We have officially reached the lowest level of inventory available since the year 2000. The appraisal company Miller Samuel reported that in the fourth quarter of 2012 there were only 4,749 units (condos and co-ops) available for sale.
Similarly the website StreetEasy showed that the number of listings available declined almost 14% from the last quarter of 2011 to the last quarter of 2012.
Needless to say, well priced apartments receive multiple offers after the first open house and end up in contract in a matter of days.
Even though the shift in people’s interest from rentals to sales is a reality, this has affected the rental market only marginally. These winter months have shown only a normal seasonal trend of slightly reduced activity due to the weather.
House approves Sandy relief bill
After long debates the U.S. House of Representative approved last month a $50.7 billion emergency bill for Hurrican Sandy victims. The $50.7 billion, along with nearly $10 billion in aid that Congress approved in January, would help home and business owners whose property was affected. The measure would also reinforce shorlines, repair subway and commuter rail systems, fix bridges and tunnels, and reimburse local governments for emergency costs.
Empire State Building
One of the most anticipated IPOs of the year is the one that includes the iconic Art Deco building within the new REIT to be launched: The Empire State Realty Trust.
The Malkin family has been controlling the building since 2002. Before the IPO, the family needs to receive approval to proceed from a large number of other small investors who had the opportunity to purchase a piece of the Empire through a syndicate deal in 1961 when Lawrence Wein (father-in-law to Tony Malkin, president of Malkin Holdings) arranged the deal with Harry Helmsley to buy the building for $65 million.
Many of these small investors receive hefty dividends from their shares and are against the IPO. They believe it will dilute their earnings because it will lump the Empire State Building with underperforming suburban properties. Last year a few of them sued the Malkins to stop the deal. The suit was reportedly settled for $55 million.
One of these investors is Richard Edelman, who owns 10 shares that his grandfather, an escalator salesman, bought at the time on a tip from a neighbor. According to data recently released by the Malkins each share is worth around $330,000…that’s what I call being in the right place at the right time…
Although inventory is low, there is a good number of new projects under way, The Real Deal Magazine reports. For example, on 57th Street alone there are six large scale new luxury buildings in different stages of development.
At 625 West 57th Street excavation has just started. This building will include 750 condo units + 60,000sf of retail space up for grabs. The design by the firm Bjarke-Ingels consists mainly in futuristic glass pyramid overlooking the Hudson River. The time frame for completion is three years.
225 West 57th Street is a planned tower slated to be finished in 2018. This building, with its 233 luxury condos, will become the tallest residential structure in Manhattan eclipsing One57 nearby, developed by the same company: Extell.
157 West 57th Street (One57) is a luxury condo, and tallest residential tower in NYC for the moment, reportedly 70% sold.
107 West 57th Street is another slender tower of 52 stories. Construction should start in this quarter should be completed in 2014.
432 Park Avenue will be a 95-story condo tower slated for completion in 2015. This is Harry Macklowe + CIM Group project on the former Drake Hotel site.
250 East 57th Street is a mixed use project by World Wide Group and the Educational Construction Fund comprising two new schools, a 59-story residential tower and 78,000sf of retail. A Whole Foods has already opened on the site and construction for the residential tower is underway.
I am available to answer your questions anytime. Whether you are interested in buying, selling or renting a piece of the Big Apple, I will be pleased to hear from you or anybody you know who can take advantage of my expertise. If you are thinking of selling I offer a free property-market-value estimate.
Thank You for reading.
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