates sans key. Curbed reports that on Christmas Eve the Gramercy Park Block Association will host its annual holiday caroling hour with the local Parish of Calvary-St. George’s, and from 6:00 to 7:00pm all will be welcome.

While an hour might not seem like a lot of time, it’s the only time during the year other than a brief springtime stint that the public can access the park. Otherwise, it’s only open to those who have one of its highly-coveted 400 keys. As 6sqft previously reported, “only those who live in dwellings circling the park have keyed access via an annual fee.” Each year, the locks and keys for the four gates are changed, and to ensure they’re not replicated, they’re”specially manufactured for Gramercy Park’s shareholders by Medeco” to be non-duplicable. Key holders can bring a maximum of five guests at a time, but losing that precious key will set you back $1,000.

2016’s Top Real Estate Stories - NYT

2016’s Top Real Estate Stories

Catch up on the most popular stories of the year. 

 

1.When a Dream House Becomes a Money Pit

A couple who thought they found the perfect home realized the dream was elusive after they moved in.

Full Article »

Renters

2.So Your Think Your Place Is Small?

Jack Leahy, 25, a musician, lives in a crawl space in Williamsburg, Brooklyn. His rent? $450 a month.

Full Article »

3.A Tiny Home by Choice in New York City

Some care far more about location than home size. For them, a dollhouse in the desired neighborhood will do.

Full Article »

4.Tiny Home Test Drive

A night in one of New York City’s new micro apartments.

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5.The Art of Home Staging

The practice of home staging has long elicited strong reactions. But as staging has evolved, more real estate professionals stress its importance.

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360 View

6.Fictional New York City Apartments Get Real

The homes of young New Yorkers on TV are getting grimmer these days.

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What I Love

7.Tamron Hall, of the ‘Today’ Show, Feathers Her Nest

Tamron Hall, a host of the “Today” show, an MSNBC news show and “Deadline: Crime With Tamron Hall,” lives in downtown Manhattan.

Full Article »

8.New York’s Next Hot Neighborhoods

Some buyers seeking real estate deals in New York go prospecting in neighborhoods that don’t suffer from packed open houses. Yet.

Full Article »

9.A New Dimension in Home Buying: Virtual Reality

The technology is expected to transform the real estate industry, and, many say, make house-hunting more efficient.

Full Article »

10.Bidding Wars in the Suburbs

High prices in New York City are driving up demand in certain nearby towns.

Full Article »

LaGuardia Ranked Nation’s Worst Airport

J.D. Power has just released their 2016 North American Airport Satisfaction Study ranking the nation’s airports by customer satisfaction, and New York’s LaGuardia Airport has been bestowed the title of the country’s worst. According to the study—and just about anyone who’s visited LGA in the last few months—construction woes related to Governor Cuomo’s $8 billion plan to transform the hub into a world-class airport by 2020 has led to serious headaches for travelers, and a 6-point drop in overall satisfaction from 2015. Last year, LGA ranked as the second worst airport in the U.S., just after Newark International.

LGA did, however, find a champion in Michael Taylor, director of the airport practice at J.D. Power, who defended the ranking in the study: “Those current terminals handle more than 13 million travelers a year. They were designed to handle only 8 million travelers,” he said. “This improvement has been needed for a long time. The new design is going to create major short-term headaches for LaGuardia travelers, but the results will be worth it. The design solves two major problems for the airport: overcrowding and the ability to move aircraft more efficiently on and off runways.”

As seen in the chart above, the northeast was well-represented at the bottom, with Newark Liberty International, Boston’s Logan Airport, and the Philadelphia International Airport ranked among the five worst airports in the country.

In spite of this, all in all, J.D. Power found that traveler satisfaction at large airports rose 5 points in 2016 to 724 (based on a 1,000-point scale). They add that the increase is also commendable given that annual traveler volume has been up 5-6 percent.

The study, now in its 11th year, surveyed 38,931 North American travelers between January and October 2016 on six factors (in order of importance): terminal facilities, airport accessibility, security check, baggage claim, check-in/baggage check, and food/beverage and retail.

No Room For A Tree?

If you live in an apartment or other small space, you know how hard it can be to fit Christmas decorations in your living room. Sometimes there’s hardly enough room for a stocking, let alone a big bulky Douglas Fir. But there’s one holiday decorating trend that could change that.

Meet the half Christmas tree. It’s an artificial tree that’s been cut in half from top to bottom so that it can be pushed flat against a wall or in a corner.

These items were hand-picked by our editorial team because we love them - and we hope you do, too. TODAY has affiliate relationships, so we may get a small share of the revenue from your purchases. Items are sold by the retailer, not by TODAY.

Minnesota Pine Westbrook 7.5' Green Artificial Half Christmas Tree with Stand, $157, Wayfair.com

There’s clearly a market for this — according to a spokesperson for Wayfair.com, these products have seen a 150 percent lift year-over-year.

Wayfair, in fact, has a whole section dedicated to these types of trees on its web site. The trees cost anywhere between $45 to $200 and beyond, depending on the brand and size.

First Look At The Second Avenue Subway’s $4.5M Public Art

If a sparkling new line isn’t cause enough to celebrate, once the Second Avenue Subway opens on January 1st, 2017, millions of New Yorkers will also be treated to several stretches of world-class art while navigating the 96th, 86th, 72nd, and 63rd Street stations. As the Times first reports, the MTA has poured $4.5 million into beautifying the stations with contemporary tile artworks by famed names Chuck Close, Sarah Sze, Vik Muniz, and Jean Shin.

While art seems like the last thing the cash-strapped MTA should be spending on, as the paper writes, the agency sees the project as means to “put the aesthetic front and center again in a way that evokes the ambition of the city’s first subway stations.” Indeed, integrating ornamentation like mosaics, stained glass, and tiled ceilings was once as important as laying down tracks. A prime example: the City Hall Station, which opened in 1904. Moreover, the undertaking reveals an effort by the MTA to make New York’s subway stations architectural destinations rather than just public utilities, something that’s at the center of transit design in Asia and Europe.

“At some point government adopted an attitude that its job was to build things that were functional but unattractive and unappealing,” Governor Cuomo said in a statement to Times. “But that’s not how it has always been, and it’s not how it should be.”

At today’s unveiling Cuomo added, “… while we were doing public works it was about an expression of who we were, what we believe, and was an impression and a gesture communicating that we have a character of society. Every public work was also artwork and also an educational experience. A child who had never walked into a museum or never walked into an art gallery, if they just walked around the streets of New York, they would be exposed to the art, education, and culture just by being a New Yorker, and that is where we came from and what made New York special.”

The four artists were chosen by the MTA Arts & Design, the agency’s art department, from a pool of 300-plus applicants. Each was given a station as a blank canvas. The project is the city’s largest permanent installation

432 West 52nd Street, Unit 4F

432 West 52nd Street, Unit 4F

HELL'S KITCHEN, MANHATTAN

1 Bed  |  1 Bath

Offered At $995,000

Taxes: $950 / mo.  |  CC:$847 / mo.  |  New Development  |  Doorman  |  Roof Deck & Gym

Stunning finishes line this brand-new home providing a rare opportunity to live in a spectacular new-construction building without paying the sponsor’s transfer taxes and closing cost fees!

The light-filled one-bedroom, one-bath home is topped by 9-foot ceilings while white oak hardwood floors run underfoot. The great room provides ample space for living and dining areas while the nearby open kitchen is a model of efficient, attractive design with integrated refrigerator, stainless steel appliances, lacquer cabinets and sleek Caesarstone countertops.

The large windowed bedroom is a serene space with a large closet, and two more large closets throughout the home ensure that storage is never an issue. The sleek bathroom features a custom vanity, frameless glass walk-in shower, gorgeous floor-to-ceiling tile and radiant heat flooring. Central climate control, energy-efficient windows and an in-unit washer-dryer provide the ultimate in comfort and convenience.

432 W 52 is a boutique condominium with extensive amenities including a 4,200-square-foot common landscaped roof deck, spacious residents' lounge, fully equipped fitness center and 24-hour doorman. Situated in Midtown within walking distance of Central Park, the Theater District, Columbus Circle and Times Square, the location is quite literally at the center of it all! Nearby access to the A/C/E, B/D, 1 and N/Q/R subway lines puts the rest of the city at your feet.

Amtrak’s Hudson River Tunnels Project Could Bring Long Term Traffic Jams

Back in January, Amtrak unveiled its $24B Gateway Program, a plan that would overhaul the Hudson River rail tunnels by building a brand new tunnel and repairing another that is currently in disrepair. Work under the plan would also encompass expanding Pennsylvania Station in Manhattan and replacing rail bridges in New Jersey. While details on the course of construction were previously thin, according to draft proposals obtained by Reuters, we now know that work on the new tunnel will begin in 2019, and the West Side Highway could be subject to three years of traffic jams as a result.

As 6sqft previously reported, the most crucial component of the Gateway is the estimated $7.7B Hudson Tunnel Project that will bring a new two-track tunnel into Penn Station station and rebuild an existing, century-old tunnel. The existing tunnel was damaged during Superstorm Sandy and continues to erode as saltwater residue clings to the interior. What’s more is that irrespective of the damage, ridership has grown tremendously over the last 30 years, and the existing setup is unequipped to handle increased demand. The Regional Plan Association has called the Hudson River tunnels “the biggest bottleneck in the metro region’s transit network, causing delays that ripple up and down the northeast corridor.” Shoring up infrastructure is imperative, and as Reuters writes, “The Gateway project is considered critical to the greater metropolitan New York City area, which produces 10 percent of the country’s economic output.”

The draft proposals was obtained from a transportation sector source by the news outlet and lays out various plans for construction. One scenario details digging up a partially renovated section of the Hudson River Park using a “cut and cover” method, a move that would lead to lane closures on the busy West Side Highway and limit access to the park. Also noted is stabilizing the ground for boring, as parts of Manhattan are on landfill; as is building a massive underwater encasement that would rise from the riverbed to protect the tunnel from things like anchors and grounded ships. Work in the water could take two years and encompass 224,000 square feet (or four football fields in size), which would also impact the Hudson’s marine life.

The plans outlined in the drafts, however, have in no way been finalized and are meant to identify the least desirable construction scenarios—a common measure taken for large-scale public projects. The proposals will ultimately be incorporated into an environmental impact statement to be released in 2017. Nancy Snyder, a spokeswoman for NJ Transit, who is leading the environmental review, told Reuters: “We are going through this process to see what is the best way to construct the tunnel with the least amount of impact to everyone involved.”

Last September, it was decided that New York and New Jersey would cover half the cost of theGateway Program, and federal officials the other half through a separate entity within the Port Authority of New York and New Jersey. Amtrak says it will take a decade to complete the entire project.

104 Years Ago This Week, The Nation’s First Public Tree Went Up In Madison Square Park

On December 21, 1912, a 60-foot-tall tree arrived by horse-drawn truck from the Adirondacks to provide Manhattan’s Madison Square Park with the glow of 2,300 colored electric bulbs. The twinklers were donated by the Edison Company, and the tree was the first of its kind: Having a Christmas tree in one’s living room was a familiar custom, but a tree outside in a public park was something new.

The idea came for the tree came from Emilie D. Lee Herreshoff, the 49-year-old wife of a prominent chemical scientist. After witnessing a rise in social causes related to the city’s poor, she proposed the tree as a way to allow everyone, especially those who couldn’t afford a tree of their own, to participate in a lighting. The Mayor eventually approved the plan, and the Adirondack Club donated the tree, with transportation costs covered by an anonymous railroad worker.

The New York Times wrote of the new public display of holiday greenery, “It is hoped by those who have worked for it and hope to personify in it the great Christmas spirit that the placing of a great outdoor Christmas tree may become a national custom, taking the place in America of the older customs of older lands.”

 

A Christmas Eve celebration attracted 25,000 and became the country’s first public Christmas tree lighting. Visitors “stood a reverential audience, cheering the music and praising the idea of a public Christmas tree, but not once growing boisterous in the smallest degree,” wrote the Times on Christmas Day. The Star of Bethlehem was placed atop the tree while local choirs and bands performed holiday carols. At midnight, a performance of “America” ended the festivities and the lights were shut off. But they were illuminated every evening until New Year’s Eve.

The Star of Hope, via the NYC Parks Department

Called the “Tree of Light,” the Madison Square Park tree sparked a new trend. In 1913 alone, public Christmas trees popped up in Chicago, Detroit, Baltimore, Jersey City, and 50 more cities. And to commemorate the significance of this event, a permanent monument stands in present-day Madison Square Park. Called the Star of Hope, it’s a five-pointed star atop a 35-foot pole that was erected in 1916.

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